Your City of Los Angeles Police and Fire Department (LAPD & LAFD) Benefits & Career: Financial Planning for Officers, Firefighters and Personnel

Are you a City of Los Angeles Police Department (LAPD) or Fire Department (LAFD) employee? Get the resources you need and expert insights from financial professionals who specialize in helping LAPD officers, LAFD firefighters, and personnel make the most of their compensation package and benefits.

Whether you’re a new LAPD/LAFD employee or you’ve moved up the ranks into a management or executive leadership role over a multi-year career, it’s important to make smart money moves with your income and employee benefits. For example:

✅ Do you know the right moves to make to get the greatest value from the LAPD/LAFD benefits available to you?

✅If you’re thinking about leaving your role with the City of Los Angeles for another job or planning to retire from public employment in a few years, are you taking the right steps today to ensure you will receive all of the compensation and benefits that you’ve earned?

Get the Most Value from Your LAPD/LAFD Benefits

Throughout the year, the City of Los Angeles Police and Fire Departments provide employees with updates about their benefits ranging from health insurance and health savings plans to retirement plans like a 457(b), and deferred compensation plans. While the City offers many useful resources and access to knowledgeable staff who can assist with questions, you’ll also find financial professionals not affiliated with the City of Los Angeles Police or Fire Department who specialize in helping LAPD/LAFD employees make the most of their income and benefits.

Whether you’re a police officer, firefighter, or personnel working from an office setting, you may have questions about your compensation package and benefits better suited for a financial professional who can offer unbiased advice and guidance.

For example, sensitive topics like discussing the steps you should take before quitting your job with the City to work elsewhere, protecting yourself in advance of a layoff, or deciding when you should plan to retire are all conversations that may be more comfortable with a trusted financial advisor.

💡 In the Q&A below, you’ll gain insights from financial advisors who work with LAPD/LAFD employees to help them make smart decisions to get the most value from their compensation and benefits, reduce their money stress, and prepare for a comfortable retirement.

🙋‍♀️ Do you have questions not yet answered? Use the form below to submit questions anonymously and watch this article for updates with answers to your questions. You can also reach out to the financial advisors below to set up an introductory call or contact them with your questions by email.

💸 Smart Money Insights for City of Los Angeles Police and Fire Department Employees

This page is organized into sections to help you quickly find the information you need and get answers to your questions:

1. Q&A: Financial Planning Tips for City of Los Angeles Police and Fire Department Employees
2. Get Answers to Your Questions About Your City of Los Angeles Police and Fire Department Benefits and Career
3. Browse Related Articles

Q&A: Financial Planning Tips for City of Los Angeles Police and Fire Department Employees

Answers to LAPD/LAFD Employee Questions with Ajay Vadukul, CFP®

Ajay Vadukul is a financial advisor based in Torrance, California who specializes in offering financial planning services to LAPD/LAFD employees. Ajay helps his clients get the most value from their City of Los Angeles benefits and compensation package so they can enjoy life and feel confident about their financial future.

Q: As a financial advisor with experience helping LAPD/LAFD employees save for their retirement, how do you help them make the most of their employee benefits?

Ajay: When working with members of the Los Angeles Police and Fire Departments, the key is helping them integrate their unique pension system and benefits into a bigger financial picture. These employees often have access to very strong defined benefit pensions, DROP (Deferred Retirement Option Plan), and generous insurance and disability benefits. My role is to help them maximize these benefits while addressing areas the pension doesn’t fully cover.

• Pension & DROP Optimization: I help them understand how their pension formula works, the impact of years of service and retirement age, and strategies for making the most of DROP when they’re eligible. Decisions made here can affect decades of retirement income, so it’s critical they get it right.
• Supplemental Savings: While the pension is strong, it often won’t cover every lifestyle goal in retirement. I guide them on using their 457(b) deferred comp plan and Roth options to build additional, flexible income streams.
• Insurance & Risk Management: First responders face higher occupational risks, so reviewing survivor benefits, disability coverage, and outside life insurance is important. I help them coordinate their department-provided benefits with any supplemental policies so their families are fully protected.
• Holistic Planning: Many officers and firefighters retire younger than traditional workers. I work with them to map out how to bridge the years between early retirement and Medicare, manage taxes, and still meet personal goals like paying for children’s education or buying property.

