Posted on 05/08/2025 6:07:19 AM PDT by Cronos
I never invested in stocks. I've been putting my money in CDs, 4-5%. It just keeps growing without even trying. It's just amazing that I have so much because I didn't plan for it. I have about $750,000 in cash, and my home is worth $600,000.
I'm from El Salvador and moved in 1946. My first long-term job was working in a bowling alley in 1958. I didn't go to college. For 17 years, I worked in the bowling industry.
..My next job of 27 years was as a scale technician, which I trained myself to do because I knew mechanics and I was analytical. I had walked into the office and said that I wanted to take a job. They called me and said to come on down to work for two weeks. And they kept me.
...I've been bowling my whole life, and I bowl three times a week on Monday, Wednesday, and Friday. I'm slim, and I played soccer and taught it for 27 years. I have a national license from the United States Soccer Federation. I'm healthy because I don't smoke or drink
...I still teach chess and started playing in 1952
...They always say that you need all this money to retire. I didn't plan for retirement. I was frugal, and so was my wife
...I didn't even know I had an IRA at the company. I didn't know I had a 401(k), but as soon as I did, I put 15% into it. They gave me a small IRA when I retired, and I left it in the bank. In 2008, when stocks were going down, I lost $15,000. I took my money, walked over to another bank that was just opening up, and they gave me 5% for putting my money in there.
(Excerpt) Read more at businessinsider.com ...
Living frugal and making it a habit to save something from every paycheck is good advice, but a haphazard investment plan might not work well for everyone.
I’m healthy because I don’t smoke or drink
Eventually, he won’t be healthy, and that’s when a lot of that money will go “bye bye”.
Story disappeared. Sounded simultaneously to scrambled and good to be true.
While the title says no savings plan, putting your money into CDs at 4-5% is a plan.
It was all driven by Wall Street tycoons to get their hands on your money.
I watch westerns and there is always a store front with the words “AGENT” on it. What did that guy do? He was the pre bank. Then came the official bank was local. Most investment was local.
There is different risk and reward in investing locally. I finally considered the risk and social implications of wall street investing and decided to move some of my money local with mortgages to individuals.
So, basically you’re saying you’re broke.
And remember for a good number of years the interest rate on CDs and other “safe” investments was about .2% or .002.
So $100,000 in a CD earned about $200.00 a year!
Sorry - I am very skeptical about the financial claims in this post.
Short term investment grade CDs and debt rarely pay more than the inflation rate, and often go negative, after paying taxes and management fees.
Investment grade CDs and debt were almost all negative during the eight year Obama regime, after the Federal Reserve decided to assist our first Black Marxist President with 0% to 1.0% interest rates.
Unless the author of this post bought long term U.S. Treasury and financial debt BEFORE Obama was elected, there is no way the author enjoyed superior returns during the last 20 years.
Since the link takes us to a 404 not found, none of us understand the whole story. It would be interesting to see more details of what this guy did
But look at the life style, He has enough and that is all we can ask for. Indications he is healthy and enjoys life.
Not all investment is money, you invest in your self, family and friends. His bowling buddies are a good investment, I suspect he can call on them for help if needed.
Unless the author of this post bought long term U.S. Treasury and financial debt BEFORE Obama was elected
It worked for me. My story is identical to the original poster’s, except I did go to college — thanks to scholarships and a heavy work-study schedule. Like him, I worked steadily and, by living well within my modest means, I was able to save quite a bit. Unlike 99% of my colleagues, I had my paychecks auto-deposited to my savings account rather than my checking account. i would transfer just enough to checking to cover bills — utilities and rent — and my one credit card was paid in full each month. I lived in a major metro area and walked and used public transit — no car and the related expenses. I had no plan or financial strategy, I never balanced my checkbook. When my savings account grew large, I’d put chunks into a mutual fund. This system worked like a charm. I was able to retire early (mid-50s) and pay cash for my forever home — no mortgage — and a used car. Depending on how the stock market does, my mutual fund statements reveal I’m often a millionaire. It can be done.
I agree, we made wall street richer at the expense of local investment.
If you crunch the numbers it turns out that dollars you don’t spend on frivolous stuff adds up in a hurry.
That is often the difference between those who have a stressed retirement and those who have a comfortable one.
Different people have different views on what is frivolous of course.
There is a revealing exercise people can try.
Look at the S&P 500 graph. Sell everything at a year 2000ish point, a high point and park proceeds at 5% (IRA/401K, no taxes) and draw a line on the graph showing your 5% growth.
Stop the compare pre-Covid deficit explosion. You’ll find you did better at 5%. All the S&P index fund stuff has too many losses along the way. They are crushing.
Losses are far more mathematically powerful than gains. For example:
You have $1. You gain 50% and have $1.50. Now you lose 50%. Are you back to your initial $1? No. You’re at $0.75.
Reverse it. $1 with a 50% loss is $0.50. Now gain 50%. You’re at $0.75 again.
Losses are more powerful than gains. Without trillions of printed money handed out . . . . .
He may be of German / Jewish descent — Blumenschild.
“I have about $750,000 in cash, and my home is worth $600,000.”
Not sure about his investment choices but the end result indicates he certainly executed Step 1 well.
Step 1 is to put a hefty chunk aside - say 10-20% or more of your salary - to invest for retirement. Not easy as I can say from experience. I was slow out the gate but finally got on board.
So you don't "have" $1.3 million, you have $750,000 and an nonliquid asset of $600,000.
If you don't plan on selling the house, you have only $750,000 to live off of, not $1.3 million.
If you sell the house, then you will either buy something more expensive or much smaller, or you will increase your monthly expenses by several thousand dolllars in rent.
-PJ
That's what I do. It keeps me on a very short financial leash because my money is illiquid. I'll easily be a multi-millionaire when I'm 80..but almost too old to enjoy it. 🤪
He was not getting no 5% Bank interest in 2008, Skippy.
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