Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Young and Older Folk Portfolio -- Ignore unavailable to you. Want to Upgrade?

To: SeeksQuality who wrote (7835)	8/10/2024 10:47:02 AM
From: SoCalGal	Read Replies (2) \| Respond to of 22086

The $350k was initially intended to be used to cover extraordinary expenses, but regular expenses have grown so much and income is declining enough that they now are being considered as a bridge to get through the next few years. My 401k is by far my largest account and I would like to access it last if possible, allowing it to compound as long as possible before using it. (Nevertheless, I want the peace of mind that sufficient income is there if I need it) There are tax reasons for me wanting to access the taxable account first. As I may have mentioned before, I have a health care insurance dilemma where I'm at a subsidy cliff. If I increase my income to pay my actual expenses (through retirement account withdrawals), my health insurance premiums rise dramatically. So, I would prefer to use the taxable account first which has lower taxed capital gains and a cash balance before moving on to retirement accounts, which are taxed as ordinary income. When kids move off the health insurance, hopefully the hit from retirement accounts won't be so bad because overall premiums will be lower. Obviously I will be trying to keep the business income going as long as possible as I can at least deduct the health insurance premiums, but I get a seriously bad hit at tax time every year, even though I have the lowest level bronze PPO plan.