The enhanced ACA subsidies that were added during Covid are going away but the original subsidies that the ACA has always had are not going anywhere. If your MAGI is less than 400% of the poverty level then you'll still get some subsidy. If you can manage your income to be around $25K then you'll be in the sweet spot but you'll still get something up to a little over $60K/yr.
He is only paying homeowner insurance and property tax, and not rental. It is half of what he is paying for his rent. As a parent, I would never sell my home away to my child or to redeed to my child. There is something comforting about the security of having title in my name. Buying the home will also reduce OP's retirement investments. No dice either way.
oh sweet, I had no idea - I'll definitely be looking into this!
Taxable brokerage account dividends too. So even if you never trade, never rebalance, never sell and never withdraw, and automatically reinvest all dividends... those dividend distributions are nevertheless taxable events. What's the S&P 500 dividend rate these days.. 1.3%? So, every $1M in a taxable account --> $13K added to your MAGI. It adds up quickly.
Same here.
Good point, I forgot about the dividends! I suppose that when I'm retired, that in my taxable I'd just turn off automatic dividend reinvestment and use that as income.
All your income counts towards MAGI, except qualified contributions to retirement accounts and medical savings accounts (I'm sure of this for HSAs and believe it's true of the other kinds as well).
Welcome to the forum!
From what you say, it sounds like there are no real downsides to moving in with your parents.
FIRECalc can tell you whether it makes sense to take the $160k now, the $25k at 55, or the $40k at 62. You'd run the second two options by putting the pension in under "Other income/spending" and of course taking the $160k out of your portfolio. Make sure the "Inflation adj" check box is un-checked if the pension won't be COLA'ed.
If you haven't already read this post Some Important Questions to Answer Before Asking - Can I Retire? , I recommend it. The FIRECalc homepage also tells you you need to include your best estimate of future taxes (all kinds) in your expenses.
You can still get an ACA premium subsidy (tax credit) in 2026 if your MAGI will be less than 400% of the 2025 Federal poverty level. The finance buff has some great posts:
2025 2026 2027 Federal Poverty Levels (FPL) for ACA Health Insurance
Compare your income with the Federal Poverty Level (FPL) to calculate the premium subsidy tax credit for health insuance under the Affordable Care Act.thefinancebuff.com
2025 2026 ACA Health Insurance Premium Tax Credit Percentages
If you get health insurance from ACA, the government sets the percentages of income you are expected to contribute toward a benchmark policy.
Regardless whether you will qualify for subsidies, if you will not receive retiree health insurance and will depend on the ACA until Medicare, you should take a look on your state's ACA exchange website (or Healthcare.gov if your state doesn't have an exchange) to see what plans would be available to you at what cost. Be aware that the premiums increase with age. Might be a good idea to view premiums for older ages to get a feel for how big an effect this is.
