Americans Saving At All-time Lows; Morningstar Experts Say Education, Advice May Help Curb Current Trends.Business Editors CHICAGO--(BUSINESS WIRE)--Sept. 22, 2000 The latest U.S. savings rate Savings rate Personal savings as a percentage of disposable personal income. was the lowest ever, at negative 0.2%, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the U.S. Commerce Department. In July, statistics show American consumers spent more than they saved, resulting in the lowest-ever savings rate since the recording of the statistic in 1959. Experts at Chicago-based Morningstar Retirement Planning Retirement financial planning refers to a collection of systems, methods, and processes which, in their aggregate, support a family unit's (client's) desire to achieve a state of financial independence, such that the need to be gainfully employed is optional. Services (RPS rps abbr. revolutions per second ) are concerned by the recent news. "Many people are not aware of how the trend of putting spending before saving will significantly hurt them in the future," said Jim Wironen, President of Morningstar RPS. "Education of consumers is crucial if we want to reverse the current trend, so people can see for themselves the significant benefit of compounded interest over many years." Wironen also believes many who are saving in 401(k)s and other retirement savings plans Noun 1. retirement savings plan - a plan for setting aside money to be spent after retirement pension account, pension plan, retirement account, retirement plan, retirement program, retirement savings account could be making more from their current investments. "Many employees simply don't understand the investment alternatives companies offer in 401(k) plans," Wironen said. "A positive trend is the introduction of internet advice services, such as Morningstar(SM) ClearFuture(SM). These services will help employees make educated choices when it comes to their retirement investments." Today, an estimated 35 million Americans at more than 340,000 companies nationwide are participating in company-sponsored 401(k) plans. These participants have a total of $1.7 trillion invested in their plans. About Morningstar Associates, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control The Morningstar(SM) ClearFuture(SM) retirement advice program is provided by Morningstar Associates, LLC, a registered investment adviser and a wholly-owned subsidiary of Chicago-based Morningstar, Inc., an independent provider of reliable, unbiased investment information. Morningstar Inc.'s extensive line of Internet, software, and print services offers news, data, and analysis on stocks, mutual funds, closed-end funds, and variable annuities Variable annuities Investment contracts whose issuer pays a periodic amount linked to the investment performance of an underlying portfolio. . Neither Morningstar Inc., nor Morningstar Associates, LLC, owns, operates, or holds any interest in investment products. The financial data and methodology used in ClearFuture are proprietary to Morningstar, Inc., and/or Morningstar Associates, LLC. Although the data are gathered from reliable sources, neither Morningstar, Inc. nor Morningstar Associates, LLC guarantees their accuracy, completeness, or timeliness. Past performance is no guarantee of future performance. |
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