We discuss about preretirement financial planning, and as stated above, you need to start early. Even if you're only 25 or 30, you should do as much as possible to participate in your company's 401(k) plan, if there is one, and to contribute the maximum. You can also meet with a financial planner at your financial institution. The financial planner will be able to help you identify and establish your goals. You can then develop a plan so that you can maintain the lifestyle you want and still have plenty left over saved for retirement. If you're older and retirement is just a few years away, it's still not too late. A retirement plan started later is still better than no plan at all. A financial planner can help you establish retirement goals if this is true for you.

Here's one very important tip for preretirement financial planning, if you want to have a comfortable retirement. Before you even do anything else, the first thing you should do is to begin to contribute to your employer's 401(k) program as soon as you get your first job where the employer has one. Most offer this and it is nearly painless to invest money this way. This is because employers match your contributions to a certain percentage or dollar amount. This means, basically, that you get "free" retirement money from your employer toward your retirement. Effectively, you double your retirement savings versus any you could do on your own. Of course, this extra money is an added bonus over any interest or dividends your account accrues at the same time.

Next, consider establishing an IRA for preretirement financial planning. One person can contribute a maximum of $4000 a year, as well as the same amount for a spouse. If you happen to be over 50, you can contribute $5,000 year plus $5,000 for your over-50 spouse as applicable. The money you contribute to an IRA is not taxed until you begin to withdraw it and it is taxed at whatever tax bracket you happen to be in when you begin the withdrawal. However, you will be penalized if you withdraw from this account before you reach the age of 55 1/2.

Another necessary element to saving for retirement is to have a realistic budget and to make sure you stick to it. Of course, you don't want to go without, but especially if your salary is adequate, you can easily save between 10 and 15% of your income for retirement and still have enough left over to live on very comfortably. This is a relatively small percentage of your income to save; make sure as well that you live within your means, as this is equally important. All said, having a budget and sticking to it is really essential.

Next, get rid of any debt other than your mortgage or a student loan. Carrying balances on credit cards is a sure way to negate any savings or retirement goals you have. Set up a plan to pay them off as quickly as possible. Don't carry balances month-to-month. Instead, pay your credit cards off every month and treat your credit card just as you would your checking account. In other words, whenever you make a purchase with your credit card, enter that exact amount into your checking account register with the designation "credit card purchase" or something similar, as though you had spent cash on your purchase. Then when your credit card bill comes due, you should already have the money for the bill put aside under this designation in your checking account, so you simply have to pay the bill with that money.

Finally, check your insurance and make sure your plans don't overlap. It's a waste of money to have duplicate coverage. If you need help, talk to your insurance agent and/or financial planner and make sure that you only have the exact insurance policies you need, with no overlap and in the correct amounts.

No matter how old you are (and if you are seriously thinking of a comfortable retirement), you should be thinking about preretirement financial planning on a regular basis, as a regular part of your life. This is not something that should not be "put off until later." Instead, have it as an integral part of your financial plan, so that you will be prepared when the time comes. If you're older and nearing retirement, it's even more important to take stock of the assets you have and maximize them. Even though this is a major undertaking, it will give you peace of mind once you've done it.