. . Retirement planning consists of analyzing an individuals needs for retirement income and planning possiblilities. Vehicles in which to build a retirement nest egg include annuities both fixed and variable, IRAs, 401(k) plans, profit sharing plans, simplified employee pensions, defined benefit plans to name a few. All of which grow on a tax deferred basis. Depending on the set up, dollars can flow in on a pre tax or after tax basis. The set up also determines how the proceeds are taxed at distribution. Taking a distribution prior to age 59 1/2 will cause a penalty along with the income taxes due. Retirement planning is an on going process that continues through retirement and beyond. The planning process consists of learning your goals and desires for your future. A detailed review of your company benefits is also necessary. Whether you choose varaible or fixed vehicles to build your nest egg is entirely up to your risk tolerance. Your advisor should take a complete and full fact find and work with you throughout the building phase and depletion phase.