My First $1 Million: Retired In-House Corporate Lawyer, 74

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THE BASICS
THE FUN STUFF
LOOKING BACK
LOOKING AHEAD

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Welcome to Kiplinger's My First $1 Million series, in which we hear from people who have made $1 million. They're sharing how they did it and what they're doing with it.

This time, we hear from a 74-year-old married and retired in-house corporate lawyer from the tech industry. He lives in the Midwest now, but spent most of his career in Boston and New York. He details here how he made his first $1 million by age 42, but then lost it all. Luckily, he's made other millions since then.

See our earlier profiles, including a writer in New England, a literacy interventionist in Colorado, a semiretired entrepreneur in Nashville and an events industry CEO in Northern New Jersey. (See all of the profiles here.)

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Each profile features one person or couple, who will always be completely anonymous to readers, answering questions to help our readers learn from their experience.

These features are intended to provide a window into how different people build their savings — they're not intended to provide financial advice.

THE BASICS

How did you make your first $1 million?

I received stock and options in a skyrocketing tech firm in the Boston Route 128 area in the '70s when I was in my late 20s. The stock increased exponentially, split and went up like there would be no tomorrow.

A piggy bank with a rocket strapped to its back soars into the sky.

I also bought more stock at a discount via an employee stock purchase plan, like a total fool. When the company went bankrupt, the stock was locked up, and shares worth $100 at their peak were worthless.

Since I could not sell the stock to realize a tax loss, I didn't even get that benefit.

What are you doing with the money?

Nothing. I lost it when my employer went bankrupt. I made and lost my first $1 million before age 42. My next millions (plural) were made quietly with a little more humility following the lessons I learned with my first million.

THE FUN STUFF

Did you do anything to celebrate (before you lost it all)?

No. I was too busy thinking (wishing) about the next million.

Does anyone know you're a millionaire?

I didn't really tell anyone about the first million, but my co-workers at the time who were making the same mistake by holding company stock probably knew. (Editor's note: As for anyone knowing about the current millions, note the word "quietly" in the answer above.)

What is the best part of making $1 million?

Security and freedom from financial anxiety. Having the resources to help my kids and grandkids and donate to worthwhile causes.

Did your life change?

Surprisingly, not much. We still shop carefully and look for bargains and will put off buying something if it seems too expensive even though we can afford it.

The view of a dock and the lake from the balcony of a lakeside home.

But having resources has made me more comfortable. It's enabled me to fund college tuition for our kids, a lakeside cabin, donate to worthy causes and enjoy fun travel, but otherwise I'm very much the millionaire next door in old sneakers and worn jeans.

My neighbors, friends and even relatives would be shocked to know our net worth.

When did you retire?

At age 65.

LOOKING BACK

Anything you would do differently?

Diversify, diversify, diversify. As a combat veteran, I was trained not to concentrate human resources to reduce vulnerability, but I just didn't see its applicability to my financial resources.

How did employee benefits figure in your financial plan?

401(k) matching, health care and personal spending accounts and insurance are all incremental ways to free up salary for investment.

I told new employees to read the benefit plans carefully and soak up every free nickel they could: "You won't miss it if you never have it in your paycheck, but once it shows up on your paycheck, it's hard to give it up. You are most likely making more money here than at your last job, so use this as an opportunity to kick-start your financial plan. You will eventually have to live on what you've saved."

A man sits on the sofa with a book open on his lap.

Did you read any financial books on your journey?

One Up on Wall Street (by Peter Lynch), Rich Dad Poor Dad (by Robert Kiyosaki), The Millionaire Next Door (by Thomas Stanley and William Danko). I also read The Wall Street Journal.

Did you work with a financial adviser?

Not for myself, but after retiring, we turned my wife's trust and her IRA over to a financial planner to both help educate her on financial management and to have a resource to manage a large portfolio when I pass on.

Did anyone help you early on?

My parents were members in good standing of the greatest generation, so they instilled traditional values in me — get educated, work hard, spend less than you make no matter how much that is.

Part of an American flag with U.S. Savings Bonds next to it.

The down payment for my first house came from U.S. Savings Bonds that I bought in a monthly allotment from my military pay as a draftee who made next to nothing.

My WWII veteran dad gave me that advice because he did the same thing and also died a millionaire.

LOOKING AHEAD

Plans for your next $1 million?

Since I'm retired now, there will be no next million. I harvest gains and interest for living expenses and have a six-figure annual charitable gifting plan using a DAF (donor-advised fund) funded with stocks with capital gains and QCDs (qualified charitable distributions) from tax-deferred savings accounts.

Any advice for others trying to make their first $1 million?

Save consistently, even if it's 1% or 2% of your earnings. Make an asset allocation plan and stick to it. Don't panic when the market inevitably retreats.

The business cycle will not be denied and cannot be timed. Don't swing for the fences.

As Peter Lynch noted, you can win the long game with consistent one- and two-baggers.

What advice would you give your younger self?

Don't focus on accumulating wealth, and don't get caught up in what Alan Greenspan called "irrational exuberance" about the latest trends — dot-com, crypto, ESG, etc.

Savings and investment are part of a life plan, not a goal in themselves.

A man puts his hands between two stacks of coins as if to separate them.

Keep a theoretical wall between your long-term investments and daily spending. Don't invade long-term savings for short-term spending, short of a financial catastrophe.

Do you have an estate plan?

Yes. Standard reciprocal revocable trusts, wills, powers of attorney, health care directives. We keep our estate under our (extortionate) state estate tax threshold with charitable gifts and by funding 529 accounts for our grandkids and Roth accounts for our kids.

What do you wish you'd known …

Before you retired? I waited until 65 to retire, even though I didn't need the money, because I enjoyed my job and feared not having that as a focus.

Now I know how great it is to be retired with adequate resources. I work with nonprofits for fun, spoil our grandchildren and get to travel with my wife — 70 countries so far.

When you first started saving? As a child of Depression-age parents, saving something from my first paper route (I know, a thing of the past) and first jobs (McDonald's) was drilled into me from an early age.

A paper boy on a bike throws a newspaper toward the front porch of a house.

The one thing I wish I had done was not to leave (all my) money in a bank. But when I was entering the workforce, we didn't have online brokers and the range of investment options we do today.

When you first started investing? That it is actually not that mysterious or difficult if you follow the boring and oft-repeated advice to invest conservatively, have an asset allocation plan and don't fiddle with it.

When you first started working with a financial professional? I really like my wife's planner, and one of my children is also using her. However, she is not doing anything for them that I haven't learned along the way myself.

A financial planner might have saved me from my huge mistake early in my career, but I was probably "too smart" at the time to take professional advice.

If you have made $1 million or more and would like to be anonymously featured in a future My First $1 Million profile, please fill out and submit this Google Form or send an email to MyFirstMillion@futurenet.com to receive the questions. We welcome all stories that add up to $1 million or more in your accounts, although we will use discretion in which stories we choose to publish, to ensure we share a diversity of experiences. We also might want to verify that you really do have $1 million. Your answers may be edited for clarity.

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As Contributed Content Editor for the Adviser Intel channel on Kiplinger.com, Joyce edits articles from hundreds of financial experts about retirement planning strategies, including estate planning, taxes, personal finance, investing, charitable giving and more. She has more than 30 years of editing experience in business and features news, including 15 years in the Money section at USA Today.