THERE IS AN "IRONCLAD" RULE / FACT OF LIFE: "IF YOU KEEP DOING WHAT YOUR DOING (CURRENTLY), YOU'LL KEEP GETTING WHAT YOU'VE BEEN GETTING!!" THEREFORE, UNLESS YOU DO OR BEGIN SOMETHING DIFFERENT, LITTLE INDICATED IN SECTION III1 WILL HAPPEN & HERE ARE SOME OF THE STATISTICAL REASONS WHY:

1. Americans have the lowest savings rate of virtually all industrialized countries, despite being the the richest = we're burning up / spending tomorrow's earnings (income / dollars) for today's use = far less for tomorrows financial needs!!
   1. More precisely, PERSONAL SAVINGS have FALLEN to the LOWEST MONTHLY LEVEL IN HISTORY, per the March 19, 2001 U.S. News & World Report:
      1. "The life savings of the average 50 year-old is only $2,300."
      2. According to a 1997 study by the Oppenheimer Fund: 1 in 7 women had nothing saved for retirement, of those that do, 1 in 3 owe more on their credit cards than they have saved.
2. Conversely, Americans have some of the HIGHEST CREDIT CARD BALANCES IN THE WORLD!!
   1. Also per U.S. News & World Report, Americans today have taken on a record- breaking amount of debt:
      1. "Total Household Debt - including credit cards, car loans, mortgages & student loans - topped 100% of disposal annual income (wages after taxes) for the VERY 1ST TIME EVER! Twenty years ago, 1982, it was only 67% of disposal annual income!"
         1. 40% of Americans spend more than they make.
      2. Re. Credit Cards, Americans CHARGED MORE than $1.5 Trillion (Total U.S. GNP - Gross National Product - was $10 Trillion), THAN THEY SPENT IN CASH / CHECK!!
         1. The average cardholder's outstanding balance was $4,400, up 124% while personal income rose only 72% = SPENDING FUTURE EARNINGS!!
         2. Total outstanding credit card balances = $675,000,000,000, yes that's BILLIONS!
         3. The average card holder CARRIES 9 (NINE) CARDS IN THEIR WALLET.
         4. According to Consumer Credit Counselors, it is not unusual for their clients to have 40 - 60 credit cards.
         5. 50% of all marriages end in divorce and in 80% of them, finances are the most significant issue.
3. Per Teresa Sullivan, co-author of The Fragile Middle Class: Americans In Debt, "THE GREATEST DANGER FOR PEOPLE RIGHT NOW IS THAT CAN'T PREDICT WHETHER THEY'LL BE LAID OFF OR HAVE OTHER EVENTS HAPPEN TO THEM."
   1. And the following gives CONCRETE EVIDENCE OF THESE FEARS:
      1. Boeing to cut 5,0000 more jobs, after the 30,000 they cut since 9/11 - L.A. Times 11/21/02.
      2. Alcoa to cut 8,000 jobs this year, after 10,000 cut in 2002 - L.A. Times 1/9/03.
      3. Kmart to close 326 stores resulting in 37,000 job loses - L.A. Times 1/19/03.
      4. Circuit City to slash 2,000 jobs & halt commission pay that will eliminate 3,900 sales positions - L.A. Times 2/6/03.
      5. Agilent Technologies to cut an additional 4,000 jobs for a total of 18,000 since 2001 - L.A. Times 2/22/03.
      6. Kodak to cut 2,000 jobs - L.A. Times 2/12/03
      7. Delta Airlines to shed 8,000 more jobs - L.A. Times 10/18/02.
      8. Sun Microsystems to cut 4,000 jobs plus "widespread" cuts in temporary & contract employees - L.A. Times 10/18/02.
      9. Electronic Data Systems (EDS) will cut 5,700 jobs - L.A. Times 10/21/02.
   2. Here is some NEGATIVE GENERAL ECONOMIC INFORMATION that conveys the same message:
      1. Battered by the slump in the commercial aircraft business, Boeing acknowledged a downturn in the airline industry could last well into 2004 - L.A. Times 10/17/02
      2. 120 top CEO's expect a sour 2003 U.S. economy and most expect to cut jobs and capital spending - L.A. Times 11/13/02.
