AGES 25 TO 35: START SAVING NOW

You're in the accumulation phase. What matters most is the amount you can save--and developing good money-management habits that will pay off in the future.

Aim to set aside 20% of your income. First, focus on retiring debt, especially high-interest-rate credit cards. Ask your lender to cut rates on your cards to 12%, the industry average. In the current environment, lenders are more willing to listen.

Invest in equities, especially now, when prices are low. With your long horizon, you'll benefit from the stock market's long-term performance.

If you fear a layoff, build a one-year emergency fund; otherwise, make it a six-month supply of cash. Set up other savings accounts for retirement and perhaps for a first home and your children's education.

If possible, max out in your retirement accounts. The recent financial turmoil, many advisers say, is a once-in-a-lifetime buying opportunity. The most you can contribute to a 401(k) plan and similar retirement accounts in 2009 is $16,500 in pretax dollars.

For your IRA, consider a target-date fund, which adjusts your asset mix as your retirement date approaches. And maybe convert a traditional IRA to a Roth IRA, which will switch you from tax-deferred to tax-free savings. You'll pay less in taxes over the life of the investment.