Retirement

Knowing where you stand with your retirement savings challenges even the best-prepared investors. After all, when you add modest amounts to your retirement accounts each month, market fluctuations can easily wipe out several months' worth of contributions.

Pick a number between 1 and 3,000,000. Any number. Got one?

That pretty much sums up the method that a startling number of people use to "plan" for retirement. Close to half of workers guess at how much money they will need, according to the 2008 Retirement Confidence Survey.

It's time for some tough love. After all, I want you to have a comfortable retirement doing all the things you've desired.

Maybe you plan to dine in fine restaurants, travel to the Galapagos Islands to see blue-footed boobies, take your grandchildren to Hershey, Pa., to eat chocolate to their hearts' content -- and then come home to your spiffy retirement community.

Hate your job? If so, the prospect of working an extra few years past when you'd hoped to retire can't make you too happy.

Retirement is the No. 1 goal of investors. Yet, looking at the numbers, it's clear that many investors are undermining their good intentions with unfortunate actions. Here are nine mistakes to avoid if you want your retirement dreams to become a reality.

First the bad news: The conventional retirement system is rapidly falling apart. Social Security doesn't expect to be able to make all of its expected payments starting in 2041. Many companies that still have pension plans are either cutting them back or eliminating them.

One day, your money will be working for you, instead of you working for it. Yes, that's right: retirement. And when that day comes, your savings will need to cover your total costs of living, pace inflation, and take care of any surviving dependents if you die prematurely.

For retirees and those approaching retirement, the state of the market must be terrifying.

It's time for some tough love. After all, I want you to have a comfortable retirement doing all the things you've desired.

If you're saving and investing for retirement, or you want to, you know that 401(k) plans are employer-sponsored retirement accounts that reduce your taxable income while permitting you to sock away greenbacks for tomorrow. Sure, they're terrific. But are you overlooking another terrific option?