Utilizing retirement plans as early in life as possible coupled with firm financial discipline will enable anyone to reach their retirement years in comfort and with peace of mind.  Retirement plans are more than simply stuffing cash inside a mattress or a low yield savings account against the day when it will be needed.  Inflation will eat away at assets that fail to keep pace with a consistently expanding money supply.  To truly be able to fend off financial ruin, one should consider the wide range of financial options available.

Make a habit of saving for your future.  Discipline is the cornerstone of all effective retirement plans.  Money that is deducted from your checking or savings bank account automatically each month and placed into an asset such as a mutual fund is a painless and invisible way to build a retirement account.  Psychologically, it is far less work and involves less willpower than writing a check each month or accumulating a lump sum at the end of the year to be used for your future needs.  The temptation to spend your money on other things disappears.

Invest early.  The sooner you begin saving, the better.  Playing catch-up in your 40s, 50s, or 60s is a financial hardship to begin retirement plans and results in unmet goals. Becoming financially secure quickly is nearly impossible to do.  Your assets will accumulate in value gradually over time.  It is imperative early on to choose more aggressive strategies while retirement is a distant consideration.  As you closely approach your golden years, modify your investment strategies by exposing your portfolio to less risk using bonds or government securities.  A strategy choice of an aggressive growth stock vs. a more conservative one is also dictated by one’s level of risk tolerance.

Resist the temptation to withdraw from your nest egg early.  Laws call for substantial penalties for those tempted to cash out their funds in their retirement plan earlier than intended.  An early withdrawal before age 59½, can rob an investor of 10% of the amount withdrawn in an IRA or 401(k), both available from ADP but, without the ability of replacing those funds. Avoid using withdrawals destined for future retirement distributions to pay off revolving debts such as credit cards or even mortgages.  Remember, that the assets you accumulate now are for a time when you may not be able to work at all.

Solid retirement plans put into place now can spell the difference between a life of calm and comfort and a life dominated by work performed out of necessity rather than choice.