FDIC Calls Upon American Consumers to Save and Build Wealth

The Federal Deposit Insurance Corporation (FDIC) is encouraging consumers to take actions to save toward financial goals during America Saves Week. FDIC Chairman Martin J. Gruenberg today said, “Saving money in a federally insured bank account is the safest way to build savings for emergencies or future dreams. During America Saves Week, I encourage everyone to set a savings goal and work with an insured financial institution to meet their goal.”

During the annual America Saves Week, consumers are encouraged to assess their savings progress and take action to advance this progress. The theme of the 2013 week is “Set a Goal, Make a Plan, Save Automatically.” Ways to save automatically toward a goal could include establishing regular transfers into a savings account and making regular contributions into a retirement plan. People who regularly save even small amounts will be amazed at how quickly their investment grows over time as a result of compounding.

The FDIC’s research shows that 30 percent of American households do not have saving accounts, a much higher percentage than those who do not have transaction accounts, such as checking. Savings accounts are vital for dealing with unexpected emergencies and expenses, or predictable life events such as college or retirement. (See The 2011 Survey of Unbanked and Underbanked Households, http://www.economicinclusion.gov/surveys/2011household/.)

Consumers can jumpstart their savings commitment by allocating a portion of any tax refund into a savings account or savings bonds. Low- and moderate-income taxpayers may be able to obtain free tax help from an IRS-trained volunteer through a Volunteer Income Tax Assistance (VITA) site—contact the IRS at call 1-800-906-9887 to find a nearby site.

To learn more about America Saves Week and about savings-related resources from the FDIC, please visit http://www.fdic.gov/deposit/deposits/savings.html.

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President Obama: Please keep promise to protect Social Security

Two years ago, President Obama stood up during his State of the Union address and said something we can both agree on: we should strengthen Social Security without cutting the benefits of current retirees.

But just over a month ago on Meet the Press, the president said: “One of the proposals we’ve made was something called Chained CPI… an adjustment in how inflation is calculated on Social Security.” It sounds simple, but this shortsighted change will mean $112 billion in cuts to Social Security over ten years.

President Obama needs to keep his promise. The chained CPI proposal would lower the yearly cost-of-living adjustment (COLA) for current retirees, leaving them struggling to keep up with the rising cost of prescriptions, utilities, and health care.

I just told President Obama to keep his promise to protect seniors on Social Security. Will you join me? It only takes a minute.


Posted in TheFutureWay Business by with comments disabled.