1. Record # of Fidelity Clients Have $1 Million Saved For Retirement
2. How Washington Spends the Average Household’s Taxes
3. Social Security, Medicare, Welfare, Defense, Veterans, Etc.
4. Interest on the National Debt Set to Skyrocket in the Future
Today we’re going to look at how Washington spends our tax dollars. Specifically, we’ll look at a new report which shows how the federal government spends the income tax paid by the average family – and how they spend even more than what’s collected to create massive budget deficits year after year after year. I think you’ll find it very interesting.
But before we get to that discussion, I want to touch on some good news regarding retirement savings. As I have written often, the savings rate for the country at large is dangerously low. Yet a new report from Fidelity Investments revealed that the firm’s clients with at least $1 million in their 401(k)s or IRAs hit a new record high last year. Let’s get started.
Record # of Americans Have $1 Million Saved For Retirement
The US personal savings rate has been declining rather steadily for over 40 years. I’ve probably written on this disturbing trend as much as any single topic over the last 20-30 years. According to the Federal Reserve, the national savings rate fell to only 3.4% of income at the end of last year, down from over 10% in the 1960s and 1970s.
We regularly hear alarming figures that up to 80% of US households don’t have enough in savings set aside to cover even a $1,000 surprise expenditure, such as a medical emergency or some other unexpected spending event.
While the savings rate among average Americans continues to fall (hopefully to bottom-out soon with the improving economy), the opposite is true among higher income/net worth Americans in recent years.