Retirement planning is complex enough, but add in the extra tax considerations that executives must consider and the recent wild swings in the stock market, and execs nearing retirement may be ready to throw up their hands.

To help employees hang on as the current economic roller coaster speeds along, EBN Editor-in-Chief Kelley Butler got insight from Deanna McMahon, executive vice president at exec benefits firm MullinTBG, and Bob Shier, president and principal at MullinTBG Advisors. McMahon and Shier offered advice to boomer execs and some universal tips to everyday employee-investors as well.

EBN: How is retirement planning for executives different from average employees?

Shier: Although everyone faces similar decisions, execs have nonqualified plans with different tax implications, like stock options, restricted stock, deferred compensation. A lot of times, execs don't understand their benefits packages or how

they should work together regarding the timing of distributions - structuring what pot of money to use when.

EBN: Regardless, it seems like the market volatility lately has been the great equalizer. What reactions have you seen?

Shier: It's been eye opening; we've been like financial psychologists, because there were some people that wanted to get out of the market. People that didn't have advisers, I feel bad for, because people who jumped out of the market over the last several weeks have self-inflicted injuries that they may never recover from. For example if you missed just [Oct. 13, when the Dow Jones Industrial Average soared nearly 1,000 points], you can never recover what you lost.

McMahon: Following a market slump, there generally has been a very significant market increase within a short period of time, and that's exactly what we saw. If you got out of the market, your overall long-term return will be much lower.

EBN: But ["Mad Money" host] Jim Cramer said publicly to take out any money that you have in the stock market that you'll need in the next five years. Is he wrong?

Shier: Cramer is in showbiz, not investing. And besides, if you have money that you'll need in the next three to five years, it shouldn't have been in the market anyway. It should be in bonds, cash, safer vehicles. The stock market is for money that you won't need for 10, 15 years or more.

Lastly, we always remind people that just because you're retiring, it doesn't mean you suddenly have a 12-month life expectancy. You need to have equity exposure to combat a higher cost of living.

McMahon: Plus, a lot of the advice you see on TV or read is not objective. The advisers often have an ax to grind or product to sell; independent advice is most important.

EBN: You've mentioned that planning for health care expenses also is important. What should employees - execs and otherwise - know?

Shier: Fidelity has found that a couple retiring at age 65 today would need $225,000 just to cover medical costs.

It's staggering because that's more than the average couple has saved for retirement, total.

McMahon: Plus, I think we're facing a changing political environment in how we pay for Medicare.

There could be cutoffs for certain income levels, so higher earners may be affected more than the average worker.

Shier: It all goes back to the fact that ever worker in the U.S. needs objective financial advice.

The transfer of responsibility in retirement planning has tremendous consequences, and it's no time to gamble.

The market is not meant to be a casino. Employees need advice because they are not experts and don't know what they don't know.

Five common financial mistakes executive baby boomers make

1. Going it alone without professional financial advice. "Emotion is not your friend when you're making financial decisions," Shier says.

2. Timing the market. Often, executives attempt to time the market by reacting to every market swing as it happens. This is a recipe for disaster, especially considering the volatility of the Dow recently - up 300 points one day, down 300 points the next, and can prove devastating to one's portfolio.

3. Giving too little consideration to tax consequences of big distributions. Tax planning is an oft-overlooked element of investment strategy development. Differences in tax rates and tax brackets must be examined as well as tactics for minimizing impacts to the overall investment portfolio.

4. Disregarding annuities entirely. Although annuities have gotten a bad rap in the past for being associated with scams and having high fees, new products are being introduced that are more palatable to investors looking to reduce their risk of outliving their retirement assets. Some of the more attractive features of these offerings being marketed today include reduced or no surrender charges, a guaranteed floor that allows the investor to participate in the upside of the market, and the flexibility to convert the annuity to long-term care dollars.

5. Underestimating medical expenses not covered by Medicare. Underestimating medical expenses not covered by Medicare, not figuring in the cost of inflation, or neglecting long-term care needs are just some of the retirement planning pitfalls that could seriously compromise the longevity of a nest egg.