THINK, people

1%? Are you kidding me?

I don't know what's going on with people, but I think Americans can be dumb, dumb, dumb. I've struggled mightily to find a lucrative, and steady career that I actually ENJOY, and paid for it by not being able to save nearly as much $$ as I'd like. Nonetheless, I have enough stashed away to get me by for 5 or 6 months. And a wee retirement account on top of that. Still hardly anything, and I was getting really tough on my self, when I've been reading lately that:

A) The average household debt in America is around $4,000, by some estimates, and I've heard worse.
B) The average household saves *less than 1% of their monthly income.* 1%!!!

What do these people think they're going to do when it comes time to retire? I don't know about you, but as much as I enjoy my job, I'm just pounding away until one day I can sit in front of the telly and eat bon bons. Ain't no work for me after 55, no matter what it takes. And I know with kids it's damn hard to save too, but somehow my parents managed to pack dough away here and there, even if it meant we had to go to --horrors!--state schools.

And here's a few real genuises, as quoted in the LA Times, about the housing equity craze ("Equity Is Altering Spending Habits and View of Debt," August 28th):

"If you paid your mortgage off, it means you probably did not manage your funds efficiently over the years. It's as if you had 500,000 dollar bills stuffed in your mattress.... [It's] very unsophisticated."
That's David Lereah, chief economist of--guess who!--the National Association of Realtors (or Really Disilusioned)

I see...so taking out a huge loan to take a vacay or buy a big telly is "sophisticated?" Adding on to already albatrossian loans with more debt? Smart homeowners already have managable mortgage payments (i.e., they didn't stretch themselves to buy in this overheated market) and use the equity to invest smartly in other properties, or to make home improvements that will add appreciable value to their home, or even use the new, low-interest/tax deductible debt to wipe out large credit card debts.

Luckily a Ms. Sandi Bandfield, interviewed in the LA Times article, got the memo about renting out property. Otherwise these anti-Mensa candidates woulda been screwed:

"Last year, the couple began talking about retirement. "We don't want to work forever, and someone's got to pay for this house," Bandfield said. "We have a nice life, but nothing in savings to speak of. I saw us relegated to a dinky gray condo in Las Vegas if we didn't do something."

Stocks? "I dabbled. I think I made $26 last year." Social Security? "It's piddly. Who wants to live like that?"

This woman is 55 years old, and is part of a two income household. She and her husband have "nothing in savings to speak of." WHAT HAVE YOU BEEN DOING WITH YOUR MONEY???

Turns out the Bandfields bought properties and rented them out. Not for the faint of heart, but when done with thought and enough time to spare, a very wise way to have retirement income.

If they hadn't? They wouldn't be able to retire.

PEOPLE!!!