Hare v Tortoise

The tortoise in the story wins the race with slow steady steps.

So is the story I read recently about a man in New Mexico. He is retired with savings exceeding $650,000.

Joe saved through his employer's plan which preceded the company's 401(k) plan. He started in his mid-30s with 1% of his salary ($15/week). He invested each and every bonus and increase in salary. That's right. He was committed to living below his income and saving the rest.

Joe placed his saved income in one stock fund. He rode out the one-day 23% plunge in October of 1987. Along the way he read books and visited the mutual fund website.

He diversified and kept to a 70%/30% stock/bond allocation. Joe took an early retirement and now holds a 60%/40% balance.

A true success story.

There are 3 things you can do with earnings. Spend it, save it, give it.

'til later