      3. Jobless rate hovers at an 8-year high, 101,000 lost in December, 88,000 in November. The Department of Labor predicted the employment picture would remain weak until late 2003 or 2004 - L.A. Times 1/12/03.
      4. Many signs pointing to higher inflation that will mean lower purchasing power & portfolios for everyone - L.A. Times 1/19/03.
      5. Trade gap at a record $44.2 Billion. This means that exports from the U.S. floundered while imports surged. "There can be no question that U.S. manufacturing trade competitiveness continues to slip - L.A. Times 2/21/03.
4. CRITICAL CONCLUSION: Also from the U.S. News & World Report article, The Strong Investment Mutual-Fund Group found that 56% stated THEIR DEBT HAS HINDERED THEIR ABILITY TO SAVE FOR RETIREMENT!!
5. A tragic effect of the above: "Consumer Bankruptcies Climb By 15%, During The 12 Months Ending March 2002!!" - May 17, 2002 L.A. Times Business Section.
   1. Personal bankruptcies rose 3.5% to 369,237 during January - March 2002 (1st Quarter)!
   2. Personal & business bankruptcies for January - March 2002 (1st Quarter) were 379,012 and the 2ND HIGHEST EVER AFTER LAST YEAR'S RECORD (APRIL - JUNE 2001) OF 400,394!!
   3. Over 1,300,000 people filed bankruptcy in 2001.
6. 8,800,000 unemployed = 6%, the highest rate since Novemeber 2001. 4,800,000 part-timers looking for full-time work. 1,400,000 discouraged & not actively seeking work, but willing & available - Statistics from U.S. Bureau of Statistics.
   1. "There were 3,900,000 Americans claiming jobless benefits.....THE HIGHEST LEVEL IN NEARLY 20 YEARS!" - May 17, 2002, L.A. Times
7. According to the Social Security Administration (SSA), at age 65, 54% of the population will be DEPENDENT ON FAMILY OR THE GOVERNMENT, 5% will still BE WORKING and ONLY 5% will WILL BE COMFORTABLE WITH THE SAME LIFESTYLE AS WHEN WORKING......the 36% balance will have departed this life.
   1. More specifically according to SSA, 95% of those age 65 DON'T HAVE $600 in the bank!! Otherwise stated, "at age 65, the majority are EITHER DEAD OR DEAD BROKE"....and this is currently happening in the RICHEST COUNTRY THE WORLD HAS EVER SEEN!!!!!!
8. Time magazine cover story & article, dated July 29, 2002, "Will You Ever Be Able To Retire?" gives the following wide range of financial information for those retired, planning to retire and those thirty years away from retirement:
   1. "Stock prices have been in a 2 1/2 year slide that has left the market at a 5 year low."
   2. "Since the roaring 1990's when the stock funds were growing 18% per year, the current rate of return is around 7%, and this is after the S&P (Standards & Poors) fell 44% from its peak and in process, wiped out over $7.7 TRILLION IN INVESTMENT VALUE!!"
      1. "For many, the DECLINE IN THEIR INVESTMENT PORTFOLIOS (401K's, IRA's, Etc.) AMOUNTED TO 30% - 50%!!
   3. "Nearly 50% of all households DID NOT SAVE A PENNY LAST YEAR (2001)!
   4. "Revolving consumer debt over the past 5 years has soared 30%.
   5. "The median savings for baby boomers at age 55 is just $25,000, without accounting for debt!"
   6. "95% of people ages 55 - 64 and still working, plan to get another job after they retire, some because they want to, most because they don't have the money saved / invested to maintain their current lifestyle and they don't want less."
   7. "More than 40% of firms offering self-funded health plans for retirees will reduce benefits this year, according to Credit Suisse First Boston's study."
   8. "Meanwhile, college cost are going up 6% a year & health-care cost up 8%. Both far outstrip the expected 3% annual inflation rate over the next few years, and are taking a toll on boomers with college-age kids and dependent parents."
9. Again, regarding the 5% (100% - 95% without $600 in the bank per SSA) THAT IS LIVING THE "GOOD LIFE", HOW DID THEY MAKE IT HAPPEN?
   1. 74% of the 5% did so by OWNING THEIR OWN BUSINESS!! The vast majority of the balance (26% of the 5%) are the superstars of business, medicine, law, entertainment, sports, etc.