56-year-old Couple Wants to Retire Early With $100,000 A Year of Tax-free Income

(don’t forget to checkout the video of this case study too)

⭐️ Here are the details ⭐️

✅ Dan & Elysa are 56 Years Old

✅ They just sold their engineering firm for $300,000 & it’s sitting in cash

✅ They have $741,000 in Traditional IRA(s)

✅ They will collect $4,800/month from social security at age 62

✅ They have $600,000 of cash-value life insurance

✅ They hate taxes & want to minimize them as much as possible in retirement

⭐️ Early Retirement Strategy (ages 56–62) ⭐️

✅ They are going to take $30,000/year from their cash account as income

✅ They are also going to take $70,000/year from their cash value life insurance policy (and never pay it back)

✅ They are also going to move their entire IRA balance to an annuity for future, guaranteed income

⭐️ Future Income Strategy ⭐️

✅ The $741,000 IRA annuity will generate a guaranteed $6,203/month for life at age 62

✅ The social security payment will be $4,800/month for life at age 62

But, is that truly a tax-free retirement?

Is that money taxable?

As it stands, yes, it IS taxable!

BUT, we are also going to implement a 6-year, $123,500/year Roth conversion strategy

⭐️ Tax-free Income Strategy (and the true cost) ⭐️

✅ From 56–62 they are collecting $100k/year taxed at 0% (from the life insurance & cash)

✅ The $123,500 Roth conversion will cost an effective rate of 8.79% per year (just over $10k)

✅ Which means that from 56–62 they are collecting $223,500 of income for only 4.86% in federal taxes

The best part is that the ENTIRE IRA will be converted and all of that income (just over $11,000/month) will be completely tax-free.

Even their social security will be tax-free as well!

Let’s chat 💬😎