3 Big Mistakes IRA Savers Make -- and How to Fix Them

Steadily funding an IRA is a great way to build retirement wealth.

It's not a given that you'll have access to a 401(k) for retirement savings purposes. And if you don't, don't sweat it. Funding an IRA over many years could lead to a large amount of savings.

But in the course of contributing to your IRA, you may risk making a few mistakes that are all too common. Here are three to avoid.

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It's fun to see your IRA balance grow over time. But as that number on screen gets larger, you may realize that in the event of a market crash, you have more to lose.

If a $50,000 IRA loses 20% of its value during a market downturn, that's a $10,000 on-screen loss. If the same thing happens to a $600,000 IRA, that account will lose $120,000.

Of course, any money that's "lost" in a downturn isn't officially lost unless you sell assets in a panic when they're down. But if you can't easily stomach the idea of seeing those losses, you may be inclined to invest your IRA more conservatively.

That's a smart move when you're within a few years of retirement. But early in your career, it could be dangerous.