Will you have enough money when you need it?

• Author: Fain, Robert

Here are five practical steps to make sure your financial future is sound.

THERE WAS A TIME, some decades ago, when Americans could plan and plot the progress of their lives fairly well. This sense of owning the future really began after World War II, as the nation's economy exploded in every direction.

By the mid 1950s, the pattern firmly was etched in stone--and in the minds of every young person. The males went to college, got married, and found their way into burgeoning American corporations.

As time passed, the good life meant raising a family, buying a home in the suburbs, getting the kids through school, and, after 30 or so years of advancement, retirement with a stack of stock certificates and a monthly pension check. After selling the house, it was on to a retirement community in Arizona or Florida.

This was the American dream that made financial planning quite simple. During the early years of marriage, there was a need for a low-cost, but high-payout insurance program to provide sufficient money for raising the family and paying off the mortgage, should the breadwinner die before the children finished college. Most financial advisors of the day recommended term life insurance as a good solution because it gave excellent protection with minimum investment. As the husband grew older and his income continued to climb, the cost of the insurance increased. Everyone enjoyed peace of mind.

As the years passed, the term insurance was kept and other investments were made. A few stocks were bought or inherited. A couple of mutual funds were added. A neighbor in the insurance business sold the husband a $10,000 whole life policy, one that was paid up in 10 years or at a certain age.

Finally, at 65, he walked out of the office for the last time and spent the next 90 days selling the family home and looking over Florida properties. Finally, he and his "bride" (even after 35 years of marriage, this is what he always called her) set out to mine the gold in what they came to view as their golden years.

We all know those who followed this dream, and it came true--not for everyone, of course, but for many it truly was a wonderful life. Today, however, things are quite different. The dream still may be there, but everything else has changed.

Over the years, the cost of living sky-rocketed. Spending outweighed income. Debt became an acceptable way of life. Just about every wife got a job. Some investments were made at various times, but nothing...