New here, any other fire department members here?

[FDCaptain]

New to the forum. Looking forward to enjoying ER with assistance from Civil Service Pension. Plan to retire at 47 (13 years from now) w/ 25 years of service. Any other fire fighters working their off day to finance ER?

My wife and I are planning to retire together. She will be 45. She has retirement savings in a 401k and Roth. I will have my pension, 457b, and Roth savings. We are also in the process of purchasing an apartment building with $20,500 in gross income. Our business plan for this property is for the mortgage to pay off in 12 years. This should help with the shortage of income until my wife reaches 59 1/2 to qualify for withdrawals from her 401k and Roth. My pension will replace approximately 80% of my pre-retirement income. I will also be able to draw on my 457b upon retirement. In 13 years our personal residence will have 6 years left on the mortgage.

Glad to have found your forum and hope to learn more so we can sharpen our plan.

 

[Walt34]

Welcome to the forum!

I don't know of any other firefighters but there are several retired law enforcement people here. When I was on the road I was always happy to have the combination to the firehouse back door for a quick stop or a quiet place to eat lunch.

 

[FDCaptain]

Thanks for the welcome.

Sounds familiar....our PD stops by often. The firehouse can be a great place to take a break. I hope your retirement is all you hoped for.

 

[travelover]

Welcome. My nephew is a firefighter and I help him with his retirement investments - found out he was paying a terrible expense ratio in his city sponsored pan - hope that is not common for firefighters.

 

[Westernskies]

Welcome to the forum! There is a lot of information here. It will be like drinking from the proverbial fire hose...

 

[RunningBum]

Welcome. Once the dust settles I'm going to look at joining the local volunteer fire dept. I just switched from being a part-time resident to full, and I'm catching up on things I need to take care of at the house first.

 

[bssc]

Welcome. I like the phrase, FIRE'd Firefighter.

 

[FDCaptain]

travelover,

Were the high expense ratios mutual fund fees or administrative fees?

Thanks

 

[travelover]

travelover,

Were the high expense ratios mutual fund fees or administrative fees?

Thanks

Both - total was over 3%. My wife is a teacher and she was also being robbed in her 403(b) - so I spot a trend based on two data points....

 

[FDCaptain]

Fund expense ratios for my plan vary but are mostly 1% or less. Sounds like I need to check into administrative fees. May I ask if your wife continued to contribute to her 403b? If not where did you/she direct savings? At what point is it better to invest in a taxable account? I already contribute to a Roth.

Thanks

 

[CuppaJoe]

Welcome, Cap! SO's nephew is a firefighter. I always enjoy his stories of life inside the firehouse. And the recipes, amazing. He likes to work his off-days as a movie extra.

Looking forward to hearing more from you.

 

[FDCaptain]

Welcome, Cap! SO's nephew is a firefighter. I always enjoy his stories of life inside the firehouse. And the recipes, amazing. He likes to work his off-days as a movie extra.

Looking forward to hearing more from you.

Thanks for the welcome!

The firehouse is full of stories, most of which are true, and good recipes. Of course not all stories are true and I have had grilled cheese only cooked on one side and chili without chili powder!

Most of us work our off-day also. I worked my off-day for ten years before selling off an off-day business to stay home with my son who is now 2 1/2 years old. He stays with grandparents when I am on duty. Working my off-day has allowed my wife and I to get ahead. Our only debt is on our home and we have started our savings toward an ER.

 

[travelover]

Fund expense ratios for my plan vary but are mostly 1% or less. Sounds like I need to check into administrative fees. May I ask if your wife continued to contribute to her 403b? If not where did you/she direct savings? At what point is it better to invest in a taxable account? I already contribute to a Roth.

Thanks

She and others pitched a fit and got Fidelity in as an alternative. I have her in their Spartan index funds. I'm still waiting for my nephew to make a decision. My advice to him was be to skip the tax deferred work option (I think it is a 403(b)?), and just go for Roths, then stock index funds in a taxable account.

 

[cute fuzzy bunny]

I have a prospective fire fighter that hasnt thought much about early retirement yet...

 

[FDCaptain]

She and others pitched a fit and got Fidelity in as an alternative. I have her in their Spartan index funds. I'm still waiting for my nephew to make a decision. My advice to him was be to skip the tax deferred work option (I think it is a 403(b)?), and just go for Roths, then stock index funds in a taxable account.

Thank you for the information. My tax deferred option is a 457b. I will check in to the total expenses of my 457b. After maxing a Roth I may need to go to a low cost/low turnover taxable as well.

Once again, thank you.

 

[FDCaptain]

I have a prospective fire fighter that hasnt thought much about early retirement yet...

Great pic! Can he cook?

 

[cute fuzzy bunny]

Of course!

We got him that firefighter outfit for halloween last year, and he's been wearing it about 3 hours a day since. He added a pair of "fire boots" that he spotted at the store (black rubber rain boots) and a pair of "fire gloves" (red garden gloves in kid sizes).

Now he wants an air tank. I'm working on a 2 liter bottle of pepsi right now. A few bits of hose, some velcro, and voila.

 

[FDCaptain]

Of course!

We got him that firefighter outfit for halloween last year, and he's been wearing it about 3 hours a day since. He added a pair of "fire boots" that he spotted at the store (black rubber rain boots) and a pair of "fire gloves" (red garden gloves in kid sizes).

