Susan's Scoop

Zero-Tax Early Retirement: The Ultimate Wealth Hack

Recently, I was running some post-early-retirement scenarios for a client - a married couple with two kids - and I showed them a tax strategy that allows them to make over $150k a year, all while paying absolutely zero in taxes. Yep, you read that right - $0 in taxes. And it’s not some rare exception; this is a strategy that many early retirees use to keep their tax bills at zero while building the financial freedom to live life on their terms. They thought it was such an eye-opening scenario, I wanted to share it with all of you!

And while I was writing this, my cat (who has mastered the art of lounging while others work) stretched luxuriously on my desk, knocking over my tea in the process. And honestly, she’s the perfect analogy for this tax strategy - she exerts minimal effort, maximizes comfort, and somehow still gets everything she needs. If only all of us could be so efficient with our financial plans. 😹

Why Their Tax Bill is $0 on $153,366 of income:

👉 The Standard Deduction Offsets the Roth IRA Conversion

• The standard deduction for married couples filing jointly in 2025 is $30,000.
• This deduction completely cancels out the $30,000 Roth conversion, making it non-taxable.

👉 Capital Gains and Dividend Tax Brackets Work in Their Favor

• The first $96,700 of qualified dividends and long-term capital gains are taxed at 0%.
• The remaining $26,666 is taxed at 15%, resulting in $3,999.90 in taxes.

👉 Child Tax Credit Eliminates the Remaining Tax Bill

• With two kids, the couple qualifies for $4,000 in Child Tax Credits.
• This directly offsets the $3,999.90 owed, bringing their total tax bill to $0.

How You Can Apply This Strategy

If you’re planning for early retirement, consider:

• Building a portfolio that prioritizes qualified dividends and long-term capital gains.
• Strategically converting traditional retirement accounts into Roth IRAs over time.
• Leveraging tax credits and deductions to minimize your taxable income.

By understanding and implementing these tax-efficient strategies, early retirees can legally reduce their tax bill to zero - keeping more of their hard-earned wealth while enjoying financial freedom.

If this couple had brought in the same amount of income from W-2 jobs, they would have lost over $30,000 of it to taxes.

We love helping clients set up strategies like these because it puts them in control of their wealth and their future. If this sounds like a plan you’d like to explore, reply to this newsletter and let’s talk!

What I'm Reading

📕 The 5 Types of Wealth – Sahil Bloom (book)

This book explores what it truly means to live a rich life by examining wealth through a holistic lens, encompassing five key areas: Time Wealth, Social Wealth, Mental Wealth, Physical Wealth, and Financial Wealth.

One of the most eye-opening insights for me was the concept of measuring the time we have left with loved ones. For instance, if your parents are 70 years old and you see them just once a year, you may only have 10 more visits with them in your lifetime. This perspective is both sobering and powerful, reinforcing the importance of prioritizing what truly matters - not just monetary wealth.

When You're Ready, Here's How We Can Help​

The Abundance Circle 💜

Looking for customized guidance and accountability on your wealth-building journey? We're opening the Abundance Circle for women who want individual support paired with educational opportunities and a community of like-minded women on a similar journey. Click here to learn more.

Coaching 🎯

Caitlin and Susan offer packages of 1-on-1 customized coaching sessions. During these sessions, we work with you to outline your existing portfolio, set short and long-term goals, and explore the strategies you'll implement to hit those goals. Click here for more info on coaching.

Courses 👩‍🎓

Ready to dive into the investing world but don't know where to start? Check out our Investing 101 and Real Estate: Curious to Confident online courses! Learn more here!​