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Alex Witt, CFA
Alex Witt, CFA
Prosperian Wealth Management Financial Advisor
https://www.prosperianwealth.com/ (937) 714-7649

A graduate of The Ohio State University with a degree in Accounting, Alex has spent his entire professional career in the financial services industry. The first 4 years of his career were in investment research covering Consumer stocks at Capital Group, Evercore ISI, and RBC Capital Markets in New York. After being introduced to Prosperian as a client, Alex joined the team in July of 2021 because of a desire to work in a role where he could make a more direct impact on the personal, professional, and financial lives of young professionals and families.

Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly owned subsidiary of Guardian. Prosperian Wealth Management, LLC is not an affiliate or subsidiary of PAS or Guardian. Prosperian Wealth Management, LLC is not registered in any state or with the U.S. Securities and Exchange Commission as a Registered Investment Advisor. AR Insurance License Number - 19960171, CA Insurance License Number - 4157156.

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U.S. Personal Savings Rate

Money Read Time: 2 min

The U.S. personal saving rate stood at 3.8 percent at the end of 2024, up slightly from the 3.7 rate at the end of 2023. The personal saving rate is the federal government’s estimate of what percent of their incomes U.S. households are saving. But market watchers and economists are mixed on what can be learned from swings in the saving rate.1

Why Economists Struggle

They struggle with the personal saving rate because it’s a derivative number – that is, it’s not measured directly. Instead, the Bureau of Economic Analysis derives the saving rate from other estimates. Here’s how it’s calculated:2

  1. The Bureau of Economic Analysis subtracts payroll and income taxes from personal income to get disposable personal income.
  2. The Bureau then subtracts its estimate of personal outlays, which include expenditures, interest payments, and payments, from disposable personal income to get an estimate of personal savings.
  3. The personal saving rate is calculated by dividing personal income by personal savings.


As currently structured, the U.S. Personal Saving Rate does not include capital gains from the sale of land or financial assets in its estimate of personal income. This effectively excludes capital gains – an important source of income for some.

Gaining Insight

Gaining a bit of insight into a popular economic indicator can help you better understand trends as they are discussed in newspapers and websites. However, don’t let your long-term savings program be influenced by a national number.

1. StLouisFed.org, 2025
2. BEA.gov, 2025

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

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