Investing

Our work life began in St. Louis Mo 60 years ago in 1959, when we turned 16 and could work part-time and summers. We earned our own spending money and paid our own tuition. Learning to work at an early age taught us self-reliance. We chose occupations that we were good at and loved to do. 

I graduated from college and entered corporate life 54 years ago in 1965 and continued to work as a musician until 1975. My income grew from $7,500 in 1965 to $17,000 in 1975 and to $60,000 in 1985. Our household income grew to $120,000 by 2010.

From 1960 to 1990 interest paid on cash savings was higher than stock appreciation. After 1990, stock prices rose beyond cash savings. The introduction of 401k plans allowed US employees an additional way to save for retirement and stock ownership soared.

In 1966, we invested in a single family home for $16,000 and sold it in 1975 for $36,000. I had a TIAA Fixed Investment account of $5800 that grew to $90,000 by 2014 without being added to.

In 1975, we moved to Salina Kansas and bought a home for $55,000 and sold it for $85,000 in 1983.

In 1983, we moved to Atlanta Metro and bought a home for $137,000 that is now worth over $600,000. We paid off this home in 2003.

In 1986, my wife graduated from Dental Hygiene School and began to add $30,000 to $60,000 per year income. She retired in 2017.

When I opened my private consulting practice in 1993, I transferred my 401k funds to a Vanguard Index 500 SEP. This $30,000 grew to $130,000 by 2007 by adding $38,000 from 1997 to 2001.  I retired in 2017.

We used home ownership, fixed rate and stock index investing, high paying jobs and business ownership to build enough wealth to live well and build and an estate to pass on to our 6 children.

You can do the same if you can find jobs you are good at and love, stop buying “stuff”, buy a single family home and put your 401k in the Vanguard 500 index.

Norb Leahy, Dunwoody GA Tea Party Leader