[Citizen of the Savage Nation]

A good, timely article, and the 'savings rate' is a bogus statistic since its absolutely meaningless in the context of today's environment. My net worth keeps on growing year after year, despite having 0 savings according to the gubmint. Oh, the horror.

[Toddsterpatriot]

My net worth keeps on growing year after year, despite having 0 savings according to the gubmint.

Exactly. You can make $100,000 in capital gains which the government doesn't count. They do manage to subtract the $15,000 you pay in capital gains taxes. I guess the $85,000 left over doesn't exist.

You can put $14,000 (last year, $15,000 this year) into your 401k, but that doesn't count either. Real good statistic they have there.

[conservative physics]

well it's a horror to the government who would like to TAX your savings :)

I have gone from nearly nothing to a multimillionaire in the last 12 years and haven't really paid all that much in Federal taxes during that time. This is because I made all my money in real estate and put every spare dime into purchasing additional properties. Even when I sell a property I just roll the profits into the next one, avoiding taxation... I can also use the equity that I've built up as collateral to purchase additional units negating the need to sell to get needed cash.

During all these years I've rarely had much more than it would take to pay my property taxes in the bank at any one time... so by the way the government figures it, I have saved little to nothing in the past 12 years!