Review of Start Late, Finish Rich: A No-Fail Plan for Achieving Financial Freedom at Any Age (Hardcover)

I have not read any other books in this series, but the subject matter of this book appealed to me.I often run into people who (for various reasons) don't have much liquid wealth going into their 40s.Yet I haven't seen much written to suggest what these folks should do.I was hoping to get some ideas to share.Unfortunately, I didn't really find any that I didn't know about already.

If you are over 50, this book won't provide you with the advice you need.The intellectual process that Mr. Bach went through was to take the familiar arguments about the power of compound interest and saving with pre-tax dollars . . . and think of a few ways to shorten up the number of years required for compound interest to do its thing on your behalf.His best suggestions outside the standard financial planning advice are to be more valuable at work so you can earn more raises and promotions . . . and paying down your mortgage a little faster than is required.

I applaud his advice that people spend less on things that don't provide much benefit . . . but most people are going to be demoralized if that's the main source of increased liquid wealth.After all, most people want wealth not for retirement . . . but to enjoy life before and after they retire.

I found his arguments about starting your own business to earn more money to be naive at best . . . and overoptimistic at worst.Buying and running . . . or starting and running a business requires a lot of hard work and skill.Most successful entrepreneurs are off doing this by around age 35.Most people at 49 will find it a tough hill to climb.I applaud Mr. Bach's suggestion that people look into buying, operating, expanding and then selling franchised operations that meet his criteria.The other ideas won't work for most people based on historical averages.

I was also puzzled by his emphasis on having one-third of your liquid financial wealth in bonds.That's been one of the lowest returning classes of investment over the last 150, 100, 50, and 25 years.Why deliberately earn less when you have a long time horizon?

Much of the appeal of this book is that Mr. Bach is optimistic by nature, has a kindly interest in people and aspires for people to accomplish more.Bravo for that attitude!

I also found that Mr. Bach uses quantitative examples to explain compound interest and pre-tax versus after-tax investments much better than most financial planners do.

If you are under 45 and have never read a book about financial planning before, you will find this to be a valuable resource.If you are familiar with financial planning, you can skip this book.If you are not inclined to plan, don't know anything about financial planning and find math to be challenging, this book will provide useful new perspectives for you.



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