Battling retirement fees

Q. How will inflation and taxes affect my cash needs during retirement?

Those are the two biggest obstacles in making sure you have enough money to live on during retirement, says Veterinary Economics Editorial Advisory Board member Gary I. Glassman, CPA, partner with Burzenski and Co. PC in East Haven, Conn. According to Glassman, an adequate retirement fund should equal at least eight times your annual pre-retirement salary. To achieve this, you must put away at least 15 percent to 18 percent of your yearly salary into a 401(k) or a SIMPLE plan.

Gary I. Glassman

When planning your investment strategy, it's important to structure your portfolio carefully. Investment returns that don't keep up with inflation will force you to lower your standard of living. "A well-structured investment portfolio that's consistently monitored over a long period of time is the only way to meet your retirement needs and provides the best odds that you'll beat inflation and taxes," Glassman says.

Review your portfolio frequently and remember that rebalancing your accounts to meet your annual goals is imperative. The market is constantly changing and so must your investment objectives, says Glassman. If you don't think you can do this on your own, seek the advice of a financial advisor. His or her input may be the determining factor in the success of your retirement.