Retirement is indeed a very big art of anyone’s life. But have you chosen your retirement destination yet? For most people, retirement means living with a reduced amount of income. Here are some of the best places to retire in the U.S. They have a good weather and a lot of activities that will never leave you bored.

Prescott, Arizona
If you are a nature loving person then Prescott, Arizona is the best place to retire. Prescott is a famous historic city that boasts of adventure and culture. If you are a golfer, then you must be excited to see its six pristine courses. And if you want some adventure in your last age, then Prescott is perfect for you with its secluded picnic spots and lakes. Prescott has always been the hidden gem in retirement communities.

Palm Springs, California
Palm Springs gets over 300 days of sunshine every year. In summer, the temperatures are around 100 degrees during the day and 80 degrees at night, while in winters 70-80 degrees is the usual temperature during the day, and at night it is around 40 degrees. Retirees will enjoy their time visiting the Living Desert Zoo and Gardens, the Moorten Botanical Garden, which is famous for its ancient fossils and gold-mine relics, the Palm Springs Art Museum, Tramway Gas Station, which is full of modern architecture and the Cabazon Dinosaurs museum. Palm Springs also provide one of the best medical facilities.

Venice, Florida
One of the most alluring cities in the world, Venice happens to be one of the best places to retire. It is a pleasant community consisting of 21,000 people located on the Gulf of Mexico. Venice has very less traffic and is the best if you want to stay away from the hustle-bustle of most cities. It has a great beach in the town and a total of 31 municipal parks. Leaving aside its numerous tourist spots that you can visit, Venice is the best place if you want to live in a planned community.

Savannah, Georgia
If you are a history buff looking for a slower pace in life, Savannah is the place for you. Savannah is full of beautiful public squares, colonial architecture and vivid cultural scenes. In other words, Savannah has something to provide to everyone. The city’s famous Riverwalk with over 80 shops, restaurants and galleries is something you can visit whenever you are bored.

Beaufort, South Carolina
Beaufort is popularly known as Queen of the Carolina Sea Islands and has a retirement community of 11,000. Beaufort is a charming old town where 304 acres of it been named as the National Historic Landmark. It has luxurious golf courses. The climate is mild in winters. This is one of the best places to retire for those who love to retire in a small river town in the serenity of Mother Nature.

Retirement plans may be going the way of the dinosaur but the younger generation of today should be aware of the fact that saving more for retirement is the wisest thing to do. Listed below are the simplest, no-nonsense and easy-to-understand retirement savings plans and accounts that one can choose:

403(b)/401(k) offered by employer: This is the best and easiest way for you to begin investing for retirement. Employee contributions go through payroll deduction, and employers match employee contributions. If you decide to quit your job, make sure that you roll over the account into the 401(k) plan of your new company or into your own IRA. A 403(b) is an option for employees of non-profits, teachers, etc.

Solo 401(k): For sole proprietors, the best thing to do is to set up an individual 401(k) account and make contributions as both the employer and employee up to $54,000($60,000 for individuals above the age of 60 years).

SEP (Simplified Employee Pension) IRA: This SEP IRA is usually used and employed by proprietors and owners of small-sized businesses or those who are self-employed such as freelancers. Employers can contribute either $54,000 or an amount which is up to 25% percent of their income, in 2017, whichever amount is lesser. SEP IRAs are easier to set up as compared to a solo 401(k) account. One should remember that if one has employees, then the employer must make employee contributions for those who meet specific requirements.

Simple IRA: A Simple IRA retirement plan allows companies with less number of employees (lesser than 100) to arrange for IRAs which involve lesser headache and paperwork. In a Simple IRA, an employer should either make unmatched contributions or match employee contributions, with the limits being up to $12,500 in 2017, with an additional $3,000 allowed for people above the age of 50.

IRA: IRAs are the big kahuna of retirement investment plans. You could contribute up to $5,500 a year to an IRA, which grows tax-free ($6,500 if you’re over the age of 50). You could set up an IRA at a brokerage firm or a bank to hold a motley of investments such as cash, bonds, MFs and stocks which are earmarked as retirement savings. If you’re not covered by a retirement plan at work such as a 401(k), you get the advantage of a full deduction from your income, no matter how much it is (exceptions are if you file jointly with a spouse who has a work retirement plan or if you are covered by a 401(k) and your earnings exceed $71,000).

