Debt Crunch and Saving for Retirement – Irresponsible Economists
Debt Crunch and Saving for Retirement - A Yahoo! headline caught my eye today on the front page “Americans May Be Saving Too Much” so I bit and read Laura Rowely’s article on Yahoo! Finance “Rethinking Retirement Savings (Or Not)” I’ve got to say this article is totally irresponsible journalism (if that’s what such articles are called). I printed it off to see if was missing something. I didn’t.
According to the article, people are saving to much for their retirement – forgoing travel, luxuries and other “spending” while putting away money into their retirement funds and investments. The statements in this article would have me believe that may use an online calculator to determine how much I need to save or invest when I could save LESS and spend more – living in the moment sort of thing.
One of the economists created a model based on 6,000 people and their financial habits to have a more accurate calculator for financial health. It was this new algorithm (of sorts) that told the economists people were saving to much for their retirement. When they looked at the people’s lifestyle compared to their savings – they decided the people were not SPENDING enough money on the here and now.
Wouldn’t that just be an economist’s dream? Americans NOT putting money aside but instead planning cruises, buying ski condos and luxury cars then finding themselves broke at age 65?
On the front page of Yahoo! vistors get the thought in their head that they are saving to much? This article doesn’t discredit the findings as anecdotal. For every person that will have to much money upon retirement, how many will be buried in debt and struggling to pay for their medications or make a house payment to cover that home equity loan.
Stop taking on more loan payments, living debt free and building for retirement will give people the freedom to go on trips, buy second homes or luxury vehicles if they so choose. Somehow we think it’s okay to be heavily in debt then go on vacation.
I read the comments – some people say “this is right on the money” then go on to say… they are living nicely now that they are retired because why? They SAVED plenty.
Your Thoughts? I’d love to hear ~ Tammy
Tags: article, debt, debt free, economist, finance, lifestyle, luxury, money, retirement, save, savings
