Why America Needs to Stop Living on the Edge ? - Gerard Santinelli

Long-term readers may be starting <strong>to</strong> worry if the onset of Winter is
leading <strong>to</strong> an unusually gloomy outlook in some of my recent
pieces.
In a previous article, I covered why now is a great time for
inves<strong>to</strong>rs <strong>to</strong> consider consolidating and battening down the hatches
in anticipation of what I predict will be s<strong>to</strong>rmy economic times
ahead.
While putting <strong>to</strong>gether my thoughts for
that piece I came across a piece by
Elyssa Kirkham which I found truly
alarming. The article’s main point in a
nutshell: 62% of <strong>America</strong>ns Have
Under $1,000 in Savings

That is a pretty as<strong>to</strong>nishing figure for the world’s largest economy
and points <strong>to</strong> structural weaknesses that make us much weaker as a
nation than we need <strong>to</strong> be.
The worry is that the distressing reality of most people’s personal
financial situations may well be reflected in that of the nation at
large. Two problems immediately spring <strong>to</strong> mind:
1. Struggling <strong>to</strong> get through the month With less than $1000
in savings, it’s clear that the majority of <strong>America</strong>ns are
potentially in financial difficulty on any given month.
2. No ability <strong>to</strong> make long-term plans: With effectively zero
cushion, it’s near impossible for most of these people <strong>to</strong>
take any sensible long-term plans in terms of retirement,
health provision or the education of their offspring.

As a nation, separate from the
triumphs of individual individuals like
Warren Buffett or corporations like
Apple, <strong>America</strong> is not in particularly
great shape economically and, with the
election cycle starting <strong>to</strong> grind in<strong>to</strong>
gear, that <strong>to</strong>pic really needs <strong>to</strong> be
moving up the political agenda.
Through a combination of hard-work, perseverance and a
sprinkling of luck along the way, I’ve been able <strong>to</strong> construct a
savings and investment strategy I’m confident can weather most
s<strong>to</strong>rms and keep myself and my family protected.

I’m keenly aware of just how hard that was <strong>to</strong> put <strong>to</strong>gether and
just how much comfort it gives me <strong>to</strong> know that at least some
sensible provisions are in place for the future.
The fact that the majority of <strong>America</strong>ns are not even on the first
rung of that ladder should be alarming for both our citizenry and
business and political leaders.One thing’s for certain, if you live
long enough on the edge, sooner or later you’ll fall over it. That’s a
fact <strong>America</strong> needs <strong>to</strong> wake up <strong>to</strong>.