Single and 30: A Woman's Guide to Investing for Retirement

Saving for retirement is important for everyone, but no more so than for women. And, if you're single and in your 30s, it's a critical juncture in your life to ensure that you're on the right investment track.

Women need to plan for their retirement even more than men. Women still earn on average 75-80% of what men do. Women are also less likely to be in pensionable jobs and therefore have less corporate retirement support behind them. However, they also live longer. According to the National Center for Research, women retiring at age 65 are expected to live another 25 years. That's a lot of retirement to plan for.

As a self-employed business owner and accountant in my 30s, saving for retirement came naturally. But what if you're just starting retirement planning now? Is it too late? Never. It's best to get a late start than no start.

The very first step in starting any retirement savings plan is to engage the services of an independent investment advisor. "Independent" means someone who does not profit from steering you towards particular investments. This will absolutely save you money and heartache down the road. An independent advisor could be a licensed broker or could be a professional accountant. What you need is an experienced advisor to review your entire financial situation as a whole along with your life goals and set up a plan to meet them.

Your three main retirement savings vehicles will be company 401(k)s, traditional IRAs and Roth IRAs. Your investment advisor will help you determine which mix makes most sense for you. However, your retirement wealth may also come from other sources such as real estate and non-registered investments. This is where tax planning is critical and a good advisor will review the tax implications of each option.

When the mix of retirement savings plans has been determined, the next step is beginning to put away savings regularly, even if you can only afford small amounts now. This is especially important if you are planning to have a family some day, as women are far more likely than men to interrupt their career to raise children. This can have an immensely detrimental impact on your pension or company-sponsored retirement savings. Contribute early and often to individual plans to ensure that you are in control of your retirement income.

If you have already been investing in either a company 401(k) or an individual plan, it's a great time to take stock of where you are at versus where you need to be financially at retirement. Determine how much income your current retirement investments can provide you at age 65 and make adjustments to your contributions if you are falling short. An investment advisor can help you project those needs based on interest rate and needs assumptions.

What happens when your financial circumstances change in your 30s, such as when you are newly single through divorce? Many women come through divorce less wealthy and taking a second look at your retirement assets makes sense. Not all assets are created equal and the ones you walked away from the marriage with may have adverse tax consequences down the road. Get back in the habit of contributing to an individual retirement plan as soon as possible to build up tax-free or tax-deferred assets.