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Personal Savings in Decline

Image Source: St. Louis Federal Reserve

This is a little off the topic of small business but I think it affects each and every one of us.

An interesting discussion is taking place over at Vox Baby about personal savings.

According to the GDP Report, consumer confidence in the economy is up, yet personal savings is down.

In fact, the U.S. Personal Savings Rate has not been positive for the U.S. since March of 2005.

Some argue that this has to do with baby boomers funding higher education for their children.

Others suggest looking at income quintiles. “The topmost quintile is very, very confident that their income will stay high come what may. So why save?”

The personal savings rate does not include capital gains on investments as a method of saving.

William Gale, a tax specialist at the Brookings Institution in Washington, D.C., says the situation isn’t as bad as it seems and it’s a mistake to look at the personal savings rate and think it correlates with wealth accumulation.

“For wealth accumulation you need capital gains. … it is [important] to look at the right measurement. The personal savings rate is good as a national income accounting measure.”


“I wonder how it can be that with the Baby Boomer generation in the high-income and presumably high-saving part of its economic life cycle, we can possibly have negative saving rates for the population as a whole, if we are making decisions with any attention to the amount of consumption … in the future.”

Vox BabyThe End of Personal Saving?


Despite a favorable outlook, there are at least three widely acknowledged areas of near-term concern that could pose risks to the economy going forward: a spike in energy prices, a decline in home prices, and a retrenchment in consumer spending arising from record consumer indebtedness.

The public’s increase in debt in 2005 was far greater than its increase in after-tax income.

FDIC.govScenarios for the Next U.S. Recession


… research suggests that a group that includes approximately 10 percent of U.S. households may be at heightened risk of credit problems …

Not only do many borrowers in this group have pre-existing credit problems, they may also be more vulnerable than other groups to rising interest rates because of their reliance on interest-only and payment-option mortgages.

Gary North – The Next Recession


More Discussion and Information:

The Glittering Eye – Why is the savings rate so low?
Investment U – U.S. Personal Savings Rate
Bankrate.com – Savings in America: Retirement picture not as bad as it looks


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Fair Tax Legislation
Why Trump & Kiyosaki Want Us to Be Rich
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How the Bee Colony Collapse May Affect Your Business
Baby Boomers Expected to Lead Business Boom

By Chris Brunner
Friday, November 16th, 2018 @ 12:00 AM CDT

Money |

Business Email Etiquette

5 quick and easy email tips for entrepreneurs:

Looks matter
Formatting your emails in a professional manner will score brownie points with your clients.

Run a business, not an acquaintanceship
Respond to email requests promptly. I typically respond to emails within 2-3 hours of receipt.

Emotions have no place in business
Avoid using emotionally based words. Business is business and feelings aren’t of the essence.

Emoticons were created for a reason
Write clearly and to the point. The reader should immediately pick up on your tone.

Explanations go a long way
Your clients will be more attentive to buy if you fully explain the answers to their questions.

Recommended Reading:
Business Email Etiquette: Maintaining a Professional Image
Business Email Etquette Basics
Five Email Etiquette Tips for Better Communication


Related Small Business Buzz Posts:
How to Write an Effective Advertisement
Telephone Etiquette Tips – Handling Client Calls
Preparing for an IRS Audit
Starting a New Business
Choosing a Business Name

By Chris Brunner
Thursday, November 15th, 2018 @ 12:04 AM CDT

Networking |

Investing in Energy

Energy — in a variety of forms — has a continuous and direct effect on our daily lives from top to bottom.

At present, fossil fuels account for 86 percent of world energy consuption. By 2020, global demand for energy is expected to outpace current world production by nearly 40 percent.¹

Here’s my energy portfolio:

IGNAX – Ivy Global Natural Resources Class A
IGNCX – Ivy Global Natural Resources Class C

…and a new fund that I will be investing in today:

WEGAX – Waddell Reed Energy Fund Class A

…and I’m considering buying into this new fund:

GAAEX – Guinness Atkinson Alternative Energy Fund

I predict that industrialized nations will witness an accelerated use of fossil fuels for another 10-20 years. The price of oil and gas will soar and supply will diminish rapidly.

Within 5 years, I see focus moving to renewable energy and alternative energy research, development and infastructure on a large scale basis. This will set up another energy investment opportunity for lucrative returns many years down the road.

¹ EIA; BP Statistical Review of World Energy


Consult with an investment professional before taking part in any investment scheme.

Recommended Resources:

• Forbes.com – Forbes Energy News
• Evergreen Solar – National Council for Solar Growth
• Market Participant – A Balanced Energy Portfolio


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A Newer Way of Avoiding High Energy Bills
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By Chris Brunner
Wednesday, November 14th, 2018 @ 12:00 AM CDT

Money |