There is an old adage that says “numbers don’t lie.” So when it comes to figuring out how much money do you need to retire, you need to understand basic math, a few retirement concepts, and some financial retirement concepts. This is where you may wish you had paid more attention to your high school math teacher. (more…)

Among the variety of retirement plans you can pursue, some qualify for tax deferral by the regulations of the federal government, and others don’t. The federal government passed the Employee Retirement Income Security Act (ERISA) regulation in 1974. This legislation and its requirements determine whether a retirement plan offered by employers or an employee organization (such as a union) qualifies for tax deferral of investment and interest until retirement age. (more…)

Another old adage says that we should learn from the mistakes of others. When it comes to retirement planning, there are many legal, tax, and retirement saving mistakes you can make as a business owner, retirement plan trustee, or plan participant. (more…)

Some employee working for employers are been offered some type of pension plan. If a pension plan meets several federal government requirements, it can achieve “qualified” plan’s status. A qualified pension plan enables participating employees to save money for retirement and put it into a retirement account that is subject to the requirements of the regulatory. Money in this type of account earns tax-deferred interest, the advantages of such is you don’t have to pay income taxes on the earnings until you draw your money. On the other case, if you draw money from your retirement (more…)

In the simplest sense, a retirement plan is your formula for determining what you want your retirement source of income to be and how you will finance that income. That retirement money doesn’t accumulate overnight; on the contrary, you will probably have to stick to your retirement plan for most of your adult life. Working on your retirement plan is called retirement planning.

Your retirement plan involves at least three things:

Goals : The first step in retirement planning involves setting realistic goals for your retirement. You probably have a vision of what you want your retirement to be like, but you also need to have a reasonable expectation about the lifestyle you’ll have when you retire — a practical and realistic goal of what retirement can be for you. (more…)