As baby boomers begin preparing for retirement, financial advisors may offer some suggestions on ways to improve your cash flow needs.

Money Magazine Senior Editor, Walter Updegrave, wrote an article recently for CNNMoney that described three simple steps pre-retired seniors can take to prepare for retirement:

1. Save. Whether you have reached retirement age or not, you should save as much as you can. Retirement savings are preferably held in a tax-deferred retirement account, such as a 401-K or an IRA. You may be surprised at home dramatic your savings potential can be. For example, if you save $500 per month for ten years, you may be able to build up your retirement savings to $86,000 with the rate of return of 7% annually. Remember, saving a little is better than not saving at all
2. Keep Working--As Long As Possible. Working longer not only allows you to earn more income and save more money, but it can also mean putting off the need for Social Security. By waiting until age 65 or age 70, you can substantially increase the size of your Social Security check. In addition, you won't need to tap into your retirement savings as early
3. Conside a Reverse Mortgage. If you are a senior age 62 or older with available home equity, you might consider a reverse mortgage. Potential cash flow problems may be eased through a reverse mortgage, which can provide cash in a lump sum or through ongoing monthly payments. Comparing reverse mortgage options from several lenders can be a great way to learn about the advantages of this type of loan. Reverse mortgages do carry some upfront costs, so it may make sense to evaluate whether you would like to remain in your home for an extended period of time. If you want to downsize, a reverse mortgage could also be a good option for you. For instance, you could sell your current home, and pay cash for your next house. You would then take out a reverse mortgage on the new home to recoup some of the cash as a safety net, or to meet other financial needs

Whether you are on the verge or retirement or waiting several years, these three steps may help your financial retirement planning.