Health Insurance For Early Retirement! (All You Need to Know)

[@ggmelful]

Just wanted to say that this video was fantastic! Lyndia was a great guest - she knows her stuff, and she did a great job of explaining it in a way that was easy to understand. Too many other KZbinrs tend to gloss over this topic, which is unfortunate because there's just so much to it. If you have her on again, I'll make sure to listen in. Great job to you both!

[@MattsMkia]

I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio for retirement of about $150k. I want to know: Do I keep contributing to my portfolio in these unstable markets, or do I look into alternative sectors?

[@LUCIASMITH-d1z]

The professionals presently control the market since they not only have the essential business strategy but also have access to inside information that the general public is not aware of.

[@ericmccormick82]

This is why I entrusted a fiduciary with my investment decisions. Many underestimate advisors until emotions lead to losses. My advisor crafted a tailored strategy aligning with my long-term goals, guiding entry and exit points for the equities I focus on. This has grown my portfolio to over $850k. My personal best so far

[@winifred-k9e]

impressive gains! how can I get your advisor please, if you dont mind me asking? I could really use a help as of now

[@ericmccormick82]

My CFA Melissa Terri Swayne a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market

[@JacobsErick-u8r]

I looked up her full name online and found her page. I emailed and made an appointment to talk with her; hopefully, she gets back to me.

[@JacobReynolds-t7v]

This is my fifth year after retirement. I’ve been following the 4% rule thing I saw on a KZbin channel, but this isn’t really how hard I expected things to be. After I cashed out a lump sum, I still have about $760k left, but at this rate, and with how the market is (we were putting money away in an index fund), I’m starting to get worried.

[@MarcoWanner-h8j]

Amazingly, you were able to save that much during your active years. Not a lot of people can save that much in a lifetime. But now you are retired and depend on your investment, it’s best you redistribute your capital, so you are not left devastated during a market crash or recovery. To simplify the process, you could allocate your resources with the help of a financial advisor.

[@DereksJosephs]

@@MarcoWanner-h8j Yeah, I’m also closing in on retirement, and I have benefitted much from using a financial advisor. I didn’t start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in more profit than some of my peers who have been investing for many years.

[@JacobReynolds-t7v]

@@DereksJosephs Hey, this caught my interest. I worry that I have a couple more months before retirement, and I want to switch to using a financial advisor, but I don’t know how to find one.

[@DereksJosephs]

@@JacobReynolds-t7v The beauty of MARGARET MOLLI ALVEY approach is her dual focus: while aggressively pursuing profit opportunities, she's equally tenacious about shielding investors from potential pitfalls. It's a balance few can achieve.

[@JacobReynolds-t7v]

@@DereksJosephs Thank you for this tip. it was easy to find your coach. Did my due diligence on her. She seems very proficient and I'm grateful for your guidance.

[@patientpicker9629]

The best way to fix this is to give career politicians the same choices that we have for insurance

[@race29dub]

A video on what counts as "income" when measuring the Medicaid threshold would be helpful.

[@FrankGransee]

It’s your MAGI. It’s a common tax term. Easy to google.

[@stan374]

Hello, I want to start investing, but I'm unsure where to start. Do you have any advice or contacts for assistance?

[@selenapearl2187]

It's prudent to seek expert advice when creating a solid financial portfolio due to its complexities.

[@Harveygibbs7]

The truth is, you can't succeed without a reliable person like Naomi

[@EricCantona-m1s]

Naomi's distinctive strength is her pragmatic approach, setting her apart from other brokers who often set unrealistic goals and fail to deliver

[@Charlsebenard]

So, you all know her too? Her success story is everywhere!

[@Alfrednells-tp6nv]

If someone is straightforward and skilled in their work, people will always recommend them. I appreciate her honesty.

[@jeromesand]

I need a way to draw up a plan to set up for retirement while still earning passive income to meet my day to day need and also get charged lesser taxes even while in a higher tax bracket. i want to invest around $250K savings.

[@StephenLogan-g2v]

Don't put all your eggs in one basket; instead, diversify into different asset classes to mitigate risk. If you lack extensive knowledge, consult a financial advisor.

[@morgansofia]

Accurate asset allocation is crucial with an Experts guidance. I have 850k in equity, 300K cash earning 5.25 interest, 685k in 401k, 250k cash account, 120k in car assets ( paid off cars) Gold and silver bars. age is 48. My advisor helped me realign my portfolio to my risk tolerance and it boomed overtime.

[@AaronPatrick-x2j]

pls how can I reach this expert, I need someone to help me manage my portfolio

[@morgansofia]

Melissa Terri Swayne is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.

[@BrianJason-d3s]

Thank you for the lead. I searched her up on google, and I have sent her an email. I hope she gets back to me soon.

[@Will67267]

I retired at 55 and moved to Portugal on a residence visa. My insurance is very affordable around $150 a month private insurance full coverage. If I stayed in America I will need to pay $900-1200 a month.

