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Chapter 10. Everything You Need to Know ... > The Road to Retirement - Pg. 97

97 Chapter 10. Everything You Need to Know About Investing Your 401(k) Money In This Chapter · Master the basics of investing · Understand risk · Understand why there is no such thing as a riskless investment · Learn the six types of risk · Understand why mutual funds make sense for most investors The Road to Retirement Chances are, each of us could describe our goals in a number of ways. Your list might include educating your children, buying a home, vacationing in some exotic location, or buying that dream car you always wanted. Whatever your goals are, one goal we all have in common is living a com- fortable life in retirement. Setting realistic shortand long-term goals is something we must do if we are to enjoy a successful future. After all, how will you know how much to save if you don't know how much money you'll need? The biggest mistake people make when investing their money is they don't know why they're investing. In Chapters 4, "Your Best Chance at Retirement Is Your 401(k)," and 5, "Developing Your Retirement Plan," we established our goals and set forth a savings strategy to reach those goals. If you took the time to complete the worksheets, you've already answered these questions: