Medicare eligibility starts at 65. Social Security can start at 62. The three years between those two ages — the coverage gap — is one of the most expensive and least-discussed parts of early retirement planning. COBRA continuation from your employer costs $700-900 per month for a single individual and ends after 18 months. An unsubsidized ACA marketplace plan for a 62-year-old runs $750-950 per month. But a 62-year-old who manages retirement income carefully — primarily Roth IRA withdrawals rather than traditional 401k distributions — can qualify for ACA subsidies that bring the monthly premium down to $50-250 per month. The income management strategy is worth up to $21,000 over the 3-year gap. Here's how each option actually works.

Paying 2 discount points to buy your mortgage rate down from 7.25% to 6.75% on a $350,000 loan costs $7,000 upfront and saves $118 per month. The break-even point is 59 months — roughly 5 years. If you stay in the home longer than 5 years, buying the points saves you money. If you move, refinance, or sell before then, you've overpaid. This sounds straightforward, but there's a refinancing wildcard, an opportunity cost question, and a "temporary buydown vs permanent points" distinction that changes the math significantly. Here's how to run the calculation for your actual situation.

Refinancing a car loan from 7.9% to 5.5% on a $25,000 balance with 48 months remaining saves approximately $27/month and $1,308 in total interest over the life of the loan. The break-even on refinancing fees — typically $75 or less for an auto loan — is under 3 months. Unlike mortgage refinancing, there's no appraisal, no closing costs, and no points. For most people who got a car loan in 2022-2023 when rates spiked and now have improved credit or better rate options, refinancing takes about 20 minutes online and the math strongly favors doing it. The one trap to avoid: extending the loan term for a lower payment that ends up costing more in total interest.

Canceling a credit card you no longer use sounds like responsible financial hygiene. In practice, it can drop your credit score by 10-40 points depending on your specific credit profile — and the damage from canceling a 10-year-old card with a large credit limit is often larger and longer-lasting than people expect. The effects hit two of the five FICO score factors simultaneously: credit utilization (30% of your score) and average age of accounts (15%). Here's the exact math, when canceling is actually fine, and what most people should do instead.