Reply to I want to be self-employed/be partially retired.

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]OP here: I already have a side business that brings in 55k a year. If I were to partially retire what I mean is that I would try to scale up that business. I think I can get to over 100k in 6 months.

I have 850k in retirement. I have 375k liquid. I don’t have property (I just sold) and feel priced out of the area. I can’t move now. I also have kids. I feel like I have enough cushion to take the risk of working for myself but was wondering what others would think. I am late 40s. I have also considered switching careers but the ROI on retraining does not seem worth it.[/quote]
The biggest issue is healthcare.  ACA insurance is very pricey.  You'll also want to coverage for your kids, I assume.  Wherever you think of moving to, check the ACA marketplace first.

We were self employed for many years and had ACA insurance.   While ACA has enabled many, including us, to become self employed, it is very expensive.

At 40something, you have like 15 to 20 years of needing private insurance.  [/quote]

My kids don't need insurance--they have it. Most people I know who do this pay $400 to $500 a month. That is not that much.[/quote]

Exactly.  DCUM has this absurd fear of healthcare costs because they’re all W-2 employees who only have to interact with the private insurance marketplace when they retire early at age 61, at which point health insurance *is* fairly expensive.

The thing is that insurance does become significantly more expensive as you age. For example, you should probably plan to pay over $1,000/month from age 60 to 64, so you cannot plan your future healthcare budget in the same way that you plan your future food budget, i.e., by considering what you pay today and adjusting for inflation.

But it’s really only a five-year period when insurance really is expensive.  Notwithstanding that fact, you have a bunch of people on DCUM with $300K HHIs and $3M in the bank who think they cannot retire because of healthcare. It’s totally absurd; it’s like they don’t even realize that there are self-employed landscapers earning $75,000 a year who purchase their own health insurance their whole lives.

I’m 43 and pay $240/month for my ACA plan.  Such a ridiculous blind spot that DCUM has.[/quote]
LOL  You are 43.

I'm 55, DH is 60. You know how much ACA costs? Almost $1200 for the just the two of us. And that's a hdp with kaiser or hmo with carefirst.

Also, the price depends on where you live. That's why I stated for OP to check out the price of ACA BEFORE they move to a new area.

I've had private insurance on/off for 20 years, including the past 6 years through ACA.[/quote]

Yes, that poster has a "ridiculous blind spot" because $240/month for ACA is not normal and is either a bad plan or he or she has low enough income to get a price break. We have  silver plan (PPO), which is the third "best". It is well over $2000/month. That's for ages 50, 50, 13, and 15. In 2017, the same plan was over $2500/month. The first Trump administration changed the law so that the states could decide whether to open up the plan options to group plans. It backed it down to about $1800/month, and it has crept up every year since.

It's not great insurance. We pay tons out of pocket. I despise it.[/quote]

+1. We are a bit younger but still paying about $1600/month for four people with a very high deductible (8k.) It’s insanity and people have no idea because most people still go through work. Only about 6-8% of the US don’t have employer insurance, Medicare or Medicaid. [/quote]

It cost $1600 when you employed, too, but your employer subsidized a good chunk of it.[/quote]

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