In short, I translate their specialized benefits into a clear, customized strategy so they can focus on serving the community today, while having confidence about their financial security tomorrow.

Q: When you first speak with an LAPD/LAFD employee, what questions do you like to ask to better understand their unique circumstances and determine how you can best help them achieve their goals?

Ajay: When I first meet with a City of Los Angeles police officer or firefighter, I start by getting to know them personally before diving into numbers. Their work is demanding, both physically and mentally and many are thinking about retiring earlier than the average worker. So I begin with their goals.

Family & Lifestyle Goals

• What are the biggest financial goals you’d like to achieve? Whether that’s buying property, funding your kids’ education, or having the freedom to travel and enjoy life?
• What does your ideal retirement look like, and how important is it for you to retire early while you’re still healthy enough to enjoy it?
• Are there family members or dependents you want to make sure are financially secure if something happens to you?

Career & Pension

• How many years of service do you have, and when are you considering retirement?
• Have you thought about how the DROP program could fit into your plans for stepping away from such a physically and mentally demanding career?
• Do you feel confident about how your pension will translate into sustainable income throughout retirement?

Savings & Benefits

• Are you contributing to your 457(b) deferred compensation plan, and how are you investing those funds?
• Do you understand the survivor and disability protections available for your family through the department?

Risk, Health & Longevity

• How do you see yourself preserving your body and mental well-being once you leave the job?
• Have you planned for healthcare coverage if you retire before Medicare kicks in?
• By starting with family and personal priorities and acknowledging the realities of a career that takes a toll on the body and mind, I can connect with them on a human level. From there, we work together to align their pension, DROP, savings, and benefits with the life they want to live, both during and after their service.

Q: Is there a particular benefit available to LAPD/LAFD employees you feel isn’t as well utilized or understood by employees as it should be?

Ajay: Yes — one benefit that I see underutilized among City of Los Angeles police and fire employees is the support they can get through their relief associations and unions. For example, many don’t realize they can be reimbursed for completing an estate plan (e.g., trust, wills, medical directives, guardianship, etc.). That’s huge, because estate planning is especially important for first responders, and the cost is often what keeps people from getting it done.

By offering reimbursement, the unions are essentially lowering the barrier to entry removing a common financial excuse and making it easier for employees to take that critical step to protect their families. Yet, it’s a benefit that often flies under the radar. I make sure to highlight these opportunities so employees can take advantage of them and get the peace of mind they deserve.

Q: Beyond the LAPD/LAFD employee benefits for retirement savings, are there other types of benefits offered by the company that you find valuable to discuss with your clients?

Ajay: I find it very valuable to talk with City of Los Angeles police and fire employees about benefits that don’t always get as much attention but can make a big difference.

• Health Savings Accounts (HSAs): For those who are eligible, an HSA is one of the most powerful tax-advantaged tools available. Contributions are pre-tax, the growth is tax-deferred, and withdrawals for qualified healthcare expenses are tax-free. What we call the ‘triple tax benefit.’ For first responders, who often retire earlier than average and need to bridge healthcare costs before Medicare, having an HSA can be a lifesaver.
• Pre-Tax and Roth 457(b) Deferred Compensation Plans: These are great complements to the pension. The pre-tax side helps lower taxable income today, while Roth contributions provide tax-free income in retirement. I work with clients to balance the two, depending on their career stage, retirement timeline, and tax outlook, so they can build flexibility for the future.

Highlighting these benefits helps employees see that they don’t have to rely on their pension alone, they can create multiple streams of income, manage their tax situation, and cover critical healthcare needs, all while taking advantage of benefits already offered to them.

Q: For the LAPD/LAFD employees thinking about leaving the department to accept a job elsewhere, what actions do you recommend they take before resigning and shortly thereafter?

Ajay: When a City of Los Angeles police officer or firefighter is considering leaving the department, I recommend they take a step back and carefully evaluate the long-term impact before making the move. Their pension and benefits are very different from most private-sector jobs, so it’s not a decision to rush.

Before resigning, I encourage them to:

• Review their pension status: Understand how many years of service they’ve earned, how that translates into retirement income, and what they’d be giving up by leaving early. If they’re close to DROP eligibility or a service milestone, waiting a bit longer can sometimes mean a major difference in benefits.
• Evaluate deferred comp savings: Look at balances in their 457(b) and make a plan for how those funds will be managed after leaving.
• Check health coverage: Map out how they and their family will be covered for medical, dental, and vision after leaving the department.

