Riding the Retirement Wave

However, the story doesn't end there.

"Because of inertia or just a failure to pay attention to my financial affairs, I left the money in the money market fund for the next 5 1/2 years until I retired," Hinden writes. "During those years, the money market fund earned a paltry average of 4.6 percent a year, while the Windsor Fund turned in an annualized gain of 18 percent a year."

The Dow Jones Industrial Average ended 1991 with a gain of 20 percent and the Windsor Fund he got out of rose 28.6 percent, Hinden notes. He calculates that his decision to move his retirement money out of the stock fund and into the money market and leave it there cost him $70,000.

"Naturally, my wife and friends wanted to know how a financial writer who was knowledgeable about the markets could make that kind of mistake," Hinden writes. "I don't have a good answer. But I did learn a valuable lesson: Don't try to outguess the market. Decide on your long-term investment strategy, and as long as it's the right strategy for you, stick to it."

This is a book from the perspective of a retiree who's been there and done that. Hinden's frontline view of retirement makes this book so incredibly useful.

If you are interested in discussing this month's book selection, join me online at http://www.washingtonpost.com/ on Thursday, March 30, at noon Eastern time. Hinden will be my guest and will take your questions.

To become a member of the Color of Money Book Club, all you have to do is read the recommended book. Then chat online with me and the author. In addition, every month I randomly select readers to receive a copy of the book, donated by the publisher. For a chance to win a copy of "How to Retire Happy," send an e-mail to colorofmoney@washpost.com . Please include your name and address so we can send you a book if you win.

· On the air: Michelle Singletary discusses personal finance Tuesdays on NPR's "Day to Day" program and online at www.npr.org.

· By mail: Readers can write to her at The Washington Post, 1150 15th St. NW, Washington, D.C. 20071.

· By e-mail:singletarym@washpost.com.

Comments and questions are welcome, but because of the volume of mail, personal responses are not always possible. Please note that comments or questions may be used in a future column, with the writer's name, unless a specific request to do otherwise is indicated.