Previous goals which used to be realistic only a few years ago now seem completely off the table. The financial predicaments many people are finding themselves in are testing the assumptions they made about retirement planning. Solid retirement plans that used to give decent yields are now in jeopardy. Many would-be retirees are questioning whether it is possible for them to retire early or if it would be possible to retire at all.

3 Step Process to Damage Control

Despite the economic downturn, it is still possible to take control of your retirement. The three steps include: finding a job you love, saving more, and maintaining a modest living standard. Even if you do decide to change your investment strategy, the critical aspect is to keep on saving. It is important to maximize whatever retirement program from work because you will definitely need it.

It is also important to be aware of what’s happening in the market. However, no matter what you hear, never panic. Sit down with a qualified financial expert who will you help in your long-term strategy. It would be a good idea to hire someone who is not affiliated with certain financial companies. That way, he will be able to give unbiased review and good advice. There are unique instances when you will need to take a more active role in managing your money. The challenges today are one of them.

Is There a Target Figure?

There is no magic number when it comes to retirement planning. The amount you should target depends on your mindset, your capability, and what life stage you are in. A lot of financial advisers are simply advising their clients to put away as much as possible at the earliest possible time.

The main problem with setting targets is that during your 20′s or even 30′s, you have no idea what the living standards will be like several decades from now. In fact, even people in their 50′s don’t know exactly what their magic number should be. Even if you do come up with a figure early on, the large number might “take the wind off your sails”.

Author and entrepreneur Bernz Jayma P. is the owner of a financial blog dedicated to helping people expand their knowledge on personal finance. You may visit his blog at http://www.Invesmint.com.

It is becoming more evident that citizens can not count on governments to subsidize retirement. At least not in a way that will allow you to live a lifestyle you would want. Who, after working for 45 – 50 years, wants to go back to living week to week? I don’t, and you shouldn’t have to.

It is a common myth that investing requires a large amount of capital initially, don’t believe this. With some careful retirement planning anyone, regardless of income or expenses, can beat inflation and begin saving for comfort in their golden years.

You can read the whole article to see all of the options available to you, or you can skip to the section that deals directly with your stage in life.

If you are 20 – 30: Start right away. Capitalize on your greatest asset – time. Choose safe, long-term investments that lock up your principal. This will make sure that you don’t “temporarily” withdrawal funds to finance a weekend in Vegas. Options you may want to explore are IRAs (Individual Retirement Accounts) which provide valuable tax break incentives as well as compounding interest on your investment or if you’d prefer to have temptation removed you could opt for a 401k. A 401k is a savings plan that automatically takes deductions from your paycheck and can allow for the generation of a healthy nest egg later in life.

If you are 30 – 40: Those of you in this group are probably becoming more financially stable. It is time for you to re-assess your savings. If you have already been contributing to a 401k, consider increasing your payments. You will see surprising results with an increase as small as 1%. By increasing payments slowly, you won’t even miss the money. IRAs are a good idea, in your 30s too, since there is a lot of time before retirement to allow funds to grow. You should also be looking to the stock market. Now is the time to be bold with your money. Even if the market turns on you, you’ll have time to rebuild yourself.

If you are 40 – 50: Before you panic, remember that you still have about 20 years to prepare your retirement fund. If retirement saving hasn’t been a priority for you, you’re going to want to hit your contribution limits on any 401k or IRAs you do have. Also don’t rely solely on employer based plans; open up at least one private plan for yourself. Your 40s are a good time to resort your assets. Take an overview of your entire portfolio. If you have been investing, scale back your stock options to 80% of your assets, and reinvest that money into saver options like bonds. Finally, if you have been supporting an adult child, it may be time to cut the apron strings.

If you are 50 – 60: You’re finally close enough to see the end-zone, but now you’re worried you haven’t done enough retirement planning. You will have to be honest with yourself. Decide what your goals for retirement are and find out how much money you will need to meet those goals. Once you are armed with this, collect all your records: assets, expenses, debt, goals and contact a financial expert. You are going to need assistance to, and they can help you. Utilize any government grants or other opportunities that might be available to you. Depending on where you live, you may be entitled to contribute a higher percentage of your salary than previously. If your situation isn’t as rosy as you’d like you may need to look into delaying retirement or taking a part-time job after leaving your current position.

When it comes to retirement planning there are a number of things to consider as we age. We must plan for the inevitable inflation which will ultimately decrease our purchasing power.

• Separate the investment into different baskets – a lot of investors lump their assets together for retirement and use this to pursue a single strategy. This practice is very risky especially with today’s market condition. An alternative would be to separate your asset into three classifications including short-term low-risk investments, intermediate-term investments which should be combination of stocks and bonds, and long-term investments.

• Don’t focus too much on yield – it is said that cash is king. But getting good yield is difficult. Although Treasury securities are incredibly safe, the payout you can expect is minimal as well. If you want to enjoy higher yields, risks are necessary. There is a tradeoff between safety and benefits. To minimize your risks, focus on investing on quality funds. You should know exactly what you’re buying into.

• Look into municipal funds – with this type of investment, you can enjoy tax-free yields and less volatility. Munis contain more value than before but you should choose wisely. For example, it would be a good idea to select general-obligation and essential-purpose bonds. Keep in mind that not all munis are created equal. Try to stay away from nursing home bonds.

• Give importance to dividends – it is obvious that quality is important but how can you determine whether a certain stock is can be classified as high quality? Well, its dividends are a good measure of its overall financial health. Dividends can also offset the volatility in its value on the stock market. Solid companies that are in good financial standing are worth considering.

As you can see, it is possible to save money for retirement even during an economic crisis. The key is to adapt your strategy to the needs of the market. It is important to be flexible and open-minded about investment options. With this in mind, the four new rules for retirement investing will hopefully help you build up a nice nest egg for your retirement years.

Author and entrepreneur Bernz Jayma P. is the owner of a financial blog dedicated to helping people expand their knowledge on personal finance. You may visit his blog at http://www.Invesmint.com.