MONEY

One Saturday, at a bar in my hometown, I ran into a college buddy who I hadn't seen in almost 25 years.

He's working as a financial planner for a big-name, national outfit. He holds CPA, CFP, and CFA credentials, and has been doing planning for over 12 years.

After a few minutes, he recognized that I wasn't a potential client (my lack of willingness to pay 1% per annum of my portfolio's value was his first hint).

After a beer or two, I asked him, point blank, if he (or the local branch of his firm) had any clients (in the accumulation phase) who earn $20-$40k/year. I further asked him if he had any clients of retirement age who had held blue collar jobs, and, thanks to his firm's guidance, were now enjoying the good life.

The answer, as I expected, was a resounding "no".

Now, I'm sure that his firm is incented to find clients with a net worth of over 1M, but, he swears up and down that they accept clients with just $30/week to invest (which, apparently, is their absolute minimum).

I believe, in general, that people who don't earn a lot of money don't think it's worth their time to invest, because they'll never get ahead.

My father-in-law has worked at the same factory for over 30 years and makes a good buck. He refuses to put money into banks (except for a checking account) or Vanguard because (and I quote), "The Man will just control it".

He, instead, keeps his savings in shoe boxes, at the house. When he bought a new truck, he paid cash, which is hard to find fault with. No amount of explaining the concept of compound interest to him appears to influence his behavior.

When is it too late? I don't know. My aunt got started at 49 - I convinced her to open a Roth IRA instead of taking a vacation to Florida with her girlfriends (most of whom are her age and dead-broke).

We had a long and serious talk about money, and, in the 6 years since then, she's saved almost $80k, though about once a month she calls me to complain that "I've taken all the fun out of her life".

Her situation is somewhat complicated (she's twice divorced), but, I keep asking her if she wants to find someone to support her or if she wants to support herself. I think she's come to realize that she can't depend on anyone else, and that's it up to her. The discussions aren't so much about money, as about taking responsibility. Indeed, these are strange (and uncomfortable) conversations to have.

I don't know the answer to your question, but, I don't think it's ever too late to start saving. What's the downside?