Police Officers with Pension Income Want to Minimize Taxes & Retire in 5 Years

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

⭐️ Here are the details ⭐️

✅ Jessica is 51 with a $5600/month pension in 5 years

✅ Mark is 54 with a $5100/month pension income in 5 years

✅ Jessica has $722k in a 457 plan & contributes $28k/year

✅ Mark has $600k in a 457 plan & contributes $26k/year

✅ Want $40,000/year beyond pension to travel with their kids

⭐️ Total Assets & Income at Retirement ⭐️

✅ $10,700/month of guaranteed income for life from pension (all taxable)

✅ Approximately $1.8M in taxable retirement assets at retirement (457s/deferred comp)

The pension prevents a tax-free retirement but they can still minimize taxes significantly

⭐️ Tax mitigation strategy ⭐️

✅ STEP 1: Shift all contributions to Roth 457 (if available) until retirement

This should move $300k to a tax-free environment

✅ STEP 2: Perform $100k Roth conversion every year for 15 years

🌟 The goal is to convert $1.5M of taxable retirement money to tax-free environment BEFORE the required minimum distributions kick in

🌟 This can all be done optimally in the 24% tax bracket

✅ STEP 3: Utilize a fixed annuity to fund the vacation budget AND pay all the taxes without touching a dollar of principle 😏

Let’s chat 💬😎