That's the essence of a recent report by Ernst and Young. The study says that you'll have to drastically reduce your standard of living right now if you plan on a comfortable retirement. It's too late for many. They will never be able to stop working and some will even face destitution in later life.



We live in a consumer society and you are urged to spend your money as quickly as possible. Buy lots of expensive toys just like all your friends and neighbors. Your spending is what drives the economy, right.

Yes, but all that spending with little saving is also driving a large portion of the population to the front door of the poor house.

Listen to this from the report: "Married couples relying on income aside from Social Security and making $75,000 at retirement have a 31% chance of running out of money. Those who rely on only Social Security have a 90% chance of ending up broke."

Don't count on much help from the government. Washington already is running on money borrowed from the Chinese. What do you think the politicians can do for those 77 million baby boomers who will be hitting retirement age over the next few years? Not much, but they will come after the few that have planned well for more tax money. After all, isn't that what every government does to remain in power? Take from those who saved their money and give it to those who didn't.

Is there a solution? Yes, but it's not government. Each of us can take control of our lives and incomes. How can you do that?

1. If you have savings or accumulated wealth get some of it out of the country. By opening an offshore bank account you can make investments that have a much greater return than most of those offered in the U.S. Yes, you still must pay U.S. taxes on all income, but with a little research you can earn considerably more income.

Another idea is to buy offshore real estate. There are areas in Latin America where property values are increasing by 20% yearly, and you can do tax deferred exchanges of foreign property for foreign property. You'll find beach front lots for $40,000 and condos for $70,000 in some areas. They aren't making anymore beach front property, but you can find plenty reasonable priced in Mexico, Panama and Uruguay… among other places.

2. The Ernst and Young report suggests that most people in the U.S. must cut their spending by as much as 37% if they expect to live well in retirement.

A better idea is to increase your income by 37%. You can do that digging in and learning how to profit with real estate or stocks. If you don't have a nickel to spare you can develop an internet income. With a little learning you will find you can start making money online with almost no cash investment and the sky is the limit on how much you can earn.

Every one of us has been blessed to be living in the U.S., but there is change afoot. Most people don't realize that the transition to a global economy means we each will have to make some major adjustments in our thinking, living and investing.

Pay now or pay later. It's time to build your income and protect what you have. Do it now, so your story can have a happy ending.