My First $1 Million: Retired Teacher, 83, New York
"I used to sweat the small stuff, but I have learned, after my wife and I each had a bout with cancer, it's all small stuff. And thank you, Lyndon B. Johnson, for creating Medicare."
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 married 83-year-old retired teacher in New York. He reports that his annual salary ranged from $5,400 in 1966 to $60,000 in 1996.
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.
To learn what these millionaires have taught us, check out the articles 5 Key Insights We Learned From 50 Millionaires and 5 Things 50 Millionaires Wish They'd Known Before They Retired.
And to hear more about My First $1 Million, you can check out this podcast with bestselling author and tax attorney Toby Mathis:
The Basics
How did you make your first $1 million?
We married in 1969, and by 1975, we had a house, three children and a stay-at-home wife. I was able to support the family on my municipal government salary, but when inflation hit and prices went up, my employer responded by freezing my salary (to keep taxes low), and I stopped getting raises.
We handled the challenging situation by cutting back (literally):
- My wife did the family hair-cutting, mending and cooking less-expensive meals, often meatless
- I was repairing our home and auto and taking care of the lawn
- We reduced heating our home, eating out and buying new clothes
- We distinguished between needs and wants
It reached the point that we were in danger of losing the house as we began to have too much month left at the end of the money and burned through our savings.
We were broke.
The youngest went off to a nursery program, and my wife went back to work.
The result of this financial stress actually made us prosperous, as we got so used to buying inexpensive foods, avoiding restaurants with tablecloths, etc., that we were able to invest much of my wife's income instead of using the extra money to "live it up."
What are you doing with the money?
We felt comfortable enough having a million in investments to take the NYC buyout with an immediate (but reduced) pension in 1996. We were 49 and 53. All of our money was already invested, mostly in our 403(b) plans.
The Fun Stuff
Did you do anything to celebrate?
No. It just sort of happened. At the time, I did a net worth total every month, and one day, there it was.
What is the best part of making $1 million?
I don't worry about money.
Did your life change?
I still dress in jeans and a flannel shirt for three seasons and jorts and a graphic tee in the summer.
We live on our reduced pensions and Social Security.
We used to invest our RMDs, but now we use them to pay for our grandchildren's college expenses.
We let the investments grow.
Does anyone know you're a millionaire?
I told my father and my children. Last Thanksgiving, my son let it slip to his children that I was in the top 1%, so the cat was out of the bag.
Did you retire early?
We retired at 49 and 53. Got into our mini motorhome and traveled for 11 months across the U.S. and Canada.
Looking Back
Anything you would do differently?
Not use a financial adviser.
What advice would you give to your younger self?
Things will get easier.
Did you read any books that helped you on your journey?
I read things on the internet.
Did you work with a financial adviser?
I started with a financial adviser, but learned that their interests and mine are not necessarily the same and went independent.
Did anyone help you early on?
My first post-high school employer told me when I got a 10-cent tip, "Dimes make dollars."
I later learned that if I watch the dimes, the dollars will take care of themselves.
Looking Ahead
Plans for your next $1 million?
Already here. Our net worth is about $11 million-plus: About $7.6 million in investments, about $2 million in our house and about $1.5 million in our 403(b) plans.
Any advice for others trying to make their first $1 million?
Start early and invest as much as you can. And you can live cheaper than you think.
Do you have an estate plan?
We have revocable trusts, which will pay an annual percentage to our three children and half that to each of our six grandchildren.
Twenty-five years ago, my wife and I created trusts that will pay an annual stipend to our children and grandchildren after our deaths.
A few years ago, when the eldest of our grandchildren was making college plans, we spoke with the three oldest and told them about the trust and our thinking.
Our thinking was that our trust would allow our grandchildren to major in whatever subjects gave them the most pleasure and go into careers that they liked without being concerned about remuneration, as the trust would give them a base income to augment their earnings.
My wife and I had jobs that we really liked and enjoyed going to work, but struggled financially. We wanted our grandchildren to enjoy going to work and not have to struggle.
All three, honor students, chose careers in teaching.
The trusts were also set up to pay for our grandchildren's college educations, but we've lived longer than we thought we would, so we're paying it now.
What do you wish you'd known …
When you first started saving? We didn't save — we invested.
When you first started investing? Be wary when using a financial consultant.
Before you retired? I didn't have much time to think about retirement. My employer came up with a buyout offer, and I had only about 12 weeks to decide. I was ready to go, but my wife was concerned that we'd run out of money.
I crafted a spreadsheet that covered the next 20 years, which included Social Security and RMDs.
She went along with it. If she hadn't taken the deal, I probably would not have retired until she was 55.
Anything you'd like to add?
I used to sweat the small stuff, but I have learned, after my wife and I each had a bout with cancer, it's all small stuff. And thank you, Lyndon B. Johnson, for creating Medicare.
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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