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…)

Early Retirement Incentive Plans extend the benefits offered to workers or give additional financial inducements that motivate employees to retire prior to the age or time they otherwise would retire. Early retirement incentive plans first appeared on the employee benefit landscape in the late 1970s and early 1980s. The nation was struggling with “stagflation,” and many firms sought to reduce their labor costs without resorting to layoffs. At the same time, the long-term trend toward earlier retirements was proceeding unabated. Many workers expressed a desire to enjoy the “leisure” that could be secured through the early retirement provisions of many companies’ defined benefit plans. (more…)

By now, you clearly understand the importance of retirement saving and to creating the discipline necessary to achieve our retirement goals. We also need to talk about trade-offs you can make to be in a better position to save for your retirement goals. These trade-offs will be incredibly important as we consider having to compromise our retirement goals because of a lack of time or a lack of financial resources. The following can have an impact on achieving our goals: (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…)

The main reason why employers are willing to make the plan sponsor’s employer is because they appreciate their workers (value more than just tax benefits). Of course, if you are looking for a job or when choosing between several jobs, one of the circumstances will be the offered retirement plan. Perhaps one job vacancy can not pay well, in some cases, but can provide a very significant income during your retirement; this could be one of the important considerations for employee before making selection. (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…)

There are many myths and misconceptions get in the way of realizing the full potential of retirement. Bellow are a few of the most common ones. Watch for them and don’t allow them to ruin your chances for meaningful and reap the benefit of your retirement.

The Retirement/Early Death Myth

You probably know people who were not around long after their retirement parties. The unhappy news causes strange reactions. “It’s too bad Joe didn’t work longer.” “The moment people retire, they grow old.” “I’d still have Fred if he hadn’t retired so early.” (more…)