Most people do not start investing seriously for retirement until they reach their 40's or 50's. While this sometimes creates feelings of guilt, often the funds were simply not available. Other financial obligations or detours in earlier years might have included the expense of providing for children, college education, or divorce. But the prospect of retiring without enough funds for a long lifetime becomes real and urgent as we age. It is then more important than ever to work with a professional to design a retirement plan. Without guidelines, it is far too easy to make expensive mistakes when there is too little time left for changes.

We've all heard those amazing compounding figures: for instance, if you save $250 per month for 40 years at 10%, you will accumulate a nest egg of $1,581,020. But what about people who didn't start saving decades ago? For everyone who falls into that category, it is time to find out how much the shortfall will be. Then they can start saving set amounts, monthly or annually, to eliminate the discrepancy and work toward a secure retirement.

How would you get started, you might wonder? If you are eligible for social security, the first step would be to obtain an Earnings Estimate from the government. If you have not received one within the past year, you can obtain it on-line at www.ssa.gov/pebes. Examine it carefully to make sure you are given full credit (yes, they do make mistakes!). While waiting for the Estimate, you should contact a planner, who will give you a questionnaire to fill out. The purpose of the questionnaire is to make sure all important information is included.

The information required includes details about any retirement investments that you have earned. This would include company plans, 403(b) s, IRA Rollovers and other IRAs. Your investments must also be listed, including dollar value. Some clients do not have personal investments, only company retirement plans, which may be sufficient. After your assets and debts are listed, believe it or not, you are all but through!

Some clients are extremely private and don't wish to share such personal information with planners. Beside assurances of confidentiality from the planner, which are enforced by licensing agencies, there are additional methods of protection. Clients can decide to leave out all information that is not essential to analysis, including social security numbers. This information is not needed for the planner, after all, but listed for the convenience of the client and his or her heirs. However, it is of utmost importance that all pertinent financial data be listed that is essential for a correct and thorough plan. Small omissions and errors can lead to large differences when compounded over many years.

On the other hand most clients want to have absolutely every financial detail listed in their plan. Not only does it become a comprehensive, organized document, but it also provides them, their heirs and spouse with crucial information when it is needed.