The recent tax law and changes to the tax code was pretty dramatic in terms of how it impacts most taxpayers. Not only did federal tax rates go down across the board, but the law regarding tax deductions changed a lot as well. Many people who used to itemize the taxes now will simply use the standard deduction of $12,000 per person, which is double what it used to be.

This example shows just how important stock returns are to a retirement plan. The power of compounding cannot be underestimated when we are talking about long periods of time. On the flip side, one should not underestimate what a long period of stock market stagnation can do to a portfolio either.

Because the cost of living varies so much across the country, retirement savings will go a lot farther in some places than in others.

The savings picture for Americans continues to look grim. Although the average American household has over $175,000 saved, this figure is skewed by the very wealthy in this country. The median savings number is much important and it tells a different story.

Many who worked for the local or state government over the past few decades were certain they could retire in their 50s with a large pension and gold-plated health benefits. This is what they were promised. But it turns out, most of these promises were nothing but Ponzi schemes where the payments coming in would eventually not be enough to cover the payments going out.