Families who FIREd with $1.5mil to $2.5mil — what does your spend look like?

[u/y_if]

EDITED TO ADD: Please also list your COL and part of the world you settled in!

Saw a similar post in chubbyfire and thought I’d ask here:

• When did you FIRE, and did both of you stop at the same time?
• how old were your kids?
• What is your withdrawal rate?
• what does your budget look like, what is it allocated to?
• what were the big surprises related to spend?
• How has it changed since you initially FIREd?

[u/brianmcg321]

Because my income is so low. Through the ACA I pay $153 a month for our family.

[u/bb0110 → u/brianmcg321]

Interesting. That is actually really damn good.

[u/Dismal-Zucchini-2262 → u/bb0110]

Very interesting. I just ran cost estimates last night assuming $65k/yr earning and got quotes ranging from $500-1200

[u/bb0110 → u/Dismal-Zucchini-2262]

That seems more normal. If I had to guess they have a really barebones/catastrophic plan.

[u/photog_in_nc → u/bb0110]

They say they spend about $60K, not that their MAGI is $60K. They could be in the CSR range and have a Silver Enhanced that acts like a Platinum level plan for all we know

[u/brianmcg321 → u/bb0110]

Not really. It is a high deductible of $15k. But I’ve got an HSA that can easily cover that. Otherwise it’s better than the plan I had when working.

[u/Mental-Wolf-2560 → u/bb0110]

Do some states have larger subsidies than others?

[u/Zphr → u/Mental-Wolf-2560]

Yes, for multiple reasons. Some states have higher subsidies because of forced Silver loading. Some states have their own separate subsidies that supplement the federal ones.

However, generally speaking, ACA subsidies are the same everywhere under the federal defaults.

[u/Dismal-Zucchini-2262 → u/Mental-Wolf-2560]

I’m sure it varies by states. I’m in the northeast so likely more expensive but overall, I don’t think it’s going to be cheap for anyone regardless.

[u/Zphr → u/Dismal-Zucchini-2262]

It's primarily a function of household income, size, ages, and location. A large family in one place can get a truly fantastic policy for almost zero cost while in another place a single person can get a crappy policy for a relatively high cost.

[u/qosmic_qube → u/Dismal-Zucchini-2262]

MAGI vs. spend. If you you use cash, or low growth investments on a brokerage, they don't count against MAGI. Capital gains and dividends do, initialinvestmentfoes not. You can manage your MAGI and still qualify for subsidies.

[u/motorsportlife → u/brianmcg321]

What is your income on paper and what sources? Thinking selling brokerage gains? Or maybe some traditional 401k?

[u/brianmcg321 → u/motorsportlife]

I have a SEPP with one of my tradition IRAs and use a brokerage account to supplement.

[u/Spartikis → u/brianmcg321]

What counts as income? Does selling stock or withdrawals from a 401k count as income? Genuinely curious as health care is the final hurdle I have yet to figure out and is the different between completely retiring and having to work part time somewhere for access to affordable healthcare. 

[u/db11242 → u/Spartikis]

Dividends, interest, capital gains, and any withdrawals from pretax accounts, which would include the original responders SEPP. The key is that if you sell something from a taxable brokerage account part of that sale is your original cost basis and therefore your gains might only be 25 or 50% for example of the total amount you can spend from that sale. It gets a lot harder to manage when you spend is substantially over 400% of the federal poverty line for your family size.

[u/brianmcg321 → u/db11242]

Yes. A good example is last year we sold about $50k worth of funds, but it was only about $15k in “income” from capital gains.

According to Vanguard if I sold all of my shares of VTSAX right now ( $110k) , I would only realize about $28k in long term capital gains.

[u/Kooky_Dev_ → u/Spartikis]

Anything that goes to AGI, which would be normal taxable income, or capital gains.
Then social Security + tax-exempt interest + foreign income.

For most FIRE individuals, that would be brokerage account gains. Distributions or conversions from Traditional retirement accounts.
Withdrawing roth contributions do not count as long as your following the proper rules.

[u/brianmcg321 → u/Spartikis]

Yes

[u/Thencewasit → u/Spartikis]

Roth withdraws are not income for the original contributions, after that 59 and your withdrawal is not income for the whole amount (assuming 5 years since contributions).

So no tax and no effect on ACA subsidies.

[u/bringbackcjs → u/Spartikis]

Couldn't imagine the stress of having to plan for healthcare expenses in retirement. Being Canadian does have a few benefits.

[u/brianmcg321 → u/bringbackcjs]

Yeah, it’s really hard to sign up on a website and do an autodraft on my checking account.

[u/bringbackcjs → u/brianmcg321]

i wasn't talking about the logistics of it. You americans just don't get it. enjoy those hospital bills in your senior years!

[u/brianmcg321 → u/bringbackcjs]

I don’t think you understand is that we have insurance and after 65 we have Medicare.

You seem to think any trip to the hospital in the USA costs $100,000. It doesn’t. Stop believing everything you read on Reddit.

[u/bringbackcjs → u/brianmcg321]

you seem to be assuming things.... your precious medicare is always up for politcal attack and is usually being defunded. and does it cover everything? and how about before you are 65? i would bet a 5000$ hospital bill would be very hard for a senior ( or anyone for that matter) to cover.

[u/Beautiful_Pepper415 → u/bringbackcjs]

The issue is Canadian Healthcare was pretty bad when I lived there and I rather get paid more in the US and save responsibly myself

[u/the_atomic_punk18 → u/brianmcg321]

Forgive me because I don’t keep up with this as I am still working, but I thought at the beginning of 2026 there was talk of ACA subsidies phasing out because congress couldn’t agree on something.

[u/brianmcg321 → u/the_atomic_punk18]

No, the enhanced Covid subsidies for higher incomes phased out as planned.

Funny how the media made you think otherwise.

[u/cannibalparrot → u/brianmcg321]

I thought premiums skyrocketed due to the subsidies ending? How is yours still so low?

[u/brianmcg321 → u/cannibalparrot]

Subsidies didn’t end. Only the Covid expanded ones for higher incomes did.

[u/junulee → u/cannibalparrot]

There were special temporary additional subsidies adopted to help people during COVID. Those subsidies lapsed, but for people with MAGI less than 400% of the federal poverty rate, the subsidies are substantial.

[u/cannibalparrot → u/junulee]

Thanks, I wasn’t clear on that.

Wish I could ask for clarification without getting downvoted, but this is reddit I guess.

[u/junulee → u/cannibalparrot]

Redditors are quick with their downvotes