“We have run across these same sorts of situations with other clients. Their final plans are different from this couple, but the plans achieve the same goal of reducing expenses and letting people retire earlier while preserving their portfolio for their children or for luxuries,” Frazier said. “This type of planning can also be effective for lower-income individuals and couples that are trying to achieve the largest Affordable Care Act subsidy possible.
“Qualifying for a health insurance subsidy, especially for a middle-income client, can positively affect their lifestyle,” he added.
For the retiring couple, Frazier said he worked with their tax and health-care consultants to come up with the plan.
“There are plenty of people who are waiting to retire because they are unsure of how they will pay for health insurance” Frazier said. “A plan that takes into account the Affordable Care Act subsidy could be the little push they need to fulfill their goal of retiring when they want.”