[@holdencawffle626]

That's my plan thank you

[@ourtravellifevideos6885]

My plan as well when i turn either 55 or 59 1/2😊

[@fredyoman]

But you are paying near 50% tax rate on income

[@holdencawffle626]

@@fredyoman please explain

[@redv0627]

Can you please share how to retire in Portugal?

[@stevenmeyers1028]

What’s also important to consider is that most of the ACA plans (at least in my state) are very narrow network HMOs. My primary care Dr does not accept any of them. Subsidies are great but the ACA plans are not great. Certainly better than nothing though.

[@debratateisu92]

@@stevenmeyers1028 Do you mind my asking what state you are in? I’m in TX and this is exactly what I find here.

[@stevenmeyers1028]

@@debratateisu92 I’m in Arizona but I suspect most states have the same issue. ACA plans are mostly guaranteed issue so some ways the insurance companies control their costs is by narrowing the HMO networks and requiring pre approval for most services. Along with high deductibles of course. Again, certainly better than nothing and with the subsidies they could be fairly cheap but in general I find the plans are lousy.

[@Big_E_247]

Yeah Obama lied when he said "If you like your Dr., you can keep your doctor." :(

[@me-lg1yw]

@@Big_E_247you can keep your dr if you choose a plan that they accept

[@me-lg1yw]

The aca works really well in NY.

[@paulscheuer9455]

@ari I'd like to suggest that in the next episode if / when you explain how types of income affect MAGI and ultimately the size of the subsidy, please use several examples (5?) of a mix of cash accounts, brokerage accounts with capital gains, Roth $s, converted ROTH $s (and the timing of the conversions) in order to illustrate how the composition of this income affects the ammount of the subsidy.

[@earlyretirementari]

You got it!

[@Move_Health]

Thanks for having us, Ari! Grateful for the opportunity to shed some light on a top concern for early retirees.

[@earlyretirementari]

It was so fun! Next week discussing ACA subsidies and Roth Conversions will also be :)

[@jameschaves5723]

Great job!! You will be hearing from me

[@OneNvrKnoz]

You’re a wealth of knowledge! I’ve bookmarked your site. Talk to you in about 5 years!

[@earlyretirementari]

@@OneNvrKnoz we’ll be here!

[@jeremysensenig3990]

Thank you for addressing this important topic. It is so often ignored when people discuss finances and retirement. When I talk to people (often teachers I work with) they often say health coverage is the number one thing stopping them from retiring or changing jobs. I know for me it is my number one.

[@maryfields1382]

same! I'll be 62 in March and am so ready to retire.

[@davidpeters9675]

There IS an income cliff for cost sharing reductions on the ACA. The cliff was removed for ACA premium subsidies, but not cost sharing. If your income goes $1 over the limit your healthcare costs can increase by many thousands of dollars.

[@Move_Health]

The income is self reported on the marketplace application (The IRS and/or Marketplace is not tracking income in real time throughout the year). In our experiences at Move Health, If for whatever reason your income fluctuates significantly upward, you would potentially lose premium subsidies that would have to be paid back at tax time, but the Cost Sharing Reductions you experienced throughout the year, would not be effected (nor would be expected to pay them back in any fashion). This is certainly something we deal with at Move and many times we craft a unique strategy for subsidy implementation to curb any issues come tax time.

[@markbajek2541]

$27,000 or lower seems to be the sweet spot

[@jend7582]

The key to avoiding high healthcare costs is to be healthy. I’ve been self-employed for over 16 years and have the ACA since it came out. I pick the cheapest plan which gives my coverage in case of an emergency and all my wellness care. I pay $131 per month for a bronze plan. I have paid up to $270 per month in past higher earning years. I pay out of pocket for things not covered if I need them and get a 45% self pay discount. I don’t pay a lot for healthcare per year and focus on being active and eating healthy non processed foods. I pay less on medical costs than many pay for insurance alone per year. This has been my way to not fund a ridiculously priced industry. I’m nearing 59. Protect your health at all costs!

[@earlyretirementari]

Great points

[@sct4040]

Accidents happen too.

[@BillyNewport-ez2vn]

Married couple retired, 57 years old, ACA plan in Florida which is 2k a month with a 7k deductible each after which they pay 100%. Average yearly cost is $24K premium plus 7k deductible payment so $31K a year, we don't qualify for subsidies.

[@sct4040]

Wow, so expensive.

[@janetsmith2104]

Great video and information on the matter...just began researching the topic.

[@earlyretirementari]

Thank youu!

[@andywang4495]

This is super helpful and takes the stress out of looking for healthcare when retiring early

[@2112_WorkingMan]

Great video - thanks for recognizing what folks want to know…great guest. Cheers Ari

[@Gasdoc06]

Thank you for addressing a very often overlooked cost in retirement. I do have to point out that not all insurance is the same. I work in healthcare and often see people find out that their cheap insurance plans are worthless and only cover major medical. As we age, it's even more important to get GOOD insurance, NOT CHEAP insurance. Medical debt is a leading cause of bankruptcy for retirees. Currently, my personal health insurance is more than 50% of my rent. This is not sustainable and is forcing me to look at retiring outside the US where quality healthcare is significantly cheaper.

