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Old 02-13-2016, 11:48 AM
 
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Quote:
Originally Posted by RogueMom View Post
Could you retire earlier and just purchase your own insurance through Obama Care?
Sure you could but it is pricey .even if you get a subsidy, if your income isn't low enough the out of pockets and deductibles are thousands

Last edited by mathjak107; 02-13-2016 at 12:45 PM..
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Old 02-13-2016, 07:47 PM
 
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Obamacare is not necessarily pricey.....while one is waiting to become eligible for Medicare at age 65.

It can depend on what state you are in. My health insurance while waiting for Medicare to begin was $45 per month. And I was definitely not on Medicaid.
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Old 02-14-2016, 03:59 AM
 
Location: On the road
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Quote:
Originally Posted by mathjak107 View Post
Sure you could but it is pricey .even if you get a subsidy, if your income isn't low enough the out of pockets and deductibles are thousands
Your mileage may vary.

While living off taxable investments before age 65 (thus income capital gains and qualified dividends) it is quite possible to have an income within a range that qualifies not only for subsidies but cost reduction for out of pocket maximum and deductible.

My wife and I are on Obamacare and our premium for a silver plan with subsidies is $234/month for a PPO with national coverage. Cost reduction assistance puts our deductible at $800/person and annual out of pocket max $2,250.

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Old 02-14-2016, 04:13 AM
 
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Because we are living mostly off cash i should get a subsidy for 2016 on premiums. But we won't see any offset in deductible or out of pocket.

This is why retirement tax planning is so important. So many things from social security being taxed to health insurance to all kinds of surcharges are all linked .

It is soooooo not about whether tax brackets go up or down in the future but rather it is about what is linked to your taxable income under magi.

Like i said above ,even the sale of an asset before you retire or are even medicare age can effect things.

That sale of some commercial lease rights we owned in 2014 while not retired nor even of age yet for medicare came back to haunt us as this years medicare jumped 300% for my wife. Hopefully they will consider our appeal but i am not counting on it.
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Old 02-14-2016, 04:20 AM
 
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Quote:
Originally Posted by lieqiang View Post
Your mileage may vary.

While living off taxable investments before age 65 (thus income capital gains and qualified dividends) it is quite possible to have an income within a range that qualifies not only for subsidies but cost reduction for out of pocket maximum and deductible.

My wife and I are on Obamacare and our premium for a silver plan with subsidies is $234/month for a PPO with national coverage. Cost reduction assistance puts our deductible at $800/person and annual out of pocket max $2,250.
That's cheap compared to what I'd pay in any of the 3 states where I own property (New Hampshire, Vermont, and Massachusetts). Unless you're Medicaid-eligible, it's around $500/month for individual high deductible insurance. Since 401(k) and IRA distributions are treated as regular income, I wouldn't qualify for any subsidies. I really can't consider retiring until I'm Medicare-eligible. Even then, it's tough to guess what the premiums for Medicare and supplemental will be.
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Old 02-14-2016, 12:39 PM
 
Location: SoCal
13,295 posts, read 6,362,704 times
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Originally Posted by jasperhobbs View Post
I live in a 5 house subdivision with no covenants and like the idea that I can park my vehicles anywhere on my property without someone complaining. Rules and restrictions do keep junkers out but can be overbearing at times. Hence we moved out of town to the country.
It depends on the location. I can't say what multiplier I've got through my real estate investment, but I'm super happy about. It's much better than investing in stocks and it has the SWAN( sleep well at night) factor. It acts like a bond for me.
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Old 02-14-2016, 12:46 PM
 
Location: SoCal
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Quote:
Originally Posted by mathjak107 View Post
But in retirement if you are living in it the worth of it isn't a factor as long as you are consuming it.

All that counts is what are your housing costs relative to cash flow. You can only sell it or take a loan against it to have the equity matter.

Having a paid off house usually means if you had it long enough the house has to double or triple just to cover the interest. By the time we add in taxes. Repairs and renovations the total cost of housing you over decards of retirement and prior is more then most houses will ever be worth.

So it boils down to cost cutting , namely you hope all the expenses of housing you cost less then renting
Some homes are built very well, I don't think we had that many repairs, in the last 10-15 years, maybe less than $10k total.
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Old 02-14-2016, 01:31 PM
 
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Quote:
Originally Posted by mathjak107 View Post
But in retirement if you are living in it the worth of it isn't a factor as long as you are consuming it.

All that counts is what are your housing costs relative to cash flow. You can only sell it or take a loan against it to have the equity matter.

Having a paid off house usually means if you had it long enough the house has to double or triple just to cover the interest. By the time we add in taxes. Repairs and renovations the total cost of housing you over decards of retirement and prior is more then most houses will ever be worth.

So it boils down to cost cutting , namely you hope all the expenses of housing you cost less then renting


By the time most retire, house has been updated and in very good shape. There will also be less wear and tear on the interior of the house in retirement as god bless them but kids can be destructive. Kids are grown and gone by retirement age.


As stated, owning a home is a lot less risky equity than selling the house, renting and investing the cash in the market.


At some point, we probably will want to rent if not able to keep up with lawn care, snow removal if applicable and other home ownership responsibilities.
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Old 02-14-2016, 01:35 PM
 
2,446 posts, read 2,076,850 times
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Quote:
Originally Posted by mathjak107 View Post
But in retirement if you are living in it the worth of it isn't a factor as long as you are consuming it.

All that counts is what are your housing costs relative to cash flow. You can only sell it or take a loan against it to have the equity matter.

Having a paid off house usually means if you had it long enough the house has to double or triple just to cover the interest. By the time we add in taxes. Repairs and renovations the total cost of housing you over decards of retirement and prior is more then most houses will ever be worth.

So it boils down to cost cutting , namely you hope all the expenses of housing you cost less then renting


Sounds like poster has never owned a home and has always rented. That would work if rent was very reasonable and disciplined investing over the years paid off.
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Old 02-14-2016, 05:56 PM
 
Location: On the road
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Quote:
Originally Posted by GeoffD View Post
Since 401(k) and IRA distributions are treated as regular income, I wouldn't qualify for any subsidies.
We have 401ks and IRAs, but since still in our 40s will be riding on taxable investments for some time, and doing Roth IRA conversions along the way.
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