Retirement may seem far off, or it may seem like an all too near future. When that day comes, if you are still alive, you will need a plan for what to do to be able to have enough money to live. For a few short decades in the 20th Century, there was the belief that pensions from private companies would provide for the needs of workers. So here we are. We will figure out how to survive no matter what the circumstances.

Today, there are many, many different ways for companies to help you save towards retirement. Why are these so smart? Because they have so many tax advantages it's ridiculous. Any financial person will tell you that your first step is to max out your contribution to your IRA and 401(k). You can, and should, pay monthly into one of these plans.

After you have maxed out your contribution to your IRA and/or 401(k), your next stop should be a variable annuity. An annuity works like a pension was supposed to work. In fact, most annuity companies got started in the business by providing pensions for large companies. By providing for your own pension through an annuity, you provide security for yourself and your family for the rest of your life. A retirement savings plan and an annuity can be the building blocks upon which you build a solid retirement portfolio to let you enjoy your last years.

Approach your retirement like you approach your other financial needs: there are things that you have to have and things that you want.

In light of the financial events of the last few decades, the government has designed tools to allow, and encourage, you to save for retirement.

After you have contributed your limit to your IRA, your next stop is a variable annuity. A variable annuity is nice because you can contribute over time, just like an IRA. With a variable annuity, the tax on gains is deferred until you start getting paid. Only the interest on a variable annuity is taxed. If you are careful, you can set up your annuity to be exempt from Medicare rules. So choose your annuity wisely. By retirement, your children will be grown, your house will either be paid off or you can do a reverse mortgage, and your car expenses will drop dramatically. So your needs will be less. Any extra money will likely be discretionary. Or gold. Or starting an Ebay business.