Millionaire Interview 383

Here’s our latest interview with a millionaire as we seek to learn from those who have grown their wealth to high heights.

If you’d like to be considered for an interview, drop me a note and we can chat about specifics.
This interview took place in September.

My questions are in bold italics and their responses follow in black.

Let’s get started…

OVERVIEW

How old are you (and spouse if applicable, plus how long you’ve been married)?

I am a 65 year old female and my husband is 66.

We have been married for 46 years.

We met when we were 15. My family moved next door to his family. My dear husband had it way too easy… just kidding… : )

Do you have kids/family (if so, how old are they)?

We have 2 beautiful daughters. The oldest is 38 and the youngest is 35.

Our oldest is a professor at a private college in the Northeast. She also married at 30 and we gained a son-in-law. Her life is busy working and traveling the world.

Our youngest is an athlete, and works in multimedia and marketing in the Southeast. Her and her main man have a wonderful time creating markets and adventures.

It is wonderful to watch their lives unfold and we are forever grateful to be blessed with our little family. We do miss them so much.

We also have our 20 year old long hair orange kitty. He absolutely loves being retired with us… : )

What area of the country do you live in (and urban or rural)?

We live in the Northeast at the foothills of a beautiful mountain range in the suburbs. We have lived here all our lives and find it very difficult to move. It has gotten very easy and inexpensive, with the exception of having to deal with home maintenance.

I suspect we will sell our home within the next few years, as our family has moved on and we really don’t need (or want) a 2800 sq ft home at this point. I think it would be refreshing to turn the page and enjoy a new adventure. (Suggestions would be appreciated).

We also own a home in FL that we enjoy during the winter. Our youngest daughter resides there, when she isn’t traveling for work.

What is your current net worth?

Currently: $2.4 million.

What are the main assets that make up your net worth (stocks, real estate, business, home, retirement accounts, etc.) and any debt that offsets part of these?

• 457(b) Plan: $1,600,000
• Roth: $85,000
• Sterling: $30,000
• Houses: $900,000
• Cash: $12,000
• HELOC: $195,000

EARN

What is your job?

I retired almost 9 years ago. I was a Computer Scientist for the government and a Professor of Computer Science.

My husband retired 6 years ago. He is an Electrical Engineer and also worked for the government.

What is your annual income?

My salary before leaving my job was around $100,000/year and $20,000+/- depending on the number of contracts that I had.

My husband’s salary was around $75,000+.

Today we both collect Social Security of about $51,000/year.

I have a pension of $40,000/year and my husband has a pension of $14,000/year.

Tell us about your income performance over time. What was the starting salary of your first job, how did it grow from there (and what you did to make it grow), and where are you now?

If you want to count my first job, as a 7 year old I sold the trinkets (seeds, cards, knickknacks…) that were advertised in the back of comic books. I also made tissue paper wreaths and sold them to the neighborhood widows for 25 cents…which was huge money in the mid 60’s (for a little kid). It is all good; I figured out if I wanted something, I had to get it myself. This experience served me very well all my life.

Anyway, during my teens, I worked at a nursery school, a housing project, water works dept and a museum. I got my first paycheck of about $35, at age 14. My 9 year old baby sister and I took the bus downtown, learned how to cash my check at the bank and proceeded to shop all the white elephant sales. That was way too fun. My favorite job was definitely the museum. My job was to make the museum signs via Leroy Lettering. My drafting table was in the museum attic with racks of museum relics and a beautiful gigantic sunny window… all to myself…nerd utopia…: )

My handsome husband, worked at a small local supermarket since he was 15. Talk about adorableness…he would bring me a bag of fresh cherries…I was the luckiest young lady ever. The produce man was the cutest elderly man you ever saw. He helped my boyfriend’s love life by packing a bag full of fresh cherries and charging him 25 cents… Mister Cupid or what… : )

After our first college degrees, I went to work as an accountant for a national company and my husband worked in Distribution Management for an International Freight Forwarder. That was a great start…and life went on.

