Great channel, BUT, you didn’t lay out any numbers (income that is going to pump up your insurance costs. Yes I know some of it is dependent on your state m. So give a few examples of different states, ,couples with different types of income and why this is a good or bad strategy.
One thing I would point out is that the typical cost of a ACA healthcare plan is very dependent on the customer's age. If you are in your 50's or early 60's, no way a silver ACA plan is $300-$400/month. More like 2-3 times that. The good news is that the subsidies are adjusted to cover the cost you are paying at your age. So subsidies are especially valuable to an early retiree over 50.
I heard that the govt will use your prior 2 years income to establish your MAGI for pricing Exchange Healthcare. What if you lost your job and the prior 2 years are now no representation of the following year's predicted income level?
Timely video. We are looking at retiring in 1 to 2 years at 57 or so. Because the state we live in is an expanded medicare/medicaid? state for people below the poverty line, it kind of screws us because you cannot have any money in the bank or investments to qualify. Since ACA will not cover if below the federal poverty limit in our state and we cannot get the medicare, etc. it's a no go zone for us. So we will have to play the game of having a MAGI over the 26,500 current limit to qualify for stipends or credits and keep insurance costs low. Until we hit 65 of course.
Have you thought about moving to a different state? A different country? If you are not prepared for the health insurance transition, there is little you can do at the last minute. Maybe one of you continues working while receiving employer provided insurance. Or both of you look for part time work with insurance. Medicare is not that awesome, or cheap when you do qualify. You do need to plan ahead for this.
@@ralphemerson497 Yes we are ready. We will be able to pull just what we need - 30 to 50 K a year off investments can/or cap gains. On the low end of that, we could get an ACA Silver plan for nothing or bump it up a bit and pay 150 to 300 month for a better plan. We have allocated 600 month for health/eye and dental. We should be able to stay well below that.
I live in a state where Medicaid was not expanded, and if you are below FPL, 18-64 and not pregnant, no soup for you. The key is to generate enough "income" to qualify for a the ACA subsidies. That includes employment, passive income (dividends/cap gains, etc.) and Roth conversion monies. As far as I know, there are no asset tests associated with ACA.
Loved your video. Two questions. You mentioned moving money from your 401K into an IRA. WHY? What is the point of that if you are perfectly happy with the investment choices in your 401K ? Second question, in general terms when does it make sense to convert from a traditional IRA to a Roth IRA? I imagine that is a huge taxable event, especially for a near retirement age investor who has accumulated a lot of money (well over $1,000,000) in their 401K?
@@OakHarvestFinancialGroup I told them the same thing and they said it was a service fee. Must be something new, probably because a lot of people are pulling out their money. They wouldn't let me transfer it directly to the new account without first sending me a check. Guess that is how they are justifying the fee. Will never do business with them again.
Each company is different. I had one charge me $25 to do so. Fidelity (who has my IRAs) said they don't reimburse 401k rollover fees. But they do IRA transfer fees. I really don't see a difference, but whatever.
Thank you Troy!
Excellent presentation, thank you so much.
Very helpful information. Thank you!
Thanks for a real wake up call.
Great channel, BUT, you didn’t lay out any numbers (income that is going to pump up your insurance costs. Yes I know some of it is dependent on your state m. So give a few examples of different states, ,couples with different types of income and why this is a good or bad strategy.
One thing I would point out is that the typical cost of a ACA healthcare plan is very dependent on the customer's age. If you are in your 50's or early 60's, no way a silver ACA plan is $300-$400/month. More like 2-3 times that. The good news is that the subsidies are adjusted to cover the cost you are paying at your age. So subsidies are especially valuable to an early retiree over 50.
Great job Troy! Glad I found OHFG when I did and feel comfortable with you steering the ship.
I heard that the govt will use your prior 2 years income to establish your MAGI for pricing Exchange Healthcare. What if you lost your job and the prior 2 years are now no representation of the following year's predicted income level?
In my experence they don't look closely at prior income. They will of course reconcile your subsidies at tax time.
An example or two would have been nice to see.
Timely video. We are looking at retiring in 1 to 2 years at 57 or so. Because the state we live in is an expanded medicare/medicaid? state for people below the poverty line, it kind of screws us because you cannot have any money in the bank or investments to qualify. Since ACA will not cover if below the federal poverty limit in our state and we cannot get the medicare, etc. it's a no go zone for us. So we will have to play the game of having a MAGI over the 26,500 current limit to qualify for stipends or credits and keep insurance costs low. Until we hit 65 of course.
Have you thought about moving to a different state? A different country? If you are not prepared for the health insurance transition, there is little you can do at the last minute. Maybe one of you continues working while receiving employer provided insurance. Or both of you look for part time work with insurance. Medicare is not that awesome, or cheap when you do qualify. You do need to plan ahead for this.
@@ralphemerson497 Yes we are ready. We will be able to pull just what we need - 30 to 50 K a year off investments can/or cap gains. On the low end of that, we could get an ACA Silver plan for nothing or bump it up a bit and pay 150 to 300 month for a better plan. We have allocated 600 month for health/eye and dental. We should be able to stay well below that.
@@Bob-yh7ir It’s a shame you have to declare poverty to get reasonable insurance rates.
I live in a state where Medicaid was not expanded, and if you are below FPL, 18-64 and not pregnant, no soup for you. The key is to generate enough "income" to qualify for a the ACA subsidies. That includes employment, passive income (dividends/cap gains, etc.) and Roth conversion monies. As far as I know, there are no asset tests associated with ACA.
Loved your video. Two questions. You mentioned moving money from your 401K into an IRA. WHY? What is the point of that if you are perfectly happy with the investment choices in your 401K ? Second question, in general terms when does it make sense to convert from a traditional IRA to a Roth IRA? I imagine that is a huge taxable event, especially for a near retirement age investor who has accumulated a lot of money (well over $1,000,000) in their 401K?
Are you working with a financial advisor?
You said there was no cost to rolling over a 401k into an IRA not true I was charged $100 to roll an old 401k into my IRA.
See if you can be reimbursed. If you have been charged, it's very rare and not the norm.
@@OakHarvestFinancialGroup I told them the same thing and they said it was a service fee. Must be something new, probably because a lot of people are pulling out their money. They wouldn't let me transfer it directly to the new account without first sending me a check. Guess that is how they are justifying the fee. Will never do business with them again.
I rolled 2 401k s earlier this year over to a Schwab IRA with no fee from either.
Each company is different. I had one charge me $25 to do so. Fidelity (who has my IRAs) said they don't reimburse 401k rollover fees. But they do IRA transfer fees. I really don't see a difference, but whatever.
Irmaa will get you