Friends and family aren't likely to find April McLemore shopping in stores such as Nordstrom or Neiman Marcus. That's because she's probably walking the aisles of TJ Maxx or Marshalls, eyeing the clearance racks and hunting for bargains. "I am all about saving money,†says the 39-year-old Internet sales executive who refers to herself as the "Coupon Queen.†"Sometimes when the coupons are really good, I buy two or three Sunday newspapers. This way I can get multiple coupons. It's worth spending an extra $2 on the paper if I am going to save $40 to $50 out of that.†McLemore's frugality extends to big purchases too. When she purchased her four-bedroom home in August 2008 for $151,000, she pre-qualified for more than $200,000 but didn't want to assume a larger mortgage. "I am very practical about how I spend my money. I never want to be put in a position where I can't afford something,†explains the Kyle, Texas, resident. As a single mother of two sons, McLemore has always been concerned about budgeting and managing debt. "I pay cash pretty much for everything.†Not surprising, she has zero credit card debt. "I usually charge about $300 to keep my accounts active and pay off the balance at the end of every month,†she says of the three credit and two store charge cards she holds. McLemore does, however, have other debt obligations. She is paying $600 a month on a $33,000 car loan at 0% for her 2009 Nissan Maxima. She also owes $2,000 in school loans for some continuing education classes. As for her oldest son Rashaad, 22, a college senior, she bears no financial responsibility for his schooling. He pays his own way, largely with loans. McLemore expects younger brother Tariq, 17, a junior in high school, to do the same. McLemore is in solid financial position because she has a gross income of $120,000, cash reserves of $24,000 in a money market account, no college cost obligations, no credit card debt, a home mortgage at 5.375%, manageable car note, and $2,500 in monthly discretionary income. Her major financial challenges are that she needs to rebalance her investment portfolio and maximize her discretionary income to meet her goal of retiring at age 55, which is just 16 years away. McLemore's monthly take-home pay is roughly $6,500, with living expenses adding up to $4,500 ($1,000 of which is deposited into a money market account earning 1.49% interest and an additional $250 is applied to her mortgage payment). In addition, she is contributing 10% of her salary to her 401(k) plan, which is currently valued at a little more than $34,000. McLemore saw her 401(k) take a big hit during the 2008 stock market decline. But just as she value shops for food and clothing, she should have applied the same principle to her investments. Instead of becoming fearful and moving her funds into a more conservative allocation, she could have done some "bargain hunting†for investments that had fallen in price. "I know that the money I make right now I may not make forever,†she says. â€So, I need to make sure I am putting it in the right places. I want to get the best return on my money for the future.†The Advice Black Enterprise devised a plan to help McLemore achieve early retirement: Raise 401(k) contributions and consider a later retirement date. Given her current portfolio, McLemore's desire to retire at age 55 and live comfortably without any future employment income isn't practical. With only about $35,000 amassed in her 401(k) plan, this is hardly enough to get her to where she needs to be in 16 years. Lee Jenkins, a managing partner and financial adviser at Atlanta Capital Group and the author of Lee Jenkins On Money: Real Solutions to Financial Challenges (Lift Every Voice; $14.99) says McLemore needs to increase her 401(k) contributions from 10% to 13.75% of her income. "That percentage increase would allow her to max out her contribution limit at $16,500. It would be an additional $4,500 a year, or just $375 a month, which she could easily afford.†With a company match of $3,600 per year (which represents a 50% match on the first 6% of her income), April will have annual 401(k) contributions of $20,100. To live comfortably in retirement, she will need $84,000 each year (70% of her current income of $120,000 as a rule of thumb). Rebalance 401(k) investments. Her current 401(k) allocation is 70% fixed income, and 30% equities. This allocation is too conservative at age 39, says Jenkins. "She needs to be more diversified with her retirement investments. For instance, she currently has only three investments in her account, although her company offers more than 30 different mutual funds.†She currently has 56% in the PIMCO Total Return Fund, 28% in the AllianceBernstein 2030 Retirement Strategies Fund, and 16% in IAC stock (her company's stock). Jenkins recommends six areas of diversification: 20% large cap stocks; 15% small cap stocks; 15% large cap international stocks; 15% IAC Co. Stock Plan; 10% in a global REIT; and 25% in a fixed income fund. Open up a Roth IRA. McLemore needs to save money outside of the 401(k). Jenkins suggests a Roth IRA. Contributions are tax-free forever unlike a traditional IRA, in which any distributions are taxed. The maximum annual contribution to a Roth IRA in 2010 is $5,000. Although McLemore's gross income is $120,000, as a single filer and/or head of household she qualifies for a Roth IRA. Contribution limits are based on modified adjusted gross income (gross income after itemized deductions). Hers is under $105,000, so, she can contribute $416 a month to reach the $5,000 limit. If her modified adjusted gross income was between $105,000 and $120,000 she could only make a partial contribution to a Roth IRA. This will bring her total retirement contributions to $25,100 annually. With all three of these contributions (401(k), company match, and Roth IRA) McLemore should accumulate about $1,441,000 for her retirement in 21 years (at age 60) if she averages a conservatively estimated 8% a year return on her investments. Eliminate consumer debt. Jenkins recommends that she not make extra payments toward her mortgage. Instead, she should apply $459 toward paying off her car loan at a faster pace. She can use the $2,000 from the financial fitness contest winnings to pay off her student loans. After all of her consumer debt is paid off, she can resume attacking the mortgage loan by making extra payments.