I went back to college for a Degree in Data Processing (no Computer Science in those days) and went to work for a National Manufacturing Company, where I tripled my salary and learned soooo much. I left my Assistant Director of System Services position to start our family and was home for 6 years. During that time I got my first degree in Computer Science. There was no internet in those days and access to non-traditional college was in its infancy.

My husband lost his job in the early 90’s. It was just an easy budget cut needed in a down economy. At that time, it was easier for me to get a job in my profession than it was for my husband. So, I went to work for the government at double the salary I left work at 6 years prior. My husband became a full-time parent and he went back to college for Electrical Engineering.

Anyway, I went on to get a MS in Computer Science and a second MS in Telecommunications. Twenty five years later, I retired from my government position and am forever grateful for the phenomenal experiences and opportunities that I had.

My husband completed his Electrical Engineer degree, as well as an MS in Telecommunications. He worked for an International Backbone Provider (great fun job) during the tech bubble. Unfortunately they were purchased and he went off to a few other opportunities and eventually accepted a technical position with the government (great move… IMHO). He retired from the government 6 years ago.

Anyway, what it all adds up to, is we both started at $1.65/hr and ended making around $175,000+/year.

Long story, but it has been a lot of fun and a long time… : )

What tips do you have for others who want to grow their career-related income?

If I saw something I wanted to do at work, I always asked. At least 9 out of 10 times, I got the opportunity that I was asking for and had way too much fun. From my experience, it never mattered what the economy was doing, there was always a huge need for my engineering skills.

I also continued my education, so I was always enjoying the cutting edge of technology in academia and at work…so fun and so grateful…yes I am a nerd… ; )

I always advised my students and colleagues to ask for the opportunities that they wanted. Keeping in mind that they are going to own it, so choose wisely.

Don’t be afraid to try, even if you don’t succeed to your expectations, you can always try again. I always admired the exceptional student who was not afraid to fail and try again. Knowledge is not all for a livelihood; it can also satisfy a passion or experience…nothing wrong with that.

What’s your work-life balance look like?

I can’t say that my work-life balance was good. Technology is an incredibly demanding profession. I was on-call 24/7/365 just about forever. Even though I had teams of engineers, when disaster struck, I would be called to resolve the issue. I can’t say that it was not incredibly fun to resolve anomalies…here is the nerd thing again… ; ) But, also, my family relied on my income, so I did what I needed to do.

My husband’s schedule was about the same, except for his last 10 years, he actually had a 40 hr work week and a great job as well. I am so blessed to have him…just a side thought… : )

Do you have any sources of income besides your career? If so, can you list them, give us a feel for how much you earn with each, and offer some insight into how you developed them?

We have no other sources of income beyond our Social Security and Pensions.

SAVE

What is your annual spending?

Currently, we spend $70,000+/- a year.

What are the main categories (expenses) this spending breaks into?

All my figures are simply round numbers and best estimates based on current and past expenses. Anyway… something in this ballpark park:

• Insurance (Car, Home, Umbrella): $2,200 NY; $1,700 FL
• Property Taxes: $7,500 NY; $4,000 FL
• HOA: $7,718 FL
• Water: $180 NY; $780 FL
• Phone: $1,080
• Electric/Gas: $1,700 NY; 1,500 FL
• Internet: $300 NY; $624 FL
• HELOC: $ 10,700 (I used a HELOC when purchasing our FL home simply because I did not want to withdraw all the cash at once. I pay $60,000+/- a year on it. I am not certain how long we will own this home, but for the moment it is being utilized and enjoyed. I purchased it 7/2020, so the increased value has been a bonus.)
• Groceries/Sundries: $7,800
• Cafe: $4,800 (Our social hour with friends.)
• Cars (Gas, Repairs, Tolls): $5,500
• Medical: $4080. (We were able to accumulate funds for our medical insurance while we worked, hence I pay $0 for my health insurance and my husband pays $480/year. This includes Medicare, as well as our secondary insurance. Co-pays, Rx and nutritional supplements are $3600 as my best estimate.)
• Dental Insurance: $804
• Fed Tax: $7,000 (+ $12,000 due to $60,000 investment withdrawal applied to FL home.)
• No State Tax
• Remaining income is enjoyed and/or applied to HELOC.

