Even the most brilliant investment strategies don’t work if you’re not saving money! It is still the number one key to financial success!
Steve
————————————–
What factors are most important to the success of defined contribution plan participants? Putnam Investment’s latest iteration of its “Missing the Forest for the Trees” white paper found that deferral rates have a greater impact on a portfolio than fund selection, asset allocation or rebalancing.
Putnam established a base case on which to base its conclusions. They assumed that a 28-year-old in 1982 earned $25,000 per year with a 3% cost-of-living increase. The worker contributes 3% of gross salary to a 401(k) plan that receives a 50-cent match on the dollar up to 6% and has a conservative asset allocation across six asset classes.
(NL)