Late Starters

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stemikger
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Late Starters

Post by stemikger » Sun Mar 13, 2016 5:19 pm

I would love to hear encouraging stories from late starters. I consider myself a later starter for various reasons. I didn't start until I was 31, I will be 52 in June. How many here didn't start investing until early 30s and beyond and if you are well past that, I would love to hear how you did. Feeling a little defeated right now for several reasons.

Thanks!
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MIretired
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Re: Late Starters

Post by MIretired » Sun Mar 13, 2016 6:07 pm

Didn't start at all 'til 33 w/401k. Didn't save enough-- about 6% +3% match. Lost jobs.
Really got aggressive at age 45 to 60. Made out OK, and for lack of any serious work left, retiring at 60, and delaying SS--nice option to have. :) .

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InvestorNewb
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Re: Late Starters

Post by InvestorNewb » Sun Mar 13, 2016 6:49 pm

I don't think 31 is late at all. Most people under 30 don't have many assets to begin with.
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Re: Late Starters

Post by White Coat Investor » Sun Mar 13, 2016 6:51 pm

stemikger wrote:I would love to hear encouraging stories from late starters. I consider myself a later starter for various reasons. I didn't start until I was 31, I will be 52 in June. How many here didn't start investing until early 30s and beyond and if you are well past that, I would love to hear how you did. Feeling a little defeated right now for several reasons.

Thanks!
I love that Bogleheads think 31 is a "late start." I would say 61 is more of a late start. 45-50 is probably a typical start. 31 is a very early start. I wasn't even out of residency when I turned 31.
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blueblock
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Re: Late Starters

Post by blueblock » Sun Mar 13, 2016 7:00 pm

My net worth didn't turn positive until I was 38. Now I'm pushing 64 and am comfortably retired. I saved the bedickens out of every salary increase, and I made due with a condo I loved rather than buying a single-family home with all its attendant maintenance and repair costs.

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Re: Late Starters

Post by elgob.bogle » Sun Mar 13, 2016 7:16 pm

Married in Spring 1982 (me age 35, spouse age 28) when graduate students (both have MS degrees, graduated Dec 1982) . Didn't start saving until May 1983 when we finally landed decent jobs. Decided that we did not want to work all of our lives. Also decided that "no matter what", we would save 1/3 of our gross income. We are "DINKS" (dual income no kids) and have enjoyed travelling the world in lieu of raising a family. We were at 95% stocks from 1983 until the crash of 2009. Now at 40:60 and "Staying the Course".





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corn18
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Re: Late Starters

Post by corn18 » Sun Mar 13, 2016 7:27 pm

I didn't start saving until I was 46. Now 50 and on track to retire around 60 (I hope). Have to save 60% of my net income to get there. That kinda sucks, but it is what it is, right?

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Re: Late Starters

Post by k66 » Sun Mar 13, 2016 7:41 pm

Started when I was 33, and now turning 50 this year. Early years savings rate was very paltry in comparison to what it is now--I really put the hammer down 10 years ago at age 40. In fact, I was updating my savings speadsheet last week and noted that 90% of my total savings occurred in the last 10 years. I anticipate retirement in another 10 years at age 60 (or sooner!) but time will tell.
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Re: Late Starters

Post by Miriam2 » Sun Mar 13, 2016 8:04 pm

stemikger wrote:I would love to hear encouraging stories from late starters. I consider myself a later starter for various reasons. I didn't start until I was 31, I will be 52 in June. How many here didn't start investing until early 30s and beyond and if you are well past that, I would love to hear how you did. Feeling a little defeated right now for several reasons.
Thanks!
Oh no Stemikger - does this mean we have to talk you off the ledge again??? :shock: :shock: :D

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Re: Late Starters

Post by Buckeye » Sun Mar 13, 2016 8:15 pm

Zero savings until 30 and negative net worth until 35. We've never made six figures...combined...and no inheritances. With one modest non-cola pension...we should be able to retire at 60-62.

