Jumpline magazine JUNE 2023 pages - Flipbook - Page 39
Financial Alternatives
Mark Buckley, Ret.
To DROP or NOT?
For many MDFR employees, as you
approach the time to choose whether to retire and enter into the Deferred Retirement Option Program
or D.R.O.P., or continue to accrue a
higher A.F.C. or Average Final Compensation number, is the ultimate
question. I’ve had a number of firefighters contact me to help
them decide and analyze what is the better choice. The answer lies in what goals you have for your future and in some
ways your “risk tolerance” of how you want your money to
provide for you and your family.
What is the D.R.O.P?
This program is an option provided to us MDFR firefighters
who are in the pension plan. This is NOT an option for those
in the investment plan. It allows members who elect the
D.R.O.P the option to work beyond their normal retirement
date and convert part of the retirement benefit into a lump
sum. After the limit of 5 years in the system AND accumulating a small interest during those years, this lump sum of
money would be available to the retired firefighter as an addition to the firefighter’s pension distribution.
SO, the question is “What should I do?”
The question for most, is to decide what is better in the
long run. Depending on whether the firefighter chooses the
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D.R.O.P option OR continues to increase his A.F.C. or Average Final Compensation number in order to increase the
amount of monthly distributions he/she would receive ultimately once retired, this is going to make the difference in
how your money will provide for you in retirement. To give
you an example, I have run estimations of firefighters who
couldn’t decide on which choice is better and I’ve seen estimations of a difference as much as $1000 per month, depending on which option they chose 1,2,3 or 4 in the FRS
system. Having said that, it’s not such a clear answer because ultimately, it’s going to depend on what goals the firefighter has and how secure he wants to be in his retirement.
The Solution?
It lies in sitting down and analyzing both choices and estimating the risks involved and how you want to provide for
your future. There are advantages and disadvantages to
both choices. The best thing is to sit down with a qualified
investment advisor and go over the pros and cons WHILE
addressing your concerns and risk tolerance. There are
many variables involved so, it’s important to have everything
presented to you in a straightforward way.
If you need help in making these choices and want to run an
analysis of what would be best for you, please contact me
or any qualified professional to help you make an educated
decision. I’m always available to any of you at Prudential
Advisors at 305-608-2690.
Thank you for your service and be safe!
RETIREMENT PLANNING: BECAUSE YOU CAN’T BE
A MIAMI-DADE COUNTY FIREFIGHTER FOREVER.
A Prudential Advisors Financial Professional can assess your situation, develop a strategy, and help you build
a secure future. To learn more, call me today.
MARK BUCKLEY
Financial Professional, Prudential Advisors
GREATER FLORIDA FINANCIAL GROUP
The Prudential Insurance Company of America
5355 Town Center Road
Suite 704
Boca Raton, FL 33486-1068
Phone 305-608-2690
Fax 877-840-0082
mark.buckley@prudential.com
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INVEST
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INSURE
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Prudential Advisors is a brand name of The Prudential Insurance Company of America and its subsidiaries.
Life insurance is issued by The Prudential Insurance Company of America, Newark, NJ and its affiliates. Securities products and services are offered through Pruco Securities, LLC
(Pruco)(Member SIPC). Each is a Prudential Financial company located in Newark, NJ and is solely responsible for its own financial condition and contractual obligations.
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Photo by Lieutenant Scott Mullin
June 2023 | JUMPLINE Magazine
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