Retirement income planning, ACA premiums, and Roth conversions: How do they fit together?

This video walks through a case study of how to plan for efficient, goal-driven Roth conversions when retiring before medicare eligibility. The trade-off between higher healthcare premiums and Roth conversions should be weighed carefully and knowledge of how income sources produce taxable income is often misunderstood. The amount to convert during this period should be dictated by goals, income sources, and values as much as the math around lifetime tax. Brightworks Financial Planning is a South Carolina registered investment advisor able to provide investment advice in states where it is registered, exempt, or excluded from registration.  Content contained herein is for informational purposes only and is not intended and should not be construed as personalized investment advice or an offer for the purchase or sale of any security, insurance, or other investment product.  Investments involve the risk of loss, including possible loss of principal.  Please consult with a qualified financial, tax, accounting, or legal professional before implementing any ideas or strategies discussed here.  Content provided may be obtained from sources believed to be reliable but cannot be guaranteed as to its accuracy or completeness. Website https://brightworksfp.com/ Instagram / brightworks_financial_planning Time Stamps 0:00 - Introduction: Retirement Income vs ACA Credits 0:37 - Case Study Setup: Ages 60-67 2:22 - Portfolio Breakdown & Income Sources 4:34 - ACA Marketplace & MAGI Target ($84,000) 6:56 - Federal Poverty Line & Premium Subsidies 7:16 - Healthcare Plan Comparison (Bronze vs Silver) 9:04 - Income Sources Breakdown 10:10 - What Counts for MAGI 10:46 - Capital Gains Count! 11:11 - Calculating Income from Different Sources 12:24 - Living Expenses vs Taxable Income 13:13 - Using HSA & Roth for Additional Income 15:10 - Roth Conversion Strategy ($500K Goal) 17:05 - Tax Impact of $75K Conversion 18:24 - More Modest Conversion Approach ($30K) 19:59 - Long-term Growth Projection 20:07 - Final Thoughts & Disclaimer 20:30 - Call to Action