As people enter their fifth and sixth decades, their children have become self sufficient, their earnings are at their peak and their retirements loom.
Financial advisors suggest it is time to look ahead and consider how they will finance their retirement, taking into account their desired lifestyle, what expenses will be higher -- such as a possible increase in medical costs -- and which will be lower. After putting everything into a budget, people should adjust their investments and combine them -- at least on paper -- with other sources of retirement income, such as pensions and Social Security, in order to make sure their retirement income meets their outgo.

The AARP says setting an investment goal is no different than choosing a travel destination -- you're trying to get somewhere with your money. It suggests first setting a goal.

"Knowing your goal means everything in money management," according to the AARP's retirement planning advice. "If you don't know where you want to be, you won't know how to get there. And you won't know how to avoid or minimize the risks along the way. You may not even recognize the risks at all."

People need to ask how much money they can put toward their goal now. What's their starting point?

"Whether planning a trip or a financial goal, it's critical to know the distance between where you are now and where you want to be," according to the AARP.

Secondly, the association suggests people should know their current worth and develop a budget to show how they spend their money. Net worth can be determined by calculating the total value of everything owned, minus debts that have to be repaid. The budget should show monthly income and spending patterns.

At that point, future retirees should look at their prospective time line.

"Time is a huge factor in investing," the AARP says. "The relationship between time and distance always plays a huge role in planning.... You have to know how far you need to go and in what period of time, in order to create an intelligent plan for getting there on time."

At that point, people need to look at different investment options, consult their financial planner and take the proper steps to assure their investment goals are realized.

"If your retirement savings are scattered between several IRAs, 401(k)s (or other employer-sponsored retirement plans), or regular savings or investment accounts, knowing which assets you should tap when you retire can be fairly complex," according to A.G. Edwards& Sons Inc. "In addition, before you reach age 70 1/2, you'll need to develop a strategy for managing the required minimum distributions from IRAs and other qualified retirement plans."

And as people reach retirement age, financial analysts also suggest it is the appropriate time to make sure their wills, living wills, power of attorney, trusts and insurance plans are up to date and reflect their current and future lifestyle changes.