The good news is we're living longer; the bad news is we're living longer. Many people today will spend more years being retired than they did working. Not only are we living longer, we are faced with the increasing costs of health care, insurance, food and utilities, just to name a few.

Retirement planning must take into account not only the income you have coming in but the amount of money you have going out. This makes the debt side of your equation of the utmost importance.

You will want to enjoy the same standard of living in retirement as you did while you were working. This requires planning, discipline and focus. Retirement planning also takes into account inflation, emergencies, spending longer years in retirement and a keen look at exactly how you want to spend those years in retirement.

There are many retirement vehichles available to help build that nest egg. They include:

• 401K plans which are the most common type of defined contribution plan, offered by many employers. These plans allow you to contribute pre-tax dollars from your paycheck.
• 403B plans are similar to 401K plans, but they are offered to non-profit organizations and most employees of public education entities.
• 457 plans are those offered to municipal and state employees.
• Thrift saving plans are those offered to federal government employees.

You may also fund one of the many tax-advantaged plans on your own, which include:

• Self directed IRAs (Individual Retirement Accounts) which are deductible from your taxable income in many circumstances; this money should be used for your retirement, which means that if withdrawals are taken before your are age 59 1/2, that you incur a penalty. Money contributed to an IRA should be earmarked as money to use when you retire, at which time you will pay taxes on the amount you withdraw each year.
• SEP and SIMPLE IRA's are other types of employer plans offered through smaller size businesses and sold proprietors. They allow participants to tax defer a higher amount than a self directed IRA.

Kusek Financial offers assistance in establishing all types of retirement plans, and provides guidance in investment options appropriate for your specific goals.