As defined-benefit plans continue to be replaced by defined-contribution plans, we are increasingly more responsible to fund our own retirements. The idea of saving is simple - make a dollar and save a dime. However, when we have a mortgage, a car payment, and other bills, we realize that saving means making sacrifices.

We are constantly bombarded with articles and discussions suggesting ways in which we need to save in order to experience a comfortable retirement, but how much does that mean you really should save? A time tested strategy suggests you should save 10% of your annual income. Since no two investors are the same, your savings should be based on your household income, at what age you begin, and how much spending you wish to have in retirement.

Regardless of how much income you earn or how much spending you desire in retirement, what I suggest to all investors is the same thing - that you should start early and save consistently. The easiest advice to give is to save as much as you can, and even if you have to start at low savings rates, every little bit counts. If you are blessed to be given a raise by your employer, make sure that you give your savings contributions a raise as well. It is important to monitor your progress and adjust your savings rates as your income and priorities change. Please don't forget to take advantage of matching employer contributions.

Ultimately, it is your retirement that we are talking about, and it pays to construct a specific, detailed plan. For any questions or advice in creating your plan, feel free to contact me.

Ethan Wade, 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).