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…)

We have alluded to the Transfer Payout Annuity from time to time, and now it gets the attention it clearly deserves. The Transfer Payout Annuity is literally an annuity, and it represents the mechanism by which funds are transferred from a TIAA accumulation to either one of the other investment choices in the TIAA-CREF family or as a taxable distribution after age 59 1/2 to the participant. (more…)

As the name indicates, a Supplemental Retirement Annuity (the “SRA”) operates as an adjunct to your Retirement Annuity. If your employer offers an Supplemental Retirement Annuity, you have the opportunity to augment your retirement stash on a tax-deferred basis through a salary deferral agreement, provided you are within the contribution limitations stipulated by law. Again, your benefits office will be able to advise you as to how large a percentage of your salary you may contribute to your Supplemental Retirement Annuity. Not all institutions offer the SRA. If your employer is one who does, try your hardest to take advantage of this feature of your employer’s plan. (more…)

If we boil things down to a simple two-part equation, retirement planning is all about managing inflows (income) during your earning years and outflows (expenses) during your retirement years. Of course, retirement means different things to different people at different points in their lives. Rather than a static state, retirement is a dynamic state, changing with life events, financial events, and even your own education as you learn more about concepts and products. The more information you absorb, the more comfortable you feel in being an active participant in the retirement planning process. Your plan for accumulating assets for retirement has to take all of this into account and be flexible enough to adapt to all kinds of changes. (more…)

This question arises with the greatest frequency, and it ranks, as one would expect, as one of the most difficult to answer. We can only suggest general guidelines because your investment risk tolerance may differ from the next person’s. Also, investment choices should reflect one’s overall economic situation, and advertisements for online brokerage houses notwithstanding, not every form or method of investment suits every situation. In an age when most of us are at least aware of general movements in the market, if not actually participating in some way, most of us wish for a formula to provide the optimal investment mix for our particular situation. (more…)

Like the peculiar behavior of the dog in the night in the Sherlock Holmes story “Silver Blaze,” one of the obvious but overlooked clues about the insurance orientation of TIAA-CREF appears in the names of the accounts that are given to the various accumulation alternatives available to you. Each account is labeled an “annuity,” and each contribution is called a “premium.” To avoid confusion you should note that what TIAA-CREF labels as an “account,” you probably would call an investment choice or fund.

Stripped to the basics, your Retirement Annuity (or “Retirement Annuity”) boils down to an accumulation agreement between you and TIAA-CREF. (more…)

Most workers assume they will decide when to retire. Sometimes, however, an employer suggests it in the form of an early retirement (a.k.a. “buyout”) offer. An early retirement incentive plans offer may or may not be voluntary. If it seems likely that employees will lose their jobs anyway with less generous terms (e.g., a specific department is being targeted), taking a buyout is typically advised (Wollan 2002). (more…)

With changes in lifestyle after you retire, you could be spending more money related to health, recreation, your home, and your hobbies after retirement. Your cost of living after retirement may increase as well.

Medical

As previously mentioned, your medical costs will increase post retirement, and you’ll need to budget for this expense accordingly. (more…)

It depends on the size of your estate and subject to the trust. If your property for investment is in the amount exempted from property tax ($ 3,500,000 for the year 2009) and small enough to qualify economy and the rapid succession in your state you may not need. Note that the land tax in 2010 should be repealed, but Congress can change that. (more…)

If you have plan to spend your retirement time outside US, there are some factors to consider due to country-specific restrictions, changes in national banking regulations, and changes to work like in a foreign country. You may also consider if it might affect your benefits, and whether your benefits may be taxable. If you plan to retire outside the United States, you may be affected as you benefit from social security benefits abroad. (more…)