On a recent post tilted “Perfect Storm” I wrote of the impending economic storm that is beginning to form in the American economy. In fact, this storm is brewing in most industrialized nations (thank you Margaret – if anyone still thinks all Americans are rich just look at last years hurricane disaster in New Orleans!). The largest generation is getting older and the working population is getting smaller. The economic systems are not broke; they are just not designed to operate in the global climate of tomorrow.
From the outside the United States and Europe appear to be on separate economic tracks. The U.S. is hard and fast a market-driven economy and Europe leans towards socialist governance. Economist will go on and on about the underlying conditions, but in its simplest form America lets the markets and business dictate the economic path (for the most part) and Europeans elects officials to dictate social welfare. Government retirement is about the same, only the delivery vehicles differ. The European governments rely on a high tax base to delivery retirement benefits to its citizens. America incentives come in the forms of business pension funds and tax-deferred savings plans (made popular by the Employee Retirement Income Security Act (ERISA) of 1974 and to a lesser degree government retirement or social security (Great Depression Era reform and outdated).
This is what we are taught in school and at home!
This is all changing. The European form of social welfare worked well when 80% of the population was supporting 20% of retired citizens. You see this in France where students are actual demonstrating to keep the ‘status quoi’ workers benefits. Governments are recognizing that the current model will not hold far into the future. America is no different, except the deterioration can be seen in the collapsing corporate pension funds, United Airlines being the most infamous. IBM has also recently address there pension concerns by closing the pension to new employees and offering tax-deferred saving plan in its place.
Time to wake up and smell the coffee!
The economies are now globalizing and as change besets the western nations a new economic model is emerging. The economic models are changing and we need to change too! Change is inevitable. Change is also the enemy of retirement planning, but change must be embraced.
What now?
Education is the key. Financial education! We must learn financial skills and take personal responsibility for our financial well being. We must also incorporate financial education in our school systems. When I was in the 4th grade my class had a year long project to select stock on the American Stock Exchange and follow them throughout the year. I was 7 years old and had my first investment class. It was also my last financial lesson in the US educational system!
It is time to build your financial shelter.
Learn a financial skill that will take you forward and allow you to prosper in this rapidly emerging global economy. Don’t expect anyone to take care of you. Financial markets (Forex), real estate, and internet business are my choices. I use forex and my internet business for cash flow and real estate for wealth building. I cannot emphasize enough the importance of education. When I was younger I use to sell stereo equipment at a retail store. It would amaze me that people would spend 80% of their budget on the components and 20% on speakers. Ultimately it is the speakers that produce the sound you hear and should command the majority of your budget. Same thing is true about your financial education. No matter what happens, it is your knowledge that will allow you not only survive the changing economy, but to prosper!
I heard a story once that less than 1% of the world’s population controls 99% of the wealth. If you took all the money in the worlds and divided it up equally amongst the earth’s citizens than within a year that 1% would control 99% of the wealth again. Why? It is because the 1% have financial literacy. Isn’t it time we learn those financial skills!
Happy Trading!
For your forex education, visit me at FX Trainer!
From the outside the United States and Europe appear to be on separate economic tracks. The U.S. is hard and fast a market-driven economy and Europe leans towards socialist governance. Economist will go on and on about the underlying conditions, but in its simplest form America lets the markets and business dictate the economic path (for the most part) and Europeans elects officials to dictate social welfare. Government retirement is about the same, only the delivery vehicles differ. The European governments rely on a high tax base to delivery retirement benefits to its citizens. America incentives come in the forms of business pension funds and tax-deferred savings plans (made popular by the Employee Retirement Income Security Act (ERISA) of 1974 and to a lesser degree government retirement or social security (Great Depression Era reform and outdated).
This is what we are taught in school and at home!
This is all changing. The European form of social welfare worked well when 80% of the population was supporting 20% of retired citizens. You see this in France where students are actual demonstrating to keep the ‘status quoi’ workers benefits. Governments are recognizing that the current model will not hold far into the future. America is no different, except the deterioration can be seen in the collapsing corporate pension funds, United Airlines being the most infamous. IBM has also recently address there pension concerns by closing the pension to new employees and offering tax-deferred saving plan in its place.
Time to wake up and smell the coffee!
The economies are now globalizing and as change besets the western nations a new economic model is emerging. The economic models are changing and we need to change too! Change is inevitable. Change is also the enemy of retirement planning, but change must be embraced.
What now?
Education is the key. Financial education! We must learn financial skills and take personal responsibility for our financial well being. We must also incorporate financial education in our school systems. When I was in the 4th grade my class had a year long project to select stock on the American Stock Exchange and follow them throughout the year. I was 7 years old and had my first investment class. It was also my last financial lesson in the US educational system!
It is time to build your financial shelter.
Learn a financial skill that will take you forward and allow you to prosper in this rapidly emerging global economy. Don’t expect anyone to take care of you. Financial markets (Forex), real estate, and internet business are my choices. I use forex and my internet business for cash flow and real estate for wealth building. I cannot emphasize enough the importance of education. When I was younger I use to sell stereo equipment at a retail store. It would amaze me that people would spend 80% of their budget on the components and 20% on speakers. Ultimately it is the speakers that produce the sound you hear and should command the majority of your budget. Same thing is true about your financial education. No matter what happens, it is your knowledge that will allow you not only survive the changing economy, but to prosper!
I heard a story once that less than 1% of the world’s population controls 99% of the wealth. If you took all the money in the worlds and divided it up equally amongst the earth’s citizens than within a year that 1% would control 99% of the wealth again. Why? It is because the 1% have financial literacy. Isn’t it time we learn those financial skills!
Happy Trading!
For your forex education, visit me at FX Trainer!