[@sheap4205]

Significantly cheaper and often far better quality of care.

[@22FootVanTraveler]

Good info, not something I didn’t already know but the important thing to know is your modified adjusted gross income (MAGI) affects what you will pay in the ACA. You need to be above a minimum to qualify, the more you make the more you pay. When I looked in 2024, to get free insurance you need to be below 40k per year. Roth income doesn’t count so if you think you going to retire early you need to fund Roth accounts to the max (contributions can be taken early without penalty) Brokerage money can help because only the gain is part of your MAGI, your contributions don’t count. Your withdrawal plan is critical to not spending tens of thousands in premiums with high deductibles.

[@Omikoshi78]

This channel is hands down one of the best, if not the best, for anyone thinking about FIRE. I’ve been on FIRE path for 6 years so I know most of this but there’s nuggets of new info I didn’t know before.

[@hollyc3838]

It would be great if you can bring her back on to go over some examples. I'm still confused about deductible and out of pocket max definitions. Thanks.

[@earlyretirementari]

Thank you for the suggestion!

[@mohanimaharaj702]

I am thinking of retiring by 62 so this session was very helpful.

[@earlyretirementari]

Great!!

[@desiv1170]

Yeah, this is a big item to consider... Getting closer to retirement and talked to an insurance person... Because we have done fairly well (pensions), we don't qualify for a lot of credits. So the ACA is on the most expensive side. In my state, I am looking at $700/month on the low end (higher deductibles, etc) thru my employer plans and up to $1,300/month on the higher end thru ACA. So it's looking like probably $900/month for the plan I will probably want. That's a chunk of change.

[@kristy8731]

My husband and I are 54 and my husband will be retiring in January 2025. We made a lot of changes to our lifestyle in order for him to retire so early. Our retirement income will solely be my SSDI and LTD, and DH will be getting low-cost insurance through the ACA. Fingers crossed that he continues to be extremely healthy.

[@michellem8284]

I want to make sure I understand that the subsidies are based on ADJUSTED gross income and not gross income. Is that correct?

[@J-2024-v8i]

It is based on MAGI which is usually the same as you AGI but adding back some things such as tax-free interest. The MAGI is before any deductions, so the comment of being based on “taxable” income was not completely accurate.

[@njlifeandhealth]

Lydia is great! Many of our clients get absolutely hammered by health insurance premiums before they get onto Medicare if they don't get subsidies. Depending on your state, Medicare can save people hundreds.

[@azraider9447]

Very helpful information here. Ty. Healthcare is one of those items that is a little scary when thinking about early retirement. I look forward to continuing my education.

[@earlyretirementari]

Glad it was helpful!

[@dgmiller12]

This was super informative, TU. My wife and I plan to retire in 3 years at age 60. I just checked the company healthcare option which is 2068.88 per month minus 200.00 per month paid for time of service which makes it 1868.99 per month plus increases over the next several years until Medicare. Yikes!! After watching your video it sounds like we should be revisiting this in two years and work with a broker like Lyndia. Thanks for sharing. The Miller's

[@earlyretirementari]

You’re welcome!!

[@bruceeigsti5274]

mine will be 80 a mth ...our 2025 income will only be ss benefits and ROTH funds ( which dont count as income) and did it all online on my own

[@staciecampbell5078]

We retired early and we took the silver plan from the market place. $2400 a month and it was useless. The deductible and out of pocket was so high, the insurance never paid for anything. What a scam! It honestly drove me back to work, just for the insurance. I sure wish my husband was willing to live out of country for a time.

[@Move_Health]

We'd be happy to help you re-navigate this important topic. We feel for you, insurance is HARD!

[@ariefraiser140]

If you guys were paying $2400/month that means you guys had a pretty big AGI.

[@michaelcoglianese4292]

@@ariefraiser140so what? That’s still ridiculously high amount for insurance

[@ariefraiser140]

@@michaelcoglianese4292 I want you to check how much insurance for one person costs at your job without the company subsidy or the discount rate your company gets. The ACA is still private market insurance. You can get a government subsidy based on AGI and family size but if you make above a certain threshold you don't get the subsidy.

[@metalgirl]

I agree… our insurance is twice that. Stupid high. So not fair!!!

[@stephenr2195]

We are planning on retiring in 3 years at the age of 55, our plan is to move to the Philippines for at least 10 years till medicare kicks in.

[@funguy1086]

DAMN lmao. Isn't that sad that health insurance is so expensive in America that we have to leave the country to afford it!

[@alk672]

@@funguy1086 the irony is that all those other cheap healthcare systems across the world only exist because drugs and services are developed in the US. So basically Americans are paying for the entire world's healthcare.

[@t.q.6639]

Have you consider Thailand? Awesome and affordable healthcare.

[@stephenr2195]

@@t.q.6639 started with a pretty large group of countries, Thailand being one of them, but after going over everything we ended up with the Philippines. Affordable medical was a consideration but not a major one, if it was Thailand would have been higher on the list.

