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The vast majority of the population is not saying "I have nothing in savings" because all their money is tied up in yachts and Manhattan real estate; it's becau
by jellicle 11y ago
The vast majority of the population is not saying "I have nothing in savings" because all their money is tied up in yachts and Manhattan real estate; it's because they have no money.
- 6stringmerc 11y agoThank you for that take on it. As a 30 something, I've been "coached" over time that savings is for liquidity in the case of an unexpected event - loss of job for X months (cover bills with savings), medical emergency (cover bills with savings), or potential family development (need to purchase vehice for teenager). These events are not supposed to be covered by "dipping" into retirement funds, e.g. IRA or 401k. The ideal method of financial planning I was taught is to invest for retirement through financial products which minimize risk and are not liquid assets, while concurrently saving in a "traditional" account.
- beambot 11y agoThen why not ask a more accurate (less biased) question...? E.g. david927's comment: "47% of Americans say they lack the cash to pay a surprise $400 bill" (https://news.ycombinator.com/item?id=10354263 https://news.ycombinator.com/item?id=10354263)
- ultramancool 11y agoOr it's because it's in investment or retirement accounts.
- manigandham 11y agoBut... how do we know by leaving out the retirement/investment accounts?