Tips & Topics - Saving and Investing
Did You Know?
The savings rate in the United States from 1959-2001 averaged 7.9 percent of disposable income, but in 2004 the personal savings rate was just 1.2 percent of personal income. In fact, in 2005, the savings rate was negative – the lowest rate since the Great Depression. (Source: Bureau of Economic Analysis)
Since that time, the savings rate has increased, and individuals and families are trying to do a better job of securing their financial future during these difficult times.
Saving and Investing Overview
In order to build wealth to reach the financial goals you’ve set for you and your family, it’s important to develop a plan that allows you to accumulate and grow assets.
But you have to find the right balance. If you’re too conservative in your saving and investment strategy, you may not have the assets you need to reach your goals. Taking on risk, on the other hand, comes with consequences — the more risk you take on, the greater the likelihood that you could lose a significant amount of your money.
In this section of Your Money New York, we offer some ideas on how to begin accumulating wealth and also provide you with an overview of investments. This section is designed to provide you with an overview of the resources that are available in today’s marketplace. It is not designed to serve as specific investment advice. In addition, the Federal Reserve provides a very helpful list of savings resources for consumers.
There is one piece of advice, however, that applies to everyone, regardless of his or her specific financial situation: Save Early and Save Often. Time is your best friend when it comes to saving – the longer you keep your money in an interest-bearing or income generating account, the more your money can grow over time.
To help you, we’ve put together resources that look at the following:
- Strategies for Saving
- Magic of Compound Interest
- Basics of Investing
- Investing During an Economic Downturn