Brooke on Tour

If you're looking for a comfy retirement stash, you'd better know about the tax hits that go along with it. Brooke Stephens breaks it down for you.

Wherever you turn you hear the message that you should be maxing out on your 401(k) plan. That means socking away $2,000 a year in a Roth IRA and adding to a tax-deferred annuity so you can get to that million dollar nest egg you want.

But how much will you need to save to do this?

Focusing on retirement is probably the farthest thing from your mind when you think about the monthly bills and other expenses that loom ahead—like braces and college for the kids, renovating the kitchen, and fixing your car—you know the drill.

But if you dream of quitting your job before 65, you'll want to know the hardcore, mathematical truth about retirement savings. How much you will need depends upon how long you expect to live, and even the psychic network can't help you there. If your ancestors lived a long and healthy life, then you've got longevity in your genes and you can probably expect to live 30 years beyond the day you get your gold watch and head off into the sunset.

Assume that after you retire, your nest egg will still be earning at least 12 percent each year with some good blue chip stocks. Keep in mind that you will have to pay taxes, at least 30 percent of your earnings, on what you take out each year. And don't forget to account for inflation, let's say, about 3 percent. To stretch your nest egg over 30 years, check out the table to see how much you can withdraw annually.

Clearly, the more you save and earn before you quit working and the more aggressive you are with your investing, the more you'll have later on. Unless you want to be wiping down tables at Burger King at 68, and bunking with your grandchildren, you might want to review your 401(k) plan and your commitment to yourself to have something to show for all those years of hard work. Get busy now and save!