Perhaps one of the greatest financial challenges you will face in your lifetime is preparing adequately for your retirement. Can you afford to retire? How will you fund your retirement? What unexpected events may occur before and during your retirement that can derail your plans for the future?

It is never too early to begin. Things to consider:

• Assessing your current financial situation—You can't prepare adequately for the future if you don't fully understand your current financial picture. Take inventory—what assets do you have, what retirement benefits are you entitled to?
• Determining your retirement lifestyle—It makes sense to determine when you might like to retire, even if you are currently very young. You can always modify your decisions later in life, but you might not reach your goal if you wait too long to start saving.
• Making retirement savings your top priority—No matter what your current age, retirement savings should be a top budget priority.
• Contributing to your 401(k) plan—Even if you already have a retirement plan or you are very close to retirement, consider investing in your employer's 401(k) plan. Because you can invest in these plans with pretax money, you will reduce your taxable income.

Traditional methods for funding retirement, such as Social Security and other retirement benefits, may not meet all your financial needs—especially when people are living longer and retiring at an earlier age. Taking advantage of your company's 401(k) and establishing an IRA is a good start. A financial representative can help you in identifying additional retirement funding solutions which may include:

• A Traditional or Roth IRA
• Mutual Funds
• Variable Annuity
• Life Insurance

Preparing for your financial independence needs encompasses more than saving for your retirement. To be certain that the funding for your retirement will be available when it is needed, you should also consider other potential life events that could affect your goals – events such as:

• The unexpected death of you or your spouse
• A disability or illness that could prevent you or your spouse from working

With adequate life insurance, disability income insurance, and other financial products, you can protect yourself from having to tap into your savings to cover other expenses.

Putting off preparing for retirement is like waiting until the last second to cross four lanes of traffic for your exit. It can be very scary and dangerous, and there's a good chance you'll miss your destination.