Many people I talk with think that the amount of their savings or investments is far less than others' that walk through the door of Brighton Securities. Yet, often those are the people who have the highest balances in their account. An interesting article addresses 2014 data examining who saves, how they do it, and why they are successful.

The first, fairly obvious, point is that younger workers make about 45% less than their experienced counterparts. However, there is an unavoidable irony that investments started in your younger years are worth a lot more in retirement than the cash you put away in your 50s. The reason is simple. Those in their 20s have thirty more years of compounding to grow their money. But things get a bit more interesting...

On average, women tend to have more savings than men even though they are paid less. According to Vanguard, 79% of women earning between $50,000 and $75,000 tend to save 7.2% of their salary in their workplace retirement program whereas only 60% of men save 6.7%. This example provides insight as to why women tend to have more savings overtime than men-they are simply saving more.

Still, regardless of your salary you should save now, save early, and do not underestimate the value of your savings. This is not a furious and fast race to the finish line. Rather it is a consistent and deliberate plan for your future starts early and is maintained over time. So, work with an advisor, create goals, and stick to them. With time on their side the tortoise wins every time.

Caroline Hill, Financial Advisor


(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).