Content Synopsis:

In his sixth book, Bach tackles the problem his audiences and correspondents have been pointing out to him, namely that his wealth-building method works well for younger people who have the time to earn a substantial return on investments, while the great boomer generation, who probably buy more of his books than the younger crowd, don’t have all that time left.

This book was undoubtedly a challenge for Bach because late starters are at a great disadvantage to younger investors. The only real advantage seniors have is that retirement is now a looming reality rather than a distant theoretical goal, and as such a better motivator to exercise the discipline to plan and save for the golden years.

The book begins by telling the reader not to worry or give up, that there is still time even though the task at hand is even more urgent and difficult. He then proceeds to explain what the reader already knows, that in order to save late enough in life to have a proper retirement, one must save very aggressively. This means taking on an additional job to earn more income or significantly reducing your current standard of living to save so much.

It offers some helpful tips on how to get the most out of credit card companies and the use of automatic savings devices. Much of the book’s core is a repetition of his basic theories of paying yourself first, saving aggressively, investing wisely, etc.

The fourth part of the book looks at ways to make more money. Some of this is practical and realistic, while much of it is not for most people. His advice on real estate investing comes in two forms. The first is about investing in a growing market that existed in 2006 when the book was published but has little relevance in today’s market. The second approach is to invest in REITs, which if done in the cautious manner he advises is still a solid approach.

Bach never really touches on the problems many older people face in the decade or two before retirement. He doesn’t argue with how you do everything he advises while caring for aging parents, putting kids through college, and dealing with your own health problems and limitations.

Overall, the book offers some optimistic views on starting late and good ideas on how to make the best of a bad situation for the large part of the population that has not adequately prepared for retirement. Especially for the reader who is over 40, this is a good read. For younger people, it can be a good wake-up call to let them know what awaits them in their midlife period if they don’t start saving early.

Readability/Write Quality:

Like all Bach books, it is very enjoyable. It is well organized, easy to read, avoids complicated investment math and formulas, and uses real-life examples of how to apply his theories.

Author’s Notes:

David Bach started out as an investment advisor who discovered that he could help more people and make a lot more money by writing and speaking to larger audiences. He has written seven other books on wealth creation, beginning with the bestselling The Automatic Millionaire.

Three great ideas you can use:

1. Don’t let fear or a late start paralyze you. The worst thing to do is to do nothing. It’s vital to learn about your options and take immediate action to lower your expenses and save more.

2. Paying yourself first is the most important thing anyone can do to build wealth. It means exercising the discipline to set up an automatic savings system to set aside a percentage of all your income for long-term investments, investing that money wisely, and exercising the discipline not to touch it at all before retirement.

3. Just as important as saving and investing is paying all debts and avoiding incurring more debts. The worst debt, of course, is consumer debt that you can’t afford, except possibly the mortgage on his home. This means living a much less prosperous lifestyle, a sacrifice that is unavoidable if you are serious about providing for your old age, and you should because you can’t count on anyone else to do it.

Disclosure Information:

Start Late, Finish Rich by David Bach, copyright 2006 by David Bach. Published by Broadway Books in paperback. 333 pages not including index.

Evaluation of this book: Very good