Saturday, December 06, 2008

How I Was Able To Retire At Age 55 Without Winning The Lottery

When I was about 13 or 14 years old, I asked my father what I had to do to retire. He started laughing and when he finished laughing, which was about a week later he said ”before you can retire, you have to go get a job and work for a while.”

Okay, rule number one, get a job.

"Then what", I asked again.

“Set up a bank account just for retirement and every time you get a pay check put something in your retirement account. Even if its fifty cents or a dollar, make sure something from every pay check goes into that account. Don’t spend that money on anything. Just leave it.”

Rule number two, set up a bank account for retirement funds only.

"Then what", I inquired once again.

“When you have a fair amount of money saved, say a few thousand dollars, start investing some of your money, strictly for retirement. Don’t invest everything at once and don’t invest in one thing. Don’t put all your eggs in one basket. Keep in mind, that these investments are long term so your investments don’t need to be too aggressive.”

Rule number three, invest wisely.

I had three rules to follow. When I was fifteen years old, I got a job. I worked for a small design build company doing some drafting work. This company designed and built a variety of projects. They renovated old buildings; they built houses, warehouses and small shopping plazas. I had the opportunity to work construction as well as drawing up the projects. I learned to operate a front end loader and a bob cat, both before I got my driver’s license. The office was wherever the construction trailer was. If the trailer was within about a 20 mile radius of my house, I would ride my bicycle to the office. If it was farther away, work was dropped off at my house. This job paid me about $1.50 per hour for drafting and $1.90 per hour for construction work, which was being a laborer. My very first task for this company wasn’t drafting. I was given the task of jack hammering a section of concrete floor in a building they wanted to renovate. I rode my bike to the site and found a jack hammer and compressor. After a short lesson in how to operate the piece of equipment, I was left to the task. Jack hammering isn’t as easy as it looks but I did manage to get a piece of the concrete floor out. I had to do an inspection of the slab and what was under it. How thick was the slab, was it reinforced, if so was it rebars or mesh, what was the condition of the bottom side of the slab, what was underneath the slab, how thick was the slab. I finished my task and rode my bicycle to the trailer to report my findings. When I got there, I discovered everyone had already gone home.

I also worked at Dunkin Donuts for about 6 or 7 months. I made minimum wage which was $1.85 per hour. I worked 25 hours a week serving coffee and donuts for minimum wage plus tips. Some days those tips were as much as eighty or ninety cents, except at Christmas. My tips were about three dollars per day for the week leading up to Christmas.

Dunkin Donuts sold only coffee and donuts and a few select specialty pastries such as éclairs, French crullers and coffee rolls. They didn’t have soup, sandwiches, coolata’s or ice cream. Just coffee and donuts. They still had the counter. I worked in the afternoon after school and if someone called in sick on the night shift I would go home at 7:00pm and come back at 8:00pm and work until 1:00am which was closing time. The same people stopped in in the afternoon after work for coffee. Kids came in before driver education class which was held in the building on the other side of the parking lot. The night shift was very interesting. The cast of characters that came thru at night were quite interesting and at times colorful.

I was making money, which was the point of getting a job and I started my retirement savings account. Every week, I’d cash my check, give mom something for room and board, a few dollars went into my regular savings account and something, sometimes just a dollar, went into my retirement account. I was on my way to retirement.

After high school, I went to college. Most of my college career was at night school so I was making a decent amount of money that allowed me to pay for school and save a little something for retirement.

When I had a fair amount of money saved, it was time to look into investing some of the money. We went to see a friend of my fathers who was retired from the wonderful world of high finance. I explained my long term goal was retirement as young as possible. I had about 36 years until age 55. He advised I look into real estate, set up a small stock portfolio, look into T-Bills, precious metals and bonds. He directed me to a financial advisor who would take care of my investments.
The first thing I did was buy a small house. I was nineteen years old and had to bring a note to the bank from my mother in order to get a mortgage. Because I was less than 21 years of age, my mom and dad had to co-sign for the house. Once I was 21 years old, I transferred the house into my name only.

The house was one floor, 7 room house with a garage, enclosed porch on one side and deck on the other. The lot of land was about 10,000 square feet, enough to mow without it taking days to do and enough to have a picnic and barbeque area away from the house. The house needed some work, most of which I did myself. I replaced doors both inside and out, the kitchen floor, painted every room, painted the exterior once during my years of ownership. I created some planting areas, thereby minimizing the lawn area, built a rock retaining wall and railroad tie retaining wall and a sitting area in the front yard. I hired an electrician to do electrical work as I had no understanding of electricity and a plumber to the plumbing upgrades because plumbing is just plain icky. The work I put into the house paid off because after 5 years of ownership I was able to sell the house for 2 and a half times what I paid for it. My financial advisor reminded me many times that not all real estate transactions will be that gainful.

