When is it too late to start over?

Let's say you've been living on the edge, in the moment, for the last 10-20 years, spending every dollar of your pay cheque, and all of a sudden, you want to start saving/investing for a brighter future (ie. a home, car and family).

When is it too late? Some say it's never too late, but I seriously think one's hopes of a financial turn-around are miniscule at the age of, say, 90. Some also say you can go bankrupt before you're 30 because you will still have time to turn things around, but to me this just seems like some random figure plucked out of thin air.

So when do you think it is too late to start over?

Hi Tyler,
A question I've often agonised over, but as my Grandfather kept telling me [someone I respect, the stuff he had to endure], "What you lose on the slide you may pick up on the marry-go-round"
....But only if you keep moving & focussing on what you want, not what you don't want, & sometimes life just might surprise you with it's ability to oblige you.

Easier said than done I guess.

Vicki
Wily ole bugger had 105 acres we never knew about.

Tyler, quite obviously at 90 you're not going to change anything.

Up to retirement age, though, I believe it's possible to start over, as you put it.

It's a bit of a vague question unless you give us a bit more detail about your circumstances.

Tyler Durden said:

Let's say you've been living on the edge, in the moment, for the last 10-20 years, spending every dollar of your pay cheque, and all of a sudden, you want to start saving/investing for a brighter future (ie. a home, car and family).

When is it too late? Some say it's never too late, but I seriously think one's hopes of a financial turn-around are miniscule at the age of, say, 90. Some also say you can go bankrupt before you're 30 because you will still have time to turn things around, but to me this just seems like some random figure plucked out of thin air.

So when do you think it is too late to start over?

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Once you go bankrupt mate is the best time to start over.

Or after a divorce or some other life threatening experience such as a brown snake bite.

Or an invitation to run as a Labor candidate for State Parliament in NSW or Queensland.

gg

I'd say you'd have Zero chance of Hedging your bets

When you think its too late ----then its too late!

Let's say you've been living on the edge, in the moment, for the last 10-20 years, spending every dollar of your pay cheque, and all of a sudden, you want to start saving/investing for a brighter future (ie. a home, car and family).

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Sadly those who are described above dont have a clue as to HOW to build a financial future.

Without the ability to.
(1) Recognise opportunity.
(2) Knowing how to take advantage of that opportunity.
(3) Knowing how to mitigate risk.
(4) DOING IT!

Your doomed at any age.

Uncle Festivus said:

I'd say you'd have Zero chance of Hedging your bets

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Yes, very pertinent Uncle. And the first rule of fight club is....

Are you the same Tyler Durden with the gift of juxtaposing the backdrop of the reality with the fiction. Looks like Credit Suisse got it wrong

http://www.zerohedge.com/article/credit-suisse-gold-supply-and-demand-forecast

Credit Suisse Gold Supply And Demand Forecast; And Why Clients Should Sell Their Gold To CS

"Such optimism, even as the global economy is poised on the edge of the double-dip. On the other hand, we wonder who Credit Suisse recommends its clients sell their gold to? Could it be... Credit Suisse?"

If you are 30 years old, single, no kids and able to gain above average income through employment (by working longer hours, relocating and working in the mines, changing careers etc) then you have a very sound basis from which to start over.

In that situation, it will be no big deal to focus on finances first, since you have nothing else that "must" be considered and should be able to earn income vastly in excess of necessary spending, putting that surplus into investments. In short, "live to work" for a while, invest the money and pretty soon you'll be in a decent position.

But if the same 30 year old is married, has 2 or 3 kids and a huge mortgage then it will be incredibly difficult to achieve a major change. You have to keep earning an income each week to pay the mortgage which makes any major career change, which may involve study and/or a short term drop in pay, difficult. Longer working hours are likely out of the question due to family responsibilities, likewise relocation to some remote area that just happens to have a high paying job is also not an option for most.

Both could make the same investments, but in the first example contributing $1000 per week of savings is reasonably attainable given a determination to do so, indeed some will be able to achieve far greater amounts than that. But very few in the second category would be able to come anywhere near $1000 per week, indeed $1000 a year would be optimistic for many.

In theory, someone in the second scenario could use borrowed money to invest. But to do so would involve truly massive leverage, and consequent risk, given that they are not likely to have any of their own money to invest now or for the foreseeable future. Possible it is, but harder.

So I'd say the answer is not so much about age per se, but about overall situation in life. Major life changes are easy when you are 20, but it gets harder as all sorts of committments come along. That applies to career, investment, travel etc - all much easier when you have only yourself to consider.

At 90?

Man, Just enjoy the sun coming up each day. Don't sweat the big stuff

Smurf1976 said:

If you are 30 years old, single, no kids and able to gain above average income through employment ... then you have a very sound basis from which to start over.

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Smurf1976,
Thoughtfull reply.

Many years ago I had 3 children, a mortgage and a modest income.
The children grew up, left home ... the mortgage got paid ... now I am trying to start over.

tech/a said:

When you think its too late ----then its too late!



.

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This I Totally agree with.

Sadly those who are described above dont have a clue as to HOW to build a financial future.

Without the ability to.
(1) Recognise opportunity.
(2) Knowing how to take advantage of that opportunity.
(3) Knowing how to mitigate risk.
(4) DOING IT!

Your doomed at any age

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This i Totally dont agree with

People can learn and actually follow anothers postive influences into their own succesful and life changing path.

NEVER

Tomorrow is the first day of the rest of your life.

What you do with it is up to you. If there is a will there is a way.

Go after your dream. Nobody is about to hand it to you on a platter.

Merry Xmas and a happy new year to you all.

Sadly those who are described above dont have a clue as to HOW to build a financial future.