Do you have a budget? If so, how do you implement it?

Yes we have a budget….although our budget is more like a plan. For any given month/year, I have an educated estimate of my income and expenses. I have a ToDo list of some major expenses that are on the horizon, as well as some milestones that are anticipated. I put the budget together and my husband and I review and monitor it.

We have always been frugal; however we have always spent money on experiences for and with our children (lessons, vacations, education and travel). Education and life experiences have always been high priority items for our family. My family has traveled extensively and has had the opportunity to advance our education. These are our highest priority, as you cannot replace time. I am so grateful that we worked to be able to afford these life experiences and create these memories.

What percentage of your gross income do you save and how has that changed over time?

While working we always tried to save around 50% (or at least one of our incomes) in various savings/investment accounts.

We have always been natural savers, since our first jobs.

What’s your best tip for saving (accumulating) money?

Automate your savings immediately!!! It makes it so easy to grow the estate. And of course, automate monthly bills. Any bill that I can automate and pay on my charge card is a bonus…Thank you for the $500 cash back that I get every year… Cha-Ching. If I could pay my property taxes and HVAC bills without a credit card fee, I would do that too.

Live below your means. Live Under the Radar… don’t be afraid to purchase staples from a reseller…most of which depreciate or are thrown away anyway (clothing, cleaning products, packaged goods, furniture). I pay pennies on a dollar to this day and I would much rather enjoy life experiences. Not to mention, the nerd in me loves the treasure hunt.

Take advantage of the experts. For decades we purchased all of our cars from our “great” auto mechanic. My niece saves us megabucks on our car, auto and umbrella insurance. My brothers and nephews provided the best HVAC and electrical assistance. And of course, take good care of these people. If you are getting great service then pay them well and tell others.

Bonus…everyone is different, but if you are lucky enough to have a partner that is frugal and goal oriented with their hard earned money…you have a winning combination…IMHO. Extra bonus, if your partner loves to go exploring!

Oh yes, and take care of those in need… your pets, beautiful children, elderly parents…What comes around goes around.

What’s your best tip for spending less money?

Stay away from commercialism!!! It is not easy in our capitalist society with our hefty communication infrastructure. Turn it upside down and you will be “Under the Radar”.

In other words, avoid TV, mute commercials, use DuckDuckGo, use your animosity (stealth wealth) to your advantage, choose your own direction and live…it puts you in the driver’s seat.

What is your favorite thing to spend money on/your secret splurge?

Our favorite thing to spend money on is exploring, we love traveling, learning new things and experiences.

My husband and I love history and antiquity. Everywhere we travel we go on treasure hunts (when we are not hiking or mingling in a cafe someplace), looking for gold, sterling, copper, brass, antiques, great books, beautiful artwork, music paraphernalia …way too fun!

INVEST

What is your investment philosophy/plan?

We have always been in stock mutual funds. In years passed, it was managed funds, these days it is indexed funds. It has gotten so much easier, safer and less expensive to invest over time.

Not that this is intended to be an investment, but some might think so…We also treasure hunt, so we just end up with marketable valuables. It is just a fun pastime and a byproduct of loving history and antiquity.

Many years ago, prior to the simplification of stock access and investments like 529, 401k, and such, people used to purchase whole life insurance. I do have to say, my husband and I had multiple policies which protected our family and ended up paying for a considerable amount of our daughter’s college expenses, as well as some travel excursions.

What has been your best investment?

My best investment is being goal oriented without fear (sometimes, I even scare my husband who is quite talented and aggressive.) I am very fortunate that my husband is perfect (just kidding), I mean we were definitely blessed at a tender age and on the same page.

