Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 04-15-2015, 06:10 PM   #21
Full time employment: Posting here.
ownyourfuture's Avatar
 
Join Date: Jun 2013
Posts: 512
Quote:
Originally Posted by jim584672 View Post
The problem is by taking the pension and divs you have 49k a year income. This will put you out of range of any subsidy so you will pay full price. And it will go up every year as you age. It will not be cheap. Since you can't get a subsidy you can stay in your dividend stocks, as the divs are probably qualified, so will would be good.
There's another possibility. I could switch part of my dividend portfolio to growth and/or some municipal bonds to lower my taxable income.

Not sure if this would be enough to allow subs for healthcare. It would certainly help me in April as the $650 month I'll be paying for COBRA would be greater than 15% of my GAI, and therefore I could itemize & write off (at least partially) my premiums.

Am I wrong ?
__________________

__________________
ownyourfuture is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-15-2015, 06:52 PM   #22
Thinks s/he gets paid by the post
 
Join Date: Feb 2014
Posts: 1,050
Quote:
Originally Posted by ownyourfuture View Post
There's another possibility. I could switch part of my dividend portfolio to growth and/or some municipal bonds to lower my taxable income.

Not sure if this would be enough to allow subs for healthcare. It would certainly help me in April as the $650 month I'll be paying for COBRA would be greater than 15% of my GAI, and therefore I could itemize & write off (at least partially) my premiums.

Am I wrong ?
Muni tax free interest and qualified dividends are included in the MAGI for subsidy purposes.

I think you should shop on the Exchange to see if you can get a better deal than $650 a month. I was in a similar situation, refused COBRA, got a Platinum plan for $378 with a subsidy. COBRA would have been $615.

I know you do not want to deal with the ACA, but eventually you will have to. It is better to deal with it early to see where you stand than later, since COBRA is only for 18 months.
__________________

__________________
jim584672 is offline   Reply With Quote
Old 04-15-2015, 06:59 PM   #23
Full time employment: Posting here.
ownyourfuture's Avatar
 
Join Date: Jun 2013
Posts: 512
Quote:
Originally Posted by jim584672 View Post
Muni tax free interest and qualified dividends are included in the MAGI for subsidy purposes.

I think you should shop on the Exchange to see if you can get a better deal than $650 a month. I was in a similar situation, refused COBRA, got a Platinum plan for $378 with a subsidy. COBRA would have been $615.

I know you do not want to deal with the ACA, but eventually you will have to. It is better to deal with it early to see where you stand than later, since COBRA is only for 18 months.
Thanks Jim
__________________
ownyourfuture is offline   Reply With Quote
Old 04-15-2015, 07:14 PM   #24
Recycles dryer sheets
 
Join Date: Jun 2012
Posts: 489
+1 on the suggestions that ACA may be cheaper for HI. DW and I went to it when DW went out on her own and it's actually been cheaper for us. But we have to shop around -- one place charged literally 5 times as much for the same MRI as another.

A quick look in Excel suggests that your budget will be extremely tight leading up to SS kicking in in 2024. And then getting tight again from around 2040 on as the primary pension dwindles in real terms due to it being non-COLA. Obviously you have the other pot of money (401k/IRA) to supplement from if needed.
__________________
someguy is offline   Reply With Quote
Old 04-16-2015, 01:21 PM   #25
Thinks s/he gets paid by the post
Big_Hitter's Avatar
 
Join Date: May 2013
Location: In the fairway
Posts: 4,099
I'd feel better with another $1M or so
__________________
Swing hard, look up
Big_Hitter is online now   Reply With Quote
Old 04-16-2015, 01:35 PM   #26
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Mulligan's Avatar
 
Join Date: May 2009
Posts: 7,384
Quote:
Originally Posted by jim584672 View Post
Muni tax free interest and qualified dividends are included in the MAGI for subsidy purposes.

I think you should shop on the Exchange to see if you can get a better deal than $650 a month. I was in a similar situation, refused COBRA, got a Platinum plan for $378 with a subsidy. COBRA would have been $615.

I know you do not want to deal with the ACA, but eventually you will have to. It is better to deal with it early to see where you stand than later, since COBRA is only for 18 months.