Gone are the days when the working class in the country could get the Social Security or an employee pension plan to cover the costs incurred in their later years. Today, planning for retirement has become imperative. There are numerous options out there for individuals to save better to live comfortably later in life.

The thumb rule is not sticking to a single plan or putting all your eggs in one basket:

Pensions
All you need to do is stay in the job long enough to qualify for pension, retire and collect the money which the employer contributes and which are professionally managed. However, pension plans are most common for government/municipal workers, rather than those in private ones, and mostly aren’t adjusted for cost-of-living. So, you may need to supplement this plan with another one.

Defined Contribution Plans
According to most financial advisors, these are some of the best retirement plans because they are offered by employers who match a certain portion of the employees’ contributions. It requires very little effort since employee contributions are deducted from their paycheck. Since contributions are almost an equal match, it’s close to 100% return on your money, and with plans such as the 401k or the 403b, people are in control of their future.

Roth IRAs
Roth IRAs are retirement accounts funded with taxed dollars where individuals enjoy the advantages of tax-free withdrawal and growth. One can even combine Roth IRAs with other plans such as a 401k to churn out a well-balanced plan that allows them to make both before-tax and after-tax contributions. However, Roth IRA has contribution and eligibility limits that depend on an individual’s tax filing status and modified adjusted gross income.

Traditional IRAs
Traditional IRAs have the same contribution limits as Roth IRAs, but without the eligibility and income restrictions. These plans work best for people who have less time left to retire, since one can enjoy the benefits of tax-deferred growth and tax-deductible contributions.

SEP IRAs
This is one of the best retirement plan choices for the self-employed such as sole proprietors or freelancers. The contribution is huge, cost is lower and the plan is easy to administer and manage. Good income combined with very less tax deductions amounts to a large amount off your tax bill, and a lesser income means no contribution.

Social Security
Social Security is said to benefit 39% of the older American populace’s income, with 9 out of 10 people over 65 years of age receiving Social Security. Despite the hype and hoopla surrounding it, Social Security is still relevant and important, with timing being everything.

Real Estate
If you haven’t saved enough or at all, real estate is a great option. However, one must be warned that with higher returns comes a greater risk.

Every individual saves for a comfortable retirement life. In order to enjoy a stress-free retirement period, it is important to invest at an early stage and plan your retirement to make the right investment decisions. Consider your current financial condition and set your retirement goal; based on the same, you may make investment decisions that will allow you to grow your wealth. Roth IRA accounts are highly preferred by investors due to the taxation benefit. Consider these investment plans during your retirement planning. When you withdraw the amount at the time of your retirement, you will not have to pay any tax on the same. There are a number of funds you can choose to invest in. Carry out a market research or consult the portfolio manager to make a well-informed decision. We have listed out the top five Roth IRA funds for investment during retirement planning in 2018.

• TIAA-CREF Lifecycle Retirement Fund
  This investment generates a high return over a long period of time through income and capital appreciation. It invests in institutional class shares or other funds of the trust and in other investment products. This fund is ideal for investors who are already entering retirement.
• Vanguard Target Retirement Income
  This fund is a part of the Vanguard target-date series and is suitable for those in retirement or those looking for a target date fund with a conservative strategy. It has retirement dates of 2015 through 2065 in five-year increments. This is the best when you are planning your retirement. It allocates 30 percent of the funds into stocks and 70 percent into bonds. Its parent company, Vanguard is the largest mutual fund provider in the country and offers an array of mutual funds to choose from.
• American Century One Choice in Ret Port
  The main purpose of the investment is to seek current income followed by an appreciation of capital. It invests into American Century mutual funds, which represent a variety of asset classes and investment styles. It allocates the major portion in stocks followed by bonds and a small portion in money market funds.
• USAA Target Retirement Income Fund
  There is capital appreciation and current income with this investment. It allocates 35 percent of its net assets into funds that invest in equity securities of alternative asset classes and the remaining 65 percent is invested in fixed income securities.
• Fidelity Advisor Freedom Income Fund
  The investment strives to generate a higher return with principal preservation. It invests in bond funds, domestic and international equity funds, and short-term funds.

Consider the prevailing retirement annuity rates and weigh your options when making an investment decision during the retirement planning. Determine the amount you want to receive at the time of your retirement, consider your current financial position, and make your investment decisions accordingly.