[@jameschaves5723]

Are you moving just because of healthcare insurance? If so best of luck!!

[@gregnappi6528]

So tax exempt municipal bonds interest of say 100k per year is not included in income? MAGI includes tax exempt interest i been told. She said was not included.

[@J-2024-v8i]

For the MAGI used for ACA, tax exempt municipal interest is included, as well as the non-taxable part of SS if you are already collecting.

[@srinivasaniyengar1805]

One of the best video on the subject that I have heard so far

[@earlyretirementari]

Thank you!

[@Omikoshi78]

By far the most difficult aspect was trying to figure out if sacrificing ACA subsidy was worth more than company provided deferring income option. And weighing the risk of a private income deferral against the tax and insurance premium savings. (I’m already maxing out t401k, r401k,HSA,etc)

[@adamchace]

I’m about to pay $2600 a month in Mass for family healthcare. Not a lot of great options in Mass

[@verycool5543]

That’s a lot. What a shame on how these companies make so much money in health insurance premiums.

[@jameschaves5723]

No doubt a lot of money. Essentially $650/pp for arguably access to the best healthcare in the world.

[@mphsb]

That's ridiculous. Who do you support? Perhaps they can pay their share???

[@mynewjourney6803]

What about mass health? Health connector. I’m in Mass and hope to get that.

[@adamchace]

@@mynewjourney6803 too much income for me, but also that plan is not great based on family members who have used it

[@fanglin524]

Could you provide a summary of all options?

[@jkandkiminthecamper]

I'm self employed and have been looking at healthcare options...health sharing plans also may not cover pre existing conditions...so frustrating. $900/mo next year on the marketplace

[@bernardmccole3215]

In the example of the person with 4 million they would be getting 120K in interest from the bank - that doesn't count as income health insurance purposes?

[@devoncrumay5040]

How would the ACA coverage compare to my employer coverage? Can I keep the same providers? How do you find this out ahead of time?

[@tinadowling2351]

Would love to know if I can work until 67 and get health insurance through Medicare? I do not want to retire at 65 or collect SS yet. But I need health insurance. My employer does not provide it. I had health insurance through my wife who will be leaving that employer.

[@djs2356]

what happens when the aca enhanced subsidies expire dec 31, 2025???

[@chucklynch]

Dividends from municipal bonds DO count as part of MAGI in determining income for an ACA plan. They are not taxed by the Federal government. Found this out the hard way when I first retired.

[@jqx7743]

Interests not dividends

[@frankish5314]

We live on after tax investments.. We pay $1:12 per month for our Bronze plan... $8000 deductible. As long as you have very good health its a great option. In 2 years I will hit Medicare age and then my HC costs will sky rocket!

[@biffy7]

Holy cow, this is useful information. I’ll be reaching out to you guys.

[@earlyretirementari]

I’m glad!

[@falcon81a]

Cobra is for 20 or more employees.

[@ScottSims-u1n]

These videos and tools I great. I purchased access to Retirement Planning Academy earlier this year (didn't know about Early Retirement Academy at that time). It doesn't look like the healthcare cost estimator is available in that software. Is there a way to upgrade?

[@bruceeigsti5274]

well the problem is if someone has say 300k in roth funds and thats it..and no ss benefits we dont qualify for aca..which is ridiculous in ACA eyes have income...so i had to take ss benefits to qualify for ACA so have 30k of ss benefits..and only pay $60 a month but really wanted to wait to get ss but have no choice now

[@chrisr.3147]

Can you pay these monthly heath insurance costs with our HSA accounts?

[@poodleprofessor]

My situation is not retiring, but I lost my job after many years at one university. Found out COBRA will cost $1,115 a month, which is not affordable for me and I'm in a panic.

[@Markrtsoon]

$500/ month average is for one or a couple? For someone will need to do Roth conversion, what is the highest income to get tax credit for ACA?

[@johnsonajayi7846]

Most likely for 1 person based on what I had read online.

[@Move_Health]

The average that Lyndia provided is "typical" for an early retiree COUPLE. There are serveral individual variables that can impact your healthcare costs in early retirement though, so it's difficult to speak in generalities when it comes to health insurance. There is currently no income limit you need to stay under to qualify for advanced premium tax credits on the marketplace (through the end of 2025). The tax credits act like a sliding scale. The higher your MAGI goes, the smaller your advanced premium tax credit becomes. The lower your MAGI goes, the larger your advanced premium tax credit becomes. There's a lot to healthcare planning! We're here to help if you need it.

[@HelloWorld-hb7yt]

someone with $4M cash, will have interest earned or dividends if it's in stocks, so it's not possible to have $0 income.

[@khfw4]

I love. This free book! Thank you so much!

[@earlyretirementari]

You are so welcome!

[@rajsanfrancisco5074]

Great informative podcast. Subscribed

[@buzzindsm3380]

I have about 30% of my retirement savings in Roth. Would it be worth it to pull from those accounts from 60-65 to get the ACA discounts. I don't have enough in a brokerage account/savings to fund these years.