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Re: Late Starters

Post by gkaplan » Sun Mar 13, 2016 8:18 pm

stemikger wrote:I would love to hear encouraging stories from late starters. I consider myself a later starter for various reasons. I didn't start until I was 31, I will be 52 in June. How many here didn't start investing until early 30s and beyond and if you are well past that, I would love to hear how you did. Feeling a little defeated right now for several reasons.

Thanks!

I got a relatively late start. For years, after I got out of the army, I worked in jobs that were barely above minimum wage and with no access to a 401(k). I did contribute the maximum to an IRA, however.

When I went back to school, first to undergraduate school and then to graduate school, I went from a low-wage employee to a higher salaried employee and had access to an 401(k). By that time, however, I was in my early-to-mid forties. What helped me catch up was that I pursued an aggressive asset allocation. (I felt comfortable doing this, because I had a high risk tolerance. Still do.) For years, until I hit the number I wanted to hit, I was at a 70/30 equities/fixed income allocation, with fifty percent of my equities allocated to international equities, with a heavy dose of emerging markets.
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Re: Late Starters

Post by sschullo » Sun Mar 13, 2016 8:29 pm

Other threads that discussed late starters:
Here is a poll: viewtopic.php?t=141438
viewtopic.php?t=164460
viewtopic.php?t=115170

FWIW, My late spouse and I wrote a book, Late Bloomer Millionaires. While we were frugal and saved, we didn't learn boglehead way of investing until our late 50s and early 60s.
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Re: Late Starters

Post by swguy » Sun Mar 13, 2016 8:55 pm

If 31 is a late start I qualify. At 30 I was fresh out of the Air Force after 10 years (enlisted) with two young kids. Lots of debt, no savings. My then DW and I both found jobs, and by 34 we had started saving and by 36 investing in a 401k. There were ups and downs, I got divorced at 48, and started living with a focus on saving and investing intelligently. Today I'm 58, FI, though still working because I found a tiny company I love doing work that I love.

There's no way, when I left the Air Force, that I saw myself where I am today. It was a result of taking advantage of opportunities that had a chance to work out ok. One never knows what tomorrow will bring.

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stemikger
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Re: Late Starters

Post by stemikger » Sun Mar 13, 2016 9:30 pm

Miriam2 wrote:
stemikger wrote:I would love to hear encouraging stories from late starters. I consider myself a later starter for various reasons. I didn't start until I was 31, I will be 52 in June. How many here didn't start investing until early 30s and beyond and if you are well past that, I would love to hear how you did. Feeling a little defeated right now for several reasons.
Thanks!
Oh no Stemikger - does this mean we have to talk you off the ledge again??? :shock: :shock: :D
lol. No. Just feeling a little out of sorts and you Bogleheads came to the rescue. Thanks BHs! :beer
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Re: Late Starters

Post by pondering » Sun Mar 13, 2016 9:37 pm

The time of start is highly dependent on where you income is, versus you desired income in retirement.
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Re: Late Starters

Post by Grogs » Sun Mar 13, 2016 9:39 pm

I actually started at about 23, invested until I was 27, and then didn't put in another dime until I was 40. In the 3 years since then, I've been investing heavily. My net worth has doubled, and my investments have gone up by ~ 4X. Assuming I keep my job or something similar and keep savings on track, I should be able to retire by age 60.

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stemikger
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Re: Late Starters

Post by stemikger » Sun Mar 13, 2016 9:45 pm

sschullo wrote:Other threads that discussed late starters:
Here is a poll: viewtopic.php?t=141438
viewtopic.php?t=164460
viewtopic.php?t=115170

FWIW, My late spouse and I wrote a book, Late Bloomer Millionaires. While we were frugal and saved, we didn't learn boglehead way of investing until our late 50s and early 60s.
I'm sorry to hear about your spouse, I believe I saw you two on a special about retirement. I will definitely go to Amazon and buy the book. Thanks for the info!

