How to start saving for retirement

— -- Q: What steps I should take when I start saving for retirement?

A: These days, it seems, most investors are fixated on their homes. And that's natural, because we're constantly told a home will be one of our largest assets.

But even the value of a home pales next to the pile of cash you need to fund your retirement. That's why it's a good thing you're thinking about retirement and how to save for it.

In the space of this column, it's impossible to tell you everything you need to know. But since so many readers have been asking the question lately, I'll give you a quick list of things you should consider when making your retirement savings plan:

• Explore your options. The government will help you save for retirement with tax-free or tax-deferred retirement accounts. There are several types of accounts you can use. If you work for a company, check to see if it offers a 401(k) plan that will match your contributions. If so, start putting in the maximum right now. That company match is free money.

Second, explore other types of retirement accounts. Roth IRAs are great options for many people since they let you make contributions with after-tax dollars and you never pay tax on what you earn or withdraw, if you follow the rules. If you work for yourself, be sure to look into SEP-IRAs and Simple retirement plans.

Open as many retirement accounts as you can qualify for and afford.

• Learn to save. So you've decided what kind of account you're going to open. You need to put money in. Some people can't stop themselves from spending. If that sounds like you, set up an automatic savings program, where money is automatically deducted from a bank account and deposited to your retirement account.

If you're more disciplined, sit down and subtract your monthly expenses from your income and determine how much you could be saving. Each quarter, check your accounts and make sure you actually saved as much as you could.

• Set and forget. Once you start saving, it's critical to pick a long-term investment strategy and stick with it. Pick a few low-cost mutual funds that expose you to large and small value-priced stocks plus a dash of international and emerging markets. Make sure you know how much risk you can tolerate and pick a portfolio that works for you. Past Ask Matt columns, such as this one may help.