DROP, PUBLIC SAFETY PENSION and 457 DEFERRED COMPENSATION: INVEST YOUR FUNDS WISELY AND KEEP YOUR MONEY.
DROP, PUBLIC SAFETY PENSION and/or your department’s 457 Deferred Compensation plan can provide the financial resources for a secure and comfortable retirement. Knowing your options and receiving guidance to make the right choices may be the difference between a comfortable retirement or an unpredictable one.
DROP is a program that provides public safety personnel access to a lump sum benefit in addition to their monthly pension when they retire.
457 DEFERRED COMP plans are a public safety department’s version of 401(k). You make pre-tax contributions into a retirement account and select from the different investment choices available. The funds will grow tax deferred until you retire and withdraw them.
IRA Individuals who don’t participate in a retirement plan should begin saving for the future. When you leave your department at retirement or for other reasons, you can roll over your DROP and 457 Plans into your own IRA. Rolling over to an IRA provides the same advantage of tax-deferred growth, often with a wider range of investment choices. Even if your spouse does not work, they can establish their own IRA. IRA’s have many advantages including income tax benefits and provide for future financial security.
When you retire, you want these funds to provide a secure and predictable source of income for the rest of your life. But how should you invest the funds? Do you already have an investment plan? Are you satisfied with its performance? Is it meeting your goals? How much income will you need for the rest of your life?
Some law enforcement and fire fighters are exposed to the basic principles of investing, but not necessarily domestic and international stocks and bonds, ETFs, REITs, commodities, or asset classes. They usually are unfamiliar with risk tolerance, Modern Portfolio Theory or strategic investment objectives. Sometimes, first responders do it themselves or decide to work with unqualified advisors.
We are DROP and 457/Deferred Compensation specialists. We are experienced investment advisor representatives and monitor and review our client’s investment portfolios with them. We will show you how to make decisions about the investments in your retirement plans, how to prepare to retire and how to help keep your money. We will prepare an Investment PolicyStatement for you that will be the guide for your investment decisions.
IRA ROLLOVER FROM DROP, 457 OR A PREVIOUS EMPLOYER
If you’re in DROP, at retirement, you will receive a sizeable check. What will you do with the funds?
If you also participate in your department’s 457 Deferred Comp plan, you will have to make a decision at retirement. Do I leave the funds with my employer or take control. We advise you to control of your own retirement funds.
When you began your law enforcement career, did you leave behind a 401 (k) or retirement plan you had with a previous employer?
You have options:
Deposit your DROP check into a Rollover IRA. Transfer your 457 Deferred Comp or retirement plan from a previous employer into a Rollover IRA. This is a tax qualified retirement plan you control and can direct the investment choices.
The Tactical Planning Group professionals will help you decide which investment strategy and account type is the right choice for you.
The Tactical Planning Group will give you a free/no obligation consultation. Our analysis will help you identify what type of investor you are, review your current strategies and see if you are meeting your goals and objectives.
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