[Bamboozled]

I currently have a Roth IRA with TDWaterhouse and I try to contribute the maximum amount each year (which just increased to $3000/year if you're under the age of 50). I also participate in my firm's 401(K) retirement plan. I met with a financial planner about a year ago and he really opened my eyes to a lot of things that I didn't know I was doing wrong. For example, make sure you are contributing the MAXIMUM percentage allowed into your 401(K). At the time, I was contributing a measly 7% and he encouraged me to change it to the max (which I believe is 15%, but don't quote me). I haven't really felt the difference in my take home pay and the amount I've accumulated has almost doubled within that year. Also, it is important to diversify your assets. If you don't, the money in your 401(K) could be sitting in a non-interest bearing account until you retire. So, my financial advisor taught me how to diverisfy. Now my portfolio is spread out over large cap stocks, small/mid cap stocks, international bonds and mutual funds. The type of investments you choose will vary depending on your risk tolerance.

Also make sure you understand and take advantage of your company's profit sharing plan and matching contribution.