Yesterday, Ben Bernanke backed plans for a second economic stimulus package. While it is unclear whether or not another stimulus check will be issued, as was done earlier this year, what is clear is that Democrats in Congress, Barack Obama are being supported by Bernanke and now President Bush in their calls for more money to be spent in an attempt to “rescue” the economy from a recession. (Disclosure: While I normally like Obama’s ideas on the economy, I’m not thrilled with this one.)
At any rate, this announcement comes at a time when Americans are really beginning to worry about their financial security. One of the findings from a recent COUNTRY Financial Security Index poll is this:
Overall, 32 percent are not confident they will have a comfortable retirement and 33 percent are not confident they can send their children to college, both up from 30 percent in August. Further, 45 percent were unable to save or invest recently and 19 percent are not confident they can pay their debts.
As one might guess, this growing finacinal insecurity is markedly higher amongst older Americans who are nearing (or in) retirement.
One of the troubling numbers as far as I am concerned is the 45 percent that is unable to save or invest. Now is a great time to invest — if you have the capital — because there are some great deals on the stock market. Of course, you have to have the long time horizon as well to effectively invest at this time.