Posted on 01/31/2006 7:02:38 AM PST by SoFloFreeper
It doesn't include capital gains... but it does include contributions...
It is a problem, but if your 401k is worth only $10,000 (about 50% of americans with 401ks are around this mark) or even $50,000 (the average value), and you aren't making additional contributions, you'll be woefully unprepared for any form of retirement.
Well, 401k and roth ***contributions*** are considered savings. And if you're maxing out your legal limits there, you should have additional savings. If you're paying principal on your mortgage, that's savings.
Agreed - the 0.25% interest at the local bank is pathetic. Try EmigrantDirect or UFBDirect for better savings rates (4.25%). Or ladder some treasury bills (4.8% YE on 91 day).
"This won't change the Dems response to the speech tonight."
Speaking of the speech - Tonight in the State Of The Union speech it most certain President with include a tribute to the passing of Mrs. King, which is the appropriate thing to do. Who will be the first democrat coming out condemning Bush for using her name for his only political gain? It will happen, trust me.
Investments IN are considered savings. As are payments on principal on loans. If your savings rate is 0%, that means you essentially aren't paying off your mortgage or making 401k contributions
Capital gains are not included.
Investments ARE considered savings. The capital gains from the investment are not.
I would tend to think that the Bush job approval numbers actually are in the mid 40's. Some of that number would be coming from conservatives who have issue differences with the President, but would still vote for him over a Democratic candidate.
IMHO Bush would still win a national election against an unnamed Democrat by 2 or 3 percentage points, and possibly get a majority of the overall vote.
The problem is that if you are saving in the equity in your home, you should be paying off the mortgage, right? Payments on principal ARE considered personal savings.
If he didn't they'd rip him for not doing it so he can't win either way.
I'm not sure. I guess the Dem bench is pretty thin these days.
I believe the answer is no, it's not counted. And if you buy a car, 100% of the purchase comes off of your income this year...even if it is financed. Treat many of these indicators with a healthy disrespect.
Actually, the answer is YES.
The capital gains are not considered savings. Contributions are, though.
This is a dated article but gives an in depth view of the way the savings is figured and problems with the model.
http://www.findarticles.com/p/articles/mi_m1094/is_3_34/ai_55294828
Looks fairly detailed, I only had time to scan it.
Try reading at BEA.
http://www.bea.gov/bea/faq/national/pi_negativesavings.htm
Principal IS counted. 401K contributions ARE counted.
How about indicators like this?
Housing Slowdown Squeezes Borrowers: Foreclosures Hit 12-Year High
Absolutely not, they never let facts get in the way of anything they say. All their pre-buttals and rebuttals to the president's speech are a waste of time anyway, no one cares.
He will not doubt have Sandra Day O'Connor sitting with Mrs. Bush as she can't be walking in with the supremes tonight.
HOW SWEET IT IS.
If she hadn't submitted her resignation we would not now be celebrating this victory for America.
And no one watches.
So it's like individual consumer confidence is great but everyone thinks the economy is in the tank for everyone else because of the reporting.
Yep. Its like Rush often notes, when people are asked about their personal situation they say they are doing fine, 'but worry that their neighbor might be having trouble'.
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