The Tip Sheet, on page 30 of the New York Post on December 3, 2006, reports an astounding United States Commerce Department statistic-the national savings rate fell to -0.5%. That's right... negative!
In Excuses! Get Over Yours For Saving, Gregory Bresiger highlights 3 common excuses and why you should reject them
"I Can't Afford it" Identify a luxury that you can live without and sock that money away
"I'll start Saving Later" Procrastinating and inflation will eat away at your ability to get ahead
"Isn't Social Security Supposed To Take Care of Me?" It's intended to be a supplement, and who knows what the future holds?
There's much more to it than these three points, but Bresiger's points are well taken.
Deferred Income Annuities are an excellent conservative tax deferral strategy that helps you define your results so that you can "know now what you will get then". As part of your overall strategy consider allocating some portion to a deferred income vehicle as a stable counterpart to your more volatile investments.
NEGATIVE savings? Scary.
Now, how much of this scenario do you think comes from people thinking that they have time (or procrastinating?), and how much do you think is people just fighting to keep their heads above water from month to month?
Additionally, I wonder if purchasing a deferred income annuity leads to a definitive amount later on. Does the amount of money available later depend on future tax levels?
Thanks for the information, very interesting stuff.
Jerry
www.leads4insurance.com
Posted by: Jerry | March 29, 2007 at 10:04 PM