Shortly after leaving, I recommend they:

• Consolidate accounts where appropriate: This might include rolling over their deferred comp plan into an IRA or leaving it in place if it makes sense.
• Reassess insurance and protection needs: Without the department’s life and disability coverage, it’s critical to fill any gaps so their family is still secure.
• Update estate documents and beneficiaries: A job change is a great time to make sure everything lines up with their new reality.

Ultimately, my role is to help them see the full picture, not just the new job’s salary, but how leaving affects their pension, DROP, health benefits, and overall financial plan. That way, they’re making the decision with eyes wide open and a strategy for both the transition and their long-term goals.

Q: For LAPD/LAFD employees approaching retirement age, how do you recommend they prepare to make the transition from living off their salary to relying upon other sources of income?

Ajay: For City of Los Angeles Police and Fire employees approaching retirement, the biggest key is managing expectations. I explain that retirement isn’t about suddenly having no income, it’s really just a transition. Instead of receiving a paycheck from the City, their ‘new salary’ comes from a combination of pension income, deferred comp withdrawals, and possibly Roth conversions or other investment accounts.

When they have a financial plan in place, they know exactly what to expect:

• Timing: When and how their pension begins, when Roth conversions will occur, and how to sequence withdrawals.
• Cash Flow: What their monthly ‘retirement paycheck’ looks like, and how it compares to their working salary.
• Confidence: They can see, through planning, that their years of service and savings will provide the income they need.

By reframing it this way, the uncertainty is removed. They stop viewing retirement as a cliff and start seeing it as simply trading one paycheck for another. That shift in mindset helps them feel secure, they know through their hard work that they’re going to be okay.

Q: For LAPD/LAFD employees who have managed their finances on their own to this point, what would you suggest they consider to help them decide if they should begin working with a financial advisor at this stage in their lives?

Ajay: For City of Los Angeles Police and Fire employees who’ve managed their finances on their own up to this point, I start by acknowledging the discipline it takes. They’re great in their respective field serving and protecting the community, but just like they’re experts in what they do, I’ve helped hundreds of officers and firefighters achieve their financial goals, reduce taxes, and retire seamlessly. This is what I do for a living, so they can focus on living their best life.

As retirement gets closer, the decisions around DROP, pension elections, healthcare, and Roth conversions become much more complex and the stakes are much higher. A small mistake can have decades-long consequences. My role is to integrate all the moving pieces: the pension, deferred comp, insurance, investments, even estate planning into one coordinated strategy.

At the end of the day, it’s about peace of mind. They’ve done the hard work of saving and serving, and I help make sure the transition from a City paycheck to a retirement paycheck is smooth and predictable. When they have that clarity, they know exactly what to expect, and they can step confidently into retirement focused on family, health, and enjoying the next chapter.

Q: What are some of the unique financial planning challenges you commonly see among your clients who are LAPD/LAFD employees and how do you help them overcome these obstacles?

Ajay: City of Los Angeles Police and Fire employees face some very unique financial planning challenges that are different from most workers. A few of the most common are:

• Early Retirement & Longevity: Many retire in their 50s, which means they could spend 20-30+ years in retirement. That creates a challenge of bridging the gap between leaving the job and things like Medicare eligibility. I help by mapping out cash flow strategies, healthcare coverage, and coordinating Roth conversions to keep taxes manageable over that longer horizon.
• Pension & DROP Decisions: The pension system and DROP program are incredibly valuable, but they come with complex rules and election choices. A misstep can cost hundreds of thousands of dollars over a lifetime. I guide clients through timing their retirement, evaluating DROP participation, and understanding how their pension translates into a predictable ‘retirement paycheck.’
• Taxes: With a pension, DROP lump sums, and deferred comp withdrawals, taxes can become a real obstacle. I help them sequence withdrawals, balance pre-tax and Roth accounts, and look for opportunities to reduce their tax burden so they keep more of what they’ve earned.
• Family Protection: First responders take on more occupational risk, and while they have survivor and disability benefits through the City, many don’t realize the gaps. I work with them to ensure their families are covered through proper insurance and estate planning.

By helping them navigate these challenges, I make sure their decades of hard work translate into a retirement that’s secure, tax-efficient, and aligned with the lifestyle they want. My job is to take the complexity off their plate so they can focus on their health, family, and enjoying the life they’ve earned.