Over the next 25 years I bought a total of 15 houses. 11were multifamily homes and 4 were 6 units each. 2 of the 6 unit buildings were in Boston. One was in back Bay and the other was in the Symphony Hall neighborhood. I was able to pay cash for the last four houses I bought. When I started selling the houses, 4 years before I retired, all houses had been paid off. The proceeds of those houses went back into my retirement account.

In addition to buying real estate, I invested in stocks and bonds. I started with about 4 thousand dollars and a few stocks. Usually once a month I checked the status of the stocks. I didn’t look at them every day. If I did, it would have made me crazy to the point of losing my mind. A few stocks dropped off the face of the earth but for the most part, I made money over the long run. Occasionally if a stock went up five points, I would sell it and buy something else. I didn’t panic nor did I take my money and run when the stock market dipped. It was certainly going to dip from time to time and it would rebound and correct itself at some point in time. As my stocks made money, I reinvested in additional stocks or more shares of what I already owned.
I bought and sold precious metals for a while, mostly gold and silver. I was very conservative buying gold and silver. Any profit from gold and silver went into my regular savings account which was things I wanted like a new car once in a while, computer, TV, things like that. I no longer deal in precious metals.

When all the right circumstances came into alignment, I retired from the working world at age 55. I still have a stock portfolio and buy T-Bills. I have a retirement account currently worth 5 million dollars. That account generates more a year in interest than I ever made in any one year of my working life. I own my own home, bought a new car and paid cash for it when I retired. I can live comfortably and not worry about money until I am about 110 years old. I am careful with money and don’t buy things just to buy things. When I do buy something, I don’t necessarily buy the most expensive thing on the market.

I got some good advice from my father when I was a kid and I am so glad I followed his suggestions. My father was not a financial whiz nor did he work in the financial world. He was a town employee who, along with mom, raised a family of 6 kids on a modest salary.

The principals involved will work for anybody but your overall results may vary.

That is all I have to report at this time.

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Friday, November 07, 2008

Greetings Blogger-Mates (I'm testing new words to call blogger readers. got a suggestion? let me know)

Obama is the man for the next four years. Some people think it will be hard for Obama to give up his senate seat. Really? He’s hardly used his senate seat the past 2 years, why would it be hard for him to give it up? He is wasting no time getting his administration in place. George W., suggested, when he called to congratulate him on his win, that he take a vacation first before he begins the task of being commander in chief. I think Obama thought better of that suggestion and will get to work right away. Somehow, I don’t think we will see Obama taking month long “working vacations”. I did not vote the guy, but I will support him, until he does something stupid.

Weymouth, MA.: Since July, the police chief, Jim Thomas, has been on paid administrative leave. Accusations were made and the mayor relieved him of duty. At the time, Thomas was on sick leave as he just had bypass surgery. The town hired an attorney to investigate the charges. The Mayor has had no comment since July. That was on the advice of the attorney investigating the case. The residents of the town have been waiting for the results of the investigation and whatever action the mayor might take in this matter. Since July, their has been a lot of speculation about what Thomas did. It has been reported that a charge of sexual harassment was lodged against the police chief. He reportedly gave a female colleague a sexually explicit birthday cake and made an off color joke. The receiver of the cake and joke was not offended and did not lodge the complaint. For several months, the investigation has been termed “substantially complete” and “almost complete”. But no report has been forthcoming. This week, Jim Thomas officially retired from the Weymouth Police Department. The headline in the paper yesterday was “Police Chief Jim Thomas Retires, Investigation Complete.” The Mayor has been accused of several things: forcing Thomas to retire; jerking him around with the investigation to teach him a lesson. (Jim considered a run for Mayor last year against the current Mayor); covering up the real story which is not a story at all and taking the opportunity to get rid of Thomas so she can appoint her own choice as chief. I doubt those accusations are true. But the fact remains, a hush, hush, “no comment” investigation has taken place and may or may not be complete. The investigation may or may not reveal the true allegations. The Mayor did the right thing by placing Jim Thomas on paid administrative leave and launching an investigation. But she did the wrong thing by allowing it to take so long. Let’s hear it. What did he do that was so horribly wrong and how much is it going to cost the town?

