Remember the tortoise and the hare? Slow but steady works in investing, too.

If you want to retire with a comfortable nest egg, here are some simple rules that can get you there.

1. Pay Yourself First

Deciding to save regularly is a crucial first step. Sticking to a savings plan is certainly another. You're probably already participating in your company's retirement savings plan. But are you contributing to the fullest extent allowable? Remember that you could live in retirement for 25 years or more without any salary income. It could take a substantial amount of savings to carry you through for that long. If you have contributed the maximum to your qualified retirement plan, talk to your financial professional about other types of savings/investment plans.

2. Start Early

Compounded growth can work wonders for your savings - provided you give it time. Let's say, for example, that you begin saving $100 a month at age 35. Compounded monthly at a hypothetical 8 percent per year, your savings can grow to $149,036 by age 65. Pretty good, right? You can do better. Begin saving 10 years earlier and the same $100 a month can grow to $349,101 - more than twice as much.

3. Invest to Outpace Inflation

A common mistake is to play it too safe. Inflation could steadily erode your earnings. Historically, inflation has averaged between 3 and 5 percent over the last 90 years. Your investments need to earn more than the inflation rate or your return will actually be going backward. At 4 percent, inflation could eat up half of your earnings over 18 years.

4. Diversify

Knowledgeable investors allocate their money among different kinds of asset classes: money market funds, bonds and stocks. Within these asset classes, you may want to diversify further, for example, by investing in some stocks that have high growth potential and others that pay dividends. Your financial professional can help you determine the suitable amount to put into various asset classes, depending on your age, your risk tolerance, your time horizon and your goals. By sticking to an asset allocation plan, you limit your risk of exposure to just one asset class and can benefit from market shifts.

5. Invest According to Your Time Horizon

As you get closer to retirement, you have less time to recover from dips in the market. You may want to shift some assets into investments that tend to be more stable. But don't forget that you may need to live off your retirement funds for many years. Investing for some growth potential in your portfolio is usually a good idea.

6. Avoid Dipping Into Your Tax-Deferred Savings

You'll net less than you think because the withdrawn funds become taxable income. And in many instances you could face an additional 10 percent federal tax penalty if you are not yet age 59 1/2. Plus, any money you spend now is money you won't have later. And you could miss out on years of compounded earnings. If you need the money temporarily, it may be a good decision to take a plan loan (if permitted) and repay it promptly.

7. Avoid Trying to Time the Market

When the market is hot, many people are tempted to play the stock market with their retirement savings. If you're one of them, consider setting aside a small amount that you can afford to lose and use this “allowance” to play the market. For the bulk of your retirement investments, stick to your asset allocation plan. Don't shift funds from one account to another simply because one showed higher returns. Performance in the immediate past is no indicator of the long-term future. The market frequently undergoes sudden and dramatic shifts.

8. Think Long Term

Don't be alarmed by day-to-day swings in the stock market. For most of us, steady investing, compounded earnings and maintaining a planned asset allocation are the keys to successful retirement planning. Decide on an appropriate long-term mix of investments and try to stay the course. Slow but steady is the best way to get where you're going.

For more information about establishing a financial plan, contact your financial professional.

Jason Anderson is an Auburn native and financial consultant with AXA Advisors. He may be reached at 425-6340 or jason.anderson@axa-advisors.com