- Joined
- Dec 12, 2005
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I have been thinking about the possibility of opting out of personal medicare benefits. I was wondering if any other member of the board have contemplated this option. I believe there are new laws (Hill vs. Sabelius) that tie Medicare A with social security benefits. But overall, I believe we have the option to opt out. Take a look at this senario and please provided feedback.
Scenario 1
You average a 1,000,000 USD dollars a year in employment income for the said 47 years
Your Bill: $6,621 for FICA max and $14,500 medicare tax X 47 years or about 1,000,000 USD dollars . If you are self employed and have earned income double these amounts to include both halves of social security.
Alternative: If placed in an investment bearing 8% at $21121 a year for 47 years that would be $10,000,000 USD +.
Conclusion: If you wish to opt out and you have paid guaranteed insurance please go ahead. It is however more likely that the government will give you back closer to 1 million then 10 million. Also if you wish to retain Medicare and forego maximum social security benefits for the return of $311,000 without compounding I can see your point.
My belief is that the well-to-do on this forum will continue to pay over $20K a year for a Medicare program that will not begin until we are much older (>67yo), with massive deductibles or even more future taxes. Do we really need medicare for another 10-15 years when we can save and invest on our own????
Scenario 1
You average a 1,000,000 USD dollars a year in employment income for the said 47 years
Your Bill: $6,621 for FICA max and $14,500 medicare tax X 47 years or about 1,000,000 USD dollars . If you are self employed and have earned income double these amounts to include both halves of social security.
Alternative: If placed in an investment bearing 8% at $21121 a year for 47 years that would be $10,000,000 USD +.
Conclusion: If you wish to opt out and you have paid guaranteed insurance please go ahead. It is however more likely that the government will give you back closer to 1 million then 10 million. Also if you wish to retain Medicare and forego maximum social security benefits for the return of $311,000 without compounding I can see your point.
My belief is that the well-to-do on this forum will continue to pay over $20K a year for a Medicare program that will not begin until we are much older (>67yo), with massive deductibles or even more future taxes. Do we really need medicare for another 10-15 years when we can save and invest on our own????
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