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Retirement Strategies
Mark Buckley, Ret.
Investing Your D.R.O.P., 457(b) Plan and/or
FRS Investment Plan Funds to
Your Savings
Grow and Protect
● Family support
● In昀氀ation over time
Retirement is a major life transition, especially for
Florida 昀椀re昀椀ghters who often step away from the
job earlier than traditional workers. With access to
substantial retirement resources like the Deferred
Retirement Option Program (D.R.O.P.) and 457(b)
plans, understanding how to invest and manage
these funds is critical for long-term 昀椀nancial health.
Many 昀椀re昀椀ghters retire in their 50s, meaning retirement could span 30+ years. You need a plan that
ensures your money lasts while keeping pace with
in昀氀ation.
This article is designed to help retired Florida 昀椀re昀椀ghters make informed decisions with their retirement savings so they can grow and protect their wealth for the
future.
1. Understand What You Have
Many retired MDFR 昀椀re昀椀ghters leave the job with access to
three powerful 昀椀nancial tools: D.R.O.P. ( Deferred
Retirement Option Program), and/or the 457(b)
Deferred Compensation Plan ( Nationwide and
Mission Retirement) OR possibly if the 昀椀re昀椀ghter was in the Investment Plan of the FRS, he/
she will have a lump sum of money to invest.
All accounts allow for tax-deferred growth,
and by the time of retirement, the combined
balances can be substantial.
It’s important to 昀椀rst understand the total value
of your retirement savings.
Review your statements,
account balances, and
any bene昀椀ts projections.
You may consider consolidating accounts to
simplify
management
but do so with a strategy in mind to avoid
unexpected taxes or
penalties.
2. Know Your Retirement Needs
Before deciding how to
invest, you need a clear
picture of your retirement
lifestyle. Consider:
● Monthly expenses
● Long-term goals
● Healthcare needs
ment
3. Investment Options After Retire-
Once you leave the 昀椀re department, you have a few choices on
where to move your retirement funds. Many 昀椀re昀椀ghters choose
to roll over their D.R.O.P., 457 money and/or Investment Plan
money into an IRA or pre-tax platform to gain more control over
investments and possibly reduce fees.
Popular post-retirement investment options include:
●
●
●
●
Stocks and ETFs for growth
Bonds and 昀椀xed income for stability
Real estate investment trusts (REITs) for diversi昀椀cation
Index Variable Annuities that offer upside potential, downside protection and no fees.
A well-diversi昀椀ed portfolio helps balance risk and return. Even in
retirement, your money needs to keep growing.
4. Be Strategic About Withdrawals and Penalties
One of the most important factors to understand is how and
when you can access your funds without penalty.
If you roll over your retirement money into a traditional IRA or
pre-tax platform outside of the FRS or 457 platforms, you could
lose special penalty exemptions. Normally, early withdrawals
from pre-tax retirement accounts before age 59 ½ are subject
to a 10% IRS penalty.
However, Congress passed laws in recent years that allow quali昀椀ed public safety employees, including 昀椀re昀椀ghters, to begin
withdrawing from retirement plans as early as age 50 without
paying the 10% penalty, as long as the funds remain within the
quali昀椀ed plans like FRS or 457.
So, if you're over 50 but younger than 59 ½, and you're considering a rollover, you must weigh the bene昀椀ts of broader investment options against the risk of triggering early withdrawal
penalties. This is a critical decision and one where professional
guidance can be especially valuable.
Summer/Fall 2025 | JUMPLINE Magazine
