Sorry, I'm a dummy, and I can't figure this out. I cry for help from the wizened MMM community...
I FIRE'd this June, and am currently getting my health insurance through COBRA.
I want to determine if I can get a better rate for insurance with the ACA/Covered California. I'm just unable to figure out how to factor in my investment income (unpredictable) into the first thing they ask for: "how much income will I have in 2016."
I can not use past years as a guide, since I quit work this year. My income will be solely from investments--mainly from a static monthly amount ($3500) that comes from my taxable account as my paycheck replacement.
This taxable account could possibly earn an amount that exceeds my fixed monthly withdrawal. Those earnings will be reinvested. Do those reinvested earnings count? If so, how do I pre-determine a number for that?
This year I also became the beneficiary of a small trust my parents had set up for my dotage. Any yearly earnings from that will be transferred to me as income to avoid the ~45% trust tax levied on earnings. That number is also unpredictable.
So how do I determine my income for ACA purposes with these unpredictable numbers?
1. 42,000/year comprised of 12 monthly withdrawals from my investments
2. ?? whatever my taxable accounts yield, if any, beyond the above number? (does this income count--any earnings beyond 42,000 would be reinvested)
3. ?? Trust income, if any (paid to me, but will be deposited into my taxable accounts)
Sorry to be a dum-dum. I hope some of you can clear this up for my feeble mind, because the door to enrollment for 2016 is slowly closing.
Or if you can point me to some links that will help me with this quandary, explained for a simpleton...
Thanks!
-Piccione