Steve

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Re: Late Starters

Post by zaboomafoozarg » Sun Mar 13, 2016 10:07 pm

White Coat Investor wrote:I love that Bogleheads think 31 is a "late start." I would say 61 is more of a late start. 45-50 is probably a typical start. 31 is a very early start. I wasn't even out of residency when I turned 31.
It's not just here. There are forums and subreddits where people graduate with a CS bachelors at 22, start working a $125k + stock options job in SV, and easily have a million bucks by 30. And that's not counting the ones who've made it really big (multi-million dollar payouts) in IPOs.

Sometimes it makes me wonder why I didn't move out there... could have double the net worth right now.

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Re: Late Starters

Post by Caduceus » Mon Mar 14, 2016 3:08 am

You can't change the past, but you can change the future. 52 is still young. Plenty of time to steer your financial future the way you want it to go.

I have many friends who took an entrepreneurial route and made and lost fortunes many times over. Some lost half their net worth in a divorce. Others got derailed by health issues. We might not always get to choose the hand we are dealt, but we can choose how to respond to it.

If you want to get really, really rich, you might want to think about starting a business or taking some risks (assuming you have the basics of your financial life already settled).

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Re: Late Starters

Post by ofcmetz » Mon Mar 14, 2016 4:22 am

I started my current job at age 19. I still feel like I started late because I didn't do any serious investing until I was 25. It's all a matter of perspective I think. I'm 36 now and feel like the old guy at work sometimes.
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Re: Late Starters

Post by Toons » Mon Mar 14, 2016 4:28 am

I started about 30.Early in my opinion.
I will never forget grasping the concepts of,,
Reinvesting &Compounding back then.
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Re: Late Starters

Post by IlliniDave » Mon Mar 14, 2016 4:33 am

I started at about 25, which isn't all that much earlier than 31. I think the unfortunate circumstance of a divorce 20 years later more than wiped out anything I gained between 25 and 31. :( So I consider myself an honorary late starter. Still on track for an exit at 55 that should be comfortable by my standards.
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Re: Late Starters

Post by digarei » Mon Mar 14, 2016 5:28 am

Clue...less until reading JBQ's Making the Most of Your Money at age 37, which started me paying down my mortgage aggressively. However, I didn't read the entire book until I was 47. :oops:

I realized the tyranny of consumer debt and began to save and invest in earnest toward the end of 2003.

We're fortunate that in this place and time, it's really never too late (or too early) to learn personal finance and adopt good investment/spending habits. I'm glad however that I managed to start in my 40s and not my 70s... :wink:


Despite several career changes and overspending through my mid-40s, I was able to retire before most of my peers.
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Re: Late Starters

Post by oldcomputerguy » Mon Mar 14, 2016 5:31 am

My workplace didn't even make the company 401(k) available to our division until I was almost 35. You're gonna have four more years of compounding than I did, and I'm on track to be able to retire at 62 if I have to. (I'm going to try to make it to full retirement age at 66, but I'll have the option if I just decide I can't.)
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Re: Late Starters

Post by VAslim16 » Mon Mar 14, 2016 6:43 am

stemikger wrote:I would love to hear encouraging stories from late starters. I consider myself a later starter for various reasons. I didn't start until I was 31, I will be 52 in June. How many here didn't start investing until early 30s and beyond and if you are well past that, I would love to hear how you did. Feeling a little defeated right now for several reasons.

Thanks!
Started exactly 3 years ago (March 2013) at age 34. That was when my net worth first went positive. Trying my best to save what I can (about 1/2 of my salary) and current net worth is at 81K. Single with no kids and hoping I can continue to save aggressively and retire at 55. We will see if that happens tho :). Feel really grateful to have found this board.

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Re: Late Starters

Post by BV3273 » Mon Mar 14, 2016 7:04 am

Question: When you guys say saving do you mean maxing your 401K/IRA or just putting something away in general?

