Savings Rate Near Record Lows
Chart of the Week for August 12-18, 2005
The above chart illustrates personal savings as a percentage of disposable income through July 2005. While personal income growth exceeded expectations by rising 0.5% for the month of July, the savings rate fell to the second lowest rate on record to 0.0%. Growth in wage income was up a mild 0.2%, with rental income continuing to decline for the month. Improving labor markets are expected to provide support for future wage growth as rising interest rates may decrease the willingness of consumers to use debt to support spending. Support of wage growth will be a contributing factor in helping to raise the savings rate from these near record lows.
This information is being provided for educational purposes and is not intended to be construed as or relied upon as investment advice. ICMA-RC does not offer specific tax or legal advice. Individuals are advised to consider any new investment strategies carefully prior to implementing. Past performance does not guarantee future results. Investment returns and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data illustrated. For performance data current to the most recent month end, contact ICMA-RC Services, LLC by calling 1-800-669-7400 or by writing to 777 North Capitol Street, NE, Washington, DC 20002-4240, or by visiting www.icmarc.org. Please consult both the current Vantagepoint Funds prospectus and MAKING SOUND INVESTMENT DECISIONS: A Retirement Investment Guide carefully for a complete summary of all fees, expenses, charges, financial highlights and investment objectives, risks and performance information prior to investing any money. Vantagepoint securities are distributed by ICMA-RC Services LLC, a broker dealer affiliate of ICMA-RC, member NASD/SIPC. For a current prospectus, contact ICMA-RC Services LLC, 777 North Capitol Street NE, Washington, DC 20002-4240. 1-800-669-7400. AC: 0705-124