Adding savings rate on finance request format?

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Adding savings rate on finance request format?

Postby staythecourse » Fri Dec 21, 2012 10:51 am

Not sure what we call the link that we ask folks to follow when they ask for advice on their personal finances, but think we should add another line asking how much one saves. This could simply be the % of gross saved.

Many papers have shown savings rate is MORE important then even asset allocation yet we don't even inquire about it when answering folks financial questions.

What do folks think?

Good luck.
Last edited by staythecourse on Fri Dec 21, 2012 10:55 am, edited 1 time in total.
...we all think we're above average investors just like we all think we're above average dressers... -Jack Bogle
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Re: Adding savings rate on fiance request format?

Postby sscritic » Fri Dec 21, 2012 10:54 am

Why do we want to know about your fiancé? :)

Oh, I just got it. You are filling out a fiancé request form, so you need to tell him how much you are saving. Saving is very attractive to the other sex.
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Re: Adding savings rate on fiance request format?

Postby staythecourse » Fri Dec 21, 2012 10:56 am

sscritic wrote:Why do we want to know about your fiancé? :)

Oh, I just got it. You are filling out a fiancé request form, so you need to tell him how much you are saving. Saving is very attractive to the other sex.


Good catch!!
...we all think we're above average investors just like we all think we're above average dressers... -Jack Bogle
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Re: Adding savings rate on finance request format?

Postby livesoft » Fri Dec 21, 2012 11:03 am

A problem is that people define savings rate many different ways.

You got your numerator to which some folks might add payments to mortgage principal and employer 401(k) match and you got your denominator to which some folks will subtract payroll taxes and health insurance premiums.

Plus a whole bunch of other stuff for both the top and the bottom. But the standard request does ask for future annual contributions.
It's all about short-term opportunistic rebalancing due to a short-term change in one's asset allocation, uh, I mean opportunistic rebalancing, uh I mean rebalancing, uh I mean market timing.
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