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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Ditchdigger who wrote (17665)	11/30/2013 10:53:31 AM
From: E_K_S	1 Recommendation Recommended By bruwin Read Replies (3) \| Respond to of 34328

OT - Constructing a Div portfolio to pay those Health Care Premiums I calculated the amount of money I needed in a dividend portfolio to spin off enough pre-tax income to make those monthly payments. When you look at the problem from this perspective it's a big chunk of capital. In my case I pay (after tax) $670.00/month x 1.35 (combined tax rates) = $904.50/month (pre-tax) That's $10,854.00 in annual premiums needed. Assume you earn a net 5% dividend stream from MLP's, preferred stocks and dividend payers, you need $217,080.00 capital invested. Also, as premiums increase you need to plunk more capital in the heal care premium bucket to generate that income. You do end up saving the principal rather than spending that down and you could probably structure some type of pay down annuity that would need a smaller chunk of capital. The bottom line is that any way you look at it, it's a lot of capital needed to generate that monthly/quarterly dividend income stream. As Congress gets their health care free, they do not have to calculate this type of planning scenario. Maybe if they did, they might change the way health care expenses (ie premiums) are factored in when calculating one's taxable income. My particular situation is small compared to large families with many dependents who are self employed. Health care is one of those things you need because you can be wiped out w/ expenses if not covered. I do know several people in their 60's who never have had health insurance and are doing just fine but for me it was always planned for. I set aside 1/4 Million just for this in my taxable portfolio. Luckily as my health care premiums rose, my mortgage was paid off so those house payments went to pay my health premiums. Now if the Feds allowed me to itemize the total expense rather than just a small percentage which is capped, the hit would not be as bad. EKS

To: Ditchdigger who wrote (17665)	11/30/2013 11:36:40 AM
From: Steve Felix	Respond to of 34328

I'm glad the wife and I don't need to get involved in govt healthcare at this time. I do enjoy going to a couple of other threads and chuckling as posters fight over the ACA. Glad you saved a couple bucks.

To: Ditchdigger who wrote (17665)	11/30/2013 2:40:47 PM
From: TheNoBoB	Read Replies (2) \| Respond to of 34328

Re: health Insurance Premiums [OT] Currently pay $617.54/mo for BCBS insurance on myself.Platinum BCBS plan on the state exchange is priced @ $582.79/mo for 2014. That's interesting, as it's far different than other reports I've encountered from friends in the individual market. Are these plans otherwise identical, particularly the deductible? Dramatically increased deductibles seems to be the major complaint I've heard (premiums increasing too, but I guess we're just resigned to that). I think you're right about a gradual 'pushing out' of Medicare eligibility. I'm probably too old to be affected, but my kids likely will be, and certainly the grandkids.