I ran across this graphic today and thought I’d share. Why in the world aren’t we saving more? Seems like workers in the 70’s and 80’s had their heads on straight, saving somewhere around 10% of what they made. The problem they ran into is the stock market tanked at the worst time – right before their retirement.
Anyway, this graphic also show the problem with the location of our savings. We’ve been raised to believe that putting money into mutual funds, qualified retirement plans and other traditional vehicles is considered ‘saving.’ In reality the money contributed to these vehicles is pumped right into the stock market and is very much at risk of diminishing….just ask all the people that planned on retiring during the past couple years, they have watched as their ‘savings’ were cut in half or maybe more.