Health & Fitness
Understanding the Slip in Savings
The savings rate in January declined to 2.4%, its lowest level since 2007 and the 9th lowest savings rate recorded since 1946.
2.4%: US savings rate in January, the lowest since 2007
The savings rate in January declined to 2.4%, its lowest level since 2007 and the 9th lowest savings rate recorded since 1946. The trends in saving can be
explained by the equation:
Savings = Income -(Taxes+Spending)
Find out what's happening in Avon-Avon Lakewith free, real-time updates from Patch.
Taxes effectively increased at the beginning of the year (with the expiration of the payroll tax holiday), and spending has thus far remained stable, resulting in the drop in savings. January's low savings rate looks particularly stark compared to the December rate of 6.4%. However, that high figure was due to a year-end
bump in income, as bonuses were paid early to front run the 2013 tax changes.
In his most recent report, Chief Fixed Income strategist Jeff Rosenberg discusses the implications and irony of this economic data, which was released by the Commerce department during "America Saves Week."
Find out what's happening in Avon-Avon Lakewith free, real-time updates from Patch.
Source: BlackRock, March 2013; US Department of Commerce, Bureau of Economic Analysis
Prepared by BlackRock
Delivered courtesy Joel W. Grams, CRPC®, CLTC,
Registered Representative, Financial Planner, 212 Capital Group
38 Main Street Suite 360, Westlake Ohio 44145
(440) 835-4501 Ext 17, jgrams@212capitalgroup.com
The foregoing discussion is general in nature and not intended as specific advice.
New England Financial nor its representatives are engaged in rendering tax,
accounting or legal advice. A qualified professional should be consulted regarding the effect of such considerations on the matters covered in this publication.
For information on New England Financial insurance or other financial products and services, please contact Joel W. Grams, CRPC®, CLTC, Registered
Representative, Financial Planner with /New England Financial 38 Main Street Suite 360, Westlake, OH 44145, at (440) 835-4501 ext. 17, jgrams@212capitalgroup.com
New England Financial is the registered mark for New England Life Insurance Company (NELICO) Boston, MA 02116. Securities and investment advisory services offered through New England Securities, Corp. (NES)(member FINRA/SIPC) a Registered Investment Advisor. NELICO and NES are MetLife companies. L0313314836[exp1213][OH]