But three common blunders can keep you from getting the greatest income possible when you retire.

Blunder #1. Too Many IRA Accounts
If you have been investing in IRAs since they were created in 1976, you may have as many as twenty different IRA accounts scattered among banks, stockbrokers and mutual funds, and you are paying an annual fee for each account.

You may be able to save hundreds of dollars each year in account fees by consolidating your accounts. Ask your stockbroker to open a self-directed IRA and arrange for a direct transfer of assets from your other IRA accounts.

Alternatively, invest your IRA assets in several funds run by one mutual fund family that will consider your total investments and reduce account fees accordingly.

Blunder #2. The Wrong Investments
If you are years away from retirement, don't invest your IRA money in low-interest short-term cash investments such as certificates of deposit or money market accounts.

You'll generally get a greater long-term return by investing in solid stock mutual funds on a regular basis. Increasing your investment yield just 2% will result in 50% more return over twenty years.

Blunder #3. Investing Too Late
Although it pays to delay tax payments until the last minute, you should make IRA contributions as early as possible. You have until April 15 to contribute to your IRA, but you should make your IRA contributions early in the year so they will earn on a tax-deferred basis all year.

Making contributions at the beginning of each year rather than fifteen months later on April 15 will generally result in thousands of extra dollars at retirement.