Life has thrown you some unexpected curves. You know, better than most people, that the future is uncertain at best.  Whether you are still able to work or if you are facing retirement sooner than you had expected, it's important that you make some time to think about, and plan for, your own retirement.

The three main questions only you can answer for your retirement are:

1) At what age do you want to retire and how many years do you guess you'll need to live on retirement income?

2) What standard of living do you expect when you retire? For example, do you want to travel, be able to remain in your home, give your grandchildren money for college?

3) What money and resources do you have now, or will you need, to achieve those goals?

The bottom line for retirement planning is that you'll need to begin saving now and investing wisely so that when it comes time to retire you'll have the money you need to live the life you want.

The first step is to determine how much money you'll need to live on during retirement. The rule of thumb is that you'll need at least 70 percent of your working income to support you in retirement at your current standard of living. If you are planning to "upgrade" your lifestyle to a significant extent, you'll need to plan on having anywhere between 100-120 percent of your current income in retirement.

Once you've determined how much you'll need, take an inventory of what you already have. Resources include your current savings and investments, any company pension plans, your Social Security benefits (which you can get at www.ssa.gov), as well as a bottom line on assets like the value of your home.

Then it's pretty much a simple equation of A-B=C. In other words, A (how much you Assume you'll need in retirement) - B (what you already Bring to the equation) = C (how much Cash you'll need to come up with before retirement to make your dream a reality!) The first, most basic step is saving. Take a look at your monthly income and expenses to determine where you can trim a bit to save for retirement. Even if it's a matter of just saving $25 or $50 a month, that's a good start.

So where should you invest your retirement savings? The main vehicles to save and invest for retirement are 401(k) plans and IRAs:

• 401(k) Plans
  If you are still able to work, ask if your employer offers a 401(k) retirement savings plan.  Under a 401(k) plan you direct your employer to take a certain amount of money out of your paycheck before its taxed and direct it to an investment plan of your choice. By taking your 401(k) contribution out of your paycheck before taxes, it reduces your overall income. Why does that matter? Because less taxes means you take home more of your paycheck. And in many cases your employer will give you an incentive to save - they'll match a portion of your savings, which means they're investing money for your retirement.
• IRAs (Individual Retirement Accounts)
  There are actually 3 types of IRAs - a traditional deductible IRA, a traditional nondeductible IRA, and a Roth IRA.

1) Traditional Deductible IRA - Anyone without a company 401(k) plan making up to $32,000 a year can invest up to $2,000 annually as a tax-deferred investment (meaning that it won't be taxed until you retire, and then at a lower rate). If you make between $32,000 - $42,000 you can still contribute but deduct less from your taxes. You can begin withdrawing money at age 59 1/2.

2) Traditional Nondeductible IRA - Under this IRA anyone can contribute up to $2,000 annually. You can begin withdrawing at age 59 1/2.

3) Roth IRA - Single workers earning less than $95,000 can contribute up to $2,000 annually. If you make between $95,000 - $110,000 you can contribute somewhat less than that yearly. Your contribution is post-tax (meaning that you've already paid income tax on it) so it grows tax-free. You can begin withdrawing money from the account at age 59 1/2.

You'll still want to save for retirement even if you don't work outside the home or if you're self-employed or work part-time. In addition to your IRA options, you can also choose to invest your savings using a Keogh Plan or a Simplified Employee Pension Plan (SEP).

• Keogh Plan - If you're a self-employed business owner you can use the Keogh Plan in one of two ways: either set aside a fixed amount monthly, or estimate a fixed amount for your use at retirement and save enough money to fund that benefit. Savings are tax-deferred meaning that you'll only pay income tax on the savings when you get the payout at retirement.
• Simplified Employee Pension Plan (SEP) - If you're an unincorporated self-employed business owner you can also set up a SEP account to invest for retirement. You can open a SEP until April 15 to qualify for the previous year's tax deduction.

Having a long-term disability may have already heightened your awareness about the need to save for your retirement, particularly if your disability will result in increased medical care costs in the future.  The bottom line is that you need to start saving - anything, even a little bit - now. By investing now you have the magic of compounding working for you. Compounding interest means that your money is earning money, which will grow more quickly than you can imagine. Talk with a financial professional or do a little research on your own to determine where to best invest your savings. Remember, wise investors know that the greater the reward (meaning the higher the return on your original investment), the higher the risk.

The most important factor to consider when determining how much risk you're willing to take is your investment horizon - how much time you have before you'll need your money. The longer you keep your money invested, the less chance you have of losing money. You should choose your investments based on how many years you have before you retire -- the closer you are to retirement, the less time you have before you'll need your money and the lower risk you'll want to take. As always, regardless of how much time you have until retirement, a smart investment portfolio is well diversified, meaning it carries a healthy split of stocks, bonds, and other cash instruments.