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Ed Meek
CEO/Investment Advisor

Edge Portfolio Management

City:Winfield

State: IL



BIOGRAPHY:
At Edge, a low client to advisor ratio allows for personal and customized service for each individual.  Our goal is to work as a team for each client to provide not only portfolio management but wealth coordination and financial planning.  We make every effort to have frequent communication with our clients and to provide timely response to calls and emails.  I also enjoy spending time with my wife and three kids, playing and following basketball, playing golf, and participating as an advisory board member for Breakthrough Urban Ministries.

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Affluent Americans for the Save...but is It Temporary?

Americans talk a good game about saving, but are they putting words into action?

| BY Donald Liebenson


Nearly four-in-ten Americans (37 percent) said that in recent months they are spending less money in recent months than they did previously, according to a new Gallup poll.

Saving sounds good on paper. Almost twice as many Americans profess to enjoy saving more than spending (62 percent to 34 percent). Gallup found. Among Affluent investors surveyed by Spectrem’s Millionaire Corner, saving more and spending less consistently top their list of financial New Year’s resolutions, followed by paying down debt.

Saving is not only on the resolve-to-do list, it is also on the do-over list. Nearly half  (46 percent) of affluent households with a net worth between $100,000 and $1 million surveyed by Spectrem’s Millionaire Corner—the highest percentage of respondents—said that looking back to before the financial crisis, they most wished they had saved more. That percentage jumped dramatically to 63 percent among Millennial and late Gen Xers surveyed.

But the Gallup survey finds that spending habits can be at odds with their actual financial behaviors. Three-in-ten self-report spending more money; up dramatically from 17 percent in 2010 (nearly one-third said they are spending the same amount). This suggests that the reining in of spending during the recession is tapering.

This may be an object lesson for those who resolve that spending less will become their new, normal behavior. The percentage of Americans who say they are spending less and that it is their new normal is down to 27 percent from 38 percent in 2010. Since 2009, Americans who are spending less have been much more likely to say that this is not a temporary change. “It appears that the temporary negative effect of the recession and economic downturn on spending is winding down, leaving only the hard core of those who claim to have settled in a new, normal pattern of spending less,” Gallup reports.

Conversely, of the 30 percent of Americans who report spending more in recent months, the majority see the change as temporary (19 percent) rather than a new normal (11 percent). This has ramifications for the economy as consumer spending accounts for about 70 percent of the U.S. gross domestic product.

Among non-Millionaire households surveyed by Spectrem’s Millionaire Corner, the primary focus is on maintaining their current financial situation and there seems to be confidence that they are on track. While not as confident financially as their wealthier counterparts, six-in-tend contend that they fully expect to have sufficient income to live comfortably during retirement. Only 23 percent worry that at present they are not saving enough to meet their financial goals.

Again, this concern is heightened among the youngest affluent respondents (34 percent).

Americans talk a good game about saving, but are they putting words into action?

According to the Commerce Department, the average personal-savings rate for 2013 was 4.5 percent, the lowest since 2007. In comparison, the savings rate in the 1990s was 6.7 percent.

A recent survey conducted by NeighborWorks America found that 29 percent of respondents have no emergency savings, while one in five reported having only enough savings to cover expenses for only three months. While 70 percent reported they were putting money aside for a financial emergency, results showed that 52 percent of people making less than $40,000 and 11 percent of people who make less than $100,000 have no financial reserves.



About the Author


Donald Liebenson

dliebenson@millionairecorner.com

Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.  

A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment. 

 


 

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