[@jameschaves5723]

1) brokerage 2) 401K/B 3) Roth

[@buzzindsm3380]

​@@jameschaves5723I'm taking about getting a discount rate by having a low magi.

[@gizmobowen]

Been looking forward to these videos and am glad to have this resource when making this critical decision. Thanks for doing this.

[@earlyretirementari]

Our pleasure!

[@jameschaves5723]

Ari you are a LEGEND!!!

[@earlyretirementari]

@@jameschaves5723 HA!

[@MikeShirley-x6t]

Does having Cobra available through employer after retirement for 18 months considered available insurance? Would this disqualify me for ACA ?

[@jameschaves5723]

Good question. I believe it depends on the circumstances of leaving your job

[@Move_Health]

Great question! Having ACCESS to COBRA (you typically have 60 days post employment separation to elect COBRA coverage) doesn't disqualify you from taking tax credits since COBRA doesn't count as "employer sponsored coverage"... If you took COBRA, you would have a special enrollment period to enroll into ACA coverage when your COBRA expires after the 18 months. Note: You cannot terminate your COBRA mid year and qualify for an SEP. You must be within Open Enrollment Period or have a valid special enrollment period to enter into ACA coverage.

[@SmokinM1]

@@Move_Health That's good to know. Thanks.

[@beatricefrask5230]

Thank you! I go through ly unsurance broker ans can relax

[@kerri5595]

Yikes. I retired at 44. I pay under $200/Mo for a bronze ACA plan. Is the $500 for a family of 4 or...?

[@roburb73]

Thankfully, this is one thing we don't have to worry about. As retired military we have Tricare and that's a game-changer if you want to retire early.

[@Move_Health]

Tricare for life is 🔥

[@roburb73]

@@Move_Health absolutely! I pair that with VA healthcare for me and financial worries due to medical are essentially removed!

[@thepsychonaut8212]

is move health no longer? nothing come up on the website?

[@earlyretirementari]

MoveHealth.io

[@xokissmekatexo]

Very helpful! Thank you for the information.

[@earlyretirementari]

Glad it was helpful!

[@CJandoli]

Do you know if that average $500 for ACA was for a single person or for covering a married couple?

[@HelloWorld-hb7yt]

really depending on income, there's a calculator on the website for this.

[@billeichenberger5370]

Thanks but what if we are 65 & DON’T want to take Medicare due to exorbitant cost due to my last 2 years of income? Pls point me in right direction & yes I’m hoping to get part time job with benefits but due to just getting unexpectedly laid off I need benefits ASAP. THANKS.

[@neverclevernorwitty7821]

What is the affordability of early retirees that still need family coverage for their kids?

[@LyndiaCunningham]

It would depend on whether or not you are still claiming your dependents on your tax return. If they are claiming themselves it may be more beneficial for them to be on an ACA plan on their own.

[@Davek111]

@@LyndiaCunningham You are not required to claim a dependent on your tax return. If this person is enrolling their family while filing a combined husband and wife tax return, the IRS/ACA simply looks at the adjusted income to determine eligibility. The returee is not required to be enrolled. This also occurs when individuals are court ordered to cover their dependents in a separation or divorce. The IRS/ACA doesn't give a shit about the court order, and have no way of actually using such a decree within the enrollment and qualification/determination process. Eat your wheaties... or ask whatever questions you're not sure about. I can do this shit blindfolded.

[@cgolden6096]

It's actual more like $800 min per month.

[@sklinker1]

So is the $600/month figure per person or will this cover me and my spouse?

[@Roslyn111]

I'm an Affordable Care Act agent in 3 states, and I wish she didn't say that because it's not accurate. For ACA, your zip code, county, state, size of tax family, and your tax family's expected income determine your monthly premiums. I have some couples paying anywhere between $0 and $350/month. As a licensed agent, I was trained to never give estimates without doing a thorough analysis. I wish she had just said "it depends" because that's the most correct thing to say.

[@ericgrube9954]

Wow this is so helpful. Thanks a ton!

[@earlyretirementari]

Glad it was helpful!

[@ediesthriftique4163]

This is fantastic information!!! Thank you!!!

[@markb8515]

Thanks Ari for another very informative video! Do you know if the ACA cliff returns for tax year 2025? I heard conflicting infomation. One person said the ACA cliff starts back in 2025 and another said 2026. I will only need to get health insurance for year 2025 because I'll turn 65 in 2026. A little off topic, did I hear James correctly that you now have a minimum AUM requirement of 2million?

[@Davek111]

There are zero plans for an "ACA cliff" Zero!!!

[@LyndiaCunningham]

@@Davek111 it's hard for us to say with certainty but from what I know we are hopeful that the income cliff will not come back.

[@Davek111]

@@LyndiaCunningham Correct.... there's no way to know for sure. However the ACA and the applicable subsidies is the law of the land. It will not be overturned by the current administration, and even if Trump wins it is highly unlikely that the republicans will control both houses of congress to allow the maga right wingers to make changes to a policy that currently protects millions of people. More likely that the current subsidies will continue.

