Squared Away Blog reports that research shows Americans are reluctant to spend their retirement savings because they are afraid of high unexpected health care and long-term care costs whereas Swedish retirees spend more freely.
However, it doesn’t explain Americans’ low savings rate. You’d think the savings rate in the U.S. would be higher if you have more costs to worry about. A document I found from web search shows the savings rate in Sweden is twice as high as that in the U.S.
I also read these other good articles this week:
American Banker Op-ed: Banks Need Larger CD Early Withdrawal Penalties by Ken Tumin at DepositAccounts.com
The op-ed is correct. Banks have been pricing the early withdrawal penalty too low.
Trying to beat the bond market? by Fran Kinniry at Vanguard Blog for Advisors
I like index funds but I have to disagree with this article. A four-month period is simply too short to qualify as evidence for anything. If it had been the reverse, that the majority of actively managed bond funds beat the index during a four-month period when interest rates jumped, you wouldn’t conclude that actively managed bond funds are better, right?
Solo 401(k) Contributions: Employee or Employer? by Mike Piper at Oblivious Investor
A good question. I agree in general, contribute as employer first, before contributing as employee.
Why Women (Like Me) Choose Lower-Paying Jobs and The Most (And Least) Lucrative College Majors, In 1 Graph by Lisa Chow at NPR Planet Money
Good self-reflection. Be sure to look at the chart showing how low the percentages of women in most lucrative majors are and what those most lucrative and least lucrative majors are. Your income doubles if you pick the right field.
If you want to make easy money, do something hard by The Investor at Monevator
The majors charts in the NPR Planet Money blog posts just prove the point. All the most lucrative majors are hard.
Can I Drive in Europe With My US License? by Michael at Financial Ramblings
I only drove in Ireland — it was hard. My US license was fine.
The millionaire interview series moved from Wealth Lion to Free Money Finance. The few data points show that a high income contribute a great deal to building wealth. A high income isn’t sufficient by itself but it would be very hard without it. Running a business, however, isn’t necessary. From my experience, just working as an employee will do.
Tax Planning for the Retirement Savings Contribution Credit by Mike Piper at Oblivious Investor
Ah, the hard-to-get Saver’s Credit. Maybe I will qualify for after I retire.
Dollar Cost Averaging Is For Wimps by Jim at The White Coat Investor
It’s OK to be a wimp. Investing beats not investing. Don’t be too hard on yourself if you choose to dollar cost average when you have a lump sum to invest.