As we discussed earlier this week, the most foolproof solution to low interest rates (and low expected returns in general) is simply to save more. For most U.S. households, a small increase in savings rate would do wonders for their overall financial well-being.
That’s why Jim Blankenship, a CFP from the Garrett Planning Network and the author of one of my favorite blogs is currently starting a “save 1% more” movement to encourage people to bump up their savings rates by just 1%.
Given that the U.S. personal savings rate (as a percentage of disposable income) is currently only 3.3%, an increase of 1% would have a meaningful impact. For an investor early in his/her career, a 1% savings increase would increase net worth upon retirement by nearly one third, while the decrease in current spending would be much less noticeable.
- Facing the Tax Mountain from Rick Ferri
- Bernstein Says Stop When You Win the Game from The White Coat Investor
- Why Rebalance Your Portfolio? from Financial Ramblings
- Why Market Beating Strategies Don’t Last from Canadian Couch Potato
- Your Portfolio: Better Off Now than 4 Years Ago? from Allan Roth
Other Money-Related Articles
- Allan Roth wrote a very kind review of Social Security Made Simple for CBS News. He also shared a few major takeaways from the book.
- Resist Planned Obsolescence or Accept the Consequences from Consumerism Commentary
- What to Do if You Accidentally Let a Life Insurance Policy Lapse from PT Money
- Where to Find a 6% APY Savings Account from The Finance Buff
- What is an FHA Streamline Refinance? from Money Crashers
Thanks for reading!