ACA Subsidies win?
I wanted to share my plan I've been spending way too much time planning to get any feedback on. Retiring this year at 55 so a considerable stretch of gap years along with an extended bottom of the brackets to take good advantage of. A core principal of the plan will be to gain subsidies by looking modest in paper with MAGI under the threshold cliff and living a higher lifestyle (traveling) with 'MAGI-invisible' income.
My rough plan:
#1, fortunate to have both a pension and 457b to serve as a guaranteed income floor (though both count against MAGI.
#2, sell off all income/dividend paying ETFs counting towards MAGI e.g., SCHD, SGOV, etc.
#3, Move most of my HYSA paying 3.2% against MAGI over to FTEXX (zero-fee tax-exempt MUNI fund paying very low dividends) leaving some still in my HYSA. Between the two of those they will fund go-go spend 'MAGI-invisible'. It'll also serve as a critical hedge against SRR especially with retiring so early. <-- Does anyone think the wrong way to park cash-equivalent?
#4, I draw SS at 67, wife at 65 (to not blow MAGI).
(Edit: above had a minor date edit)
. #5, some ver Roth conversions against a large pre-tax IRA between 65-67 along with QCDs and DAF to minimize RMDs and IRMMA.