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Re: Late Starters

Post by Grt2bOutdoors » Mon Mar 14, 2016 7:18 am

BV3273 wrote:Question: When you guys say saving do you mean maxing your 401K/IRA or just putting something away in general?
It means $18K in the 401k, $5.5K in the IRA. If 50 or over, it means $24K in the 401k and $6.5K in the IRA to account for the catch-up contributions.

It can also mean, someone believes 15% (toss in your own percentage) of gross salary is sufficient for retirement savings, in their mind, saving 15% (with or without employers contributions) in the 401k/IRA is "maxing it out". On the bogleheads site, maxing it out is contributing the maximum amount permitted by law, generally speaking.
Last edited by Grt2bOutdoors on Mon Mar 14, 2016 7:24 am, edited 1 time in total.
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Re: Late Starters

Post by BV3273 » Mon Mar 14, 2016 7:24 am

Thanks Grt2B!

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Re: Late Starters

Post by AtlasShrugged? » Mon Mar 14, 2016 7:47 am

stemikger...I have only recently really 'started' retirement savings in the last year (age 49). For the last decade, I have been contributing 1%-2% of my salary toward my 401K. Why? Life happened. A non-working spouse (who now works part time), mortgage to pay, private schools for our children (K-8) and then college for our children (we are paying the lion's share so they do not take on much debt). The epiphany was May, when my wife and I saw a CFP (the free consult offered by Ric Edelman - my wife is a huge fan). Those meetings were a real eye-opener. Net net: If we save aggressively, we should have enough in about 17 years to retire -- nothing extravagant, but we won't be eating dog food and cat food.

That got me started on drafting our IPS, and our retirement planning will include 4 years of ageing in place with skilled nursing care.

I'll be honest - it is pretty scary. But at least we have a plan, and if we do our part and have a little luck - we'll be Ok. But I really wish I had slowly ramped up my 401K years ago. :oops:
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Re: Late Starters

Post by Jags4186 » Mon Mar 14, 2016 8:33 am

JCE66 wrote:stemikger...I have only recently really 'started' retirement savings in the last year (age 49). For the last decade, I have been contributing 1%-2% of my salary toward my 401K. Why? Life happened. A non-working spouse (who now works part time), mortgage to pay, private schools for our children (K-8) and then college for our children (we are paying the lion's share so they do not take on much debt). The epiphany was May, when my wife and I saw a CFP (the free consult offered by Ric Edelman - my wife is a huge fan). Those meetings were a real eye-opener. Net net: If we save aggressively, we should have enough in about 17 years to retire -- nothing extravagant, but we won't be eating dog food and cat food.

That got me started on drafting our IPS, and our retirement planning will include 4 years of ageing in place with skilled nursing care.

I'll be honest - it is pretty scary. But at least we have a plan, and if we do our part and have a little luck - we'll be Ok. But I really wish I had slowly ramped up my 401K years ago. :oops:
Sorry to pick and I know I'm young, but I hate when people say this. People need to make it a priority to save. This is why you have so many people who are 60 and have modest to no savings. If you have to choose between saving or sending your kids to private elementary school, you should probably consider sending your children to public elementary school.

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Re: Late Starters

Post by digarei » Mon Mar 14, 2016 10:55 am

Jags4186 wrote: Sorry to pick and I know I'm young, but I hate when people say this. People need to make it a priority to save. This is why you have so many people who are 60 and have modest to no savings. If you have to choose between saving or sending your kids to private elementary school, you should probably consider sending your children to public elementary school.
This thread is more about and for 'Late Starters'... there are many reasons why some people begin late. The poster you're not picking on may have had unstated reasons as well those explicitly mentioned in the post.

Admonitions to begin earlier may be appropriate in some threads and may be good general financial advice but they won't help those who find themselves reading this thread late in their career after the children are grown wondering if there is any hope.

Divorce, health problems, forced retirement or long periods of underemployment can present difficulties for even the most avid savers.

