Here's 5 common myths people tell themselves that can end up bungling their retirement savings plan, cribbed from the Autumn issue of the Vanguard market report.

5. "It's too late for me to start investing for retirement."
You can always benefit from starting to invest pronto, Tonto. Max your 401(k), and look into Roth and traditional IRAs. If you're over 50, there are catchup contributions you can make.

4. "I got a late start, so I'll invest aggressively to compensate."
You could unnecessarily expose your savings to market mood swings. Whenever you start, your investment strategy always needs to account for your risk tolerance and how much time you have before retirement.

3. "My retirement savings need to last only 10 or 20 years."
Don't be such a sourpuss, you might live longer you think. "For every 65-year old couple, there's a 72% chance that at least one will live to age 85."

2. "I need a dozen or more funds for my portfolio to be diversified."
If the funds themselves are diversified, you don't need a gaggle of them.

1. "When I retire I should move out stocks."
Inflation can Pac-Man your return.

(Photo: Australian Portfolio)