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Are you saving Too Much???

January 27th, 2007 at 08:20 pm


Interesting article in the paper today - brings up an interesting discussion.

Jist of it is that Online Retirement Calculators on the websites of some investment firms like Fidelity & Vanguard, overestimate how much you need to save so you invest more with them of course.

My first thought was, well, yeah, and they exaggerate how well their funds do all the time too - gotta be a wash, right?

Secondly, as stated in the article, with the push to get people in this country to save, the last thing we need is to tell people they are saving too much.

Thirdly, for the savers out there. We rather err on saving far too much. IT is really pretty impossible for us to figure out how much we need in retirement. Life happens. I think the closer we get the better idea we'll have. In the meantime, heck yes, we will aim in saving too much. Of course. I Can think of far worse things...

But overall an interesting point I guess.

The article also said Americans are not so bad off - they are saving and are prepared for retirement. Pffffft. On what world? LOL. I could argue that one until the cows come home, but whatever. My only real peeve with the article.

Overall, figured could spark some interesting discussion.

7 Responses to “Are you saving Too Much???”

  1. baselle Says:

    Yes, when I read this one in the NYT, my original thought was "just how socially corrosive is it if I sit on a pile of money? - Who am I hurting?" Yeah, if I know that I will die at 70, quickly, and the entire US economy will be just buzzing along at about the same place, well then yes, I am saving too much. But life happens, and if everything goes tits up the experts who tell me that I am saving too much ain't going to reimburse me if I listen to them.

    My take on it is that its a fine line - most people aren't saving enough, but their final target that they should save is so high that most won't bother saving anything. Better to lull them into saving something than saving nothing.

  2. scfr Says:

    Ahhh yes, the rose-colored glasses view. Because, of course, every person is guaranteed that during that final push for peak savings in the years just before retirement they will not:
    - Become seriously ill
    - Become disabled
    - Become a widow or widower
    - Go through a devastating and financially draining divorce
    - Get downsized or laid off because of age discrimination and end up taking a job as a greeter at Wal-Mart
    - Etc
    - Etc
    [I hope my sarcasm is coming through loud & clear.]

  3. threebeansalad Says:

    The only thing I'm worried about with my savings is:
    1. Not saving ENOUGH
    2. Not distributing savings appropriately (right now, it's finding the right balance between retirement savings and saving for a house down payment)

  4. jen-taylor Says:

    i dunno, sometimes i feel that i'm saving money but not enjoying life as much as my other friends.

  5. LuxLiving Says:

    How many retirees do you hear saying..."Oh I regret having saved so much money?"

    The silence is deafening.

    That's right, not too many.

    Save On Sisters, Save On!

  6. Broken Arrow Says:

    This isn't the first time I've heard of such a notion.

    And for the life of me, I will never understand it!

  7. livingalmostlarge Says:

    I think the article has some discrepancies. First it's talking with retirees now, those who have social security and many with defined pensions. They are not relying on a 401k and probably no SS.

    Second they talked with "wealthy" retirees. What about the majority who didn't save? Who are living off of only SS? What happened to them? I think I'd rather have more than less and not have to eat cat food or depend on my children for money.

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