In developing a retirement plan there are several factors to consider in addition to the amount you need or want to save.

1. Income Taxes.

The above discussion did not take into consideration income taxes. You might have to save more if you have to pay income taxes on all or part of your retirement benefit or your contributions. Distributions from qualified employer plans are always subject to retirement income tax. (more…)

Annuity can be defined as a financial investment in which a person has a contract with an insurance company. Based on the contract, the person makes a single payment or series of payments. The insurer in exchange will make periodic payments to the person starting at a later time. Annuities often offer tax-deferred growth of earnings and may include a death of a beneficiary a guaranteed minimum amount. (more…)