Monday, March 20, 2006

Sitting on the biggest nest egg...

Thanks to Kara McGuire over @ Ka-Blog for finding the "A.G. Edwards Nest Egg Index." The "Nest Egg Index" ranks America's top 200 performing communities and the 50 states based on residents' personal savings, investing behavior and how well they nurture their nest eggs. The index is based on the average score being 100. And surprisingly my state, New Jersey, was #1 with an index rating of 114.35. The highest city was San Jose with a score of 128.37. Their methodology for the index was based on 12 statistical factors that affect or influence personal savings habits including…
  • Savings propensity (proportion of households in the area that have a savings product of any type – e.g., regular savings account, CD, IRA)
  • 401(k) retirement plan penetration
  • Non-401(k) retirement savings plan penetration (e.g. pension plans)
  • Investing propensity (proportion of households in the area that have any investment product or service, excluding 401(k) plans)
  • Net worth
  • Owner-occupied housing value
  • First mortgage balance
  • Personal debt level
  • Home Ownership
  • Household income
  • Cost of living
  • Local employment rate
You may already know this but it does also mention that America has a negative 0.7% savings rate which is the lowest in the industiralized world, down from 12.5% in 1981. That's the lowest since the depression. Keep learning and improving your financial knowledge and spread the word!

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