Feb 2, 2011

Tips from a Super-Retiree

Here's a fantastic article about "Super-Retiree" Leonard McCracken of Florida. What's a Super-Retiree? Well, let's put it this way: He's been retired since 1969. He never earned more than $10,000 a year. And at age 107 - yes, you read that right - he has no money worries. For most of us who fret that our funds won't last as long as we do, here's Bill's advice: 

Be thrifty.
A no-brainer. For example, McCracken has purchased only two new cars - ever.

Take care of your health.

McCracken's been blessed with good health all his life. Nothing can wipe out your nest egg like illness. You can't control your health entirely, but take charge of what you can. That means, for example, no smoking. To his advice, I will add this: Make plans to preserve your assets if you or your spouse are ever disabled and need long term care. That means buying long term care insurance or doing Medicaid planning.

Invest in real estate.
This may seem ironic given today's plunging real estate values, but McCracken says buying and selling property over the years was a good move and put money in his pocket. McCracken thinks the market will come back... and those who have invested now will do well in the future.

Keep borrowing to a minimum. 
McCracken says he's only borrowed what he absolutely needed, and paid it back as fast as possible.

Bad job market? Do anything.
McCracken would do anything at all in order to make ends meet during the rough patches.

Invest conservatively.
McCracken has always had his money in bonds and CD's. There were times that staying out of the stock market may have been thought downright foolish, but apparently, it's let McCracken get a good night sleep for all of his 107 years... 


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