As we have suggested a number of times now, you should begin to plan your retirement as early as possible, so as to ensure a comfortable and happy ending chapter to the book of life. Opening an IRA contributing to a 401(k) is an excellent beginning, though retirement income is not the only thing you need to plan for: You have to decide where you want to live during those last years, and where and when you want to travel; You have to plan out how to handle tax matters and insurance in addition to healthcare; You also have to think about the disposition of your assets upon your death. Yes, you're probably thinking were putting a damper on your prospects of sipping margaritas while floating in the pool of a villa in Spain, but trust us - if you're not well-planned, you won't be going anywhere (or sipping anything!)

      If you are married, you should begin planning your retirement with your spouse so both of you can agree on a plan and work together for mutual benefit. As you start putting money aside for the retirement years and set up your investments, your spouse's income will also have to be taken into consideration. A solid retirement plan is indispensable, since it ensures that your standard of living is maintained through the Golden Years. You cannot afford to give in to procrastination, so begin by listing your retirement goals. In other words, what would you like to accomplish in your years of retirement? The answer to that question will allow you to determine how much money you actually need in your Golden Years.

      If you haven't done so already, create a working budget. Keep a journal of every dollar you spend for the next three months in order to better manage your expenses from now on. And, include a direct payment into your retirement plan no matter how small.

      Next, watch for plan busters. These include expenses that you really don't need to make. Instead of confusing necessities with luxuries, begin spending wisely to reap the benefits in the future. Take it seriously, because it is your life and future that were dealing with here! Little mistakes tend to be quite expensive in the long-run, so be adamant in your mind that you will do your best to make all the right choices. For instance, you have to decide how to invest the money that you have put aside for the Golden Years.

      Of course your investment choices will be different depending on your age at the time you commence retirement planning. If you are between 20 and 35, you have plenty of time to shop around and try various investment strategies. Between 35 and 50 - you still have time to build a good retirement fund although you must be watching your portfolio closely to be sure that you are investing wisely. Fifty and up - you are advised to choose your investment strategy very carefully and do it ASAP.

      Your short-term investment choices include checking accounts, saving accounts, money market funds, and certificates of deposit. If investing for the long-term, the choices available to you include stocks, bonds, and mutual funds. We do recommend that you invest in stocks regardless of your age, keeping liquidity in mind, and also the relatively higher rates of return on stock trade.

      Once you have done your investment homework you are in a position to decide where and how much to invest, and also come up with a plan to start investing regularly. The following step requires you to look into your pension plan. You must also orderly maintain your pension plan now in order to ensure it helps you in the future. Check with your employer to see whether or not you have a pension plan in place today. If you don't have one (God help you!), ask for one to be set up. And if you do have one (Thank the Lord!), find out all the details and calculate the benefits you'll be reaping in the Golden Years. You must also be aware of the retirement income to expect in the form of Social Security payments.

      From this point onwards, it is easy to maintain your retirement plan. Just remember to make it a habit to put away money for retirement each time you pay your bills; and then forget about it until the day you quit your last job!