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Of their pay a new survey by Bankrate dot com finds that -- sense of financial security believe it or not it's the highest it's been in seventeen months but my next guest says.
Jobs and stocks continued to be -- spots join me now is Greg McBride senior financial analyst for Bankrate dot com.
Find this surprising -- seventeen month high exactly what is that based on.
Well we see a few metrics actually never really shown some consistent improvement that savings for one people aren't at the level where their comparable what their savings.
But the reading has improved to five months in -- -- certainly moving in the right direction.
Not worth -- -- Begin the whether it's the buoyant stock market in the first quarter this year.
Or just the fact if people don't see the seeing continued erosion in home prices people also feeling better about their network and -- overall financial situations and of course debt.
People been chipping away at those debt burdens they've had bad debts discharged people's feelings about debt.
Better now than they've been at any time since June of last year.
It's pretty interest thing but people -- -- many cases since this financial crisis hit have been stopping their 401K.
Programs and they've.
Dipped into savings -- my you seeing that trend finish are now we seeing more back into 401K is not saving levels going up.
Well people are still very risk averse -- Mena and I think that's troubling because.
Not only are they more inclined to taken -- a conservative investment stance at a time when interest rates are record -- But people are not saving enough to justify.
There willingness to settle for low risk low return investments and I think that's a real issue particularly when you look at the increasing burden of retirement savings.
Even people that are under age thirty.
They were only slightly more inclined -- the overall population.
To invest in stocks right now despite the fact that they have decades long horizon until retirement and they have a greater burden of retirement savings than any other generation.
You mentioned housing prices -- off.
I guess you could say stabilize but there are those of Hussein is still have further to drop some of the people -- net worth is tied up in their homes.
Is that some how much of an issue is that -- people when they look at their finances.
I it's a big issue actually any particular what we look at those Billy age fifty -- -- We see that they have a much lower feeling about network.
Then the rest of the population a lot of that can be tied to two things one.
The house they've got a lot of their wealth tied up in the house and that house is worth a lot less now.
The other thing is savings they've accumulated savings but because.
Of these -- record that record low interest rates.
Their rates of return they're buying power continues to be -- each and every day and very quickly Greg is as bad news for on the US economy because we rely on the consumer to spend -- a -- Hanging onto their money a little longer.
Yeah a little bit but I'm I think ultimately what we've got a sees continued consistency in jobs and we need to see some income growth from -- CB incomes grow.
That's it -- gonna have a little more buying power jobs and income growth it would be nice all right Greg McBride of Bankrate dot com Greg thank you very much.