Skip to comments.How I Ended Up Broke at 55
Posted on 04/26/2009 10:39:58 AM PDT by AJKauf
Anyone looking at my blueprint for a happy life composed at 27 would think I was the wisest young woman in England. Indeed, when I was an executive with Anglia Television Drama at that relatively youthful age, colleagues would come to me for advice on long-term investment. I knew that behind my back they were making cracks about Jews are always the best with money but it did not faze me. I seemed to have planned for a prosperous future. Just before she died, when I was 35, my mother said, Im not worried about you. One day you are going to be a very wealthy woman.
Well, I should have been. I am 55 and penniless. Without the generosity of friends I would be on the street.
What happened? In light of the daily stories on American news programs about tent cities and rampant foreclosures, I thought I would share my story. Here is the sorry scenario...
(Excerpt) Read more at pajamasmedia.com ...
This wrier is a slow bloomer. I’ve managed to become penniless and I’m not quite yet 40. Of course I didn’t do it all by myself; I’ve had a tremendous amount of government assistance in becoming penniless....
Banks, insurance companies and the federal government saw the opportunity as well.
According to BO and his D’RATS, we’re all supposed to be penniless. It’s the natural state when living in Socialism. Gloom, doom, poverty and despair. Get used to it. But hey! We’ll have “free” rationed “healthcare.”
There simply is no substitute for managing your own investments..whether it is realestate or stocks..there is no such thing as a hands free investment strategy.
It doesn’t take much time, but it does take some decision making. I was shocked to learn some years ago that 97% of the people in my company did not take the opportunity to move their 401k plans to the brokerage option and invest themselves. The company mutual funds which were on the list all were underperforming the SP500. All you had to do was move your money to SPY and you would have a much higer return and fewer fees.
Yes, the theme is greed. Big returns for no work. Easy money. Pay only the interest, get to deduct all the taxes, interest, etc. and then get a hefty return each year....probably much less in cost than renting a comparably valued home. Too boot, many of these “free money” gamblers were expecting high valuations and eventual sale to make a tidy equity profit. Screw them. If you aren’t greedy you are likely not to get screwed.
The lady should rejoice as her wealth is somewhere on its way to help those who have followed "The Divine One Of The Crown Of Thorns."
He or she, had an interest only loan for his/her first home. Ding, ding, ding !!!
I never considered my house as an investment. I got a 15 year mortgage, paid it off in 7 or 8 years. I have no idea nor do I care how much it would sell for now. I live here, it’s my home, not a savings plan. My wife and I and the tax assessor own it.
Doesn't exactly sound like she is destitute and without opportunity. My guess is she is like a lot of people on both sides of the Atlantic who think of themselves as "poor" if they can't afford every little thing they want.
I’m broke as well.. I live paycheck to paycheck, due to bad choices and some bad luck, and a marriage that tanked.. big deal..
you know life isn’t always rosy.. let’s get on with it, and quit whining about it.
sheesh, when I think about those poor folks in Auschwitz, I am reminded of how truly horrible life can become.
We are still lucky.. Even broke, we have a good life. And there, in a nutshell, is the difference between myself and my whining complaining democratic brother, in Michigan. His bad choices are everyone else’s fault..
arghhh... sick of hearing about it.
I do thank you for posting the article..
Please. I’m about your age. I’ve trusted people and lost unspeakable millions. In fact, I lost everything — 100%, meaning even my clothing, furniture and photographs — more than once, and everything was far more than a couple of houses. I try never to think about it.
Getting rich again is the easiest thing. Figuring out whom to trust, healing a broken spirit and heart, is a great deal more difficult.
You’re only 55. You want money, it’ll make you feel better? Use your head. Anyone can make money.
And when you get it, don’t exchange it for promises. When it comes to money, people who take promises are called suckers by people who make promises.
Now quit whining! :)
Interest only loans, taking out equity cash...bla bla.
Well, she had bad luck on her investments. But she was not exactly prudent or careful. She quit several jobs that would have given her more income and security. I don’t blame her for getting mad about the insult to her secretary, but I don’t know that it required her to quit her job. And I don’t know why she quit her other job.
Also, she is angry at the Scottish bank because they won’t allow her to leverage her mortgage loan even further. Is THAT really the way to get rich—increase your debt so you can have some spending money?
She sounds like a typical boomer generation person to me. And I don’t know why her friends would ask her for financial advice, since she evidently never bothered to manage her own money.
In Atlanta it wasn’t uncommon 5 years ago for two yuppies to buy a $1M home interest only. Monthly payments were high but deductions,etc. markedly reduced. They banked on being able to sell that $1M house for $1.25-1.5 M 5-7 years later and net a tidy profit. Then prices tanked and they are screwed - their homes won’t even sell for 750K or 700K in some cases.
My personal motto is “If you have it, hide it.” Old money keeps themselves wealthy that way.
A lot of wealthy people in Hollywood smartly own only one paid off home, a couple of beat up cars, and keep MTV away from them. They have their hobbies and extravgences, but nothing like a fleet of Bentleys and Hummers.
It seemed like Brad Pitt used to be that way and now he’s flying all over the place and buying one home afer another. Really disappointing.
Charity begins at home........build and secure your base. Multiple fiscal resources aka never put all yer eggs in one basket per se........live within your means be it a “van down by the river” or a pimped out “crib”......:o)
Then and only then help those you can !!
My opinion and what I have done. Gonna go polish the rims on my home now.
Applies to politics as well.