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FIRE Proofing Your Retirement

  • Writer: Jim Carlson
    Jim Carlson
  • May 20
  • 3 min read
Silhouette of a firefighter holding a helmet against a sunset with upward graph. Text: "Fire Proofing Your Retirement." Fiery orange tones.

Fire service rules can force you to hang up your helmet by a set age, often mid-50s. The Financial Independence Retire Early movement targets freedom on your own terms, sometimes even sooner. Aligning the two timelines means planning around pension milestones, taxable access dates, and healthcare gaps while you still have overtime earnings and reliable benefits.


1. Map Your Mandatory Exit Date


  • Confirm your department’s age cap and any service minimums.

  • Note pension vesting thresholds and cost-of-living adjustments.

  • Use a timeline chart to mark “Decision Gates”: age 50 for penalty-free 457 withdrawals, pension eligibility, and Social Security windows.


2. Max Out the “Triple Stack”

Account

Annual limit (2025)

Special perk

Use-case in early retirement

457(b)

$23,000 + catch-up

Withdraw at separation without the 10% penalty

Bridge income from mid-50s to 59½

403(b) / 401(a)

$23,000 + catch-up

Age 55 rule waives 10% penalty if separated

Pension supplement before Social Security

HSA

$8,300 family

Triple tax advantage

Covers healthcare before Medicare kicks in


3. Build a Bridge Fund

  • Target at least five years of core expenses in penalty-free buckets: 457, brokerage, after-tax side-gig cash.

  • Keep one year in a high-yield savings buffer for market pullbacks.


4. Pension Tuning

  • Estimate net payout with and without overtime averaged in.

  • Consider Partial Lump Sum or DROP options if available.

  • Run a survivorship analysis for your spouse and update beneficiary choices.


5. Optimize Overtime

  • Funnel half of elective overtime into investment accounts up front.

  • Track burnout indicators; forced injuries erase more income than one missed shift ever will.


6. Side-Income Safety Valve

  • Convert a hobby or on-call trade into a part-time consulting role before leaving the department.

  • Register an LLC, open a solo 401(k), and shelter extra profit while you still have healthcare through the city plan.


7. Health Coverage Gap

  • Price COBRA versus ACA marketplace subsidies well in advance.

  • Stack HSA funds now, then reimburse yourself later for receipts you save in a cloud folder.


8. Sequence Your Withdrawals

  1. Taxable dividends and capital gains.

  2. Penalty-free 457 withdrawals.

  3. 403(b) using the age-55 exception.

  4. Roth conversions in low-income years before Social Security starts.

  5. Pension and Social Security last for inflation-protected longevity.


9. Stress-Test the Plan

  • Run Monte Carlo simulations at 4 percent, 5 percent, and 6 percent market return assumptions.

  • Include a two-year market slump right as you retire to gauge sequence-of-returns sensitivity.

  • Adjust savings rate or part-time work hours until your success rate tops 85 percent.


Action Checklist

  1. Confirm mandatory retirement age and vesting status by the next pay period.

  2. Increase 457 contribution to hit the catch-up limit within three months.

  3. Schedule a pension projection meeting this quarter.

  4. Open a separate brokerage “Bridge” account and automate transfers.

  5. Compare COBRA vs. ACA premiums during next open enrollment.

  6. Set a reminder to review side-income opportunities before the next shift bid.


Call to Action

Ready to test your timeline? Book a FIRE Proof Strategy Session and walk away with a custom bridge-fund plan, pension analysis, and savings target that matches your mandatory retirement date.




Investment advisory services are offered through Carlson Planning Company, LLC, a registered investment adviser headquartered in Massachusetts. This material is for informational and educational purposes only and should not be construed as personalized investment, tax, or legal advice. All examples are hypothetical and do not represent the performance of any specific investment. Past performance is not a guarantee of future results. All investments carry risk, including possible loss of principal.

Carlson Planning Company does not provide medical advice. Readers should consult qualified health professionals regarding any health concerns and should consult their own tax, legal, and financial advisers before implementing any strategy discussed. References to specific accounts, products, or securities are for illustrative purposes only and do not constitute a recommendation or solicitation to buy or sell.

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