February 19, 2014
We know it’s important to set money aside regularly, for a rainy day and a sunny future, but it obviously isn’t easy to do. According to the Bureau of Economic Analysis, the U.S. personal savings rate was 3.9 percent as of December 2012, and has been trending down for several months. At that level, it looks like savings is one of the last things Americans use their money for: certainly behind housing, food, car, and clothing, but even further behind incidentals like eating out and gifts. But here’s the rub: included in that 3.9 percent is retirement savings. In other words, that 3.9 percent will someday be needed for the housing, food, clothes, etc. Does anyone smell some rubber meeting the road here?
Read the Full Post