In your 40s? 50s? 60s?

Here are some tips.

By HELEN HUNTLEY
Published April 24, 2007

In your 40s: Shore up the foundation

- Keep debt under control. Pay off credit card balances in full each month and resist the temptation to cash out home equity.

- Build an emergency fund. Aim for three to six months' living expenses to tide you over in the event of job loss or other emergency.

- Take what your employer gives you. Be sure to contribute at least enough to your 401(k) to earn the full employer match.

- Put your savings on autopilot. Save through payroll deduction. Sign up to automatically increase your 401(k) savings by a percentage each year if your company plan offers that option.

- Put your money in a few high-quality mutual funds with low costs and good diversification. Invest for the long term.

- Roll over your 401(k) if you change jobs.

In your 50s: Focus on the future

- Empty the nest. Develop a timetable and a strategy for helping your children achieve financial independence.

- Trim living expenses. Consider downsizing when children leave home and look for other ways to free up cash you can stash away for retirement.

- Pay down debt. Draw up a plan to eliminate all debt except your mortgage - and work on that, too, if you have the resources.

- Take inventory. Find out whether you are on track to be able to retire by doing a financial plan yourself or getting one from a professional.

- Opt for an IRA. If you want to save more than you're stashing in your company savings plan, put the extra in an IRA. (Use a Roth IRA if you qualify.)

- Educate yourself. Spend some time learning about investments if you aren't already knowledgeable.

In your 60s: Start the countdown

- Get down to the nitty-gritty. Do a detailed analysis of projected income and expenses in retirement.

- Research retirement options with financial ramifications, particularly housing, health insurance, part-time work and when to take Social Security benefits.

- Test drive retirement finances. Live within your projected retirement budget to see if it's realistic. Keep a record of your spending for a few months to identify where adjustments might be needed.

- Ramp up savings. If your retirement kitty needs a boost, this is the time to give it your all.

- Review your asset allocation. As retirement approaches, you might want to become more conservative, but don't dump all your stock funds. You might live a long time.

[Last modified April 24, 2007, 06:58:33]