You cannot rely on the stock market to save your retirement. This entails taking far too much risk to make up for a lack of savings. We must develop a disciplined savings strategy as well as a risk adjsuted globally diversified portfolio.

They saved a high percentage of their income. Our caller shared some advice she got years ago from a colleague, “Save all of your raises.”  I’ve heard of people who save half their raise or increase their contributions each year by 1% but I’ve never heard of anyone save ALL of their raises.  Diane told me that she had not taken an increase in take home pay in 10 years because she has saved it all – all those years.  That certainly explains why she has such a high balance in her retirement plan.  The factor we have the most control over is our saving percentage.There are certainly other factors to consider that I didn’t mention such as asset allocation, reducing fees on investments, tax reduction strategies, etc. but sometimes it is the familiar ones that go unnoticed.  The “super prepared” employees probably never thought about the fact that it was what they were doing that was “the same” that made the difference in a society where a constant focus is “change,” with new and improved products hitting the shelves every day.  New movies premier around the holidays and new car models are introduced every fall.  Who knew that staying with the same company, celebrating the same wedding anniversary each year and staying in the same house would lead to financial success?  Well, it does when you top it all off with the most important factor and that is making the most of those benefits by saving and investing the difference.

Many plan participants spend more time planning their next vacation than they do their retirement. Too much confusion…too many choices.

Please comment or call to discuss how this affects you and your employees.