Personal Finance (Not Investing) • ACA insurance subsidy -> Gold, Silver, And Bronze

COBRA costs a lot more than the ACA insurance with subsidy. COBRA is about 18K per year.

I figured that's what the issue would be.

Good Luck

I think of COBRA as a tax on those who can't figure out the ACA.

"It depends"

Actually, in my case, it may makes sense to go with COBRA for one year since my employer insurance has a very low deductible at 3K. And, I can use 2025 to do a fair amount of Roth conversion of my 1.1 to 1.2 million tax deferred account.

I need to work out all the calculations and see what makes the most sense for me.

KlangFool

"All the calculations" will include many variables controlled by you which you can choose to optimize if you have a fully populated plan. Things like SS election age, draw rates, and goals for funds will all affect the best fit plans.

For that you would need to model the variables well out in the future - not just a year or even a few years.
I would suggest using either or both RPM and Pralana for this longer-term modeling.

You will find that 'cash buffers' will be a disadvantage but not so much so that they sabotage your plan given its highly conservative level.

It would be best if you inputted correct data for things like these in the calculators:
- your age
- your spouse's age
- your real withdrawal $$
- your current real SS benefits
You can always 'sandbag' any results after the fact but please input correct data for a baseline.
You can also run many future 'scenarios' off of that baseline with varied portfolio AA's, portfolio performance(s), age of SS election, draw rate, age of demise for one or both spouses, etc for comparisons and review.
RPM
https://www.bogleheads.org/wiki/Retiree_Portfolio_Model
Pralana
https://pralanaretirementcalculator.com/

I would suggest running Pralana and running at least a few models without inflation so you can best see the remaining totals in each account and adjust their value for heirs and/or charity.
I would also suggest you review the Bogle heat map in general and see how the 'creep' (each and every year) can and will affect any of your plans.
https://www.bogleheads.org/wiki/Taxatio ... y_benefits
Click on the color heat map for MFJ and also read about yearly creep.

Statistics: Posted by smitcat — Thu Aug 22, 2024 6:35 pm — Replies 49 — Views 3904

---