Strengthen your ‘three-legged stool’ for retirement

For many years, Americans paid for their retirement through three sources: employer pensions, Social Security and personal savings and investments – the so-called “three-legged stool.” But things have changed.

First of all, most employers no longer offer guaranteed pensions. Also, Social Security benefits could change in the future.

So, to help ensure you’ll have enough resources for retirement, try to contribute as much as you can afford to your 401(k) or other employer-sponsored plan – and increase your contributions whenever your salary goes up. And you can also contribute to other vehicles, including an IRA, to further boost your retirement funds.

If at all possible, try to leave these accounts intact until you need them for retirement. This will be easier to do if you’ve built an emergency fund, with the money kept in a liquid, low-risk account, to meet unexpected expenses such as major home or car repairs.

The three-legged stool may not be as universal as it once was – but you can still construct a sturdy structure to support your retirement needs in the future.

This content was provided by Edward Jones for use by Daniel Pellerin, your Edward Jones financial advisor at 189 East Main Street Suite G, in Newport, (802) 334-6261.

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