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Americans view on savings


mr_genius

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this quote is from The Consumer Federation of America

 

http://www.consumerfed.org/pdfs/Financial_...Study011006.pdf

 

A surprisingly high percentage of Americans think that the most practical way for them to accumulate several hundred thousand dollars is to win the lottery.

 

When asked about the most practical way for them personally to accumulate several hundred thousand dollars, over half (55%) said "save something each month for many years." Yet, more than one-fifth (21%) said "win the lottery"

 

It is hard to save money, but a lot of people under-estimate their savings potental. A lot of people are going to be in dire situations if/when the social security system goes bankrupt.

Edited by mr_genius
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QUOTE(mr_genius @ Jan 16, 2006 -> 02:59 PM)
this quote is from The Consumer Federation of America

 

http://www.consumerfed.org/pdfs/Financial_...Study011006.pdf

It is hard to save money, but a lot of people under-estimate their savings potental. A lot of people are going to be in dire situations if/when the social security system goes bankrupt.

 

 

I guess that means that 21% of Americans are blithering idiots. Anyone who is even somewhat educated about handling money knows that the only way to get rich is with discipline ( setting aside some money every month ) and the power of compounding.

 

 

You mentioned SS going bankrupt and I think thats a very real possibility. I work under the assumption that SS wont be there and thats why Im maxing out my Roth IRA every year as well as putting money into other mutual funds.

 

 

A wider point would be that even if SS somehow survives another 40 years so I can take advantage of it all it does is provide you a barest minimum of what you need to survive. After years of working I better be in a better situation than living paycheck to paycheck, barely getting by. I want to travel, buy stuff I dont need and spoil the living hell out of my grandkids and that aint happening on government cheese alone.

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QUOTE(Rex Kickass @ Jan 16, 2006 -> 03:21 PM)
Social Security is a government program. It can't go bankrupt unless the whole government does.

 

 

Maybe it wont go bankrupt but Im sure you agree that bennies will be sharply curtailed by the time most of us are ready to retire.

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QUOTE(NUKE_CLEVELAND @ Jan 16, 2006 -> 01:24 PM)
Maybe it wont go bankrupt but Im sure you agree that bennies will be sharply curtailed by the time most of us are ready to retire.

Even if the Social Security trust fund were to run out of funds in 2043 or so as predicted...Social Security would still be able to pay out a higher rate of benefits in today's dollars to those receiving it than currently is paid out today, due to the effects of population growth and productivity growth.

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QUOTE(3E8 @ Jan 16, 2006 -> 03:26 PM)
What percent of your annual income do you all invest?

 

 

Right now something like 40-50%.

 

 

Thats going to change whenever I get married but for the time being Im plowing as much as I can into my savings while getting everything I need and most of what I want.

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QUOTE(NUKE_CLEVELAND @ Jan 16, 2006 -> 04:29 PM)
Right now something like 40-50%.

Thats going to change whenever I get married but for the time being Im plowing as much as I can into my savings while getting everything I need and most of what I want.

It's because of that gov't housing handout you take

Edited by Rex Kickass
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Every employer has made it difficult to join a 401k or SimpleIRA or whatever they have. One of my fellow employees has been eligible and interested for a year in her SimpleIRA with the 3% match. Yet, the owner can never seem to find the person or forms to get her enrolled.

 

Last winter, when sales were doing well, I was able to put about 20% of my income into savings. Did that for four months, then left for another job and things went south quickly. I'm trying to put a little away every paycheck now.

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QUOTE(Rex Kickass @ Jan 17, 2006 -> 09:09 AM)
Every employer has made it difficult to join a 401k or SimpleIRA or whatever they have. One of my fellow employees has been eligible and interested for a year in her SimpleIRA with the 3% match. Yet, the owner can never seem to find the person or forms to get her enrolled.

 

Last winter, when sales were doing well, I was able to put about 20% of my income into savings. Did that for four months, then left for another job and things went south quickly. I'm trying to put a little away every paycheck now.

 

I think most large employers are not making it difficult. 401k is part of their benefits structure, so implementation would be highly regimented in most medium to large firms.

 

Small companies, though, I think you are right. I've heard nightmares.

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