My Strategy on how to Sell Expensive Crap

Nov 17, 2015

  1. Yagents
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    Yagents Guru

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    We've all heard it before, self employed person making too much money for APTC, and whining about the $1000/mo premium. I bring up a word document on my Join.me screen and start typing out the following:

    $12,000 – Total premium per year
    + $8600 – H.S.A contribution for couple aged 55 and above
    = $20,600 – total amount pullled out of pocket
    = $14,832 – True after tax cost at 28% federal tax bracket
    - $8600 – Still have H.S.A money in account (I'm healthy!)
    = $6232/yr = $519/mo (real after tax cost of insurance at 28%)

    150k income X 2.5% = $3750 = Penalty for no insurance

    $2482 / 12 = $206/mo extra cost vs penalty to protect your assets. Now, go extract your benefits out of the policy and get your free butt scope and other free prev care

    net net = Free insurance and asset protection.
    Winner winner chicken dinner.
     
    Yagents, Nov 17, 2015
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  2. Ann H
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    Ann H Guru

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    Winner every time. Personally, I love it. And it works for folks who have the financial acumen to understand and implement it. I love HSAs, and most of my clients do. But I just talked to a family today, making $120,000, with 3 kids, and an HSA was a no-starter. The math is perfect! But the inconvenience was the killer.
     
    Ann H, Nov 17, 2015
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  3. timp
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    timp New Member

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    $519 per month real cost may look like a deal. But then, if you chose to provide the original premium at lesser than $1000, wouln't the real cost fall even further?

    I don't know - just wondering how you would tackle that line of argument. Thanks for the write up.
     
    timp, Nov 17, 2015
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  4. Yagents
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    Yagents Guru

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    You lost me at hello
     
    Yagents, Nov 17, 2015
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  5. G.Gordon
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    G.Gordon Guru

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    I'm blown away with those age 63-64 plus that got the HSA talk last year, bought 2015 HDHP's and DIDN'T OPEN THE DANG ACCOUNT. At least two have considerable out of pocket expenses they paid for with TAXED dollars.

    You can lead a horse to water.
     
    G.Gordon, Nov 17, 2015
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  6. FLM2
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    FLM2 Guru

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    Yagents, that is right on.

    I had a long time client on the phone last night who is 45 and is well above the 400% FPL complaining about a $900 a month premium for his family of 4-this year I had the husband and two kids on a Catastrophic plan (Hardship Exemption due to Plan Termination) for $401 and his wife is paying $400 for her employer plan.

    Once I showed him that the $900 a month premium for the entire family would not only be reduced by 55% (33% Fed Tax, 7% State Tax, 15.2% Payroll taxes) and then further reduced by the 40% tax savings on his HSA contribution it left a net premium of about $200 a month.

    It made him say, 'I need to talk to my accountant about this'-if his accountant says anything other than 'sign up immediately' he needs a new tax guy
     
    FLM2, Nov 17, 2015
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  7. hamben
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    hamben Super Genius

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    So have them open one now and fund it then reimburse themselves for what they already paid. No sense wasting a guaranteed tax deduction
     
    hamben, Nov 17, 2015
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  8. G.Gordon
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    G.Gordon Guru

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    You can't do that. A. The account was not established before the loss. Opening an account now make those expenses ineligible. B. Even if the account was established, technically you have to pay for expenses with funds that were deposited before the loss. Not saying I follow that last part of the rule exactly myself.
     
    G.Gordon, Nov 18, 2015
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  9. Yagents
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    Yagents Guru

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    Gordon right. Account must be opened before expense occurs. $1 counts
     
    Yagents, Nov 18, 2015
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  10. ChrisN19
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    ChrisN19 Super Genius

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    Why company do you guys recommend to set up has accounts through?
     
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