Looking for Advice

[ffmedic167]

Hello everyone, this is my first day on this forum. Here is my story and question.

I am 37 years old, firefighter. I dont have a traditional pension at work. My primary retirement vehicle is a 401K through work which doesnt need any help. We have a defined contribution through our contract which is matched by our employer at an unheard of 17%. That goes up every couple of years with contract negotiations. I also have a 457 I feed a small amount into just as a small supplement.

My question is:
I have about $12500 sitting in rollover IRA's from previous employers. I am looking for my best options on how to place this money and grow it for the future. Its not doing anything where it sits now.

Another variable here is I am eligible to retire at 56. I dont have anything in place right now to draw income between ages 56 and 59 1/2. Maybe this is a good start to grow something I can use for this time period, until I can draw from my retirement without penalty.

Any help and advice would be greatly appreciated. Thank you.

[Gailete]

Hello and welcome. I don't know how the rules will change, but one of the things that you should think about for early retirement is health insurance. Even if you retire early and can claim Social Security early, currently you will not be able to file for Medicare until you are 65 and expect that number to change in the next 30 years.

Depending on how much is in your retirement account when you hit 56 you might be able to live on it starting then as there are rules to tapping your retirement accounts early depending on circumstances. While you might want to retire from such a physically demanding job in your 50's, there may be other jobs that you can pick up at that age that will help spread out your retirement income a little further until you are old enough for full SS benefits.

Is there a Mrs. Fireman to be part of this planning as that can make some big differences as well? Do you own your own home? Even if there isn't a Mrs. in the picture, single folks can buy homes which can be a help in their finances especially when they get to the point that they want to retire, no more rent to pay, just property taxes, or if your equity went through the roof, sell the house for a cheaper cost of living area.

All things to think about when wondering about that 3-year gap which could conceivably be a 10 year gap before SS.