There is usually time to turn things around, to improve one's situation.
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Re: Late Starters

Post by vested1 » Mon Mar 14, 2016 11:12 am

digarei wrote:
Jags4186 wrote: Sorry to pick and I know I'm young, but I hate when people say this. People need to make it a priority to save. This is why you have so many people who are 60 and have modest to no savings. If you have to choose between saving or sending your kids to private elementary school, you should probably consider sending your children to public elementary school.
This thread is more about and for 'Late Starters'... there are many reasons why some people begin late. The poster you're not picking on may have had unstated reasons as well those explicitly mentioned in the post.

Admonitions to begin earlier may be appropriate in some threads and may be good general financial advice but they won't help those who find themselves reading this thread late in their career after the children are grown wondering if there is any hope.

Divorce, health problems, forced retirement or long periods of underemployment can present difficulties for even the most avid savers.

There is usually time to turn things around, to improve one's situation.
+1 No one can fully appreciate some of these setbacks unless they have experienced them. The OP is asking for examples of encouragement, something we all need at times.

I started late at 37, but "starting" doesn't mean "maxing out". I saved as much as I thought was possible due to some of the setbacks described above and didn't really get serious until the last 10 years of employment, which ended less than 2 months ago. My wife didn't even contribute to her 401k until just before my initial retirement 7 years ago. I don't advocate this method as a viable plan by any means, but luck in timing at my initial retirement smiled on us. There is hope, which is the point of this thread.

We are now comfortably retired having saved and gained much more in a short period of time than I would have thought possible. Eliminating costs and diversifying in index investing made all the difference.

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Re: Late Starters

Post by AtlasShrugged? » Mon Mar 14, 2016 11:55 am

Jags4186....One of the wonderful things about being young is the absolute authority to which you can speak to anything and everything without having the benefit of experience. Perhaps in time, when you have walked in someone else's shoes and experienced their setbacks, you'll have a somewhat different perception and outlook. :annoyed

As digarei correctly surmised, there are many unstated things in my post that contributed to 'Life happened'.

stemikger....The most important part I found (post epiphany) was having a well thought out IPS. Just having a plan on paper (well, for me in Excel, and SPSS for analytics) was a major step forward. The psychological 'lift' I got from having the IPS was huge. What I found is that it gave me a sense of purpose and clear direction. With my IPS in hand, it was not so difficult to stay with it through the gyrations of last summer and the beginning of this year. Yeah, I paid a little more attention to the financial news, but it really did not phase me.

When I have felt discouraged (and defeated) at the task ahead, I busted out that IPS and read through it. I remind myself of the things I have already accomplished, and that has helped get through the bleakest times.
“If you don't know, the thing to do is not to get scared, but to learn.”

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Re: Late Starters

Post by hnzw rui » Mon Mar 14, 2016 12:55 pm

I started contributing $50-100/paycheck to my 457 since I started working for my current employer in 2007. Got spooked by volatility so I moved all assets to the stable value fund at almost the lowest point and missed the run up from 2009-2014. It's not until last year (at 30/31) that I started focusing on investing for retirement (95% Target 2040/5% Health Care). Used my 2015 pay raise to increase contributions to $350/paycheck (~$758/mo). This year's raise, increased retirement contributions to $500/paycheck. I'm still not maxing out my 457 but hoping to get there by 2017/18. That said, there's an automatic 10% deducted from my paycheck for pension since 2007.

Mom and dad (currently 59) only started investing last year when I started managing their 457 account. Prior to that, contributions were going to FDIC insured savings at 0.10% APR. They're gonna have to work until 70 for pension and retiree health care. I'm currently paying half of household expenses. Might need to shoulder a larger bite when they retire.
Last edited by hnzw rui on Mon Mar 14, 2016 1:11 pm, edited 1 time in total.