But, as far as the moolah is concerned, I love my index funds. Also love my credit union. They must be good, since I have been with my credit union for 30+ years. I am into the KIS principle…Keep It Simple. My intent is to make my hard earned money work incredibly hard for me with as little effort on my part…

What has been your worst investment?

In 1987 on Black Monday…Yes, I sold my first mutual fund in panic…lesson learned…Boy was that stupid…but I was so young…excuses, excuses…

The investment wasn’t bad, but my actions were awful.

What’s been your overall return?

It depends on the stock market…I always target 10%+, but per my 457(b), it was 18.64% over the last 12 months… thanks S&P.

It is just a decent market at the moment.

So, someplace in that ballpark… ; )

How often do you monitor/review your portfolio?

Normally, I check my investments quarterly and calculate my net worth and review my estate yearly.

But…since my husband retired he checks it everyday and tracks it in a spreadsheet. I adjusted the spreadsheet so he could also see our net worth as well.

My husband has never been into finances, so I am ecstatic that he has taken interest. It is important that he know what we have and how to access it, so he will not be taken advantage of if he is left to fend for himself.

NET WORTH

How did you accumulate your net worth?

Our net worth was accumulated by a lot of hard work, planning, education and saving. And thank you to my accounting degree and all my other degrees that opened doors and removed fear.

We were simply consistent with our saving, goal setting and budget.

We did inherit around $50,000 from my husband’s parents, but we gave it to our children, as we didn’t need it.

What would you say is your greatest strength in the ESI wealth-building model (Earn, Save or Invest) and why would you say it’s tops?

All aspects of ESI have been instrumental in my situation.

I can thank my education for my Earnings, my innate characteristic to Save and my Accounting degree to Invest.

Oh yes, and I love math… : )

What road bumps did you face along the way to becoming a millionaire and how did you handle them?

Road Bumps, road bumps, road bumps…I guess my least favorite thing in the world.

Well, years of unemployment. I don’t miss that! We took advantage of the situation and continued our education to enhance or change our careers.

Both of our children were born with life threatening issues, so after 5 surgeries to date, we are so blessed to have our children.

Thank you lord, my husband and I have always lived under our means and saved aggressively. When we did get hit with life changing events we were actually able to financially handle them. They were still extremely painful, but at least we didn’t have excessive financial stress also.

So thankful…

What are you currently doing to maintain/grow your net worth?

We still have our investments in indexed funds, since we can easily live on our Social Security and Pensions.

Absolutely love investing (the math nerd in me), treasure hunting, and enjoying our homes and assets with our family.

Do you have a target net worth you are trying to attain?

Beyond multiple millions, we really don’t have a specific dollar amount.

It is just fun analyzing, planning, and managing our estate.

How old were you when you made your first million and have you had any significant behavior shifts since then?

We were around 45 when we had an estate of at least 1 million. I am not certain of the exact date, but I remember my husband didn’t consider it a million because it included our real estate…his version includes only cash.

And that is why I love that man…

What personal habits and/or traits have you developed that have made you successful at growing your net worth?

Over time, it was budgeting, planning and goal setting with all aspects of our lives (financial, education, career, family…) that have benefited us.

What money mistakes have you made along the way that others can learn from?

I think our biggest mistake was being a bank for our family. After 6 years of marriage and being a bank for our families, we made a rule that we would not co-sign or give money or assets to relatives. They were still asking even after I left my job to start our family. Many of these “borrowers” made more money than we did. Only 1 ever paid us back.

Anyway, be smarter than we were and don’t become a bank for anyone.

Even after 100 years…no, no, no, I mean 50 ; ), I am still learning different perspectives of finance. I would say learn as much as possible about finance. Also, “ALWAYS” know where your hard earned money is going…know your debts and manage them, maybe avoid extended warranties, services you do not use (TV, phone…), subscriptions, memberships, whatever…or just send that money you are throwing away to me…just kidding… ; )

What advice do you have for ESI Money readers on how to become wealthy?

