The Rule of 30: A Better Way To Save for Retirement

Personal finance expert Vettese follows up his Essential Retirement Guide with this savvy advice book on determining how much money to save to enjoy a comfortable retirement. Vettese writes that today’s defined contribution plans, with virtually no workplace coverage, have transferred most of the saving responsibility to individuals, which means that workers will need to closely examine their spending needs and habits and individually determine how much money they need to save for their retirement. Vettese’s view is that it is reasonable to save less in lean times and save more when flush with cash, in order to end up having saved 30% of one’s salary per year by the time retirement rolls around. The keys to his advice are having the personal discipline to regularly “pay oneself” in savings before spending on discretionary expenses and starting early with saving. Vettese’s parable of a young couple working with a retired actuary helps readers connect with these principles. Note that the book focuses only on Canadian governmental programs (Canada or Quebec Pension Plan), investment account tools, and terms that will be unfamiliar and possibly irrelevant in the U.S. market.