We can’t control what others do and we can’t stop misfortune from striking. But we can control our own actions. Those who are financially prudent will most likely enjoy success, even if events don’t always go their way.
Striving for a secure retirement- even when you know little about investing.
How do you go from earning $1.49 an hour to being financially secure in retirement? Here is one way. Hint, time and persistence and always saving.
Took Time
Richard Quinn | Dec 6, 2023
HOW DID I GET financially to where I am today, 15 years into retirement? It’s a good question—one that’s taken me a lifetime to answer.
I’ve been fortunate in a way that’s nearly impossible for Americans today. I worked for one company for nearly 50 years and I accumulated a traditional pension based on that service. In addition, during my last few years on the job, I was eligible for stock options, restricted stock awards and enhanced bonuses. My pension, plus investing nearly all that extra compensation, solidified my financial security.
But my retirement success was also built on sticking to my often-criticized goal of replacing 100% of my base pay from my working years—that is, my pay excluding bonuses and other compensation. I met that goal with my pension, my Social Security, my wife Connie’s Social Security spousal benefit, and by working until age 67.
The story begins much earlier, however. I started working at age 18, and soon after signed up to buy savings bonds through payroll deduction, which I continued to do for decades. Now, I’m forced to redeem those bonds that have reached their 30-year maturity.
When I became eligible, I also signed up for the employee discount stock purchase plan (symbol: PEG) and, for the 60 years since, I’ve reinvested dividends. Today, those shares are about 20% of our total investments. While I purchased some shares, I received most of them as part of my compensation. I again showed my “unique” approach to investing by converting my stock options into shares rather than cash. Today, the annual dividends I receive are equal to almost 10% of my pension.
In 1982, I gained access to the company’s newly launched 401(k) plan, and I kept contributing until I retired. I always saved enough to receive the full employer match, and often I socked away even more, except during the 10 years when we had up to three children in college at the same time. My 401(k), which now sits in a rollover IRA, accounts for 42% of our total investments.
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