Hey all, another update: Nicaragua was great, and my wife and I have now made it to Costa Rica safe and sound!
We're now at our rented house a couple minutes from the beach and our days are pretty relaxing. Eating healthy, staying fit, surfing, practicing spanish, reading/watching downloaded shows, relaxing in the pool! It's nice to actually have a home now.
With my spare time, I just did some calculations on our projected income and future taxes, and wanted to share:
Here are our current Investment Accounts:
$315,000 - Traditional IRA
$80,000 - Roth IRA
$500,000 - Taxable Investments (Vanguard)
$15,000 - HSA
$95,000 - RRSP (Canada)
$20,000 - LIRA (Canada)
We're going to do a tax-free Roth IRA Conversion Ladder of $20,600 every year. We're also aiming to live annually on $30,000-40,000 (3-4% of our portfolio).
For our US health care plan, we're aiming for the ‘Gold Plated Silver Plan‘ (200% of FPL with cost sharing subsidies) which will cost us $1,486 for the year and to qualify for it we require a MAGI of $31,460. So our expected income will be:
$20,600 – Conversion of Traditional IRA to Roth IRA (this is counted against our MAGI - but we must wait 5 years for this money)
$10,860 – Capital gains from our Taxable Investment Account
$19,140 – Distributions from our Roth IRA (don’t count towards MAGI).
Using the Roth IRA to modify our MAGI seems like a loophole. Is anyone else planning on doing this?