Financial Expert's Tips On Seriously Saving Money For Retirement

With the new year coming up, a lot of people will make New Year’s resolutions, including saving more.

But how can you avoid being a lousy investor?

Experts say investing for retirement isn't as complicated as many people think. You can break it down into six steps.

First, figure out the goal you're trying to reach, and how much money it will require.

Nationally known financial expert and speaker Chris Hogan works with radio host and author Dave Ramsey's team.

"Retirement age is not an age, it's a financial number," he said.

The next step is measuring how much risk you can manage.

Fourth, create an asset allocation plan that is diversified to protect you when the stock market fluctuates.

Number five, stick with it and rebalance things on a periodic basis.

Finally, shift to less risky investments as you get older or if your life circumstances change.

Hogan said with discipline and focus, just about anyone can have a comfortable retirement if they invest over the long haul.

He says the biggest challenge is debt.

"Imagine right now, people have a ridiculous amount of their income going out to debt. Almost 40 percent of their income is going out to debt," Hogan said.

The magic of compound interest can work wonders. For example, just $100 each month for 30 years with a modest return can add up to six figures.

"Think about that. That's pizza and coffee money," Hogan said.

Experts say the problem with many people is emotions take over - when markets soar, people feel invincible. When they're plunging, fearful investors bail out, missing a chance to buy when the price is low.

If you fear that you may be your own worst enemy when it comes to investing, it's a pretty good idea to get advice from a qualified financial planner.