Here are steps to get your financial situation in shape, whether you are closing in on retirement or just starting out.

20s and 30s

Learn the money basics

Two books to consider: "How to Think About Money," by Jonathan Clements, and "Heads I Win, Tails I Win: Why Smart Investors Fail and How to Tilt the Odds in Your Favor," by Spencer Jakab.

The Investor Protection Institute's site, iInvest.org, offers free guides that explain stocks, bonds and mutual funds. You might also consider taking a personal finance course at a community college or checking the online offerings on sites like Coursera.org.

Sketch out your monthly budget

Add up the fundamentals (your rent, utilities, groceries, transportation, student loans and car loans) and subtract from your monthly after-tax pay. Websites like Mint.com and YouNeedABudget.com offer free software to track spending and set up budgets.

Start saving and investing

Begin by saving at least 5 per cent of your salary and increase the amount by one percentage point every year until you reach 20 per cent. Some plans allow participants to schedule automatic increases each year.

Diversify investments

Aim for a portfolio of stocks or stock mutual funds. Equities outperform fixed-income investments over time. Investors more than 15 years away from retirement should consider an aggressive portfolio with more than 80 per cent allocated to stocks.

Invest in a diverse mix of low-cost index funds. You might select a trio of funds: a broad US stock market index fund, an international stock market index fund with exposure to both developed and emerging markets, and an index fund that owns the overall US bond market.

Another option: Target-date funds, or TDFs, which automatically adjust the balance of their stock and fixed-income investments based on your age.

Review your credit report

Request one, and check it every year to avoid problems when you need access to credit.

Avoid credit card debt

Debt can haunt you for years, affecting your ability to get a mortgage or even a job, because employers are known to check potential employees' credit reports.

Do not skip health insurance

Currently, you can be insured as a dependent on your parent's health insurance plan until age 26 unless you can get insurance through your job. If you cannot piggyback on your parent's plan and you do not have a job with health insurance, you may need to buy a policy through a health insurance marketplace.

Start an emergency fund

Set aside money to cover unexpected life events and expenses like unreimbursed medical bills and auto or home repairs. Try to save a year's worth of expenses.

40s

Rebalance your retirement account regularly

Financial advisers typically suggest rebalancing your portfolio whenever the mix of equities and fixed-income investments is more than 7 per cent to 10 per cent from your original asset allocation.

Make a personal retirement plan projection

Many major mutual fund companies also have retirement calculators on their sites.

Insure yourself

If you have children or other dependents, consider a term life insurance policy that provides hundreds of thousands of dollars of coverage for minimum premiums over terms of 20 or 30 years, but has no cash value.

Set up a self-employed retirement plan

If you are starting a business, or moving to a nonprofit or a small firm without an employee retirement plan, keep setting aside money in tax-friendly accounts. One of the biggest mistakes entrepreneurs make is not planning adequately or at all for their retirement.

50s

Pay down debts

If possible, pay off outstanding high-interest credit card debts, college loans and auto loans.

Make your catch-up contributions

Review your Social Security and pension benefit options

Start planning your next act

If you want to start an encore career, keep in mind that money is the biggest stumbling block. That is because starting over in a new field, particularly a philanthropic one, or going the self-employment route, usually comes with a price tag, at least initially. Start planning a few years ahead by saving, adding new skills and downsizing.

Make a move

Investigate the upside of moving to a smaller home, townhouse or condo. Depending on your real estate market, refinancing your mortgage can also lighten your debt load. Figure out how much you can save over time with an online refinancing calculator. Check for the latest rates and then shop around.

Protect the wealth you have

Review disability, life, personal liability and umbrella insurance. Evaluate long-term care insurance coverage (generally not appropriate before or after mid-50s). Premiums get much larger as you age, and health issues may disqualify you. Update your will and estate planning documents. Watch out for high mutual fund and management fees, which can whittle away at your savings.

60s and Beyond

Get a grip on your retirement income sources

Carefully review your anticipated income (Social Security benefits, pensions, distributions from personal investments and savings) and expenses (weekly, monthly and yearly budgets) at least a year before you stop working.

Take control of fixed monthly costs

Downsize. Consider selling your home and moving to an area with a lower cost of living or to a rental property. This will allow you to save on property taxes, maintenance and insurance costs. Some people who live in high cost-of-living areas might look at relocating to an area with lower taxes and cheaper real estate costs.

Consider working beyond your official retirement age

The longer you work, the longer you can contribute to a defined contribution plan. Working longer might give you access to a health plan, or help you pay for another one until you are eligible for Medicare at 65.

Shift your investments to a more conservative asset mix

You may want to keep about 40 per cent of your investments in stocks or stock funds well into retirement.

Plan your withdrawal rates

A conservative annual drawdown of retirement savings may be to take 3 per cent the first year, and to adjust for inflation after that. If you have saved $1 million, for example, plan to withdraw $30,000 in the first year and to increase that amount by the rate of inflation in the second year and beyond.