"Based on reasonable estimates, I won't qualify for subsidies. If I do end up qualifying, the subsidy amount will be very small."
?? are you sure? if you are not working full time and have no income, how exactly you do not quality for subsidies if they are based on the income? what sites have you used for estimates , what state you are in, and what numbers did you plug in? your original statement does not seen right..
If I FIRE, I will still have income from my investment growth and dividends - that's what I will live off of.
Most of my stache is not tax-sheltered so that will count as taxable income. I used this site for subsidy calc:
https://www.healthcare.gov/see-plans/Numbers: see last paragraph below
Summary: For 34k taxable income there is no subsidy and the annualpremium+maxoutofpocket for silver plan is around 9,000$
Streetcat - Did I read correctly that you are calculating healthcare costs as paying full premium, out of pocket and extra cash as a buffer? You are not counting that as a one year expense but as an annual need? Well, if you calculate it like that then you probably would need to add more to your stache. But is that reasonable?
FIREby35, your understanding is correct. However, I am counting that as an annual need due to a few reasons:
- I would like to have some buffer in my calculations. Otherwise that itself may become a worry for me during retirement.
- I have a couple of mild but chronic conditions that I need meds for and there's no chance of it getting better.
- ACA may not be around forever given the political climate. It may get repealed altogether or be modified in some way.
- ACA premiums go up with age.
As for your fear, have you read this series by Dr. Doom? See Link: https://livingafi.com/2015/01/20/midlife-fi-sis/ I really like that blog because he talks a lot about fear of quitting and being, you know, an outlier. It is hard to do something unusual and harder for some of us than others. Give him a read.
Thanks for the pointer I will definitely look up that Dr. Doom series.
BTW, it occurred to me that we don't know your age and numbers. So, I don't want to be pushing you to retire without enough information. So, take everything and use it yourself. Also, everything above is meant in a constructive way. I again congratulate you on being in a great position.
I totally appreciate that and I am very thankful for everybody's valued and varied opinions. Even when I don't fully agree with some viewpoint, many times it does change my outlook in subtle ways. So, your inputs are very much appreciated.
Here are some numbers:
Current situation:Stache = 680k (90%+ is in taxable accounts, and a small portion is in Roth)
3.5% of 680k = 23.8k
23.8k After tax = 21.2k (although this number is hypothetical since I can't FIRE on that, and if my stache grows enough to FIRE, the taxes will go up too).
21k is my current living expense (excluding health care).
Needed to FIRERequired before tax annual income (for my living expenses + ACA silver plan) = 34,000
Age: 40, single male no kids non-tobacco
State: AZ
For 34k income there is no subsidy and the annualpremium+maxoutofpocket is around 9,000$