Here in Massachusetts, their were three 3 questions on the ballot. Question One was to eliminate the state income tax; Question Two was to decriminalize pot possession for under an ounce; Question Three was to ban dog racing by January 2010. Question One was voted down 69% to 31%; Question Two passed 56% to 44% and Question Three passed 69% to 31%. Fortunately, we do not have to endure what would most likely be devastating effects of a 40% cut to the state budget and the resulting cuts in state aid to cities and towns. Anyone caught with an ounce or less of pot will get a fine and a slap on the wrist and sent on their way, leaving police officers to do real police business and catch real crooks and evil doers. There are two dog tracks in the state that will have to close their doors in the next year. That means thousands of dogs have a very dubious future and thousands of people will be out of work. I think it was not right to put this vote on the state wide ballot. How many people who voted to ban dog racing actually go to the dog track? How many people who voted to ban dog racing took the negative reports at face value? Did anyone do their homework and investigate the negative reports to find out how true they were? I bet not. If this ban does go into effect, the track owners now have very valuable property. Think about it.

Thats about it for now. Visit www.funnycoke.com Want to work at home? Visit https://www.quickinfo247.com/9702325.35/FREE

Sunday, November 02, 2008

Greetings Blogger-ino's (I'm testing new words to call blogger readers. got a suggestion? let me know)

Did everyone remember to turn the clock back? I love this time of year when I get that extra hour. Of course, that extra hour does not make up for the many, many hours of sleep I missed the past year.

2 More days of listening to the "vote for me" campaign rhetoric and it will be over. This presidential campaign has gone on much to long. Campaigns should be short, sweet and to the point. Forget the mud slinging, forget the name calling, stick to the facts. Don't tell me what your opponent has or has not done. I, as an educated voter, already know what your opponent has or has not done. If you want my vote, tell me what you are going to do for me when elected and how are you going to achieve that goal.

Tim Wakefield will be back with the Red Sox for the 2009 baseball season. They chose to exercise their 4 million dollar option and bring him back for one more season. Granted 2008 wasn't his best year but that's one year out of 14. I am glad he will be back and look forward to another very exciting Red Sox season.

News Flash! Obama's aunt is found to be living in federally funded housing in Boston, illegally. Because of a loop hole in the system, those in charge didn't have to check to see if she was a citizen or had legal status to be in this country. Apparently, she was issued a deportation notice but never left the country. Why is this a big deal now? Her nephew is running for president. Maybe if Obama is elected president, she can move to Washington and live in the White House and become an advisor of some sort to the president.

Quote from a first grade student: "I want John McCain to be elected president because Obama is a liar." Now, how did she formulate a statement like that?

A 13 year old New Jersey boy was sent home from school for wearing a Jesus Christ costume to school on Halloween. School officials were concerned other students would find it offensive. Offensive? Did students who dressed up as presidential and vice presidential candidates sent home from school? Obama and McCain can be pretty offensive characters in or out of costumes. This must be the Christmas thing all over again. God forbid some one is offended by something. Let's all learn to be more tolerant of others.

That's about it for now. Visit www.funnycoke.com Want to work at home? Visit https://www.quickinfo247.com/9702325.35/FREE

Sunday, October 26, 2008

What's with Tom Brady? Yes, he is injured but is he still interested in football? Or is he just interested in first and ten with his main squeeze, Giselle? From where I sit, in the nose bleed seats of life, Tom is done with football. Not because of the boo boo on his knee but he's done it all and got paid everything to do it. Where is his motivation for the grid iron? Matt Cassell - keep it up, you are now the main man in Foxboro.

Where did the Red Sox go wrong against Tampa? They just plain ran out of gas. I read somewhere they lost the heart and spirit to win but it wasn't that at all. They just ran out of gas. Would things have gone differently in Manny was still in town. I doubt it. He became a distraction the team didn't need. He wasn't interested in playing baseball in Boston anymore so he just gave up. If he is still with the Dodgers next season or even if he is with another team, he will tire of that place and just give up, like he did in Boston.

Who will be the next president of the United States? I don't know who I will vote for. I may not vote for anyone. Oh, I will vote but I might not give any presidential candidate a check mark. I'm not thrilled with any of them. Not one of them have given us a viable blue print to fix the financial crisis in this country. Nor have they given us a blue print to fix the health care system in this country. (hint to all presidential and vice presidential candidate. first, fix the insurance racket in this country, then fix health care.) Maybe no one will be elected president. We don't have much of a presidrnt now, maybe no one will notice the difference.

Anyone been to a McDonalds lately? Is your McD's as inefficient as the one in my neighborhood? It takes about 20 minutes to get an Egg McMuffin. The workers trip over each other. The managers can barely speak english. The entire store is so discombobulated. They claim they are understaffed but I never see a help wanted sign. I much prefer McD's over Burger King but I go to Burger King more often than not. They are organized, they are efficient, they get the food out in a timely manner. And everyone on staff has a very good grasp of the english language.

