Nest Egg Index
Brokerage firm A. G. Edwards recently released its annual Nest Egg Index of 50 states and 500 communities. This is the third time that the firm used the index, which is determined by studying state residents’ personal savings and investing behavior, to measure How Well Americans Are Saving Money.
This year’s study found that communities with high nest egg score “benefit from local strong housing markets and show a high propensity toward saving and investing, particularly in retirement vehicles such as 401(k) or pension plans.” The reference to “strong housing markets” may indicate that the study was conducted before the subprime mortgage blow-out. The perception that housing is strengthening a family’s bottom line could change in next year’s survey if the housing market slump drags on. Meanwhile, the study also showed that residents in high ranking communities usually have a low debt level compared to the national average. According to the survey, this year’s top 5 high nest egg score states are:
- Connecticut (114.25)
- New Jersey (113.21)
- Minnesota (112.59)
- Massachusetts (112.19)
- Maryland (111.59)
Connecticut and New Jersey also occupy the top two spots as the nation’s wealthiest states in the latest Census Bureau Income, Poverty and Health Insurance survey published on August 28th.
In addition, A. G. Edwards also has a simple tool to estimate personal nest egg score. I did the estimation once last year and with exactly the same answers as I gave last year, my score is 10 points lower than that of last year. Try it and see what your nest egg score is. It’s not supposed to be accurate, but it gives you a rough idea on how you are comparing with the averaging in saving money
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