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It's only when you turn"60".

Discussion in 'Investor Psychology' started by willair, 2nd Jul, 2015.

  1. willair

    willair Well-Known Member Premium Member

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    It's interesting to see when you are about to turn 60,had a mate his wife come over for dinner last night,he has been in business for 35 years employed up to 4 people at times and has made some serious money over the years,but never saved a cent bought a house in 1992 in Logan for 123k
    and still is in the bank hands for 40-plus-k,all his personal cars are on credit,never even has super
    or any backup in place,but the real problems started a month ago,he fell off a ladder and tore all the muscle in his hip,plus as I found out last night he did not have the insurance paided up for workcover..the pocker machine comes first..

    That's the mess I'm starting to see a lot of people I know face,i don't know what a person gets on centrelink,some live for the day others live for and plan for the future,but as he said to me about property investment as he was doing the elec's and smoke mode maintenance,as he said anyone could have bought houses back then for 50k,anyone then all I said yes anyone could have at 18%
    then into low13% it was just a risk back then as it is now..
     
  2. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    Yikes.

    In 2008 had a work colleague, good solid double income (both professionals) with 2 little kids. I didn't ask him how old he was but I'd guess at least 5 years older than me. They rented a house in Lane Cove (one of the better suburbs in Sydney in case you don't know Sydney).

    I was buying my second property at that time. I asked him why don't you buy. He said "I'll buy when I get a promotion". So I don't think they saved any money for a deposit cause I'm sure they had the serviceability. If they couldn't put together a deposit with what they were currently earning, I can't imagine they would have change their habits once he got a promotion/became a manager. I tend to think spending consumption goes up with any increase in wages, you have to "pay yourself first" - set aside income as savings so you don't end up with nothing.

    I also think because they lived in a good area, if they bought there's no way they could buy near where they currently lived, and perhaps that also wouldn't appeal to them. Over time, rents go up, house prices go up, entry to the property market becomes much more difficult, you're paying more money for properties further out...

    So both these stories illustrate (if nothing else) failure in "paying yourself first".
     
    Last edited: 2nd Jul, 2015
    willair likes this.
  3. 4point5million

    4point5million Well-Known Member

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    I'm 35 and see a lot of mates like that now, don't have anything but seem to be happy with that.
    So you wonder if they would still feel that way when they turn 60- some do and some don't but you never know until that time comes.
    I have a friend who is in late 50s and lives in a small coastal town, he literally has nothing but is very happy.

    One of the hardest emotions I have had to deal with is sacrificing my time spent doing things I don't enjoy in order to build wealth to get away from those exact things!
    Hopefully I live long enough to enjoy it. I suppose I have balanced this fear out by reminding myself if I died the day before I sold up, I wouldn't be conscious of the loss anyway so no regrets to be felt! ( I hope lol)
     
  4. willair

    willair Well-Known Member Premium Member

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    That's about all one can do,no one knows when the black hearse carriage is going to pull up outside with the 6 black horses and the back seat is for you,
    it's not going to matter what your worth when your dead..
     
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  5. EN710

    EN710 Well-Known Member

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    Too far so I can't imagine it. One thing for sure, I don't want to be 60 looking back thinking that "I should have done x"
     
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  6. Hanison

    Hanison Well-Known Member

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    The human psyche is a very complex thing.


    Some people seem to be for whatever reason become complacent with their current situations and surroundings.
    Almost as though they have accepted their life's fate. Like the hand that's been dealt to them is a foregone conclusion.

    I don't think I will ever be able to comprehend how another human being can be shown in black and white alternative measures to improve ones self. That could dramatically change their life and yet they do nothing.

    Health is a great example. Some people will do nothing to change until it hits them like a ton of bricks. Sometimes, albeit too late.

    Perhaps parallels can be drawn in the same way for a persons finances.
    A persons wealth can go largely unnoticed throughout their life until they reach that point of no return.
    They find themselves at the end of their working lives with not a penny or a dime to show for a lifetime of toil.
    Time simply runs out for them and I can imagine this realization would again hit you like a ton of bricks.

    But perhaps the train of thought that makes those of us that push harder and for longer when it's not particularly convenient in an attempt to atleast try and mitigate these types of potential risks later in life. Simply does not occur insome others. Like its a case of being wired completely differently.
    Some people for whatever reason won't dare touch the line outside of a comfort zone with a 40 foot pole. With fear that picking up the pole is too heavy.