Q: What questions do you recommend LAPD/LAFD employees ask financial advisors they’re considering hiring to help them decide if they’re a good fit?

Ajay: When City of Los Angeles police and fire employees are looking for a financial advisor, I encourage them to ask questions that go beyond just investment returns. They should be asking:

• Experience with Their Benefits: ‘Have you worked with other police officers or firefighters, and do you understand the pension system, DROP, and 457(b) plans?’ Their benefits are unique, so it’s important the advisor has specialized knowledge.
• Fiduciary Standard: Will you act as a fiduciary and put my best interest first?’ That ensures the advice isn’t driven by commissions or product sales.
• Services Offered: Do you provide comprehensive planning? Not just investments, but also tax strategies, insurance, estate planning, and retirement planning?’
• Fees & Transparency: How are you compensated, and what will this cost me?’ Clarity on fees helps build trust from the start.
• Communication Style: How often will we meet, and how will you keep me informed?’ They need an advisor who explains things clearly and makes them feel comfortable.

I tell them: You’re great in your field, and you deserve an advisor who is equally skilled in theirs. Ask the questions that uncover whether someone truly understands your unique benefits, has the heart of a teacher, and will help you transition from a City paycheck to a retirement paycheck with confidence.

Q: Is there anything that comes up frequently in your initial meeting with LAPD/LAFD employees that surprises you?

Ajay: One of the things that often surprises me in my initial meetings with City of Los Angeles Police and Fire employees is the lack of awareness about their overall financial situation and the benefits available to them. And I don’t mean that negatively, it’s completely understandable. During the academy and early years, recruits are so focused on training and serving that they essentially ‘sign their life away’ on the benefits paperwork and never look back.

As a result, many don’t fully understand the details of their pension, DROP, insurance, or even how their deferred comp plan works. They’re paying fees they don’t realize, missing opportunities for reimbursement benefits, or underutilizing tools like Roth options or HSAs.

What I do is bring clarity. I walk them through what they already have, explain how to maximize those benefits, and show them how everything ties into their long-term goals. That moment of realization when they see the value of what’s available and how it can be optimized is often one of the most rewarding parts of my job.

Q: Is there a particularly memorable experience or a moment you recall with an LAPD/LAFD employee when you realized they have unique opportunities and circumstances when it comes to their financial planning needs?

Ajay: One of the most memorable experiences I’ve had was with my very first retiree client from the City of Los Angeles Police and Fire Department. Sitting across from him, I could see how much the job had taken a toll, not just on him physically and mentally, but also on his loved ones. That was the moment it really hit me: their circumstances are very different from most workers, and financial planning isn’t just about money, it’s about quality of life.

For him, our work together was about more than pension formulas and DROP elections. It was about creating a plan that allowed him to leave the job as soon as he could, while he was still healthy enough to enjoy retirement with his family. Seeing the relief on his face when he realized he could retire with confidence and protect his health and relationships, reinforced why this work is so important. These men and women serve our community at such a high cost, and my role is to make sure their financial life gives them the freedom to truly live their best life once their service is done.

Q: How do you help LAPD/LAFD employees prepare not just financially, but emotionally and mentally, for retirement?

Ajay: Financial planning is about more than numbers, it’s also about helping people envision and prepare for the life they want after leaving such a demanding career. For police officers and firefighters, the transition can be especially challenging because their work is so physically and mentally consuming. Many retire earlier than the average worker, and they need to know not just how they’ll pay the bills, but also what their day-to-day life will look like.

I help them build confidence by creating a financial plan that shows exactly where their income will come from; their pension, DROP, 457(b), and other accounts so they can focus on the bigger question: ‘What do I want to do with my time?’ We also talk about how to preserve health, strengthen family relationships, and create purpose outside of the uniform.

When clients see that retirement is simply a transition from a City paycheck to a retirement paycheck, and that they’ve earned the freedom to prioritize their health, family, and passions, it shifts the entire conversation. They’re not just retiring from something — they’re retiring to something. And that’s where real peace of mind comes in.

Get to Know Ajay Vadukul, Financial Advisor for City of Los Angeles Police and Fire Department Employees:

View Ajay’s profile page on Wealthtender or visit his website to learn more.

🙋‍♀️ Have Questions About Your City of Los Angeles Police and Fire Department Benefits or Career?

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