The Commerce Department reports a surprisingly low American savings average of under 2% and for those who are dutifully socking away 10% of their pretax income it may not be enough.
Jonathan Clements:

Just when folks ought to be saving more, they are saving less. Trouble ahead? You’d better believe it.
Yes, I have heard all the arguments about how the true savings rate is higher than the 1.3% calculated for 2004 by the Commerce Department’s Bureau of Economic Analysis, or BEA. But don’t let that distract you from the bigger issue.
In a world of disappearing company pensions, skimpy bond yields, rich stock valuations and rising life expectancies, anybody interested in a comfortable retirement should be saving a truckload of money every year — and yet most folks aren’t.
Rate debate. Among pundits, belittling the official savings rate has become something of a national pastime. Some of the arguments seem a little suspect, like the suggestion that buying televisions, cars and other consumer durables ought to be considered saving rather than spending.

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1. There is only one long term investment objective, maximum total after tax return. More here.

Kathleen Pender:

Q: What is your favorite part of the stock market today?
Sauter: I think you should have some international investments. I think we are going to see foreign economies start to pick up. International funds have risks that U.S. investments don’t have. I wouldn’t throw caution to the wind. I would use them as a diversifier. I would include emerging markets.
Q: If you could buy only one fund, what would it be?
Sauter: Vanguard Total Stock Market Index.
For first-time investors who want one complete investment, we’ve got our Balanced Index fund, which is 60 percent Total Stock Market Index and 40 percent Total Bond Market Index.