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Re: Late Starters

Post by LateStarter1975 » Mon Mar 14, 2016 1:03 pm

stemikger wrote:I would love to hear encouraging stories from late starters. I consider myself a later starter for various reasons. I didn't start until I was 31, I will be 52 in June. How many here didn't start investing until early 30s and beyond and if you are well past that, I would love to hear how you did. Feeling a little defeated right now for several reasons.

Thanks!
I wonder what is making you a little defeated right now. You have done well, based on your previous posts in the past and how far you've come. Besides, 31 is not a late start. I started at 36 and I'm 41 now and I am feeling more confident as the days go by that I will meet my target and retire by 60.
By the way, you wrote this on 8/30/15 on a similar thread I had started
I started at 30. I never really considered it starting late until I started seeing kids in their 20s. I don't regret it because my 20s was a time of care free excitement and didn't give a damn about money or anything else for that matter. At this stage of my life, I see how important it was to sew my wild oats and I was lucky enough to do it in NYC in the late 80s and early 90s. I really did burn that candle on both ends. I'm glad I lived through it and learned from it. But man was it fun.

I do feel for people who start 50 or later. I still think it is important to save because some money is better then no money, but it will be hard to make up for 20 years of not saving.

I'm 51 now and I'm satisfied with my results. No complaints.

It really is never too late as long as you are sucking wind
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Jags4186
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Re: Late Starters

Post by Jags4186 » Mon Mar 14, 2016 2:52 pm

JCE66 wrote:Jags4186....One of the wonderful things about being young is the absolute authority to which you can speak to anything and everything without having the benefit of experience. Perhaps in time, when you have walked in someone else's shoes and experienced their setbacks, you'll have a somewhat different perception and outlook. :annoyed

As digarei correctly surmised, there are many unstated things in my post that contributed to 'Life happened'.

stemikger....The most important part I found (post epiphany) was having a well thought out IPS. Just having a plan on paper (well, for me in Excel, and SPSS for analytics) was a major step forward. The psychological 'lift' I got from having the IPS was huge. What I found is that it gave me a sense of purpose and clear direction. With my IPS in hand, it was not so difficult to stay with it through the gyrations of last summer and the beginning of this year. Yeah, I paid a little more attention to the financial news, but it really did not phase me.

When I have felt discouraged (and defeated) at the task ahead, I busted out that IPS and read through it. I remind myself of the things I have already accomplished, and that has helped get through the bleakest times.
JCE66 I completely agree. :happy Not trying to minimize other peoples lives or struggles or that poster's particular situation. It's just many times you see posts where people talk about "life" and then follow up with "new cars, big house, private school, etc. etc.". Those are all choices that people make.

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Re: Late Starters

Post by TomCat96 » Mon Mar 14, 2016 3:17 pm

I had a negative net worth until 31.


I used to fret about that. But not so much anymore. I started investing in a 401k at 22.
But I liquidated the entirety of the 401k to pay for grad school. In retrospect, I don't know if i would call that a bad move.
My marginal student loan rate at that time was a whopping 8.2%, and I simply did not have the extra time to go hunting for better rates. Nor did I really have the expertise and knowledge back then to navigate those waters.

For all intents and purposes then, I "started" at 31. But looking at everyone else's comments here that seems rather normal.


Everyone here understands the time value of money like the back of their hand. And they likewise understand that those few extra years are worth exponentially more once you hit retirement. (1.1^x) * principle. I learned the bogle stuff and value investing at 24.

And yet in spite of knowing all that, the time value of money, the value of starting early, i would counter that your twenties are so precious and so valuable in shaping your life and career that in spite of the enormous value of the extra time benefit of starting early, the investment you make in yourself can still be worth more. And in my opinion, the two are not close either.


