Duped and Delayed

Duped and Delayed

I frequently use JL Collin’s phraseology and say that there is a simple path to wealth. Maybe not all Americans can end up at financial independence, but a solid core can. We often look at our own lives and have limiting beliefs. Many have argued that financial freedom is just out of reach. The excuses come fast and furiously. I started too late, and made too many mistakes. I don’t make enough. Yet, in conversation after conversation with people who have retired early, I come to one striking conclusion. We have all been duped and delayed at one point or another.

Most of our journeys are marked with failure, sub optimization, and even tragedy. Against all odds, many reach audacious net worth goals long before traditional retirement age.

Debt

The debt story is frequently sighted as a hindrance. Whether spurious credit card debt, or much more understandable educational outlay, this is a frequent hurdle. Some physicians even come close to the million dollar mark. Others succumb to the YOLO phenomenon and have fear of missing out.

Whatever the cause, it is not unheard of to have boat loads of debt and yet still work convincingly towards financial independence. Duped and delayed for sure, but still pushing the boundaries of freedom as soon as the third or fourth decade.

If these mistakes are hindering people, it certainly seems that for at least some percent of the population, there is fairly quick redemption.

It’s not taking decades. It’s taking years.

Poor Financial Advice

Poor financial advice abounds. Especially for young people. I was certainly duped and delayed at one point. Almost everyone I know was. This naivate plays out in a few common scenarios.

Some financial advisors pray on the young and inexperienced. They sign clients up and expose them to high fees. These can either be AUMs, loads, or commissions. When taken over years, and negative compounding is calculated, a young person can suffer huge losses over the long term.

There is a similar insurance racket. Whole life annuities are pushed aggressively to unknowing investors. Often these are pricey instruments with very little return. The poor client can get locked into years of paying a hefty price for a product that does not meet their need profile.

And even after all this, those who wake up and become thoughtful about their investments can overcome these early mistakes fairly quickly. Armed with savings, frugality, and reasonable investment choices, the tide can turn on a dime.

We have all been duped and delayed at some point.

Speculation

I’ve got one word. Cryptocurrency. Or whatever pie in the sky business or equity that the naive jump into. Usually there is little understanding of the mechanics of the business or why it should or should not make money. These are the typical get rich schemes that are often introduced by a friend or family member.

Most of the time, nothing out there is for free. Speculation is quite dangerous, but occasionally can pay off. If you don’t want to be duped and delayed, these ventures should be a small part of the asset allocation.

Most savvy investors today have lost on speculation in the past. It’s a common misstep at the beginning of one’s journey.

Final Thoughts

We all get duped and delayed at some point. We use debt inappropriately, get taken by a financial advisor or insurance agent, or succumb to speculation.

Yet, armed with good habits, frugality, and reasonable earning potential, all this can be overcome. Almost every good origin story that I’ve heard concurs with this sentiment.

It sure didn’t stop them.