Now he wants an air tank. I'm working on a 2 liter bottle of pepsi right now. A few bits of hose, some velcro, and voila.

Great looking boy! My son is 2 1/2 and I can never get him to leave the firehouse without a bribe! Its awesome you help him with his "fire gear" he will have lots of fun, no doubt. Brownies with walnuts? Sounds good.

 

[cute fuzzy bunny]

Thanks. He just helped me with a smoker box full of bratwurst, some hot dogs for a quick lunch, a 2.5lb spice rubbed jimmy dean sausage chub stuffed with tomato paste and mozzarella, a 3lb brisket and a full rack of baby back ribs. Not going to keep a whole station groaning, but a-ok for me, my wife and Gabe.

He had two ribs, a slice of brisket, some potato salad and a whole grilled peach that he picked himself off our tree and we grilled together for his dinner.

My wife is nibbling on ribs and brisket and a bratwurst and making extreme yummy noises. This bodes well for me....

 

[FDCaptain]

Thanks. He just helped me with a smoker box full of bratwurst, some hot dogs for a quick lunch, a 2.5lb spice rubbed jimmy dean sausage chub stuffed with tomato paste and mozzarella, a 3lb brisket and a full rack of baby back ribs. Not going to keep a whole station groaning, but a-ok for me, my wife and Gabe.

He had two ribs, a slice of brisket, some potato salad and a whole grilled peach that he picked himself off our tree and we grilled together for his dinner.

My wife is nibbling on ribs and brisket and a bratwurst and making extreme yummy noises. This bodes well for me....

You know what they say...if mommas happy everyones happy!

 

[leftbucket]

very similar situation...

Hey Capt.-

Another new FF here, and yes, I'm working my days
off to finance ER. In my case its OT work for now, but that
may dry up soon as we're facing the same constraints
as many municipalities.

Pretty similar situation actually. 14 more years to go
to 25 years and out. That gets me 72% of salary.

There is an early out in my case @ 20 years but that
is sharply reduced to 43%. That's why I'm maxing
out my 457 and Roth. I don't know if I'll go @ 20 years,
but I'd like to have it as an option when I get there.

You refer to off day (singular) and civil service pension. Are
you a federal firefighter? What's the health insurance
situation for retirees in your case?

Thanks for your input and be safe,
LB

 

[FDCaptain]

Hey Capt.-

Another new FF here, and yes, I'm working my days
off to finance ER. In my case its OT work for now, but that
may dry up soon as we're facing the same constraints
as many municipalities.

Pretty similar situation actually. 14 more years to go
to 25 years and out. That gets me 72% of salary.

There is an early out in my case @ 20 years but that
is sharply reduced to 43%. That's why I'm maxing
out my 457 and Roth. I don't know if I'll go @ 20 years,
but I'd like to have it as an option when I get there.

You refer to off day (singular) and civil service pension. Are
you a federal firefighter? What's the health insurance
situation for retirees in your case?

Thanks for your input and be safe,
LB

Good to hear from you leftbucket.

I work 24 on and 48 off for a municipality. "Off Day" I guess is slang terminology if you will. We have a 20 and out pension that tops out at about the 27th year. Health insurance is covered for the retired employee but there is a premuim for spouses. I look for the employee to have a premium soon. This year the state legislature voted to change the retirement plan for new hires. They will now have to work 25 years. They also set the COLA to 1.5% indefinitely unless they have a special session to raise on a particular year....I wont hold my breath for that. The bad thing is the city has not been putting in their share for years. Now to fix it they take away benefits.

I am with you on preparing to leave when the option is available. The option to leave or stay based on wants and not needs will be a good place to be.

FDCaptain

 

[Dog]

I'm curious - do you guys think your healthcare & pension plans will eventually go the route of the private sector? Phased out for new hires and frozen for existing employees. I'm hearing more and more that cities, counties & states can't meet their financial obligations. I have a nephew that will graduate from Air Force Fire Training in San Angelo, Tx next week and will next be stationed in Germany. I'm wondering about his future prospects.

 

[Walt34]

I'm curious - do you guys think your healthcare & pension plans will eventually go the route of the private sector? Phased out for new hires and frozen for existing employees.

I think so. My former employer (I'm retired law enforcement) has changed the retirement plan three times since I started, each time reducing the benefits and emphasizing savings in a Deferred Compensation account (similar to 401k). The system I'm under they stopped offering in the late 70's when the actuarial people and the accountants crunched the numbers and collectively fainted.

In a rare move of governmental responsibility though, the pension plan is fully funded and the county strives to maintain it's AAA bond rating.

 

[FDCaptain]

I do have concerns over the future of our pension system. I feel quite sure that I will pay for health insurance benefits for my wife and I upon retirement. The COLA will probably be the current 1.5% or less.

I have less worry about the total pension fund defaulting. Mainly because the legislative pension system would default as well. I believe they will make sure they get a pension.

Over the next few decades I think new hires will see less compensation from our pension system. If not a a 401k in its place. However, the tone now is for them to honor past and current employees pension benefits.

Our city has been financially stable for decades and has no real reason for under funding. Here is something interesting....when the pension reform bill passed this year they gave a one year moritorium to the cities on contributions. Thats right they were already behind but got a year off!
I of course will be contributing without option.

FDCaptain