“By far the most important factor in how comfortable retirement will be for participants is how much money they salt away in their plan accounts. Even a 70% annual return would be of little consequence if a participant is squirreling away only $3 a year.”
W. Scott Simon, Prudent Investor Advisors, writing for Morningstar Advisors, June 6, 2013
Financial Tip: Do a 5-minute spot check to make sure you are “squirreling away” enough money. Do you know what percentage of your income you are actually saving each year? Add up your annual savings (for example, IRAs, Roth IRAs, 401(k)s including any employer match), and then divide that amount by your gross salary. Your goal is to hit the savings target of 10 to 15% of income each year.