Hmmm...

1. Of the 43% of Americans that have calculated the amount of assets needed for retirement, only 3% of that group believes an accumulation of at least $2M will be required (source: USA Today).
2. If the price of a gallon of milk is $3.89, then a barrel of milk would cost $163.38 (1 barrel equals 42 gallons). The price of a barrel of oil closed last week at $96.32.
3. The average retired American couple will receive a monthly Social Security benefit check of $1,761 in 2008, equal to an annualized total of $21,132 (source: SSA).
4. 1 out of every 29 mortgages in the USA was delinquent with their required monthly payment at the end of the 3rd quarter 2007. At the end of 2005, the ratio was 1 out of every 48 (source: Equifax, WSJ).
5. The average cost for 1-year of college education at an in-state public college is $13,589 for the 2007-08 school year (tuition, fees, room and board). The total 1-year cost has increased 6.5% per year over the last 30 years. If that same annual rate of inflation continues into the future, then a 5th grader today will ultimately pay $100,000 for his/her 4 years of public college education durig the years 2015-19 (source: College Board).
6. The average before-tax income for US households that have a net worth of at least $1 million (not counting the equity in ther primary residence) is $209,000 (source: Money Magazine).
7. The top 1% of Americans (ranked by gross income) earn 21% of all income in the USA (source: BusinessWeek, IRS).
8. The Pension Benefit Guranty Corporation took over 110 failed pension plans in the 2007 fiscal year, up from 94 in 2006 but less than the 120 termainated pension plans in 2005 (source: PBGC).
9. The richest person from China's 1.3 billion citizens is Yang Huiyan, a 26 yr old woman who graduated from Ohio State University in 2005. There are only 14 Americans worth more than Yang's $16 billion net worth. Her family made their money in REAL ESTATE (source: Forbes).
10. 52% of American households have saved $25,000 or less for retirement (source: AARP).
11. Only 8% of workers are saving at least 15% of each paycheck for retirement (source: Principal).
12. There are 22 million American workers that have access to employer-sponsored 401(k) plans and have chosen not to participate (source: ICI).
13. Inflation has increased the level of prices in the US +81% over the last 20 years, an annual increase of +3%. Which means an individual retiring in 1987 on a fixed-income would have only 55% of the purchasing power today that he/she originally had (source: Dept. of Labor).
14. Although the gross value of the average American's primary residence makes up 29% of a households total assets, the value of an average American's home equity is equal to only 19% of the household's total net worth (source: Federal Reserve).
15. Do you consider the value of home equity when creating client asset allocation plans? 38.5% said YES - 61.5% said NO (Opinion poll answered by Financial Planners source: Investment News 08/07)

Questions to ask yourself...

• What are your financial goals?
• Is your mortgage and debt structured correctly?
• Do you need a college savings plan?
• When do you want to retire?
• Do you have enough life insurance?
• Are you protected from estate taxes?
• Most importantly...is your own family protected?

Think about it...

• 75% of workers age 55 - 64 have less than $56,000 for RETIREMENT.
• The average monthly Social Security BENEFIT is $963 per retired worker.
• 77% of workers say they will work during retirement - only 12% DO.
• 97% of US families do NOT have a current COLLEGE savings plan in place.
• 65% of Americans need their next paycheck to meet LIVING expenses.
• 20% of Americans have credit cards that are maxed out.
• 94% of families do NOT have a WILL which is the only way to protect their children
• In 2005, personal SAVINGS were negative (1.00%) for the first time since the depression (which oddly enough was the last time our home prices were in decline), it has been averaging 12%

Chicago Federal Reserve Board released this article at the end of 2005

'We show that a significant number of households can perform a tax arbitrage by cutting back on their additional mortgage payments and increasing their contributions to tax-deferred accounts. We show that about 38% of US households that are accelerating their mortgage payments instead of saving in tax-deferred accounts are making the wrong choice. In the aggregate, these misallocated savings are costing U.S. households as much as $1.5 billion dollars per year.'

Your future at 65 years of age...

• 22% must work
• 28% will rely on Social Security income
• 45% will depend on children & family
• 4% will have their basic needs met
• 1% will be financially independent
  • 74% are real estate investors