David Lerner Associates: Saving for Early Retirement

David Lerner Associates: Saving for Early Retirement

Core Facts

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According to a research study by the Employee Benefit Research Institute, Americans’ confidence in their ability to secure a financially comfortable retirement increased in 2015, however, only 61% report that they are currently saving. That means that more than one-third are not saving for retirement. 

A sizable percentage of workers say they have virtually no money in savings and investments. 57% report that the total value of their household’s savings and investments, excluding the value of their primary home and any defined benefit plans, is less than $25,000. This includes 28% who say they have less than $1,000 in savings. 

If the idea of early retirement is appealing to you, then there are some strategies that you would be wise to take note of. 

By the Numbers

You should know the exact amount needed every year to live comfortably. That means income from savings and retirement portfolios that generate retirement income. 

Conventional wisdom states that in retirement, you should be able to live on 80% of your pre-retirement income. Now, of course that number may be higher or lower based on your plans for retirement and how you intend on spending that time. 

Living Cost

The less you need to spend, the more you save. That’s common sense. In the report mentioned above, people were asked if it were possible to save $25 per week. The results were interesting. 13% would give up soft drinks or snacks from vending machines. 12% said they’d give up movies, DVDs etc. 11% thought they could go without specialty coffee purchases, while 8% would do without lottery tickets.

There are many ways to lower your cost of living, and transfer those savings into your retirement plans. After a week, I doubt you’d miss that Grande Iced Caramel Macchiato, but you could save around $1600 per year.

Lower Debt

Whether you consolidate your credit cards or transfer balances to zero percent accounts, getting out of debt is essential. Surely you would agree that being saddled with student loans into your retirement is not the ideal situation. 

Invest Conservatively

No doubt, a sensible middle ground of investing philosophy is the best approach. Be conservative in your projection of your anticipated rate of return on your investments. 

An unrealistic expectation of return could tempt you to save too little under the misguided assumption that you’ll make it up in returns. 



Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities. 

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC.


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Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website: www.davidlerner.com

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Jake Mendlinger
Account Manager
516.829.8374 X 232

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