PERSONAL FINANCE

A rotten economy and a depressed stock market are not stopping Americans from saving for retirement, according to a study by Fidelity Investments. In fact, Americans are saving slightly more. And that is similar to findings from the 2001 dot-com bubble as well.

Fidelity, the country’s top provider of workplace retirement plans, analyzed 16,723 401(k) plans representing 11.5 million participants and found that the average pretax employee contribution increased by 1.4 percent in the first half of 2008, to $3,187.

If you limit the sample to employees who participated in retirement plans in 2007 and 2008, the average annual contribution grew by 7 percent, to $3,512.

The study didn’t address reasons for the rise, but Fidelity spokesman Mike Shamrell said the company believes that the “growing popularity of auto-increase functions” is a factor.

Auto-increase means that a company automatically raises an employee’s retirement contribution year-to-year or when a pay raise kicks in.

Baby boomers who are beefing up their savings as they near retirement could be another reason.

Buying foreclosed homes: Foreclosed houses are everywhere you turn in this market. But while their sticker prices are low, buying one can be a risky endeavor, mainly because you don’t have the same protections as for a conventional house.

From Consumer Reports magazine, here are four ways to protect yourself when buying a foreclosed home:

•Don’t pay a fee for property listings. You can find free information on foreclosed homes in your area by checking with a local agent. •Invest in a home inspection. The property may have been vandalized. Fixtures and appliances may be missing. Also, with utilities shut off it will be impossible to test for the water pressure in the shower. Try to arrange for the utilities to be turned on before you buy. •Don’t assume the sale is final. In some states, a homeowner may have up to 180 days after the foreclosure to pay any outstanding debts and reclaim the home even if it has been bought by someone else.

•Buy some title insurance, which will protect you against liens you might not know about and prevent a previous owner from making a successful claim on the house after you buy it.

From wire reports