[@J-2024-v8i]

Currently the first year the cliff will be back is 2026 unless Congress changes this.

[@markb8515]

@@J-2024-v8i Thanks

[@ebeyslough]

The microphone arms dominated this conversation.

[@paulscheuer9455]

Ari, thanks, but please clarify (next week's podcast??) if there's specific timing required on ROTH conversions to ensure that the converion $s are excluded for purposes of qualifying for the subsidy. Can we convert for income above the 400% FPL and still qualify? Do we need plan to convert in the year prior to taking the subsidy? Seems like a (tax) catch-22 unless we live partially off exiating ROTH $s

[@earlyretirementari]

Stay tuned!

[@Davek111]

Conversions are absolutely included in your income.... and therefore must be considered as you manage your total income levels for subsidy qualifications. I'm 60, retired, and do this today with my ACA insurance. The process is EXACTLY what you would do as part of your tax harvesting strategy.... regardless of what stage of life. If you can master your income level appropriately, you will be able to get yourself at the 150% FPL and receive the greatest amount of subsidy, and enroll in the highest subsidized Silver plan.... which has the lowest cost shares (out of pocket requirements).

[@paulscheuer9455]

​@@Davek111 thanks for confirming. So, there's no ability to increase your ACA subsidy with a ROTH conversion in the same year you try to max-out the ACA subsidy? Why bother with a ROTH conversion while on ACA insurance? Seems like you need to live off cash while drawing down your qualified accounts to to 150% of FPL. At least you might have lowered your future RMDs?

[@Davek111]

@@paulscheuer9455 You're spot on! I am living off my passive income today.... interest income from cash/CD ladder. I have $1M in my Vanguard brokerage which is mostly EFTs, so the capital gains are very minimal. Therefore I still have room for some Roth conversions to boost me up to 150% FPL. You can hold off on your Roth conversions until you're on Medicare, so you'll still have 5 years to whittle down the IRA to reduce RMDs at 70.

[@Davek111]

@@paulscheuer9455 You're exactly right. The opportunity for $$ savings on the ACA premium at the 150% FPL is $24k or more per year. If you have your cash bucket, you can set-up a CD ladder and put your cash to work for you. If your brokerage account is heavy in mutual funds and dividend paying stocks, then you might need to forgo the CD ladder so you don't earn over the 150% FPL income level.

[@robertbelar5341]

I will keep my Tricare. I retired at 59.

[@truckerette]

What are RNBs?

[@Worldtraveler2025]

RMDs = Required Minimum Distributions

[@SJ-cy3hp]

4:41 that’s quite a range 😅

[@flipsaug]

Do I ever switch to Medicare after retiring before 65?

[@kathysarmiento4652]

No. Medicare starts at 65.

[@MrRMB1]

Tried to use the link to contact Lyndia however it’s no longer valid. Any chance you may know how to reach her or if she’s still in the business??

[@earlyretirementari]

MoveHealth.io

[@markbajek2541]

Structure your income on paper to qualify for medicaid, live off cash, income counts , assets don't ...just show under your state minimums as your MAGI

[@Move_Health]

For Medicaid, the state usually completes what is called a "means test" and looks at "countable assets" - this can include cash, stocks, bonds & bank accounts. Many times, this will disqualify an early retiree who is attempting to keep their income SO low that they qualify for Medicaid. Often we instruct clients that are able to manipulate their income significantly to show an MAGI just above the federal poverty level in order make the most of advanced premium tax credits.

[@QuantumEntanglementForFun]

Thank you. Very helpful.

[@earlyretirementari]

Glad it was helpful!

[@tedjohnson4451]

Retiring the end of August 2024 with a 72% State Pension, no Healthcare. Delaying Social Security until 65 when I'll get Medicare. As long as I don't file for Social Security, I qualify for Covered California. I plan to get a Bronze Plan for less than $100 a month. By Mid-October, I'll be in Cebu City, the Philippines for a Six Month Vacation. I'll get a Pacific Cross Gold Plan for about $150 a month. If I don't return [as planned] I'll drop the Covered California Plan as Pacific Cross works as Travel Insurance for less than 30 Days in the US. At 65, I'll file for Medicare & get a Supplement accepted by The Medical City chain, they have a Hospital in Guam & can bill some US Insurers.

[@mbmatt100]

I think the American rescue plan expires in 2025. So does the ACA subsidy cliff return?

[@paulscheuer9455]

I'm just a future DIY retiree but, my understanding is that congress would need to vote on continuance of the ACA subsidy that the American Rescue Plan (which eliminated the cliff) put in place (and extended) during covid. I am planning 2026 healthcare with the assumption that Congress does nothing and we're back to the cliff (exceeding 400% of Federal Poverty Level eleimnates any chance of a subsidy).

[@mbmatt100]

That’s what I’m thinking as well. If we are correct that was pretty bad advice from her. Should have at least mentioned the possibility that after a year of great ins rates they may quadruple.

