Simplifying Retirement Savings

Simplifying Retirement Savings

Core Facts

 [ What is this? ]



There are three major problems hurting consumers in retirement savings--financial analysts that aren't required to work in clients' best interests, high fees that compound over time, and under-performing actively managed funds. Some plans charge a myriad of fees such as asset management fees on top of a per-person annual fee and other fund fees and commissions.

With almost $25 trillion in retirement assets, 401(k) plans and other retirement accounts are understandably a focus for financial services firms. 

But for the average person saving for retirement, it doesn't need to be so confusing.

Here is some simple and understandable retirement advice:

Start saving now

The longer you wait, the less time you have for compounding to work for you, and the more you'll need to save. For example, a 25-year-old aiming to retire at 62, would need to set aside a lot less than a person at age 35, while late starters at age 45, would have a much higher hill to climb.

Low-cost index funds 

The wealthiest 25% of investors in a SigFig survey were much more likely to follow practices typically recommended by financial advisors. They focused more on low fees, abstained more often from panic selling, and appeared to trade less often. The wealthiest investors also saw significantly better investment returns. 

Stocks vs. bonds

Entering retirement with a portfolio that's heavy with stocks can be risky. Entering retirement with a portfolio that's too conservative might not generate enough growth to help you balance out distributions. A sensible middle ground approach is a good way to go. 


Even one tenth of one percent can really trip you up. A 2014 Center for American Progress report stated that, “The reality is, the corrosive effect of high fees in many of these retirement accounts forces many Americans to work years longer than necessary or than planned.” Check to see how your plan's fees stack up, and if the results are bad, consider other options.



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


^ Top


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:

^ Top


Jake Mendlinger
Account Manager
516.829.8374 X 232

^ Top