I think there’s a disconnect in that because the tax rebate is the feds, and the mandates are at the state level. Perhaps CA will offer something for folks who can’t afford, say, a $26k Bolt or whatever. I’ll be curious to see if someone can crack the $20k mark for a decent EV in the next few years.
Ok, well the adults are the decision makers, but yes they do have 3 dependent children. The kids aren’t the ones managing the money though… the grown-ups are.
I didn’t verify your assertion that $24,000 is the minimum income to avoid Medicaid. But the max income for the max EITC certainly exceeds $24,000 for three OR two kids (although the max EITC for two kids is lower), so if your statement about Medicaid is accurate then it seems that there is a window where folks with multiple kids can be simultaneously rich enough to avoid Medicaid and poor enough to get the max EITC.
Based on what I know about their hobby jobs, $24,000 seems like it’s in the right ballpark for their combined income.
I’m not sure if you’re being sarcastic or serious, but certainly taking advantage of Obamacare subsidies is part of it. I’m not sure about EITC. But a Google search of “health insurance FIRE” turned up several dozen articles and the few I clicked on all listed “get an ACA policy in retirement” as their top suggestion.
Hmmm, well they have Obamacare for sure because they were quite concerned about it when Trump was elected. Maybe they’re pulling enough from retirement each year to get up to $42,212 or whatever that year’s cutoff is. They’re certainly not earning that much. Oldest kid is in college… if there’s a way to game it to not count the oldest for Obamacare and count the oldest for EITC they’re probably doing that. (Oldest might be getting health insurance through the school???)
But even if oldest counts across the board and they’re at $42,212 their EITC would be $3,572. Not terrible and way more than $510.
I’d never actually looked for data. I pulled this from the Financial Samurai guy, who claims it’s from LIMRA, I didn’t validate it. And it’s super high level, particularly for the older groups - could be a fair amount of disability in there, or people retiring with older spouses. And people who retire at 55 or 60 aren’t milking the ACA subsidy for nearly as long as the poster child FIRE folks who retire at 35.
At any rate, if this data is right… oh, it’s not. There are two ‘age 50-54’ groups. Crap. Let me see if there’s source data somewhere.
Lots of people retire in the 60-64 age range. The hard part is how many of them have finances arranged to live well while reporting low incomes. And, among those people, how many are explicitly getting under the ACA cliff.
But, Googling, it turns out the cliff doesn’t exist anymore. Eliminating it “temporarily” was part of a covid package, and it has now been eliminated through 2025.
I would also suspect some/many of the age 60-64 retirees might be folks with govt benefits like Tricare coverage. Maybe a few of the old legacy jobs with retiree medical. And let’s face it, a lot of people retire with pretty low assets, so many people aren’t gaming the system to keep income low, they legit have low incomes.
I was more interested in the age 50 and under data. And despite the fact that they reported two age 50-54 buckets so you can’t really tell what the hell is going on in there, it seems reasonable to conclude that yeah, the cohort of people you read about on the internet retiring at 40 isn’t that large.
Not even close. They both paid for college themselves and they attended the same very average public high school.
But husband had a very lucrative career in IT and they live a very modest lifestyle. Zillow pegs their home value at probably about what his annual salary was when he was 40. Most people spend WAY more than that on their forever home, myself included. In fact, going back and looking at what the Zillow value was back when he was actually 40, I’m quite sure that the house was then worth less than one year’s salary for him.
They drive Hondas and vacation means camping in a state or county park and they’re not paying their kids’ college tuition either, reasoning that they both paid their own way so their kids can too.
It’s not the lifestyle for everyone, but everything they have they worked for. And they’re people of faith and I know that they tithe. That’s not very much these days, but when husband was working it was a lot.
These stories are always intriguing. When I was a young actuary, I was earning more than my father had and substantially more than my step-father. Our actual spending was about a third of my gross income (treating mortgage interest as “spending” and mortgage principal as “saving”). I dropped out of a phd program to become an actuary, and told myself that if I really wanted to, I could probably pick it up again much later.