Q: How do I know whether I have the right retirement plan to meet my objectives? How do I evaluate my plan?
"The right retirement plan centers on saving enough money every year," says Veterinary Economics Editorial Advisory Board member Gary I. Glassman, CPA, a partner with Burzenski and Co. PC in East Haven, Conn. But how do you know what's enough? Here's one way to find out:
1. Determine the annual amount (after taxes) that you'll need to live comfortably during your retirement.
If you're an employee, you don't have much control over what your employer offers, but maximize your savings into the plan anyway. If you need to save more than you can through your employer, consider contributing to an IRA also: a Roth IRA if you're young and in a low tax bracket, a deductible IRA if you're older and in a high tax bracket. Consult your tax and pension specialist to make sure you have the best possible chance of reaching your savings objectives, Glassman says.