When your Cobra expires, consider setting up an HSA, fully fund it and get the tax deduction. My retirement income is higher, but the tax savings pays for 4 months of my premiums. And while your at it, stay healthy and invest that HSA money and you will acquire another small pot of money when you turn 65.


Sent from my iPad using Tapatalk
__________________
Mulligan is online now   Reply With Quote
Old 04-16-2015, 05:25 PM   #27
Full time employment: Posting here.
ownyourfuture's Avatar
 
Join Date: Jun 2013
Posts: 512
Quote:
Originally Posted by Big_Hitter View Post
I'd feel better with another $1M or so
We all would
__________________
ownyourfuture is offline   Reply With Quote
Old 04-16-2015, 05:54 PM   #28
Thinks s/he gets paid by the post
Big_Hitter's Avatar
 
Join Date: May 2013
Location: In the fairway
Posts: 4,099
^ I was specifically referring to the OPs situation
__________________
Swing hard, look up
Big_Hitter is online now   Reply With Quote
Old 04-17-2015, 02:21 AM   #29
Full time employment: Posting here.
ownyourfuture's Avatar
 
Join Date: Jun 2013
Posts: 512
Quote:
Originally Posted by Big_Hitter View Post
^ I was specifically referring to the OPs situation
I am the OP
__________________
ownyourfuture is offline   Reply With Quote
Old 04-17-2015, 06:08 AM   #30
Recycles dryer sheets
 
Join Date: Feb 2015
Location: Southfield
Posts: 58
Quote:
Home: Roof, Siding, Windows, Furnace & AC, all new in the last 8 years.
I'm not sure what your planning assumptions are for longevity, many people look at a 30 year window. Given that, things like the roof and appliances, while newer, may not last that entire time. My budget includes a "sinking fund" for repairs and maintenance. Or perhaps some of your current assets are already considered your set-aside in your plan?
__________________
The best way to predict the future is to invent it. - Alan Kay
fishndad42 is offline   Reply With Quote
Old 04-19-2015, 06:26 AM   #31
Full time employment: Posting here.
ownyourfuture's Avatar
 
Join Date: Jun 2013
Posts: 512
Quote:
Originally Posted by fishndad42 View Post
I'm not sure what your planning assumptions are for longevity, many people look at a 30 year window. Given that, things like the roof and appliances, while newer, may not last that entire time. My budget includes a "sinking fund" for repairs and maintenance. Or perhaps some of your current assets are already considered your set-aside in your plan?
Good point.
I have considered this.
__________________
ownyourfuture is offline   Reply With Quote
Old 04-19-2015, 07:10 AM   #32
Full time employment: Posting here.
ownyourfuture's Avatar
 
Join Date: Jun 2013
Posts: 512
Thanks to all who replied with questions/tips/concerns.

I forgot to add a file in the original message.
It's just a simple text file that I made with my word processor.
I like it because it puts everything right there in front of you.

I did 'tweak' one area.

Because a couple people here thought my budget would be very tight starting in my late 50's to age 62, when SS would begin, I assumed a monthly distribution of $500.00 from my 401-k/IRA beginning in 2021. The year I'd turn 59.5

I tried to copy & paste the text, but it was a mess.
A scan will have to do. *Sorry*



A couple items to note.
#1: I'm not accounting for any dividend hikes.
#2: The social security estimate is from 2 years ago. *Should be a little higher*
__________________

__________________
ownyourfuture is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Can I retire NOW? I can't sleep! What do YOU think? Charlie Delta Hi, I am... 32 08-16-2013 11:54 AM
Can Any Small Biz Owners Explain Why I Should Retire if I Can Write Off So Much? Cheesehead FIRE and Money 52 10-23-2012 12:24 PM
55 and anxious to retire, I think I can, I think I can 56mga Hi, I am... 6 10-09-2007 05:12 PM
Can Vanguard update Emigrant Direct balances? free4now FIRE and Money 7 10-09-2007 01:16 PM
I can retire---and my doctor can't?!? tangomonster Hi, I am... 53 07-27-2006 11:07 AM

 

 
All times are GMT -6. The time now is 08:56 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.