Early Retirement??

[KBFlyer]

 

[broozer]

When my wife & I were younger, we were both used to living on our own on not much money. We had jobs that we loved, but didn't pay much. So we were trained to concentrate on needs, not wants. After we met & married, we were fortunate enough to find much better paying jobs, so we went in debt to buy a house and new cars like so many do. We maintained that "needs/wants" mentality though, so we were able to save enough to pay off our house & cars. We both retired at 62, have a little in savings and investments, live entirely on our Social Security checks, and can still save every month.

 

[Fueling Around]

Likely because that is their best (only) option. If the elites can afford more or have too much income to qualify then they can pay their own way. Sort of like food. If you have the dough those Tomahawk Ribeyes look awfully tasty but if you have a choice between Oscar Mayer dogs or starving those dogs aint bad.

I have an insurance person I trust and I trust myself to manage my investments. Something to do in retirement.

I referring to the roughly 550 employees and those they replaced that voted themselves free healthcare and a full (and unpaid) pension for life.

 

[daspyknows]

I referring to the roughly 550 employees and those they replaced that voted themselves free healthcare and a full (and unpaid) pension for life.

And I am as disgusted by that as much as you are. Most of those people have more than enough money that they shouldn't be getting the freebies.

I thought you were referring to the millions of people who have the income or accumulated wealth and can afford to pay their own way. I am fortunate to be one of those so I am not complaining about my $2k a month health care insurance bill under the current system.

 

[SmokeRing0909]

I know I sure glad I took early retirement. Those last few years being with Gretchen were priceless. Sure miss her. Playing this income game for my health insurance getting harder and harder though.

a lot of people are putting all their possessions in a corporation or S-corp. pay themselves poverty level low and get free marketplace insurance

 

[thirdeye]

a lot of people are putting all their possessions in a corporation or S-corp. pay themselves poverty level low and get free marketplace insurance

How does the corporation, or S-Corp make enough money to qualify as a business? And wouldn't you pay federal withholding plus the company match (meaning you are taxed twice)?

When I was on ACA insurance I met the minimum income most years from interest, dividends and cap gains. One year it was really close, so I withdrew $1,500 from an IRA

 

[SmokeRing0909]

How does the corporation, or S-Corp make enough money to qualify as a business? And wouldn't you pay federal withholding plus the company match (meaning you are taxed twice)?

When I was on ACA insurance I met the minimum income most years from interest, dividends and cap gains. One year it was really close, so I withdrew $1,500 from an IRA

The corp gets all the money. Except for your poverty level salary

 

[clifish]

The corp gets all the money. Except for your poverty level salary

That is a fine line, if paying yourself so little results in s corp profits, those profits rolls to you as income.

 

[daspyknows]

How does the corporation, or S-Corp make enough money to qualify as a business? And wouldn't you pay federal withholding plus the company match (meaning you are taxed twice)?

When I was on ACA insurance I met the minimum income most years from interest, dividends and cap gains. One year it was really close, so I withdrew $1,500 from an IRA

I would work with my accountant to make the minimum salary necessary and then paid myself a dividend which is taxed at a lower rate. I paid myself one "paycheck" and used it to pay back the loans I took from the corporation. Also paid the estimated taxes so I didn't owe taxes in April. My income was very irregular so was easiest to true things up once a year. Since I was a small consulting business the ACA was a life saver. Individual health insurance policies overpriced compared to what people paid working for big companies.

 

[SmokeRing0909]

That is a fine line, if paying yourself so little results in s corp profits, those profits rolls to you as income.

Nah the corp buys more condos, boats,cars or whatever is a write off . I live in the south and everyone studies not paying the government if they can help it

 

[BrianGSDTexoma]

How does the corporation, or S-Corp make enough money to qualify as a business? And wouldn't you pay federal withholding plus the company match (meaning you are taxed twice)?

When I was on ACA insurance I met the minimum income most years from interest, dividends and cap gains. One year it was really close, so I withdrew $1,500 from an IRA

This SS raise this year putting me over my annual income requirements. Was pretty concern until I realized I can put the extra into an IRA. I just glad I have everything paid off. When I get to 65 this will be over than a new set of problems trying to figure that out.

 

[thirdeye]

The corp gets all the money. Except for your poverty level salary

My business was an S-Corp, and my salary had to fit certain parameters of industry standards, otherwise the IRS might assume I was trying to avoid taxation.

I would work with my accountant to make the minimum salary necessary and then paid myself a dividend which is taxed at a lower rate.

My CPA was involved in determining my salary and cost of living increases over the years. I don't recall discussing a dividend, but I could take a distribution of profit.

 

[BigW.]

This SS raise this year putting me over my annual income requirements. Was pretty concern until I realized I can put the extra into an IRA.

Did you mean HSA, or do you have some part-time income?

 

[thirdeye]

This SS raise this year putting me over my annual income requirements. Was pretty concern until I realized I can put the extra into an IRA. I just glad I have everything paid off. When I get to 65 this will be over than a new set of problems trying to figure that out.

I thought that only non-taxable SS benefits were considered in your AGI or MAGI calculation that the ACA would look at? (Boy, a lot of acronyms in that sentence ).

When you mentioned putting the extra in an IRA, do you have "earned income" like from a part time job or rental property?

 

[BrianGSDTexoma]

I thought that only non-taxable SS benefits were considered in your AGI or MAGI calculation that the ACA would look at? (Boy, a lot of acronyms in that sentence ).

When you mentioned putting the extra in an IRA, do you have "earned income" like from a part time job or rental

Pretty much all types of income is included. About the only thing you can deduct is money put into an IRA. I been coming in pretty close to where I need to be last few years. This is my first full year with SS benefits.

 

[BigW.]

Brian, you need earned income to contribute to an IRA. SS, or any type of passive income does not count.

 

[sandyut]

I agree with using an accountant/financial advisor. for a few years now the taxable income from investments/DIV/INT/etc. has been low. it will eventually rise, but at least for now ACA ins. is affordably cheap. Ive been impressed with ACA since I retired. Medicare looks dreamy in comparison tho.

 

[thirdeye]

Pretty much all types of income is included. About the only thing you can deduct is money put into an IRA. I been coming in pretty close to where I need to be last few years. This is my first full year with SS benefits.

View attachment 687933

"All types of income" includes household income, not just your income. Hmmm, looking at your chart, we're seeing conflicting information. Look at page 3 of the link below.

https://www.cms.gov/marketplace/outreach-and-education/household-income-data-matching-issues.pdf

Did you have earned income to put into an IRA? I have several friends that needed to correct that after retiring.

 

[BrianGSDTexoma]

"All types of income" includes household income, not just your income. Hmmm, looking at your chart, we're seeing conflicting information. Look at page 3 of the link below.

https://www.cms.gov/marketplace/outreach-and-education/household-income-data-matching-issues.pdf

Did you have earned income to put into an IRA? I have several friends that needed to correct that after retiring.

This a good video explaining everything

 

[BrianGSDTexoma]

I starting to make since of this. I guess my plan of putting money in IRA not going to work. I guess I need to go see someone. Thanks guys. This is so confusing.