There may come a time when you will elect to stop working or you decide to retire based on other factors. The time to plan and prepare for the event cannot be started early enough. In study after study the majority of Americans retire with little more than Social Security and a small pension. This is a sad fact considering the variety of retirement, investing and saving vehicles that are available.
There are before-tax and after-tax retirement saving and investment programs. In both the government becomes your partner in adding available resources to whatever programs are most advantageous for you and your family. The money can be added in a before-tax plan like a 401k (you pay less current federal income taxes) or after-tax like in a Roth IRA. (Your investments grow over the life of the plan and when withdrawn all the money is free of federal income taxes.)
Retirement and financial planning can never start too early. The best plans also happen to be those that are simple to follow and set up and easy to manage and keep score. If your financial situation gets beyond your ability to handle by all means search out professional help.
We've all heard of situations like the 30 year old who withdrew a $1000 out of their profit sharing plan to buy a refrigerator. The money could not be returned to the plan. So what did this "astute" financial move cost? If the individual retires at 65 and the $1000 earned 8% over the 35 years, his profit sharing plan would have been worth an additional $14,750. And of course the refrigerator would be in a landfill somewhere. Maybe this one decision would not have a major financial impact at retirement but a series of these missteps could seriously erode the individuals ability have a number of acceptable options at retirement.
Preparing for retirement should be a smooth transition with enough income and assets available for your planned retirement lifestyle. Some take it for granted that planning for retirement at an early age is essential to have the best of their retirement years pass without too much financial worry. Others wake up at age 56 and try to make it happen. You can avoid this mistake and start planning for those years now by developing a financial and retirement planning program that you can easily monitor and manage.
Start with a financial analysis of your current income and expenses. Look at your assets and what you owe. It's been said over and over but there are two basic things you must do to develop financial freedom, now and in the future. One is to pay yourself first. The first check or direct deposit out of your checking account each month should be to your investment and savings program, whether an IRA or a 401k type investment. Second, do it regularly every month without fail. And as you get raises and your income grows plan on saving and investing a substantial portion of the raise. Write down your financial plan with goal and a timetable. Periodically, at least once a year, review your progress and adjust accordingly.
The key to financial success is not how much you make but how you manage your income and balance your current needs with your future requirements. With a positive growing financial plan you'll have a whole series of acceptable options on how you are going to enjoy life when retired. | 