The point here is I wouldn't fret about being a "late starter" in your 30s. From this thread and it's now closed predecessor, it seems like many people came to the same conclusions. Being broke in your twenties because you were chasing a dream, proposing, getting a professional degree are all investments whose payoffs are far in excess of that 10% a year compounded. There's a reason why many people don't really get down to financial business until their 30s, not all of which can attributed to youthful ignorance.

spencer99
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Re: Late Starters

Post by spencer99 » Mon Mar 14, 2016 4:32 pm

At 31 you had about 22 years on me. How's that for late? My late start was shortly after a divorce at 52 and a slow start at that, from zero net worth after the divorce and being in the midst of child support, children's college savings, and buying the house a second time. :shock:

I also didn't know anything. Bogleheads solved that.

I'm a poster child for what one needs to save when starting late and without much expectation of compounding.

When I'm done (soon) I will not have much of a portfolio by Bogleheads standards, but with really aggressive saving and the post-2008 bull market wind at my back I've accomplished enough to matter. Portfolio distributions, supplementing a good pension and the ability to delay SS until 70, should offer a nice treat/experience now and again as well as the ability to be generous with family and causes I care about.

S

Miriam2
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Re: Late Starters

Post by Miriam2 » Mon Mar 14, 2016 4:53 pm

spencer99 wrote:I'm a poster child for what one needs to save when starting late and without much expectation of compounding.
When I'm done (soon) I will not have much of a portfolio by Bogleheads standards, but with really aggressive saving and the post-2008 bull market wind at my back I've accomplished enough to matter. Portfolio distributions, supplementing a good pension and the ability to delay SS until 70, should offer a nice treat/experience now and again as well as the ability to be generous with family and causes I care about.
Spencer99 - You're leaving us hanging :shock: How did you do it, what did you do with your savings, how did you create your portfolio?

TSR
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Re: Late Starters

Post by TSR » Mon Mar 14, 2016 5:03 pm

I'll just chime in here to respond to a few comments and say that I strongly object to the notion that "saving" is the same as having a "positive net worth," or the converse suggestion that you haven't started saving if you have a negative net worth. I started saving aggressively in tax-advantaged vehicles at around 27, but I only had a positive net worth at around 31 or 32. I am so, so grateful to have used that use-it-or-lose-it space when I did and didn't put all of my money toward student loans. By the time I paid off my last student loan, I had a little less than a quarter million dollars saved in 401k/Roth space (with help from the bull market of the past seven years).

In short, don't kick yourself if you're saving but you're still digging out of an otherwise manageable debt hole. (This only applies to debt that is manageable and not, say, high-interest credit-card debt.) Keep doing your best out there and don't get discouraged by someone else's "number"!

LiterallyIronic
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Re: Late Starters

Post by LiterallyIronic » Mon Mar 14, 2016 5:10 pm

I haven't finished university yet and I'm 32. Some of these posts are encouraging.

spencer99
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Re: Late Starters

Post by spencer99 » Mon Mar 14, 2016 5:21 pm

Miriam2 wrote:
spencer99 wrote:I'm a poster child for what one needs to save when starting late and without much expectation of compounding.
When I'm done (soon) I will not have much of a portfolio by Bogleheads standards, but with really aggressive saving and the post-2008 bull market wind at my back I've accomplished enough to matter. Portfolio distributions, supplementing a good pension and the ability to delay SS until 70, should offer a nice treat/experience now and again as well as the ability to be generous with family and causes I care about.
Spencer99 - You're leaving us hanging :shock: How did you do it, what did you do with your savings, how did you create your portfolio?
Hi Miriam,

Nothing too special, and some of it fortuitous such as a modest promotion and pay increase a little after the divorce. Minor investing beginning about 2004, getting crushed in 2008, making all the usual mistakes (my years in the pre-Boglehead wilderness) and all the while sorta sticking with it. In about 2009 I heard this guy John Bogle on a radio program and it was an epiphany - that clarity and sense of "yeah, this makes sense." From there I found Bogleheads and the confidence I've gained from this community got me focused. From then on I've been saving almost 50% of my gross income, have meandered through a couple different (all Boglehead-type) investment approaches, settled on a slightly modified three fund approach (Thanks Taylor!) and should retire soon with a mid six figure 60:40 portfolio to supplement the pension/SS. Again, not enough to live on but a nice sweetener and I owe so much to this community. I still feel as if I'm pretty much muddling through things and that's certainly mostly true but when I need help I always know were to go.

