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…)

In December 2002, the U.S. Treasury Department issued some long-awaited guidance to employers about cash balance plans. These proposed regulations, issued under Internal Revenue Code Section 411 (b)(1)(H), prohibit age discrimination employment in benefit accruals and are fairly comprehensive in nature. Although a public hearing on the regulations was held in April 2003, the rules are not yet final as this article goes to press.

In essence, the regulations generally indicate that a company cannot directly or indirectly affect a participant’s benefit accrual based on age. (more…)

When someone is entering retirement, it can be identified as a long sigh of relief from the stress of work routine. It is the time to free someone’s from work and enjoying life. The retirement age is the age at which you are free to work and follow your heart, for the rest of your life! Who gave a thought that life after retirement from the planning of their financial resources, usually early retirement and early retirement benefits? What to do after retire? But not all are so good, old in planning for retirement and has no chance to retire at age 40 or 50 years and live a peaceful life to come! (more…)

Losing a job—at any age—is traumatic, even when a worker receives some severance pay. In addition to loss of income and/or employee benefits, there is a feeling of insecurity as one’s way of life is disrupted. Workers faced with involuntary retirement in later life must take stock of their financial resources, marketable job skills, and emotional readiness—or not—for retirement.

The federal COBRA (Consolidated Omnibus Budget Reconciliation Act) law provides an opportunity for continuation of health insurance for up to 18 months, at group rates plus a 2% administrative fee, until an individual policy (or new group coverage) is obtained or a worker is eligible for Medicare. (more…)

When you are setting your retirement goals, you must make sure you are not just deciding to retire because you want to get away from work. You should planning and setting your retirement goals to something that you were planned accordingly and it should be a realistic retirement. (more…)

When you retire, are you going to have enough money to meet all your expenses and keep up with inflation? If you are like the vast majority of us, your answer will be a resounding, “NO”!

Statistically, 95% of people retire with too few financial resources. (more…)