[@LyndiaCunningham]

@@mbmatt100 there is definitely the potential for the income cliff to return. We cannot say with certainty that it will not but from what we know we are very hopeful that it will not. This podcast was really meant to give high level details about the options available. We plan to have future podcasts going over each option in more depth and if so I will be sure to mention the income cliff and what it would look like if it were to return. Thank you for your feedback. It is truly appreciated.

[@mbmatt100]

@@LyndiaCunninghamwell I hope you do, do more on this topic. You had me googling my fingers off hoping the cliff hand been removed.

[@LyndiaCunningham]

@@mbmatt100 it's so difficult to hit on every part of the ACA and tax credits because it truly is so in depth and individualized. At this time if they reinstate the income cliff 2 million Americans would lose their tax credits and subsequently their health insurance. We are hoping that alone will secure the extended subsidies that are currently in place.

[@yestohappiness2721]

Hold on - so if I retire early I can sell stocks in my brokerage (I think you gave the Apple stock example) and not have the capital gains count against me in my MAGI calculation for healthcare??? Is that true? I thought we can never sell much anymore and was freaking out on how to come out with enough cash/bonds to bridge the gap from 51 to 65 when medicare kicks in... thank you!!!

[@nutria12247]

I think the capital gains would count toward your MAGI. However, you need some level of income to avoid Medicaid, so you could be strategic and still get the full ACA subsidy. For not paying taxes, he was referring to the 0% bracket for long term capital gains.

[@Davek111]

@@nutria12247 Yes, capital gains count toward your MAGI.... but that doesn't neceassrily mean that you will pay Federal taxes on the capital gains... as they are stacked in the counting process and might allow you to escape tax free. State taxes will depend on the state you live in. When it comes to the ACA and MAGI, they don't give a shit where your income is generated.... as the IRS is simply looking at the reported income to determine insurance subsidies.

[@MikeShirley-x6t]

Very informative video!

[@earlyretirementari]

So glad!

[@miragexl007]

Omg.. This is my main concern. We both work medical for thirty years now. Insurance is not great.. Not even close to teachers, Which my Brother/ Sister-in-law are And they make a good living., ... Kind of makes me sick. Sorry.. Touchy subject at times. And that insurance is the thing that I think we're worried about the most in the next 5 years when we want to retire early.

[@verycool5543]

I totally agree. We want to retire before 65 n fear health insurance expenses

[@jameschaves5723]

What do you do in medical?

[@Move_Health]

Our team at Move Health is happy to help! You're not alone in fearing health insurance costs. Insurance is hard (and expensive sometimes!). We're happy to act as a resource.

[@miragexl007]

​Nurse/Physycal Therapist. My nursing wage has gone up significantly from the 16 dollars I started with, And close to matching the wife's salary in the last 10 yrs. which hasn't gone up much. And now at 50 and 56.. We're thinking in the next five years Retiring but health insurance is the kicker. Health care has become stressful with buyouts And people getting sicker etc.. ​@jameschaves5723

[@stevecampbell4118]

Hey, everybody-Listen to this podcast soon, instead of worrying alone about your healthcare options in early retirement!

[@earlyretirementari]

Thank you!!

[@aztecforlife7360]

This is a great introductory video on this topic. It was worth it just for the info about the 8.7% limit. I do have to wonder though, how long until the income cliff is re-established? (end of 2025?)

[@abbyrigon4021]

Good contents. Thnx

[@earlyretirementari]

You’re welcome!

[@scottamcfarland]

Great info

[@earlyretirementari]

Thanks for watching!

[@QuintonNewborn]

Thank You

[@Sylvan_dB]

ACA family plans (spouse + 2x kids) are not cheap! It comes in the same ballpark as COBRA for me, and with COBRA I can easily continue my vision and dental. Pre-ACA I paid as much for an entire year then as they want now every month, and covered more kids then.

[@Davek111]

DO you have no way of managing your retirement income level so you can obtain the ACA subsidies? Or maybe you're not yet retired???

[@Sylvan_dB]

@@Davek111 nope. just retired, but no way I can maintain the lifestyle of my family at an income to qualify for subsides. Maybe after I'm done doing Roth conversations and the kids finish school and are on their own. Until then I'll be subsidizing others.

[@Davek111]

@@Sylvan_dB If your passive income is at the right levels (between 150-400% FPL), I would absolutely forgo Roth conversions until you get to Medicare. Do know that you get standard deductions.

[@J-2024-v8i]

@@Davek111 Until and including 2025 the subsidy does not completely phase out at 400% FPL. The cliff will be back starting on 2026 unless Congress makes Sanyo changes. In many cases it indeed makes sense to forego Roth conversions while on ACA but it is good to make a projection to determine if paying full ACA without subsidies for a few years and doing conversions may put you in a better position in the future in terms of net worth and taxes paid, assuming that you currently have enough funds to pay full ACA, leaving expenses, and the tax for the conversions. If you have very large balances in pre-tax it may be better to do this vs the very high RMDs you could face in the future, as you will not have as much time to convert after you reach Medicare age and your pre-tax balance may potentially be even higher. It is good to run the numbers in both scenarios to help you decide.

