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Originally Posted by rustyp
Your income until Medicare will determine if exchanges can beat your employer deal. The exchange has you project your income for the upcoming year. The key here is definition of income. If you have a pile of after tax cash that you can live off of you can look very poor on paper but have millions in before tax accounts. I think your adviser was trying to convey this to you. Try him/her again for a more detailed explanation.
I planned for this with early retirement and went from 1800/month employer plan to 200/month from age 62 to 65. In my case the employer plan was so bad if I missed my projection the penalty I would need to pay to the exchange would be a wash.
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Here is the link to how millionaires can get zero deductible policies and pay less than $100 a month using this tactic prior to qualifying for Medicare. It’s due to the fact that income is the only factor determining what your subsidy will be. If you sold your home and bought a less expensive one in retirement and used the cash to live on until Medicare, it’s very doable.
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