Retirement plans are mainly classified into two types on the basis of benefit calculation namely:

• Defined benefit plans This is a pension plan where a final amount is calculated based on a formula that involves the service of a person with an employer and paid to all retirees from a dedicated trust fund.
• Defined contribution plans An individual holds a separate account to which an amount is contributed periodically by the account holder which is then used to make purchases in the markets.

The amount contributed and the performance of the investments in the market determines an individual’s benefits. Individual Retirement Account (IRA), 401(k), profit sharing plans are the some of the most common plans in recent years.

What is an annuity?
An annuity is defined contribution plan where a set amount is paid by an individual to a financial company, who guarantees benefits for lifetime. Annuity amount is invested in various markets and works more like an insurance policy with payout frequency ranging from monthly, annual or one-time lump sum payment.

Types of Annuities

• Immediate payment annuity: A lump sum amount paid by the consumer starts to give the benefits almost immediately on a set period of payment. Payouts can be monthly, quarterly etc. as desired by the consumer and payouts depend on the market performance.
  Advantage: If no other sources of income is available post retirement and one needs immediate financial support, then this can be a good option as the payouts start immediately.
  Disadvantage: The payout rates depends on the market and this may lead to a highly instable income.
• Fixed income annuity: The rate is fixed on the amount paid for an initially agreed period. Although the rates fluctuate based on the market performance, it will never go below the initial set rate during the lifetime.
  Advantage: As a minimum rate is pre-set, there will be a guaranteed amount of benefit even if the market drops below which makes it a relatively safer option to invest.
  Disadvantage: The payouts are not immediate and may range from one year to ten years.
• Variable annuities: This works similar to a mutual fund and the amount is spread over multiple investment accounts, that are completely dependent on the market and involves higher risk if the company does not perform well.
  Advantage: Offers high returns as the investment is spread over different accounts
  Disadvantage: Does not provide an assured benefit and involves high risk of losing the investment.
• Equity indexed annuity: This combines the features of fixed and variable annuities wherein a minimum rate is fixed, and the earnings above this is allowed to be invested, which may yield higher benefit if the market is good.
  Advantage: Assures a definite payout with the set frequency and earns more than fixed plan if the market performs well.
  Disadvantage: The consumer will earn only the minimum amount agreed upon if the market underperforms and loses the amount earned above the set rate.

Is your retirement around the corner? Have you chosen the retirement community for yourself? Well, if not, then what are you waiting for? Retirement means a lot of time that you can give to yourself and do the things that you love and spend the rest of your life in peace. Here is the list of perfect retirement communities, divided on a regional basis so that you can choose your area of preference easily.

Arizona
Monte Vista Village Resort
Monte Vista Village Resort is one of the best retirement communities in Mesa, Arizona. It has some refreshing pools and splendid golf courses for the golf lovers and not forgetting the magnificent tennis courts for the lovers of this racquet-sport. It is spread over 80 acres of land.

Sunrise RV Resort
Situated in the warmth and opulence of a desert region, Sunrise RV Resort welcomes recreation lovers with magnificent lakes for fishing and boating, swimming pools, tennis courts and untamed natural beauty of the Sonoran Desert.

California
Palm Springs Oasis Resort
The Palm Springs Oasis Resort is situated in the Coachella Valley. From there, you will get a perfect view of the San Jacinto and the Santa Rosa Mountain ranges. The resort provides its guest retirees with a golf course, spa, two beautiful swimming pools and a tennis court.

Florida
Four Lakes Golf Club
The specialty of the Four Lakes Golf Club among other retirement communities is that it has a waterfront, a premium golf course and exclusive cypress wetlands. It gives you the chance to confront the picturesque beauty of 500 scenic areas. It is situated near Disney and Orlando.

The Meadows and Arbors at CountryWood
Awarded as the Community of the Year by MHI, The Meadows and Arbors at CountryWood proves that it has got something different from the other retirement communities. The houses exhibit the traditional colonial form of architecture. It is located at about 20 miles or even less than that from Tampa. Your stay at this retirement community is sure to be nostalgic.

Illinois
Willow Lake Estates
The Willow Lake Estates is situated on the Fox River. The retirees can enjoy the experience of a private stocked lake with a boat dock. It is a very spacious clubhouse that is located in the Chicago metro area. With a radius of 6 miles, you will get many restaurants that provide mouth-watering food.

New Jersey
Anderson Creek Club
The Anderson Creek Club is spread over 1,700 acres of land. It is a perfect choice for those who are seeking retirement communities in the lap of nature. The Anderson Creek Club is only 90 miles away from the beach and a few hours journey will take you to the mountains.