[@Davek111]

@@J-2024-v8i I retired 18 months ago at 58. I spent a full year crunching the numbers.... and all results said to make the leap. BTW.... I pay zero $$'s for my ACA premium because I manage my income to fall directly at the 150% FPL. I also have the highest subsidized Silver plan so I have $0 deductible and my copays are $0 to $10. It's all a beautiful world!!! I worked my ass off to get here.... and now I'm enjoying the fruits of my labor. :) Oh, and I was the national director of ACA regulatory policy and product strategy for a fortune 100 insurance company. I do this shit blindfolded. :)

[@richdewitt760]

Great conversation and content!

[@earlyretirementari]

Thank you!

[@tofineone]

My current insurance is $277.00 a month, and its ok, high deductible and very restrictive. I did not find this very helpful

[@shellylofgren]

Retirement is now more difficult than it was in the past. I've been saving for a long time instead of investing, and right now I only have about $516k. I'm not sure how to make it grow, considering all the inflation, into something substantial that I might use for retirement. I just here for ideas.

[@philipr1759]

At a point like this, when the pressure is already on you to retire, it’s best recommended you seek the services of an advisor, as this allows you make smarter investing decisions.

[@HarrietBemish]

It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $30k passively by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.

[@EllenAbrex]

Your advisor must be really good. How I can get in touch? My retirement portfolio's decline is a concern, and I could use some guidance.

[@HarrietBemish]

Vivian Jean Wilhelm a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.

[@EllenAbrex]

She appears to be a true authority in her profession with over two decades of experience. I looked her up on the internet and skimmed through her site, very professional. already sent her an inquiry hoping for a response soon.

[@clintstetler2471]

Thank you

[@earlyretirementari]

You're welcome!

[@JY35509]

I am 69 still working. My wife is 58 years old. She does not work, just housewife. If I stop working how can she get health insurance. Thank you also I have an eighteen year old daughter

[@earlyretirementari]

You're welcome!

[@dq7143]

Lyndia is very nice. She even has a halo over her head!

[@earlyretirementari]

Indeed!

[@pinkmoonrisin]

Thanks sooooo much! I had to figure this out last year on my own! Luckily I knew a “Lyndia” when my self employed insurance decided to terminate my plan. It was HSA qualified. The new one through ACA is not😢. LOVE YOUR CHANNEL!

[@PorscheSpeedster-kz6nc]

I hate to break it to you but if you are retiring with $4 million in cash at a bank or brokerage, you probably are making $120,000-$200,000 in passive interest/dividend income and won’t qualify for ACA rebates on your insurance….😮😢

[@Davek111]

That is ridiculously wrong! I am doing it right now! I'm 60 and living on my cash/CD ladder while the majority of my assets sit in my Vanguard ETFs. I have minimal capital gains and interest income... after the standard deduction my income doesn't take me even close 150% of FPL. Therefore I actually have plenty of room to do some Roth conversions. At the 150% FPL I qualify for the absolute highest subsidies. I get my ACA coverage for $0, most of my copays are between $0 and $10, while my deductible is $0.

[@PorscheSpeedster-kz6nc]

@@Davek111 what is your taxable income? Remember here - he said cash….but good for you.

[@Davek111]

@@PorscheSpeedster-kz6nc My taxable income after standard deduction was $14k. This was all of my interest from CD ladder (cash) and capital gains from my brokerage accounts (EFTs and mutual funds). I amassed 3 years of cash I can use to live on prior to Medicare. I have plenty of room in income to do some Roth conversions.... and sell some stock if I need more cash. My burn rate has been around $60k.

[@Matthew-ym2bb]

@@Davek111 Kudos to you. This is exactly my strategy when I plan on retiring at the end of the year at 55. I will have no income other than investment income which I intend on keeping low enough (while making Roth conversions) and still receive the healthcare subsidy. Don't the healthcare subsidies differ greatly by state? I've been told MA (my state) has some of the most generous subsidies in the country. Was wondering what state you live in.

[@kphillips66]

House and cars are paid for with no debt so there is little monthly expense. Investments in low dividend ETFs (like VOO at 1.3%) and your AGI and tax rate stays low. I retired at 49, 8 years ago, and have been using Silver ACA policies the whole time. It is very workable if you plan appropriately. Great series btw.

[@ThePolaroid669]

Can't you just pay for it when you need it?

[@GraceOliviaf7y]

"Retirement isn’t an end goal, but a journey best secured by careful and consistent investments."

[@AgnesHarperq3x]

Well said! Retirement is the reward of disciplined investing over the long term, not just a destination.

[@NikolasMartine01]

Well said! My adviser guided me through retirement planning, ensuring my investments were strategically positioned for long-term rewards.

[@TeddyAlexanderv6]

That's a great point! Finding a reliable financial adviser would be essential for me to ensure my retirement plans are well-structured.

[@TeddyAlexanderv6]

I searched for her full name online, found her page, and sent an email to schedule a meeting. Hopefully, she responds soon. Thank you