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Because Americans have not been saving in the last decade or more, foreign governments own a substantial part of the national debt. For example, China holds $1 trillion in US Treasury Bonds, nice uh?

Why haven’t Americans been saving? Because they have been spending like drunken sailors, that spending has been driving the economy, and that is also why we are in such deep trouble now. Some economists have shed a different light on the saving strategy of Americans; they say Americans were saving in the form of growing equity in their homes.

Now we see where that got us and how it is now driving down the value of the real savings some Americas were trying to accumulate¦ Have you checked your IRA or 401(k) lately?

So, if you are among the many Americans who were not saving, are you going to change your ways (and no, the old “I cannot afford to save is not an acceptable answer)?

How much do you save (include retirement savings, emergency fund, 529 plans and even under the mattress).

To give you an example, if you have total earnings of $60,000 a year:

1% = $50.00 a month

5% = $250.00 a month

8% = $400.00 a month

12% = $600.00 a month

If you do not have a traditional pension, experts say you need to save between 10 and 12% of your income for a comfortable retirement.

8% of my monthly income goes to savings it may be higher.

I save about 5% a month, but have two pensions and SS for retirerment. I take it for granted I will always have to work part time for awhile, due to medical expenses for the family.

I don't spend much, drive a 5 year old car, don't even have a new TV for a decade. I think I spend my money on necessities, with only the luxury of taking TKD lessons/gym for $110 a month. (need the strength training to be a nurse at home, and feeling of security at work and being the dominant one at home now) Equity in homes-I have two. One will be paid before retirement, 2nd one seven years later. Their worth will be around half a million or so. I do think equity is held in homes, there is something tangible when you own the land.

Unlike New Zealand where there no incentive to save money, the U.S. has ample tax incentives for saving and investing via IRA's, 401 K's, Keough Plans, 529 College Savings Plans, 403 B Plans. Despite the tax incentives, too many Americans choose to spend rather than save and invest. That new flat screen TV is today after all, and retirement is a long way off. Most New Zealanders main investment for their retirement centers around real estate. Now wouldn't they be in a world of hurt if they had the economic chaos that exists in the U.S. right now. As a matter of fact, they, like many other countries will probably have a delcline in their property values due to the Ripple Effect of our disastrous economy.

Lon;999541 wrote: Unlike New Zealand where there no incentive to save money, the U.S. has ample tax incentives for saving and investing via IRA's, 401 K's, Keough Plans, 529 College Savings Plans, 403 B Plans. Despite the tax incentives, too many Americans choose to spend rather than save and invest. That new flat screen TV is today after all, and retirement is a long way off. Most New Zealanders main investment for their retirement centers around real estate. Now wouldn't they be in a world of hurt if they had the economic chaos that exists in the U.S. right now. As a matter of fact, they, like many other countries will probably have a delcline in their property values due to the Ripple Effect of our disastrous economy.


But they do have compulsory pension contributions though don't they. So do Australia and the UK are introducing similar, but controversial, schemes in 2012

gmc;999575 wrote: But they do have compulsory pension contributions though don't they. So do Australia and the UK are introducing similar, but controversial, schemes in 2012


And Americans pay 6.25% of their income (up to about $100,000 in earnings) toward Social Security plus another 1.45% of total income toward Medicare, both of which are paying for the current beneficiaries benefits.

QUINNSCOMMENTARY;999583 wrote: And Americans pay 6.25% of their income (up to about $100,000 in earnings) toward Social Security plus another 1.45% of total income toward Medicare, both of which are paying for the current beneficiaries benefits.
Not to mention taxes that go to the welfare system, to help those that retire early ... like before finding work.

QUINNSCOMMENTARY;999583 wrote: And Americans pay 6.25% of their income (up to about $100,000 in earnings) toward Social Security plus another 1.45% of total income toward Medicare, both of which are paying for the current beneficiaries benefits.


The U.S. Social Security Income does not provide, and never has, sufficient income to provide other than a meager existence. We were told way way back that we should supplement Social Security with private savings and investment.

I was encouraged as a young man to adopt "The Three Legged Stool" concept of retirement, consisting of a company pension, private savings/investment and Social Security. The company pension will soon be non existent and Two Legs of the Stool will have to take over.

Hoss;999898 wrote: I save 50% of everything I make. I chop it into different funds.

1. College 20%

2. Investment 20%

3. Home/property 40%

4. Retirement 20%

5. Vehicle (Currently closed to new funds)

I live off of 25% (when I leave my dads home I will switch it and save 25% and live off of 50% of what I make.

I give 25% to charity. 10% is to my home church, 15% is divided into 20 shares, I help support 6 missionaries and one bible school, and one hospital on the shares.

I owe nothing to anyone. but I still live at home so I offer to pay expenses on the property, sometimes my dad accepts me making a utility payment, or lets me fill my moms car with gas. Sometimes I will by dinner for everyone too.


It's off topic Hoss, but what are you studying in college?

Lon;999830 wrote: The U.S. Social Security Income does not provide, and never has, sufficient income to provide other than a meager existence. We were told way way back that we should supplement Social Security with private savings and investment.

I was encouraged as a young man to adopt "The Three Legged Stool" concept of retirement, consisting of a company pension, private savings/investment and Social Security. The company pension will soon be non existent and Two Legs of the Stool will have to take over.


Very true, but that is not the way many Americans see it. In fact, for most people Social Security makes up the bulk of their retirement income, why, because they do not save or plan for the future and they cry 40 years later when they are trying to live on SS alone. SS was never intended to be THE source of retirement income.

QUINNSCOMMENTARY;999905 wrote: Very true, but that is not the way many Americans see it. In fact, for most people Social Security makes up the bulk of their retirement income, why, because they do not save or plan for the future and they cry 40 years later when they are trying to live on SS alone. SS was never intended to be THE source of retirement income.
Exactly the reason SS is dangerous and should be eliminated.