Take Our Olympic Retirement Saving Quiz

With the attention of the world focused on Sochi and the XXII Winter Olympic Games, it occurred to us that saving for retirement is similar in some ways to training to compete in the Olympics. Elite athletes train for most of their lives to compete in the Olympics — and similarly, it takes many years of planning, dedication and discipline in order to help ensure a financially secure retirement.

Taking the analogy one step further, we have created a short quiz to help you determine whether you are a Gold, Silver or Bronze retirement saver. Circle your answer to each one of the questions below and then see how your score ranks according to the scale at the end of the quiz:

1. To what degree is saving for retirement a financial priority for you and your spouse?

A. It is a high priority. We make contributions to our retirement plans each month or pay period.

B. It is a moderate priority. We contribute money to our retirement plans when we can afford to, but we don’t make contributions on a regular basis.

C. It is a low priority. We cannot afford to contribute any money to a retirement plan at this time.

2. How do you make your retirement plan contributions?

A. We have money automatically withheld from our paychecks each pay period and deposited into our retirement accounts, or transferred from our checking account into our retirement accounts each month.

B. We write out a check in the amount of our contributions or make the funds transfer electronically using online banking.

C. We do not currently make retirement plan contributions.

3. Do you contribute a fixed amount of money each pay period or month to your retirement plan, or a fixed percentage of your income?

A. A fixed percentage of income. This way, our contributions automatically increase when our income increases.

B. A fixed amount of money. This way, we know exactly how much our total contributions will be each year.

C. We do not currently make retirement plan contributions.

4. When is the last time you rebalanced your retirement account?

A. We sit down with our investment counselor once a year to see how the balance of assets between stocks, bonds and cash equivalents has shifted. Then we make buy and sell decisions in order to get our asset allocation back to its original target range.

B. We have not rebalanced our retirement account since we opened it and started making contributions.

C. We do not currently have a retirement account.

5. Have you determined approximately how much money you need to save in your retirement accounts in order to help ensure a financially secure retirement?

A. Yes. We have projected our living expenses during retirement, based on our best estimates of our future cost of living and inflation, and the expected return on our investments. We anticipate that we will be able to live comfortably on the interest generated by our investments without having to tap into the principal, which should enable our nest egg to last until we die and then be passed on to our children.

B. No. We are trying to save as much money as we can for retirement, but we don’t know what our retirement living expenses will be, nor do we know how much our retirement accounts might be worth when we retire.

C. No. We are not currently saving any money for retirement.

Now, give yourself a score of 5 for each A answer, 3 for each B answer and 1 for each C answer.

20-25: Congratulations! You are a Gold medal retirement saver!

15-19: You are a Silver medal retirement saver. While you are practicing some solid retirement saving techniques, there are still some steps you need to take to earn a Gold medal.

10-14: You are a Bronze medal retirement saver. You also are practicing a few good retirement saving techniques, but need some improvement to earn a Silver or Gold medal.

Under 10: You do not qualify for a retirement saving medal. Take a look back at the A and B answers in this quiz for some tips to possibly boost your score to the Gold, Silver or Bronze medal level. Go to http://www.davidlerner.com/retirement-calculator.aspx to help estimate how much money you’ll need in retirement.

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. Member FINRA & SIPC