If I buy a $180 turkey from a farm it damn well better have a name.
"Fool", comes to mind......lol
If I buy a $180 turkey from a farm it damn well better have a name.
+1For me, eating is more than just providing fuel for the body. It's part of life's basic pleasures. I did not save my money to eat rice and beans 3 times a day.
This is not a kind of NW I have but:
One could have 3 Million in equities generating 60k of dividends.
Another lets say 2 million in 401ks and IRAs.
Couple retires at 55 and lives in expensive CA. Couple does not touch any 401k or IRA. The CA health care calculator was telling they can buy nice silver plan for 350 bucks (because they are LOW income). Their federal taxes will be 0. Their CA taxes will be less then 2K.
Then at 65 they get Medicare and don't need cheap Health Care. Hence they can start drawing from 401K and IRAs. If some of it is Roth they can still pay almost nothing in Federal taxes even with 100k income.
If couples has 300k in cash when they retire at 55. with this scenario they have 90k to live on between 55 and 65 and cheap health care and almost no taxes to pay.
A Bronze plan is even cheaper. In addition to the 400% poverty level MAGI, a couple can have additional income as long as it is deductible from the O-MAGI, like income used to fund an HSA account or income offset by part-time business expenses (unsubsidized portion of health insurance, business travel):
http://laborcenter.berkeley.edu/healthcare/MAGI_summary13.pdf
Plus frequent flyer mile hacks and free air miles are not considered taxable income.
Forbes has a good article on how to generate tax free income -
Eighteen Ways To Get Tax-Free Income - Forbes
Only silver plans allow cost sharing. Bronze plans don't work for cost sharing.
Silver baby, that is the way to go if you can control your income.
Cost-sharing subsidies: Cost-sharing subsidies reduce the out-of-pocket amount of health care expenses an individual or family has to pay. These expenses might include copayments for health care services or other costs you pay when you get services. To find out more about cost-sharing subsidies, visit Individuals &* Families.
Only silver plans allow cost sharing. Bronze plans don't work for cost sharing.
Silver baby, that is the way to go if you can control your income.
I guess I must be the only dummkopf that went straight to a bronze plan without bothering to check whether I qualified for silver subsidies or not. Sometimes being a multi in investable assets as the OP posted gives one the option of being generous with the public treasury and who knows, maybe some Karma is generated or then again maybe not... in these peculiar times we live in.
How do you prove the income for the cost sharing portion? We have had discussions about the subsidy portion and how you can get the refund at tax time. If you know your income is going to be $30,000 a year from interest and dividends but the previous year you had W2 income of $260,000, do you just have to go one year without cost sharing or is there some way to convince them that your income has really dropped.
It is my understanding that cost sharing is a use it or lose it. The cost sharing is not refundable at tax time if you were eligible but didn't get it during the year.
I guess after 365 posts it's hard to stay on topic. Still, there are many ACA threads with a wealth of detail on implementation, plans, subsidies, metal levels and qualifications.The last couple of pages of posts have predominantly focused on the details of implementation of the Affordable Care Act in the US. Does this not merit a dedicated thread?
Reading this forum, I was wondering the same thing as the OP posted. I feel really poor when reading these forums, but from net worth calculators, I think I'm in the top quarter or so for my age. I've never had a great salary, and much of my wealth is in the two houses I own, which makes me look even poorer in comparison.
I just keep telling myself I'm hanging out with the top 5-10% on here and that I'll get there.
How did you do it? Any and all suggestions are appreciated.