The Importance Of The American Dream

1628 Words7 Pages
The American Dream, an ideal first defined by James Truslow Adams in the 1931 novel Epic of America. Adams (1931) defined the dream as, "The American Dream is that dream of a land in which life should be better and richer and fuller for everyone..." (p. 214). The dream of our ancestors has not changed with the passage of time, but achieving the dream has become much more difficult for the average American. Reviewing data compiled the last few decades paints a bleak picture, wage disparities have increased, savings rates fell, pension plan failures have increased, and benefits provided by private defined benefit plans and the US Government continue to see reductions. These sobering fact drive home the need to ensure your own financial…show more content…
This lack of knowledge translates directly into lower saving rates and investment habits. Currently, less than 48% of adults in the Unites State has savings invested in stocks, one of the best potential options to accumulate funds for an emergency, or retirement. Various options do exist, however, to aid an individual uncomfortable with investing. A passive investor could utilize a broker, a broker is a representative who buys and sells investments on behalf of an individual. However, brokers can be quite expenses to engage as they receive commissions on each buy or sell transaction they execute. Using a broker has other potential drawbacks, an unscrupulous broker may engage in excessive trading to line their pockets with commissions, in a practice known as churning. In addition, a broker may steer you towards investments that are in the brokerage firms ' best interest, not yours. A potentially less risky option available for investing is to work with an advisor. An advisor provides recommendations, generally do not receive commissions, but receive compensation on a percentage of invested assets. Many excellent firms will provide investment advisory services, but these services often entail a range of fees. The median fee range is, .50% for high net worth clients to 1.50% for clients with smaller account balances on top of hourly fees. Herein lies the bad news for those with smaller investment account balances, the fees charged are taking a much
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