Planning for Retirement, Whether You Are 20 or 59

USA TODAY reporter John Waggoner looks at financial steps you should take according to your age and the appropriate allocations you should have in your investment portfolio for that time in your life.

20 to 29

You're young; you're starting your career; you're broke.

Your Portfolio
Standard & Poor's 500 stock index fund	50%
Small-cap core stock fund	25%
International stock fund	25%

1. Start your 401(k) at work. Contribute at least up to the company match, if any.

2. Start a Roth IRA if you don't have a 401(k) — or if you have a 401(k) and can afford a Roth, too. You can tap your Roth for a first-time home purchase, if needed. And you can withdraw principal penalty-free.

3. Start an emergency fund, says Kurt Brouwer, financial planner in Tiburon, Calif. If you don't have a bit saved for a rainy day, you'll have to go into debt for emergencies — or tap your retirement fund.

4. Make a living will, so your family will know your wishes in case of a health emergency. You'll need one when you retire, but you never know what will happen in the meantime.

30 to 39

You're still young; you're starting a family; you're in debt up to your eyeballs.

Your Portfolio
Standard & Poor's 500 stock index fund	50%
International stock fund	20%
Small-cap core stock fund	15%
Mid-cap growth stock fund	15%

1. Don't reduce your retirement savings for college savings. You can finance college; you can't finance retirement.

2. Use your 401(k) to help you save. A 401(k) lets you save money before taxes. Suppose you're in the 25% tax bracket, earn $50,000 a year, and want to save $3,000 a year. Because of the tax savings, that $3,000 would reduce your take-home pay just $2,225.

3. Don't confuse whole life insurance with a retirement plan, says Peggy Ruhlin, a Columbus, Ohio, financial planner. "Life insurance is good, and you need it to protect your family. But it's not for retirement savings."

4. Write your will. You never know.

40 to 49

You're middle-aged; you're doing OK; you're starting to get worried.

Your Portfolio
Standard & Poor's 500 stock index fund	40%
International stock fund	15%
Small-cap value stock fund	15%
Mid-cap growth stock fund	15%
Bond funds	15%

1. If you're not contributing the maximum to your 401(k), this is the time to do it.

2. Your rainy-day fund should equal two to three months' expenses.

3. If you plan to remain in your home, refinance to make sure your mortgage will end when you stop working.

4. If you can fund a Roth IRA, do so. Otherwise, look at alternatives for retirement savings plans, such as tax-efficient mutual funds.

5. Update your living will and make sure someone has power of attorney. You never know.

50 to 59

You're nearing retirement; you're at the peak of your career; you're terrified.

Standard & Poor's 500 stock index fund	30%
Bond funds	30%
Small-cap value stock fund	10%
Mid-cap growth stock fund	15%
Mid-cap blend stock fund	10%
International stock fund 10%	10%

1. If the kids are out of college, consider reducing your life insurance and increasing your savings.

2. Take advantage of the catch-up provisions for 401(k)s and IRAs, which let you contribute more each year.

3. At 55, start reviewing your Social Security benefits estimate every year and get estimates for any pensions you might receive. See how much your savings will have to be tapped to meet your expenses.

4. Update your will. You never know.