UNCOMMON CENTS 72

HOW MAY I CONVINCE YOU TO BEGIN NOW TO WRITE YOUR RETIREMENT SONATA WHEN EVEN THE LATE, GREAT ECONOMIST MILTON FRIEDMAN HAS SAID THAT THE "PRESENT SITUATION (LOW U.S. SAVINGS RATE) DOES NOT RAISE ANY PROBLEMS FOR THE ECONOMY?" FIRST, REMEMBER THAT MILTON SPEAKS IN TERMS OF MACROECONOMICS. YOUR LITTLE, LIFE DEALS WITH MICROECONOMICS. DEPOSITS INTO SOCIAL SECURITY AND 401 K PLANS, GROWTH IN EQUITIES IN YOUR INVESTMENTS, THE INCREASING VALUE OF PRIVATE HOMES, CORPORATE INVESTMENT AND GROWTH - ALL CONSTITUTE SAVINGS FOR THE COUNTRY AS A WHOLE AND FILL IN THE BIG (MACRO) PICTURE. AS MILTON PUT IT, "THE RIGHT SAVING RATE IS WHATEVER SATISFIES THE TASTES AND PREFERENCES OF THE PUBLIC IN A FREE AND UNBIASED CAPITAL MARKET." BUT IN TERMS OF THE DRAMA ON YOUR SMALL STAGE, WHAT ARE YOUR INDIVIDUAL (MICRO) SAVINGS? BESIDES ANY MANDATORY INVESTMENTS WITHDRAWN FROM YOUR PAYCHECKS, PERHAPS YOU OUGHT TO CONSIDER SAVING MONEY TO INVEST, LONG-TERM, IN A RETIREMENT FUND. AN INVESTMENT ENTITY, VANGUARD, FOR EXAMPLE, SPONSORS A DIVERSIFIED PORTFOLIO OF FUNDS THAT HELPS YOU BEGIN TO ACCOMPLISH YOUR GOAL OF FUTURE, FINANCIAL INDEPENDENCE BEYOND THE SOCIAL SECURITY BENEFIT OR THE IRRESPONSIBLE GOVERNMENT (OTHER CITIZENS' MONIES) HANDOUT.

THIS IS NOT THE DAWN OF THE INDUSTRIAL AGE. A MANUFACTURING ECONOMY IS BEING REPLACED BY A SERVICE ECONOMY. JOBS ARE CHANGING. GRANTED THE WEALTHY CAN SUPPORT AMERICAN-MADE $6,000 SONY GRAND WEGA TV'S AND $10,000 SUB-ZERO PRO 48 REFRIGERATORS, BUT TRAVEL INTO THE FUTURE WILL BE ON THE INFORMATION HIGHWAY. INFORM YOURSELVES, THEREFORE, ABOUT SAVING AND INVESTMENT. WHY? IT'S THE RESPONSIBLE THING TO DO. EVEN THE PRESIDENT, GEORGE W. BUSH, IN HIS STATE OF THE UNION SPEECH ENCOURAGES INDIVIDUAL RESPONSIBILITY BY SUGGESTING A TAX DEDUCTION FOR HEALTH COVERAGE PURCHASED OUTSIDE THE WORKPLACE. HIS MESSAGE - YOU TAKE CHARGE!

MILTON FRIEDMAN'S EXPERTISE LOOKED AT THE BIG PICTURE OF THE U.S. ECONOMY. IT'S UP TO YOU TO LOOK IN THE MIRROR AND ASK COGENT QUESTIONS ABOUT YOUR PATTERNS OF SPENDING. THE COUNTRY WILL DO THE RIGHT THING IF MARKET FORCES ARE ALLOWED TO FUNCTION. ARE YOU PERSONALLY DOING THE RIGHT THING FOR YOUR FINANCIAL SELF-PRESERVATION?

HINT: $50 BANKED FOR 50 YEARS REAPS A $284 RETURN. $50 INVESTED IN THE U.S. STOCK MARKET FOR 50 YEARS, REAPS A WHOPPING $1,952.