Making a wish list of what you want to do during retirement may be the start to your retirement planning. Developing a realistic plan so that you know how much you will need to accumulate to accomplish your retirement goals involves creating a sound savings plan. The earlier you start saving, chances are the better off you will be.

Start participating in your employer's retirement plan. Retirement is closer than you think. And in all likelihood, Social Security will not provide enough to maintain the lifestyle you want through your retirement years. With your employer's tax-deferred plan, you can use valuable pretax dollars to help build your retirement savings. But the longer you wait, the less time you will have to accumulate money for your retirement. So there's no better time to start investing in your future than now.

Determine which types of investments are right for you. When accumulating money for your long-term goals such as retirement, you will need to identify your retirement time horizon and risk tolerance. These two factors — your time horizon and risk tolerance — can help you determine which types of investments are right for you. Think of your retirement time horizon as the span of time between today and the day you will begin receiving income from your investments. For many, this will be at retirement. Generally, the more time you have, the more aggressive you can afford to be with your investments. Risk tolerance refers to your attitudes toward investment risk and return, and your ability to withstand the natural swings — up and down — of the marketplace. To find out the level of investment risk you are comfortable with, your financial professional has an easy and short questionnaire to help determine your risk tolerance. How should these factors affect the way you invest? The types of investments you select — and in what percentages — should reflect your risk tolerance level and investment time horizon.

Select your investment options. Your employer's plan provides you with a variety of mutual funds among the different asset categories and classes. So how do you choose? Let our asset-allocation process help. Asset allocation is a powerful and scientific way to determine which types of investments you should select — and in what percentages — to create an optimal mix of investments for your retirement plan goals. Your financial advisor can put the power of scientific asset allocation and investment selection at your fingertips.

Develop a plan to suit your needs. To get started, select investments appropriate to achieving your retirement plan goals, complete the necessary forms and enroll in your plan.