S
Last edited by spencer99 on Tue Mar 15, 2016 12:18 pm, edited 1 time in total.

Miriam2
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Re: Late Starters

Post by Miriam2 » Mon Mar 14, 2016 6:06 pm

spencer99 wrote:Nothing too special, and some of it fortuitous such as a modest promotion and pay increase a little after the divorce. Minor investing beginning about 2004, getting crushed in 2008, making all the usual mistakes (my years in the pre-Boglehead wilderness) and all the while sorta sticking with it. In about 2009 I heard this guy John Bogle on a radio program and it was an epiphany - that clarity and sense of "yeah, this makes sense." From there I found Bogleheads and the confidence I've gained from this community got me focused. From then on I've been saving almost 50% of my gross income, have meandered through a couple different (all Boglehead-type) investment approaches, settled on a slightly modified three fund approach (Thanks Taylor!) and should retire soon with an approximately six figure 60:40 portfolio to supplement the pension/SS. Again, not enough to live on but a nice sweetener and I owe so much to this community. I still feel as if I'm pretty much muddling through things and that's certainly mostly true but when I need help I always know where to go.
S
What a nice (and helpful) post :happy enjoyed your "pre-Boglehead wilderness" imagery.
Reading Jack Bogle was also an epiphany for us - nobody says it clearer, nobody makes more sense.

jridger2011
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Re: Late Starters

Post by jridger2011 » Mon Mar 14, 2016 6:54 pm

I think a late start is not the worst thing considering many of us not only have to pay off our college loans, save for a home downpayment, and then proceed to fund other lifestyle things before we can begin to invest aggressively. There are people who are too scared to invest and just put everything into a savings account.

GoldenFinch
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Re: Late Starters

Post by GoldenFinch » Mon Mar 14, 2016 7:53 pm

We started later than you did and are doing fine. What really made a difference for us was paying off our mortgage. I know some people love having a mortgage, but I like not having the debt and investing what would have been the payment.

BoglePadawan
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Re: Late Starters

Post by BoglePadawan » Mon Mar 14, 2016 11:43 pm

Thank you OP for starting this thread. I am 36 years old and I am just starting to educate myself about investing and retirement. My family's net worth is in the negative right now and we are looking to get that rectify in a year or two. Thank you for all the encouraging posts from everyone.

BoglePadawan

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LowER
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Re: Late Starters

Post by LowER » Tue Mar 15, 2016 12:57 am

.....
Last edited by LowER on Sun Dec 25, 2016 8:57 am, edited 1 time in total.

Miriam2
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Re: Late Starters

Post by Miriam2 » Tue Mar 15, 2016 1:02 am

LowER wrote:stemgiker WILL NOT BE DEFEATED! :sharebeer
Sorry for the shouting.
Some shouting is very appropriate and spot on :D

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zaboomafoozarg
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Re: Late Starters

Post by zaboomafoozarg » Tue Mar 15, 2016 5:06 am

BV3273 wrote:Question: When you guys say saving do you mean maxing your 401K/IRA or just putting something away in general?
I assume that for most people on this board, it means 401k/457/403 + IRA + taxable investing over the $18k and $5.5k limits. The average net worths on this forum seen to be more than just maxing out most retirement accounts would take.

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stemikger
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Re: Late Starters

Post by stemikger » Tue Mar 15, 2016 6:45 am

Thanks folks! I didn't read all the replies yet, but I found your replies extremely helpful and I'm also glad, it may have helped others.

Long live the smart and kind hearted Bogleheads! :beer

Steve
Choose Simplicity ~ Stay the Course!! ~ Press on Regardless!!!

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