Chapter 02
Retirement Planning, Simplified.
The account types, income products, and timing decisions that determine how far your savings actually stretch.
Category
401(k) & IRA Guides
A 401(k) is employer-sponsored with a contribution limit set by the IRS and often includes a match; an IRA is opened independently and gives you broader investment choice. Roth versions of each trade a tax deduction today for tax-free withdrawals later — the right mix usually depends on whether you expect to be in a higher or lower tax bracket in retirement.
401(k) / Traditional IRA
Contributions reduce taxable income now; withdrawals in retirement are taxed as ordinary income.
Roth 401(k) / Roth IRA
Contributions are after-tax; qualified withdrawals in retirement are entirely tax-free.
Category
Annuities
An annuity converts a lump sum into a stream of guaranteed income, insuring against the risk of outliving your savings. Fixed annuities offer predictable payments; variable and indexed annuities tie payments partly to market performance in exchange for potentially higher (but less certain) returns — and typically carry higher fees.
| Annuity Type | Payout Certainty | Growth Potential | Typical Fees |
|---|---|---|---|
| Fixed | High | Low | Low |
| Fixed-Indexed | Medium | Medium | Medium |
| Variable | Low | High | High |
Run the Numbers
See your own projection.
Our retirement calculator models contributions and growth side by side so you can see exactly where the balance comes from.
Open the Retirement CalculatorFAQ
Common questions
Should I prioritize a 401(k) match or an IRA first?
Most planners suggest contributing enough to your 401(k) to capture the full employer match first — it's an immediate, guaranteed return — before directing additional savings to an IRA.
Are annuities worth the fees?
For guaranteed income and peace of mind against outliving savings, many retirees find the trade-off reasonable. For pure growth, lower-fee investment vehicles often outperform over long horizons.
What's the "right" age to claim Social Security?
There's no universal answer — it depends on health, other income, and spousal benefits. A financial advisor or the calculators on ssa.gov can help model your specific break-even age.
Category
Social Security Planning
Claiming at 62 locks in a permanently reduced benefit; waiting until 70 increases it by roughly 8% per year past full retirement age. The "right" age to claim depends heavily on health, other income sources, and whether a spouse's benefit is involved — it's rarely a one-size-fits-all answer.