South Carolina
Hampton Lake
This is one of the most friendly retirement communities that you will ever come across. It has a private freshwater lake that is spread over an area of 182 acres where you can go boating and fishing.

Like you, several other retirees work extremely hard to earn a decent amount of money. And they have only one aim, to have a reservoir of finances that will help them lead an independent life even after retirement. You might often mull over the thought, “How do I make sure my savings last as long as I do?” For this you need to have a retirement plan to generate revenue, that can last for the rest of your life irrespective of the income that can withstand inflation, market ups and downs, and unexpected expenses.

There is no one income strategy that is applicable for you, as your situation and requirements will be distinctive at different stages of life. Firstly, you will need to understand the varied aspects of retirement expenses, so that you can accordingly plan your income investment strategies.

The following are some investment strategies that can help you comfortably plan for life post retirement.

Regular income for your day to day expenses
When you begin with the planning for retirement, you will want to make sure that your day-to-day expenses such as obstinate costs (housing, food, utilities, and health care) are covered by guaranteed sources. The major sources of this assured income are pensions and annuities, so make sure that you have invested in these to enjoy the benefits after retiring.

Growing financially to meet your long-term needs
As you build your income plan, it’s important to include some investments with growth potential, as it may help you keep up with inflation through the years. The best thing that you could do in this case is invest in stocks and bonds while monitoring the investment growth.

Upgrade your plan over time
You may want to have a plan that can adapt to life’s unavoidable situations. Complementary earnings can reduce the effects of some vital key risks, such as inflation, life longevity, and market fluctuation.

Retirement Income Investment Planning

So, how do you start your planning? Consider the following methodology to help create your own diversified income plan

• First of all, you need to identify your personal and financial goals for the future according to the life you are living currently.
• Then, you need to determine the probability that you will be left with enough money to last throughout your retirement.
• Draft a plan and implement it with the right combination of revenue-producing investments to stabilize your financial requirements and fulfill your desires after retirement.

Plan your retirement income investment today and act accordingly!

Based on the type of payout of the benefits, annuities are classified as immediate income and deferred income (that includes fixed payment, variable payment, equity indexed) annuities. Although annuities provide tax benefits, there are a lot of costs involved in it when compared to traditional investment plans. Once the investment type is chosen, it is important to consider other aspects of investing in annuities to earn the best income.

• Expenses involved in an annuity are surrender fees, commissions and monthly fees.
• Payment for purchase of an annuity can be done through single or series payments or through social securities.
• Costs involved on early withdrawal may include annuitization, systematic withdrawal or lump sum amount.

The benefits payout options is also another aspect that needs to be looked into to earn maximum income. These can be broadly categorized into three types:

• Guaranteed period payment: The return of the principal (initial investment) and the interest will be paid back by the insurer within an agreed period of time. It may be paid back in series or as a lump-sum amount. Here, the investor can be sure of getting back all the benefits within a certain time or while he is alive and the insurer does not retain back any of the earnings of the investor in case of his death.
• Lifetime payment: The principal and the interest earned based on the initial set rate will be paid on a monthly basis to the investor until he is alive. While an early death may not earn maximum benefits, a longer life means earning beyond the growth of the actual investment.
• Survivor payments: The investment and earnings is transferred to a joint applicant or a nominee even after the investor has died. This will help in financially aiding the survivor (spouse, children or other nominee) in the absence of the investor. The payouts may last longer in this case and thus earnings will be higher.

Apart from providing benefits of tax deferral, fixed payment annuities also offer a slightly higher rate of growth due to the following reasons:

• The surrender charges usually reduce with increase in number of years as compared to IRS.
• Maturity is usually between one to ten years and mostly there will be automatic renewal unless voluntarily withdrawn.
• Rate of interest will be updated with the current rates at the time of renewal.

After making a comparative analysis, deferred income annuities seem to offer a guaranteed retirement income. These annuities pay around 3-4% higher than a standard 10 year treasury bond. Also, some tax rules allow consumers to invest 25% or up to $125,000 into an annuity. But this required IRA withdrawals to begin after completing 70.5 years of age and income to be withdrawn by the age of 85. These are often called as qualified retirement plans and are regulated by ERISA. Any qualified plan must provide annuities in the form of SLA (Single Life Annuity) and a QJSA (Qualified Joint & Survivor Annuity).