Bestwifeever
Moderator Emeritus
- Joined
- Sep 17, 2007
- Messages
- 17,774
So so sorry. Take care of yourself now.
I have a very smart friend (former Wall Street colleague) who recently made the argument that "saving could be stupid". His point, highly summarized, is that the bulging Baby Boomers will cause tremendous $ strain to SS and Medicare post-2030. Thus, those with "savings" will be targeted to pay their "fair share". Hence, if you spent it, and didn’t save it, you'll still get benefits.
It does seem strange, but many people on this site including myself manage our MAGI for ACA. For whatever reason, they kept this loophole.This summaries one of the most amazing things to me about current ACA law, they don't care how many assets you have, just about your yearly income. I've never understood why this has been the case. On a FAFSA form you literally have to list everything except the food in your pantry. Everything besides tax deferred retirement accounts is counted towards the parental contribution.
I have a very smart friend (former Wall Street colleague) who recently made the argument that "saving could be stupid". His point, highly summarized, is that the bulging Baby Boomers will cause tremendous $ strain to SS and Medicare post-2030. Thus, those with "savings" will be targeted to pay their "fair share". Hence, if you spent it, and didn’t save it, you'll still get benefits.
This summaries one of the most amazing things to me about current ACA law, they don't care how many assets you have, just about your yearly income. I've never understood why this has been the case. On a FAFSA form you literally have to list everything except the food in your pantry. Everything besides tax deferred retirement accounts is counted towards the parental contribution.
This summaries one of the most amazing things to me about current ACA law, they don't care how many assets you have, just about your yearly income. I've never understood why this has been the case. On a FAFSA form you literally have to list everything except the food in your pantry. Everything besides tax deferred retirement accounts is counted towards the parental contribution.
Then just do what the more conservative poster on bogleheads recommend - move all assets into an irrevocable trust, pick an attorney as trustee (can't be compelled to reveal the beneficiaries), and so benefit from the assets without them ever being able to be traced back to you.
I have a very smart friend (former Wall Street colleague) who recently made the argument that "saving could be stupid". His point, highly summarized, is that the bulging Baby Boomers will cause tremendous $ strain to SS and Medicare post-2030. Thus, those with "savings" will be targeted to pay their "fair share". Hence, if you spent it, and didn’t save it, you'll still get benefits.
I know- even though current taxes aren't based on assets they ARE based on income, which can be a function of assets, and I've been paying taxes on SS income since 2003 when late DH and I married. He was 65 and collecting SS, I was 50 and working FT. Next year- oh, joy- I'm in line for IRMAA surcharges on my Medicare premiums.
I comfort myself with the thought that, even though some of my money gets sucked away to subsidize people who could have saved for retirement but spent every dime they made (in addition to the ones who worked minimum-wage jobs and just couldn't save much), the people who rely on those programs have limited choices- where they live if they want subsidized housing, what LTC they use if they rely on Medicaid to pay for it.... and if they're unhappy they have few options to move elsewhere. If a tooth underlying a crown goes bad and needs extraction no social program is going to pay for an implant. Life on these programs provides the bare basics... and that's as it should be. I'm hoping that I'll have enough income left after taxes to be able to have a better quality of life.
I have a very smart friend (former Wall Street colleague) who recently made the argument that "saving could be stupid". His point, highly summarized, is that the bulging Baby Boomers will cause tremendous $ strain to SS and Medicare post-2030. Thus, those with "savings" will be targeted to pay their "fair share". Hence, if you spent it, and didn’t save it, you'll still get benefits.
WADR, this just proves that everybody on Wall Street is not that smart.
WADR, this just proves that everybody on Wall Street is not that smart.
I think you're referring to the CSS Profile, where the parents have to list everything from equity in home/business down to the gold fillings in their teeth.
Under FAFSA if parental income is under $50,000 & parents are eligible to file 1040A/EZ (i.e. no Schedule D required) then the simplified needs test can be used and no parental or child assets need be disclosed.
It is possible to live rich without money. It just requires a different definition of rich.