I have somewhat of an uncommon situation, with one spouse at retirement age, second 11 years younger and a minor child. Planning to retire Dec 31, 2025.
We are trying to line all our ducks in a row and have a few questions on different topics that are tied together.
Here's the basics -
We have a growth portfolio of 80 (Stocks)/20 (Bonds) and want to stay the course.
Total portfolio 2.5M for retirement + 150K for college.
Our tax free accounts (Roth and HSA) have FSGGX (Global ex US Index). Taxable is 94% FSAIX (500 Index) and 6% FSGGX.
Roth 190K (15K contributions annually)
HSA 50K (9K contributions)
Retirement Health Plan 30K (can be used for Medical Premiums)
Taxable account 580K (no more contributions) ***
401K - 1M for older (55+K contributions), custodian managed
401k - 900K for younger (40+K contributions) - FZROX and FZILX (Fidelity Zero US and International funds) and bond index fund.
No debts.
Married Filing Joint for a family of 3, in NC.
Retirement Expenses = 7K + rental income - will pay for everything including 2K for dental, vision and OOPs max (19K annual). Healthcare premiums will be extra.
My main question is on ACA (Marketplace Healthcare) and PTC (Primary Tax Credits). MAGI (Modified Adjusted Gross Income) for PTC purposes is -
1. Social Security - 70K(retiree + child + spousal) until 2030. 58K(retiree + child) until 2032. 35K until 2035. 60K, 2035 and after.
2. Pension 5K (Corporate)
3. Rental 5K (after expenses + depreciation)
4. Rental depreciation 5K
6. TLH 15K (3K deduction will last through tax year 2028, unless we take losses)
5. Dividends + Interest 6K*** (2023)
*** This account has a lot of gains with big lots from 2022 (TLH year) that show 50+% gains.
I want to understand if dividends will catch up to 400% FPL ($103K for a family of 3 for 2024) and the best way to manage since we are looking at possibly 12 years of ACA. This will also affect RMD's to start in 2037, is it better to start converting to Roth earlier, in my situation?
I am curious to learn how dividends change with the growing dollars. Also, I may not be able to TLH with current gains, right? Is there a way to set it more favorably for TLH? Probably not, since taxable holds a lot of gains...
Fixed income and investment (dividends and interest) income will likely be enough until 2032.
Is it true that ACA doesn't allow emergency health coverage internationally? If true, what do people do when they travel... painful and expensive to buy this every year?
What do you plan/do about long term health care? I think I want to self insure, but also want to make sure I can have the most luxurious care available/desired. What are some options?
Emergency funds - We will take care of home and auto repairs before retiring.
50 to 80K for home and auto, it will be time to get a new roof, new HVAC, replace auto, etc. (@smitcat and other folks who question about emergency funds, as I have too in the past, I could use my Roth for this but I want to shield myself from the market downturn).
20K for Healthcare OOPs(Out of Pocket) maximum.
Sounds right? Is there a better way to keep your cash than in Money Market (MM) account? CD?
Interesting question that I am coming back to after a few years - do I rebalance portfolio every year or let a custodian do it for free? They do it for free due to a relationship but I don't really know how to verify this. My worries stem from possible health issues/mental agility at 80+ and spouse's unease to rebalance..
We are trying to line all our ducks in a row and have a few questions on different topics that are tied together.
Here's the basics -
We have a growth portfolio of 80 (Stocks)/20 (Bonds) and want to stay the course.
Total portfolio 2.5M for retirement + 150K for college.
Our tax free accounts (Roth and HSA) have FSGGX (Global ex US Index). Taxable is 94% FSAIX (500 Index) and 6% FSGGX.
Roth 190K (15K contributions annually)
HSA 50K (9K contributions)
Retirement Health Plan 30K (can be used for Medical Premiums)
Taxable account 580K (no more contributions) ***
401K - 1M for older (55+K contributions), custodian managed
401k - 900K for younger (40+K contributions) - FZROX and FZILX (Fidelity Zero US and International funds) and bond index fund.
No debts.
Married Filing Joint for a family of 3, in NC.
Retirement Expenses = 7K + rental income - will pay for everything including 2K for dental, vision and OOPs max (19K annual). Healthcare premiums will be extra.
My main question is on ACA (Marketplace Healthcare) and PTC (Primary Tax Credits). MAGI (Modified Adjusted Gross Income) for PTC purposes is -
1. Social Security - 70K(retiree + child + spousal) until 2030. 58K(retiree + child) until 2032. 35K until 2035. 60K, 2035 and after.
2. Pension 5K (Corporate)
3. Rental 5K (after expenses + depreciation)
4. Rental depreciation 5K
6. TLH 15K (3K deduction will last through tax year 2028, unless we take losses)
5. Dividends + Interest 6K*** (2023)
*** This account has a lot of gains with big lots from 2022 (TLH year) that show 50+% gains.
I want to understand if dividends will catch up to 400% FPL ($103K for a family of 3 for 2024) and the best way to manage since we are looking at possibly 12 years of ACA. This will also affect RMD's to start in 2037, is it better to start converting to Roth earlier, in my situation?
I am curious to learn how dividends change with the growing dollars. Also, I may not be able to TLH with current gains, right? Is there a way to set it more favorably for TLH? Probably not, since taxable holds a lot of gains...
Fixed income and investment (dividends and interest) income will likely be enough until 2032.
Is it true that ACA doesn't allow emergency health coverage internationally? If true, what do people do when they travel... painful and expensive to buy this every year?
What do you plan/do about long term health care? I think I want to self insure, but also want to make sure I can have the most luxurious care available/desired. What are some options?
Emergency funds - We will take care of home and auto repairs before retiring.
50 to 80K for home and auto, it will be time to get a new roof, new HVAC, replace auto, etc. (@smitcat and other folks who question about emergency funds, as I have too in the past, I could use my Roth for this but I want to shield myself from the market downturn).
20K for Healthcare OOPs(Out of Pocket) maximum.
Sounds right? Is there a better way to keep your cash than in Money Market (MM) account? CD?
Interesting question that I am coming back to after a few years - do I rebalance portfolio every year or let a custodian do it for free? They do it for free due to a relationship but I don't really know how to verify this. My worries stem from possible health issues/mental agility at 80+ and spouse's unease to rebalance..
Statistics: Posted by Roly — Tue Sep 03, 2024 8:34 am — Replies 0 — Views 132