Q: How do I start planning for retirement?

A: The first step in planning for retirement is to determine how much you would like to spend each month or year as well as a list of one-time expenses (car purchases, home remodeling). The next step is to make a list of your retirement income sources (e.g., Social Security, pensions, annuities, etc.) The third step is to make a list of assets and liabilities. A good financial planner can enter this information into financial planning software and test thousands of possible scenarios to help create a retirement plan. This can help you evaluate changing your investment strategies and other financial decisions that can increase your probability of success (i.e., not running out of money). Read: Retirement Planning – Frequently Asked Questions.