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SAVINGSSTRATEGIESSolvingAmericax19sSavingsChallengeHelpingAmericansGetonTracktoaMoreSecureFinancialFutureAmericanworkersarefacingchal-lengesonallfrontsx14apersistentlyweakjobsmarketdeclininghousingpricesrisingfoodandhealthcarecosts3.50pergallongasandthedauntingchallengeofmakingendsmeettodaywhilesavingfortomorrow.Evenmoredis-turbingisthatone-thirdofallAmericanhouseholdshavenoretirementsavingsbeyondSocialSecurity.TheweakeconomyandvolatilefinancialmarketshaveleftmanyAmericansunsurehowtoaddresstheirfinancialgoals.Manyhavelostconfidenceintheirabilitytosave.Theyfeeloverwhelmedbythechallengex14sotheydonx19teventry.WeneedtohelpAmericansnavigatetheirwaythroughthesedifficulttimesandgetthemontracktoamoresecurefinancialfuture.HerearefoursimplestepsthatcouldhelpAmericansincreasesavingsandretirementreadiness1.PreserveexistingIRAandworkplaceretirementprograms.Theseplansofferefficientconvenientandeffectivewaystosaveforretirement.WeneedtopreserveincentivesthatarehelpingAmericanssaveforretirement.2.ExpandtheSaverx19sCreditandmakeitrefundable.TheSaverx19sCreditisanon-refundabletaxcreditavailabletoeligibletaxpayerswhocontributetoemployer-sponsoredorgovernmentalretirementplansorTraditionalorRothIRAs.Itx19sagreatbenefitbutbecauseitisataxcredititx19snotavailabletoanyonewhodoesnx19thavefederaltaxliability.MakingtheSaverx19sCreditrefundablewouldbeapowerfulincentiveforsome45millionlow-andmiddle-incometaxfilerswhodonothaveanyfederaltaxliability.3.Automatethesavingprocess.Automaticallyenrollinginsavingsprogramsandautomaticallyincreasingfuturesavingsproducespowerfulresults.Afundamentalprincipalofbehavioraleconomicsisthatonceadecisionismadechancesarepeoplewonx19ttakeactiontoundothatchoice.4.Giveinvestorsfinancialeducationandguidancetheycantrust.ThecontinueduncertaintyinthemarketsinWashingtonandaroundtheglobehasinvestorsmoreconfusedthaneveraboutwhattodo.WemustensurethatAmericanshaveeasyaccesstofinancialeducationandguidanceandthatanypublicpolicyinitiativesinthisareanotcauseunintendedconsequencesbyrestrictingsuchservices.ThesizeandseriousnessofAmericax19ssavingschallengeiswidelyrecognized.Nowisthetimetogetmoreseriousaboutsolvingit.Successwillrequirethecoordinatedeffortsofallconcernedx14governmentemployersfinancialinstitutionsconsumergroupsthemediaandmostimportantlyofallindividuals.2AMERICASAVESwww.AmericaSaves.orgfactsMoneymarketaccount..................0.141-yearCD............................0.335-yearCD............................1.20U.S.SavingsBondsEEBond..............................0.60IBond................................3.06MortgageRates30-yearfixedratemortgage...............4.0215-yearfixedratemortgage...............3.385-yearadjustablemortgage...............2.97SourceTheWallStreetJournalBankRate.comFinancialMarketx1cThesizeandseriousnessofAmericax19ssavingschallengeiswidelyrecognized.Nowisthetimetogetmoreseriousaboutsolvingit.x1dThefollowingisanexcerptfromremarksbyRonaldP.Ox19HanleyPresidentAssetManagementandCorporateServicesFidelityInvestmentswhospokeattheNationalForumtoEncourageLower-IncomeHouseholdSavingsinOctober.