There are many ways to become wealthy. No matter what path you use to generate income, be sure you know what you have coming in and where it is going. Don’t throw your money away on depreciable assets, don’t let people take advantage of you, pay yourself first, automate your investments, and expenses. Read and research finance to see from multiple perspectives.

Take care of yourself. Feed your body and brain the best you can. Education, food, exercise (we hike, bike, kayak, Mr Handsomeness lifts weights, and I do yoga and Pilates), as well as proper health care (for us, it is our Chiropractor and Clinical Nutritionist).

FUTURE

What are your plans for the future regarding lifestyle?

We are retired and love owning our lives. I returned to college to get a Culinary Arts degree…yes I am a nerd that really couldn’t cook so well…problem solved! My favorites are Spa Cuisine and Holistic cooking. I also learned how to play the piano and harp…absolutely love them. I am currently starting a degree in Clinical Nutrition. : )

My husband rehabs cylinder players, victrolas, radios, TVs, stereos, anything antique or electronic. He is in an antique radio club with other retired electronic wizards like himself. He also enjoys his singing lessons and is a member of our church choir.

We are at the foothills of a beautiful mountain range, so we absolutely love to hike, bike and kayak. It is so enjoyable to have the lake to yourself, early in the morning, while you bop around in your kayak with a cup of tea or coffee. Wherever we travel in the world, we hike all over the place…so much fun!

What are your retirement plans?

Already retired and loving it…so grateful. We are simply enjoying our bucket list.

Our investments are remaining in index funds, as we have pensions and Social Security to live on.

Are there any issues in retirement that concern you? If so, how are you planning to address them?

Our only concern is moving.

Our home is way too big for us these days, but it is so hard to find another home and community. It has become so easy to stay where we are.

It is inexpensive, clean, quiet and safe, as well as a beautiful home and neighborhood (that is what I am trying to replace in a home half this size).

If anyone has some words of wisdom, feel free to suggest.

MISCELLANEOUS

How did you learn about finances and at what age did it “click”?

I was extremely lucky. I was put in a business class when I was a HS Sophomore. I thought that it was just a dummy class…boy was I wrong.

I still remember my teacher and what I learned from her. Hence, my interest in accounting as my first college degree.

Who inspired you to excel in life? Who are your heroes?

My heroes are my father’s siblings.

My father was a change of life baby, so his siblings were like grandparents to us.

My beautiful aunts taught me to work hard and take care of my family. My uncles taught me how kind and loving they were to their families.

Do you have any favorite money books you like/recommend? If so, can you share with us your top three and why you like them?

I love The Millionaire Next Door, The Psychology of Money and Automatic Millionaire, amongst many others. I think I read every finance book my library had…pre-internet.

These days, I still love a good book, love YT channels like The Money Guys, Heritage Wealth and Dave Ramsey to name a few…and of course I love ESI Money.

I absolutely love people’s stories concerning finance!

Do you give to charity? Why or why not? If you do, what percent of time/money do you give?

We give to many charities; many times it is just providing a meal, clothing, a TV, helping with a child’s education expenses, and countless other organized charities.

Sometimes it is volunteering and showing up with food and/or supplies.

I have no idea what percentage of time/money we provide. It is just a part of our life.

Our favorite charities are to help individuals, families, and elderly. Show up at your local nursing home with a dozen throw blankets…I’m sure they will appreciate it. Send the staff a box of oranges at Christmas time. Pay that cute little dancer’s tuition. Help the struggling mom with a TV or furniture. Tip graciously. Help that vet when he/she needs assistance. If your adult child needs help, then help them.

Do you plan to leave an inheritance for your heirs (how do you plan to distribute your wealth at your death)? What are your reasons behind this plan?

We are enjoying our money with our family while we are still here.

Our children are our benefactors, as well as recipients of our estate via our will…My guess is that there should be plenty remaining in the estate.