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Nun This bit OR

Without the ability to.
(1) Recognise opportunity.
(2) Knowing how to take advantage of that opportunity.
(3) Knowing how to mitigate risk.
(4) DOING IT!

Your doomed at any age

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This bit
OR
Both bits?

Both m8

Both can be learned if the individual truthfully wants to

Not just lip service but actual commitment to knowledge and change

nunthewiser said:

Both m8

Both can be learned if the individual truthfully wants to

Not just lip service but actual commitment to knowledge and change

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But as we all know not all do. In fact the larger majority Dont.
Statistics tell us that very few will be able to retire without a pension.
Many live just below or just above the poverty line.

While wealth strategies can be learned few are in the position to take advantage of them.
Even fewer with enough entrepreneurial skill to have the Cohunas to make financial decision which have the potential to alter their lives.

Its a fine line.
You need enough to make a difference in your situation (capital base) a decent one of 200K + takes most people half a working lifetime.
Putting it on the line to perhaps bringing it up to $1mill as an example would be beyond most investors.
Hence the top 5% who have 1 mill+ have much more than money in their reportage.

I hear you screaming---but who needs a Million?
I can be very comfortable on much less.

I ask
How comfortable and for how long?

last year aged 43 i had to start all over again,i was left with a 26 year old car & luckily a credit card with $9,000 on it.now 14 months later im going real good.BUT!

im on my own no children,mortgage.just had to start from scratch again.heres how i did it.

it gets down to how desperate you are whether its a complete restart like mine or losing all your cash & having to get yourself up again.

i took stock & said right tb whats first.get a place to live...that took me 4 weeks so i went without 4 weeks pay plus living expenses meant cash runs out quickly.

i furnished it with not all the poser $5,000 sofas & the other expensive gear,just the basic fit out which including bond & living expenses saw all my cash gone.

i took the first job i could get & it was crap,long hours 100+ a week & the money was crap as well.BUT it gets back to how hungry you are.i was looking out for better work, less hours for more money.i remembered what bart cummings said when he got into money troubles.

he said "the harder you work the luckier you get"...i got offered a really top job,took it asap & been there since.the first 9 months i never saw a cracker myself it just kept paying everything,but i said george just put your head down & arze up,until i went fulltime after 4 months i never said no to anything,i worked all last christmas.

once i went fulltime i got a new car (got $2,000 for my bomb),got meself a new chick too for easter so everything started to come together,money wise i havent paid a cent off my credit card as i had a $4,000 debt i thought was better getting out of the way first,thats now all but paid.

its only been the last 2 months that ive put some cash away as i think its a good idea to put about 10% of your wage in a savings account,because i get good money my tax return is usually a pretty good one so its like another savings account.

i started with a 5 year plan get back on my feet completely after 2 years which ends at the end of 2011.
the only time this year i spent any type of money was when i got my tax return was paid a $700 loan & spent $2,000 on a new laptop plus set up gear,ipod touch & digital camera worth $2800 which i got for $2,000 so i thought it was a good buy.

thats it i dont spend wildly just work pay all my bills & save a little each week.i pay all my bills such as gas,electricity,telstra etc each week by bpay so when my bill comes its all paid...best way to do it.

start again? yeah sure can but you have to be mentally tough & just put your head down,set a few goals just one step at a time.thats my story,not easy but it can be done.cheers...tb

Its never too late in my opinion, but also think the conventional thinking and what were told and bought up to do is also too blinkered, all this saving for retirement, building a financial nest egg to enjoy in retirement is blown out of proportion, ideally rather than focus on building assets its far better in my opinion to start your own business in an area you are interested in or get satisfaction from and the financial security and assets will follow, either that or learn how to trade although again IMO you need a passion and interest to make it succeed, make your money work rather than go down the conventional path of building super etc and then running it down as you get on in years after retirement.

Have also found the most successful and wealthiest people ive met don’t really retire, they may slow down a bit but after a lifetime of building or running a business or trading the various financial markets its become such a big part of them its difficult to just stop one day, many also do it for the enjoyment and fulfilment it brings so simply cant stop as its an integral part of them, know one friend who actually sold his business to retire and after a few months started another as he was so bored and unhappy, thought he would have plenty of time for other passions but realised he had enjoyed them far more particularly his golf when he could only play once a week, playing every day after the honeymoon period just wasn’t the same.

I have no savings just trading capital these days, I also have no plans to retire ever, being busy and having things to do keeps me healthy in both body and mind, every now and then I take a month off and travel but each and every time im glad to get home and back into it.

When you start blaming others for your problems. By the way, I'd say if that's you in the avatar you have Buckley's chance.

tigerboi said:

last year aged 43 i had to start all over again,i was left with a 26 year old car & luckily a credit card with $9,000 on it.now 14 months later im going real good.BUT!

im on my own no children,mortgage.just had to start from scratch again.heres how i did it.

it gets down to how desperate you are whether its a complete restart like mine or losing all your cash & having to get yourself up again.

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I'm not sure it does all come down to how desperate you are, TB, but perhaps rather your attitude of believing you can do it.

Plenty of people just give up, believe themselves victims and have no capacity to envisage themselves as successful.

You've done the opposite. Wish there were more like you.

Best wishes for continuing to achieve all you deserve.

Pager said:

I have no savings just trading capital these days, I also have no plans to retire ever, being busy and having things to do keeps me healthy in both body and mind, every now and then I take a month off and travel but each and every time im glad to get home and back into it.

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So, since you have no savings, do you have some sort of back up plan should you be unable to keep working/trading? Loss of earnings insurance?

You have 2 choices in life, live like you are going to die tomorrow or you are going to live forever. Personally I don't plan to die tomorrow, so starting over is possible at any time.

On a lighter note, live each day like it was your last and one day you will be right.

Cheers from the Bumhead