    Perhaps there really isn't an explanation for this level of thought process.

    The human psyche is a very complex thing.
     
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  7. Charlotte30

    Charlotte30 Well-Known Member

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    I watched a close friend lose everything over a period of 20 years and died broke. It started with a redundancy at 55. Then a business purchase that was not successful. Eventually the house was sold. This person was not stupid and had a very successful career, she just made different decisions. Unbeknown to her It was a driver for me to achieve financial independence.
     
  8. Harro

    Harro Well-Known Member

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    Winners associate with winners is a philosophy my Dad drummed into me at an early age. I have followed it all my life.
     
  9. MTR

    MTR Well-Known Member Premium Member

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    Harro
    That is exactly what my father said, but I disagree. I have a few friends who are lame ducks.

    Success is not just about net worth, imagine all the winners in one room comparing notes, who is the biggest wonker, I mean winner

    MTR:)
     
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  10. Darren A

    Darren A Well-Known Member

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    You are right it doesn't matter what a person is worth when their time has come but to me it is important to know that my family will be okay financially when that time does come.
     
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  11. Harro

    Harro Well-Known Member

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    I wasn't specifically talking about a persons wealth, more their outlook on life. I do not entertain negative folk.
     
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  12. MTR

    MTR Well-Known Member Premium Member

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    Great, I get it Harro, my father was promoting winners as those with great wealth

    Cheers
    MTR:)
     
  13. Sonamic

    Sonamic Well-Known Member

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    In the end you can't take it down the hole with you.

    I don't understand the "rent for life" mentality either. None of my friends are Investors and 90% of my peers rent and live week to week. Sure a Mortgage is dearer than renting, but not by much (dependant on your area of course!), after 30 years of a mortgage taken out tomorrow and paid over the full term, what is rent going to cost per week at the end of that same 30 years?

    Find the balance.
     
  14. Natedog

    Natedog Well-Known Member

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    The reality is that "average" joes will generally choose the path of least resistance.

    Not being able to make sacrifices and delay instant gratification will rob alot of people of health and wealth through thier lifetimes.

    To live a life to its full potential is unfortunately seen as more of an anomaly than the way it actually should be!

    Living within your comfort zone and achieving "BIG" results....doesn't tend to work that way.
     
  15. Bayview

    Bayview Well-Known Member

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    I worked for 3 years in an ICU and you would be surprised how often folks would be in there as a direct result of their disgraceful lifestyle and diet, and both they and their families are incredulous as to how this could happen to that person...complete denial and "blindness" to how they are and the reasons why the patient was in there.
     
  16. Natedog

    Natedog Well-Known Member

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    It's interesting to me as I listen to people talk....

    "we should really invest for the future" in the same way people say "we should really get back on that health kick"

    To me the mindset of someone who wants wealth AND health takes the same sort of approach to both.

    Diet and exercise strategy is almost identical to a save and invest strategy....

    Diet and exercise is an investment in your health and quality of life.

    Saving and investing is making sure you have the $$$ to enjoy the health you have!

    Delayed gratification essentially at the crux of it all I guess
     
  17. Travelbug

    Travelbug Well-Known Member

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    sonamic that made me remember a story my mum told me. 50 years ago she bought a housing commision house. All the neighbours said she was crazy. i nterest rate was fixed at 3.5%. She paid $1700 pounds and paid a pitance each week.
    She now lives easily on the pension whle everuone else has been moved on.
    I do think you need a bslance of living for now and investing for the future. its sad when you see people deny themselves a life then die with a heap of money.
     
  18. datto

    datto Well-Known Member

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    Anyone know where to buy cheap cigarettes these days?

    lol, only joking of course.

    Interesting thread. We strive for a healthy body and healthy financial position it seems. But what about a healthy mind?
    Do we have to work on the mind as well for when we turn 60?

    Why am I now starting to question my own mind? Am I mad? Why are people always looking at me? I think these may be some of the questions someone may ask themselves when challenging their mind.
     
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  19. willair

    willair Well-Known Member Premium Member

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    It's a fine line between,first you gotta get to 60 that's the hard part from what i see,,just remember to breathe ..
     
  20. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    Many people chose not to strive for health, wealth and wisdom in life.