Today's episode is going to resonate big time for any of you that have a very healthy pre-tax balance. Now, if you don't, it doesn't mean you have to tune out today's episode, but I might encourage you to listen to another one because I want to make sure that any time you listen to this podcast, it is absolutely most applicable for you. So I realize not every single episode is going to apply to your situation, but I do my best to keep it general. So if you do want to listen to every episode, you go, yep, I took something away that was valuable, but I also want to really dial it in because a lot of you have saved and invested well. You might have between 2 and 5 million of pre-tax assets, so 401k or IRA, and you have a big tax planning decision to make. And here's the decision.

Should you do Roth conversions, or should you intentionally try to keep your income low to qualify

for a health insurance subsidy? The right choice is going to save you hundreds of thousands of

dollars, and today I'm going to show you through my framework how you can think through this

decision. So if you don't have two to five million bucks, it doesn't mean you have to tune out, because of course, I'm going to show you through my framework how you can think through this decision. So if you don't have two to five million bucks, it doesn't mean you have to tune out because, of course, I imagine a lot of you, you're on your way there, and you are going to be there, and it is going to be a decision you have to make. But if you are in your late 30s going, is this the episode that's going to apply to me, maybe not, and I don't want to waste your time. So, of course, listen to this if it's helpful. But if you are, call it in age 50 and above, and you do say, yep, Ari, I'm going to be in that space or right now I have between $2 to $5 million in pre-tax assets, I want to make sure I'm doing the right things if and when I choose to retire early. So we are going to work through that. But as always, want to go through a recent review. This one was via email, a very kind review from someone who they say, R.A, I'm 73 years old. Couldn't figure out how to leave a review on the podcast. And I'm a Spotify listener. So to this listener, don't worry. On Spotify, you can't leave review, but on Apple podcast, you can. So I'm glad that you send an email. Ari, love the podcast, really helpful, and it makes me think differently and feel young again. Well, I would say you're still young because you're an investor and you might need this income to last 20, 30 plus years, but I appreciate the sentiment and see where you're coming from. You see, Ari, I've never thought about tax planning in the way that you mentioned where it's not about saving the most in a single year, but over the course of your lifetime. That is correct, and in fact, I'm going to discuss that today. All of this and more is on my YouTube channel, and if you're looking for a custom strategy to retire early, it's what I love to do. Now, I'm personally not going to be doing this forever. Within the next six to 12 months, somewhere in that range, depending on a few factors, I am personally going to limit the amount of people that I work with because I always want to meet with the current clients that I love meeting with. And I could have 500 clients, but all my current clients would not get the service they deserve. And I want to help as many

people as possible. My goal is to help a million people retire early with confidence. And so right now,

I think a lot of you know this, as I've mentioned it on episodes, but I work with about 70 clients,

and I'm going to stop it at around 100 and currently I'm training more advisors to focus

on the nuance of an early retirement. So with that being said, reach out to myself or a member of my

team if this is of interest. Let's hop into today's episode right away, which is once again

Roth conversions, health insurance subsidies. Excuse me, I couldn't even, I'm too excited for today's episode. I couldn't

even say subsidies. We are going to talk all about this today. And it really boils down to if you've got, like I said, seven figures plus in your portfolio, you're going to run to this challenge. You might be going, already, I'm working hard today. I don't even know what on earth you're talking about. and I'm going to introduce this challenge to you. And why does this challenge exist? Well, here's why.

Medicare does not start until 65. So if you want to retire at 60 or 55, like a lot of you that reach out to me, you're wondering, okay, Ari, I know that. So I need health insurance from somewhere. But I also don't want to spend more than I need to. And so you go, what if I could keep my income low to qualify for a subsidy? And if your household income is less than

four years, don't want to spend more than I need to. And so you go, what if I could keep my income low to

qualify for a subsidy? And if your household income is less than 400% of the federal poverty level,

then you qualify for a health insurance subsidy. So you're wondering, okay, is that a good option?

Or should I try to keep my income at a certain bucket or a certain amount or under a certain

bracket so I can do

Roth conversion. So why on earth would we even think through this? And here's why. You have a tax planning window. And what this window means, it's not a literal window, of course, in your house, but let's assume you want to retire at 60. Well, Social Security is going to get turned on. Now you can choose when you turn it on, maybe it is 67, maybe it's 70, maybe it's 62.

But once that get turned on. Now, you can choose when you turn it on. Maybe it is 67.

Maybe it's 70. Maybe it's 62. But once that gets turned on, it means there's less room where you can do what we call effective Roth conversions. Then guess what happens? RMDs turn on. Maybe that's age 73. Maybe it's 74. Maybe it's 75 for you. But if that's you, once that happens, once you're at that age, it's really not effective to do a lot of these conversions, unless there's a really,

really interesting situation. There's only one or two where I've ever seen me still doing

...