Who watches The View? Raise those hands. Who watches "The View" but won't admit it. Get those hands up. Thats more like it. I watch The View almost everyday. I like the Hot Topic segment. I just love Elizabeth Hassleback. She takes a stand and sticks to it. Right or wrong, she sticks to her guns. I admire her for not being afraid to mix it up with the other gals on The View. I hope the rumors that Barbara Walters wants her off the show are false because without Elizabeth, The View is just like most other talk shows: b-o-r-i-n-g.

That is all I have to report at this time. Visit www.funnycoke.com

Monday, October 13, 2008

13 October 2008 Monday Columbus Day

The Red Sox are playing Tampa Bay for the American League East. The Sox have a tough road ahead but they can take Tampa Bay. The series is tied one game a piece. The series continues this afternoon in Boston for three games. Jon Lester will be on the mound for the Sox. He has become the Sox Savior. He is the Boston Ace. Go Sox! Beat Tampa Bay!

Enough already with Obama and McCain. They haven't said anything new in a year and a half and I, for one, am tired of listening to them. Both candidates have stooped to mud slinging and charector assasination. Who cares! The country is in a financial crisis and the people are looking to our leaders for answers. I say this to McCain and Obama: if you want to be the president of this great country, tell us what you are going to do to help this country. (We don't want to hear about any bailout plans that exclude the tax paying American citizens.) Tell us how you are going to fix the economy and lead this country back to greatness so the average citizen can pay their bills, put food on the table and raise their families without having to work 5 or 6 jobs. Tell us how you are going to fix this economy and the system in this country so every American citizen can afford - and get - the health care that every hard working American Citizen deserves. If you can give me a realistic, concrete plan for getting this country back on track, you have my vote.

Enough about politics. If you are looking for a charity to support how about the Juvenile Diabetes Research Foundation (www.jdrf.org) or Multiple Sclerosis (www.nmss.org) Find your local chapter and check what they have going on. Let's work together to find a cure!

Want to read a great American author? Check out Mr. Marty Beckerman at www.martybeckerman.com. The late, great Hunter Thompson called him a "morbid little bastard." Mr. Beckerman is a breath of fresh air. Check him out. You will be a much better person for it.

Speaking of sports, what happened to the Yankees this year?

check out www.funnycoke.com

That is all I have to report at this time.

Monday, March 17, 2008

Happy Saint Patricks Day, everybody.
Spitzer is out - Patterson is in. New York has a new Governor today as David Patterson was sworn in as the 55th governor of New York. Patterson, who is legally blind, received a two minute standing ovation upon taking office. As we all know, Spitzer resigned after being linked to an exclusive prostitution ring.

The Red Sox are headed to Japan to play baseball. All I can ask is "why?" It is a grueling trip right before the season starts. It is bound to take a toll on the players. It is a nice gesture and all considering Dice K is a Red Sox but is it really necessary?

Okay, who is voting for who this up coming presidential season? I am voting for Hillary.

MaryAnn from Gilligans Island was busted with pot? I wonder how many cocanut shells and vines it took for the professor to fashion a bong?

Dick Cheney went to Iraq? For what? Is he checking up on his Haliburton contracts?

An alleged drug lord won 1.35 million dollars in his local lottery. I wonder if he is going to invest in his own drug trade?

Paul McCartney has to pay Heather Mills 48.6 million dollars in their divorce settlement. Thats 48 million dollars more than she deserves.

That is all I have to report at this time.

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Tuesday, February 26, 2008

Is it just me or does Brian McNamee look like a mongoloid version of comedian/actor Andy Dick? Did the latest congressional hearings make McNamee look like a lying, conniving, back stabbing, drug pushing loser? You bet they did. What a scoundrel he is. It's like him that give baseball a black eye.

Is it just me or does Barack Obama bear a very striking resemblance to Elmer Gantry? Enough said about this one.

Good news for Boston Bruins fans. Patrice Bergeron put on the skates and hit the ice for a short skate with the team recently. You may recall about 4 months ago Patrice was checked face first into the boards. He suffered a level 4 concussion that really rang his bells. He is not ready to come back to play but it is encouraging to see him take that small step on the road to a complete recovery.

How about those Red Sox? They rewarded manager Terry Francona with a three year contract extension for 4 mil a year and an option for year 4 and 5. This was a very wise thing for them to do. Fans would hate to see Francona be lost to another American League team. Red Sox Nation is looking forward to a very successful and exciting 2008 baseball season.

That is all I have to report at this time. Check out www.funnycoke.com