I Wish I Started Sooner

Everyone has a wishing well. On the surface floats our dreams, goals and ambitions but deeper down where the water starts to get a little murky, linger one or two regrets.

Every wishing well is an amalgam of our past and future.

One of the biggest regrets I see in many clients is they wished they started sooner. Most wished they bought a house sooner, paid off their mortgage sooner, and began building an investment portfolio sooner.

Then further out, some wish they started a family sooner, found that special someone sooner, or just said sorry sooner.

Everyone has their own list.

It’s rare that I don’t meet a new client who hasn’t got a mortgage in their fifties. Equally rare are those clients who have a combined super balance of more than $400,000 or $200,000 for singles.

Very few are knocking it out of the park with ease and ahead of the game.

And here’s why.

The Pig and The Python
Every family looks like a python trying to swallow a pig. It generally has three stages:

The twenties – early in the relationship, some couples may be lucky enough to purchase their first home. They work like crazy to get on top of their mortgage before starting a family. For those renting, they peddle like fury trying to save for a deposit.

The thirties – by this stage most couples have started a family which means upgrading to a bigger home and a mortgage they can hardly jump over. And as the children grow their needs increase which means more expenses. The python is really feeling the squeeze and for those renting, the dream feels like its slipping away.

The forties – the kids have now started secondary school and the family’s expenses are about to peak on top of a mortgage which never seems to shrink. At this point, very few families have little if any surplus income. For most, it’s a hand to mouth existence. The python now feels like it’s about to choke on the pig.

On average, most family’s spending peak when Mum and Dad reach age 46. Give or take a few years.

A Slow Digestion
In most cases, at least one parent stays at home to help rear the kids and do all the unpaid work. For those who return to work and put the kids in daycare, their income just gets sucked up in daycare fees. The only value for them returning to work is to hold their place on the corporate ladder and not slip backwards. Either way, the pig takes longer to digest.

Therefore, it’s not until most couples reach their fifties and their expenses begin to decline that they have a few dollars spare and begin some sort of retirement plan. Of course, all this assumes no major set-backs along the way such as a divorce, illness, or prolonged unemployment.

The good news is, you can achieve a lot in 10 years with some spare cash and a decent retirement plan.

A Fast Digestion
For those who digest the pig quickly, I will guarantee you they have sacrificed family life or have remained in a career they hate but pays well. Their bank account may be alive and well but spiritually they feel dead inside. Their wishing well is usually littered with the most regrets, its just that you can’t see them through the murky water.

Every wishing well is a combination of gloss and gunk. The gloss gives us something to shoot for and makes heroes of us all. The gunk keeps us grounded. It builds empathy and appreciation. Most importantly, it makes us better people more than bigger heroes. Both are necessary for growth.

Kick yourself for not starting earlier if you want to, but at least take the time to reflect on what you’ve achieved along the way. I guarantee you have done better than you think. No one’s life is one, long, straight perfect line.

Have a great weekend!

Adam

Back paddock – I am pretty sure this weeks back paddock will be the the best of the year. After the terrorist attack in Paris, a father explains to his scared son that ISIL may have guns but the Parisians have flowers. It is beautiful and I strongly recommend you watch it! http://gizmodo.com/this-video-of-a-fathers-explanation-to-his-son-about-th-1743389194