What do you fear most for your retirement? A 2015 Bankrate.com survey highlighted running out of money in retirement as the biggest fear of 23% of the Americans. While you may or may not share their fear, it is important to adjust your retirement strategy as you age. Our team has put together a small Infographic that will highlight some timely steps, which, if taken, can help you build a retirement nest egg that will last throughout your life.

Start an IRA account in your 20s

No one can emphasize more about the importance of starting an IRA account early in your life. Imagine the compounding effect your money will experience for the next 40 years or so. At the same time, if your employer offers matching contributions, you are simply collecting free money for your retirement.

For small business owners or self-employed professionals, a Solo 401k plan will do the trick. They can contribute up to $59,000 in 2016 and $60,000 in 2017.

Choose asset allocation wisely in your 30s

Considering the number of years you have in retirement, you might want to invest a decent portion of your portfolio in equity and balance the risk with bonds. If you have limited knowledge of investing, now will be the time to hire an investment advisor.

Self-directed Solo 401k plan holders can choose alternative investments, starting with real estate, precious metals, private equity, personal lending, tax liens, tax deeds, and the traditional stock or bond investments.

Stay on course with your retirement saving goals in your 40s

In your 40s, your income is comparatively higher and you have a family to take care of. These responsibilities can easily push retirement savings to the back seat. The key is to stay focused and keep contributing to your retirement plan.

Speed up your retirement savings with catch-up contributions in your 50s

The IRS allows catch-up contributions for individuals above 50 years of age. Make sure to benefit from it and max out your contributions. For a regular IRA, you can contribute an addition $1,000, whereas Solo 401k plan holders can contribute up to $6,000 in catch-up contributions.

Prepare an income strategy in your 60s

You have saved your entire life and now you’re ready to retire. How do you plan to spend your retirement money? Splurge, perhaps! No, start by creating an income plan for your retirement. Seek professional help and make sure that your income strategy offers some legroom for travel or other leisure activities. After all, you have earned it!

Do you have questions or perhaps a different analogy? Please share with us and we would be happy to answer.

Written by: Dmitriy Fomichenko

Dmitriy is the founder and president of Sense Financial Services LLC, boutique financial firm specializing in self-directed retirement accounts with checkbook control. He began his career in financial planning and real estate investing in 2000. He owns multiple investment properties in various states and is a licensed California Real Estate Broker. Over the years, he has instructed hundreds of investment and financial planning seminars and has mentored thousands of investors.