Comments on: Don’t Wait Until You’re 50 To Start Preserving Your Wealth

By: MoneyEnergy

MoneyEnergy — Fri, 15 May 2009 15:25:47 +0000

@Bootstrap – thanks!

@Silicon – I can’t wait to get to that point of critical “income” mass, when the work you’ve already put in becomes high enough to keep supporting you so that you can take more time to do even more quality work on your own schedule.

@Morgan – congrats on having a rental property! I would definitely hold onto that – that can be one of the best investments ever. I’ve seen people become very wealthy very quickly just from real estate. So don’t disparage that you don’t have much in the way of “paper assets”. In fact you could argue you were much safer from the storm that happened over the last 8 months. Ultimately I can’t advise you on bankruptcy since that’s out of my purview but I would definitely make sure to fully research your options, get inspired and motivated again and try to work it out. Don’t give up! I’m glad you got something out of the article!

By: Morgan

Morgan — Fri, 15 May 2009 15:15:21 +0000

I enjoyed the article-made my brain hurt a little as I had to actually think. I am 53 and struggling to pay off debt that is a result of years of poor choices. I have very little in the way of long term investments (I do have a rental property.) I feel a bit of panic, at my age, that i do not have more invested. I often wonder if I should take a dive and go bankrupt and begin investing more–building more for the future. If only I had that crystal ball..
Thanks for the post, Morgan at TheDebtDance.com

By: Silicon Prairie

Silicon Prairie — Wed, 13 May 2009 23:10:15 +0000

A business is similar to royalties, even though the arrangement isn’t as clearly defined. It’s easier to put in a bit of time working on long-term income streams when your immediate income gets high enough that you no longer need to work on it full-time, although having a bit of extra money at the ready can help too. Although the money might not go directly into the long-term income activities it does help.

By: Bootstrap

Bootstrap — Wed, 13 May 2009 18:20:21 +0000

I like the fountain analogy. I’ve always been critical of the “rules of thumb” like your age in bonds. I’ve written a post on similar thoughts if anyone would like to check it out.

Nice post!

By: MoneyEnergy

MoneyEnergy — Sun, 10 May 2009 22:50:52 +0000

@SiliconP – that actually makes a nice addition to the fountain metaphor, the image of a “renewing flow” like royalties that keep coming even though you’ve already done the work. I’ll have to think about how to fit that in. Another thing I thought of in regard to dividends is that although there is de facto risk involved, the nice thing is that you know they’re regular. Unlike some other self-employment income, dividends and interest always come in on time, and that could be important too.

By: Silicon Prairie

Silicon Prairie — Sun, 10 May 2009 16:08:10 +0000

I’m not quite there yet, but my plan has changed a bit since I figured out that any way I look at it there will be a big turning point between now and the time when I actually make a significant income from public securities. At that time it won’t be an income based on daily time input but it will still require some involvement. I’ve divided my income into three categories: money earned from the time I put in each month, money earned based on work that’s already done, and interest/dividend payments. I guess it does make a good fountain, with the second category filling up now and a few drops making it to the third one.

By: MoneyEnergy

MoneyEnergy — Sat, 09 May 2009 20:02:17 +0000

@Ryan – congrats to you both, just make sure you capitalize on that early time in the market – maybe keep it all reinvesting.

@Silicon – wow, it sounds like you have met the basic definition of being almost financially free! I think you’re right to try to create a more stable income; this is what I’m working towards, too – self-employed income can be volatile/sporadic sometimes.

By: Silicon Prairie

Silicon Prairie — Sat, 09 May 2009 19:52:41 +0000

The fountain idea is a nice metaphor, but I’m not sure if it applies to all situations. I’ve realized recently that my business can give me enough income to cover all my expenses while decreasing my time involvement a lot sooner than I’ll be able to live off of investments in regular securities – accordingly I plan to divert a good portion of that income to separate investments, stocks, and bonds to create a more stable income. In a way it’s similar but the top will outweight the bottom by far for a long time :)

By: Ryan P Smith

Ryan P Smith — Thu, 07 May 2009 22:29:47 +0000

My wife and I started saving in our twenties and it is the best financial decision we’ve made. I wish we had put back more and wasted less though….

Great Article.

By: MoneyEnergy

MoneyEnergy — Thu, 07 May 2009 01:42:21 +0000

@MLR – glad you like the fountain idea! thanks. I’m excited about it myself.

@Almost – good for you, getting started so early. But I’m not surprised knowing how successful you are already! and good point, definitely if you’re 50+ that’s no boundary – I admit I randomly kind of picked that number – now is always the time to make better financial decisions, there’s always room to preserve and grow your wealth.