Planning for your retirement has to begin many years in advance. In order to have a financially successful retirement, all you need to do is to ensure that your expenses are less than your retirement income. Sounds simple, isn't it? The fact is, it take a lot of careful planning, and -in most cases -a lot of hard work to reach that goal.

Here is a list of things that you may want to look into as you start planning for your retirement:

• Document All Your Current Expenses:. Make a detailed list of all your expenses -including housing, food, transportation, utilities, insurance, travel, and entertainment.
  
• Extrapolate Those Numbers: Adjust the above estimate upward by adjusting it for increased cost of living, as well as for added cost of various services (health care, insurance, etc.) that you may need during your retirement years.
  

For nearly 30 years now, the 401(k) plan has become one of the most popular savings vehicle in America. A 401(k) plan (named after a section of the tax code) allows employees to set aside a pre-tax portion of their salary in the form of cash or company stock -before taxes are taken out.

Investing in a 401(k) independent retirement account is certainly a great way to save for your retirement. Doing so not only results in immediate tax savings on the money so invested, it also helps you defer taxes on those savings until your date of retirement. A matching contribution from your employer only further sweetens the pot. The best of all, 401(k) leaves you -the employee -in the drivers' seat.

Considering that not all 401(k) retirement plans are created equal; it is important to ask questions, to study the fine print, to stay current and fully informed of the status of your 401(k) account, and be watchful of potentially unauthorized use of your 401(k) funds. Hopefully, your 401(k) allows you flexible investment options, matching contributions from your employer, and possibly a loan or a hardship provision. It would be highly advisable that it does not require that a significant portion of your investment portfolio has to be made up of your employer stocks. You may also want to investigate if your 401(k) retirement plan allows you to transfer money from your former employer(s) 4021(k) plans, entitles you to investment advice, or offers any annuity options.