Last week’s answer

I was born in 1976. I’m known today for my women’s and men’s fashion apparel and fragrances. My brand names include Axcess, Bora Bora, Crazy Horse, Curve, Dana Buchman, Elisabeth, Emma James, First Issue, Laundry by Shelli Segal, Lucky Brand, Mambo, Marvella, Mexx, Monet, Monet 2, Russ, Sigrid Olsen, Trifari and Villager. I’m also licensed to produce and sell clothing under the following names: DKNY, Kenneth Cole New York, Unlisted.com and Reaction Kenneth Cole. My wares are sold in more than 26,000 retail outlets worldwide. I rake in nearly $4 billion per year and recently agreed to acquire Juicy Couture. Who am I?

(Answer: Liz Claiborne)

Know the answer? Send it to us with Foolish Trivia on the top and you’ll be entered into a drawing for a nifty prize! The address is Motley Fool, Box 19529, Alexandria, Va. 22320-0529. Send questions for Ask the Fool, Dumbest (or Smartest) Investments, and your Trivia entries to Fool@fool.com.

Are you saving enough?

According to a recent study, many people have a false sense of how well they’re actually preparing for retirement. Nearly half of those surveyed reported contributing the maximum to their 401(k)s. Yet data compiled by the U.S. government and the Employee Benefit Research Institute show only 11 percent of American workers contributing the maximum.

The study, commissioned by CIGNA Retirement & Investment Services, surveyed more than 750 employees across the United States, all of whom participate in a 401(k) or other employer-sponsored retirement plan.

Not surprisingly, fear of war, general apathy and confusion about plan options all play roles in stopping workers from socking money away for the future. Some 39 percent feel they are “under water,” stating they can barely keep up with bills and don’t believe they can afford to contribute more.

If you’re apathetic about saving, perhaps some cold, hard numbers will change your mind. A retiree should expect only $2,500 in annual income from a nest egg of $50,000 (that’s the national average), if she doesn’t want to outlive her savings.

Here are a few tips to improve your lot in retired life:

• Run the numbers and see how you’re doing. Retirement calculators online at www.fool.com/calcs/calculators.htm and www.calccentral.com/retirement.html can help.
• Many employers offer free money to those who contribute to their work retirement plan. Take advantage of any contribution matching that’s offered.
• Don’t panic at market downturns. The market goes up and down — sometimes violently one way or the other — in the short term. But it has a way of righting itself over the long term. So be patient.
• Wring some more dimes from your budget. Learn how to live well while you save and invest in “The Motley Fool Personal Finance Workbook” by David and Tom Gardner (Fireside, $14), “The Millionaire Next Door: The Surprising Secrets of America’s Wealthy” by Thomas J. Stanley and William D. Danko (Pocket Books, $15), and “The Complete Tightwad Gazette” by Amy Dacyczyn (Random House, $20).

Now, go ask your Human Resources department for the paperwork to increase your 401(k) contribution.

Sailed away

Wanting a lifestyle change, we sold our home in Florida after the kids finished grade school. We enjoy water, water sports, etc., so after having lived several “alternative” ways, we considered a sailboat. There was a marina close by. My husband is a remodeler and fine woodworker. We planned to sail on the boat, remodel it, and live on it. We bought a 28-foot roomy type and enjoyed living on/off it for about 12 years (sailing only once!). We remodeled while working jobs, never able to afford to travel. We should have bought a bigger, more livable vessel. It became frustrating, and we discovered that boats often don’t appreciate in value much. We sold it, getting back half our original investment, as the remodeling was unfinished. — A mom in San Diego

The Fool Responds: This story points to the need for solid research before laying out a lot of money as an investment. Most kinds of personal property (such as cars, computers, sports equipment) depreciate in value over time. Real estate can be a big exception, but even that’s not guaranteed. At least you enjoyed the experience!

Buffett favored trading cutbacks

Has anyone suggested that the stock market be open only on Mondays, Wednesdays and Fridays, to lessen gigantic plunges? — Bill Krumbein, Santa Rosa, Calif.

Investor extraordinaire Warren Buffett has actually said that he’d be happy with a stock market that was open only once every few years. That would indeed cut down on much of the market’s volatility. But many on Wall Street make their big bucks from activity on the markets — all that buying and selling.

If the markets were open for fewer days, there would be fewer trades and fewer commissions.

The idea of keeping markets open even more hours per day has gotten more attention in recent years than has the idea of reducing trading hours. Some on Wall Street probably yearn for a 30-hour-long trading day!

Roundup of economic factors

The Commerce Department recently reported that new orders for durable goods (those meant to last at least three years) dropped 1.2 percent in February. The number, which matched economists’ predictions, was the largest fall since November, and followed a 1.9 percent increase in January.

If you exclude demand for defense goods, which experienced a sharp increase for obvious reasons, orders fell a whopping 2.7 percent, the biggest slide since September ’02. The government appears to be the only one spending.

Computers and electronic products posted the largest slump since August, tumbling 2.9 percent. This will likely translate into continued sales weakness at Dell and Gateway. Motor vehicles and non-defense aircraft also showed sharp declines, further bad news for the already weary automotive and airline industries. According to Reuters, Boeing, the world’s largest commercial aircraft maker, received just four orders in February, down from 23 in January.

Not to be outdone, purchases of new homes fell 8.1 percent in February, their lowest level in more than two years and the second decline in as many months. Debt-laden consumers appear less willing to commit to such large purchases, despite mortgage rates hitting their lowest levels since 1961. Even factoring in bad weather in much of the country during this period, the numbers are low.

These reports suggest that manufacturers will have to muster continued patience as they wait for a sustained recovery.