Most investors' top priority is saving enough to fund a nice retirement. And to this end, many investors understand the importance of maximizing their savings and minimizing their taxes. For instance, while a work-sponsored 401(k) plan is a great retirement savings vehicle, plenty of people also make regular contributions to a traditional or Roth IRA. These folks also aim to make smart investment decisions with their money.

However, there's one mistake that's easy to make, and it could easily derail your dreams of retiring when you expect, or maybe even retiring early. That mistake is failing to adjust your portfolio's exposure to risk two, three, or even five years before your intended retirement date. The market can take quite a hit in a short period of time. You don't want your investments to be valued far below their peak right at the time you want to call it quits.

If you're reading this, then odds are good you're aware of the merits of a well-balanced portfolio. It's more than a matter of sector diversification, however. Even younger investors with plenty of time to ride out more than one cyclical headwind should hold more mundane equities like bonds as well as counter-cyclical instruments such as commodities or real estate.

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Source Fool.com