Financial Mayday Can Be Avoided with a Plan This Month
- Jim Carlson
- May 5
- 3 min read
Firefighters are experts at responding to emergencies. But the strongest professionals also understand the power of prevention. That same mindset applies to financial planning.
May marks a seasonal shift. Tax season has wrapped up, kids are heading toward summer break, and side jobs or overtime can begin to pick up. It is a natural point in the year to pause, evaluate, and make small adjustments that create long-term advantages.
Whether you are a few years from retirement or just beginning to build financial momentum, these are three smart planning moves to review right now.
1. Recalibrate Cash Flow Before the Summer Income Surge
If you are expecting a change in income from overtime, a summer detail, or additional self-employment income, this is the moment to revisit your system. Increased cash flow is only helpful if it has a purpose.
Are you still on track with savings goals set in January?
Is your paycheck withholding dialed in to reflect higher income this year?
Do you have a plan for where excess cash will go before it lands in checking?
This might be a good time to automate higher contributions to your 457(b) or Roth IRA, especially if the budget is about to loosen up. For some clients, this is also when we look at building brokerage account assets for future flexibility.
If nothing is changing, that is good information too. Stability is an opportunity to tighten systems and get even more intentional.
2. Use Your 2024 Tax Return as a Planning Tool
For many firefighters, filing taxes is just a compliance exercise. But the real value comes from reading between the lines.
Your return contains a roadmap for better planning. It shows how efficient your income is, whether deductions are being maximized, and what types of income are driving your tax picture.
Ask yourself:
Did I owe more than expected or get a larger refund than I should have? That is a sign we may need to adjust withholding.
Are there underutilized deductions I can prepare for now? Think charitable giving, unreimbursed work expenses, or itemized deductions that could become more relevant in the future.
Should I consider a Roth conversion or front-loading retirement contributions this summer, before OT slows in the fall?
Now is also a good time to review estimated payments if you are self-employed, working details as an independent contractor, or have real estate income. Let the return guide smarter mid-year moves.
3. Align Career Decisions With Your Retirement Timeline
May is when career changes start taking shape, even if you are not retiring this year. Promotions, transfers, or role changes can have a major impact on your long-term pension and financial trajectory.
If you are:
Considering testing for lieutenant or captain
Moving to a busier or slower station
Planning to enter or exit the DROP
Evaluating retirement timing
Each of these moves has financial consequences that go beyond the job itself.
For example, we often see that moving to a station with higher OT opportunities in your final years can boost your pension base. On the flip side, dropping OT early or shifting roles too soon can reduce your pension calculation more than expected.
This is where planning becomes tactical. We can model out different timelines and show what each path means for your retirement income, benefits, and savings strategy. Even if your plan is to wait a few years, the earlier we map it out, the more options you have.
Final Word: Don’t Let the Calendar Dictate Your Strategy
Firefighters operate best with a plan. That does not mean overcomplicating things or locking yourself into a rigid framework. It means identifying opportunities early and acting on them with purpose.
May is not an emergency. It is an inflection point. A small course correction now can deliver a significant payoff down the road.
Let’s review your progress, revisit your goals, and sharpen the plan before summer takes over the calendar.
Disclosures:
This material is provided for informational purposes only and is not intended as financial, legal, or tax advice. Carlson Planning Company is a Registered Investment Adviser offering advisory services in jurisdictions where registered or exempt from registration. The information presented is general in nature and may not be appropriate for every individual or situation. You should consult with your advisor, attorney, or tax professional for advice specific to your personal circumstances. All investing involves risk, including the potential loss of principal.
