This is quite an interesting and dangerous article that focuses on a few well respected economists who use data (falsely in my opinion) to try to convince you that you save too much. What? I’m sorry, but out in the real world people are not savings enough. I haven’t had the time to get into the data, though from what I’ve read initially the findings are based upon logic that doesn’t work for me.
The questions that needs to be answered are: is savings to much is a bad thing? What are the consequences of not savings enough?
So what if you die with more money than you needed – was it wasted savings? Perhaps, but doubtful.
I see these economists as good people, but wrong. The average person is in debt with little or no net worth except for their house, they may not be able to depend on social security or a pension and they’ve saved very little in their 401(k) – do you really think its responsible to tell these uber-consumers that its o.k. to stop saving and instead buy an HD Plasma TV instead?
This is the kind of stuff that ticks me off and sets people back.
Scott Dauenhauer, CFP, MSFP, AIF