1/18/2011 view-of-retirement-at-107: Personal Fi…

Focus on Lifelong Investing » Living in Retirem ent » View of Retirem ent at 107

View of Retirement at 107

by Jennie L. Phipps
Monday, January 17, 2011

Eight years ago, at age 99, Leonard McCracken failed the eye test for renewing his
driver's license. He put his Lincoln Continental up for sale and got $1,600. "I sold it in
three days -- I got a good price. I love to haggle," he says.
McCracken, who lives in Florida, has been living
in retirement since about 1969, when he left a More from Bankrate.com:
position as a salesman with a now-defunct steel
company in Ohio. Since then, he's been living on • 5 Little-Known Facts About
savings, Social Security and a lifetime annuity Social Security
that he purchased before he retired. He has never
had a pension. At 107, after living in retirement for • 10 Part-Time Jobs For
41 years, he's still paying the bills and getting by Retirees
on his own resources.
"Dad never made more than $10,000 a year in his • No Social Security Until Age
life," says his son Bob, a 73-year-old retired GE 65?
aircraft engineer.
How does a guy with modest income manage such a retirement planning feat?
McCracken points to a half-dozen basic principles that have gotten him through life and
continue to serve him well.
Thrift
In his whole life, McCracken says, he has only owned two new cars. The rest of the time
he bought used. He still shops at the thrift store. And he remembers vividly the time that
his wife was holding a garage sale and left him in charge. When she returned, he had
sold the living room sofa for $100. "I had a very understanding, frugal wife (Dorothy, who
died in 2002 at 95 after 75 years of marriage). We gave up a lot of things that other
people were buying in order to break even."
Real Estate Investments
McCracken bought and sold 35 houses in
his life, including five that he built himself.
His son, Bob McCracken, says his
parents "always invested in a nice house
and that has helped my dad. He is living
off the equity in the last home he and my
mother owned."
The elder McCracken agreed that buying
and selling real estate was a smart move
Leonard McCracken for him. "We didn't make a lot of money in
every case," he says. "But we made
something and that helped."
What is his advice for current owners of real estate? "It's bad now, but it will come back,"
he says. "And people who buy now, they'll make a lot of money," he says.
Use Debt Well
During the Great Depression, McCracken worked for a bank. He watched people lose
their shirts and learned from it. Throughout his life, he borrowed when he had to, but he
borrowed as little as possible, he says, and he paid it back as quickly as he could.
Work Even When Jobs Are Hard to Find
McCracken was unemployed about 45 years ago after his previous employer went
bankrupt. He had to take a job driving a truck that paid $5 per day. It was a low point in
his life, but between that and a commission sales job that he took at night, he and his
family muddled through until he got back on his feet.
Save and Invest Conservatively
All of McCracken's money is in CDs and bonds. He's always avoided the stock market,
even when people who purported to know more than he advised him differently. "When
the economy tanked, he made a lot of us look real silly," Bob McCracken says.
Stay Healthy

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1/18/2011 view-of-retirement-at-107: Personal Fi…
McCracken has hung onto his health and his wits and has had no major medical bills at
all throughout his entire life. It has only been in the last year that he's needed a little
assistance. And even then, he doesn't need much, his son says.
Copyrighted, Bankrate.com. All rights reserved.

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3,173 comments Show: Newest First

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Afolabi Hakeem 50 seconds ago Report Abuse 0 0

This is a good lesson for these generation and the unborn. Papa, you are a
role model. You passed through the up & downs of life and you are still
strong at heart and physically. I wish you the best.
Reply

Catherine Xu 3 minutes ago Report Abuse 0 0

what i get from this is how to live so long life. any secret?

i am a gril spend money without any plan. so i learn from this man that
thrift is the best policy.
Reply

Frank0570618 7 minutes ago Report Abuse 2 0

Uhm, I'm sorry but...

This guy:

- "bought and sold 35 houses in his life, including five that he built himself"
- worked for a bank during the depression
- never had any health issues

I'm sorry but this hardly qualifies as "never earned more than $10,000".
This guy may be thrifty, but he's hardly an example of a poor man battling
the elements.
Reply

Perfectlybaked 8 minutes ago Report Abuse 0 0

I don't think any of us need advice on what to avoid. Rather, we need
advice on how to get out of it. Easier said than done. I would say that,
although buying in bulk can save a ton of money... it isn't always
convenient and isn't always something we think of, not to mention that
membership fee for the few places that actually do sell in bulk.
Replies (2)

Christina 8 minutes ago Report Abuse 2 0

He learned from the depression. That's what happens you live and you
learn. We all learned something from our current economy...don't live above
your means. Nothing lasts and the gravy train will come to a complete
stop.
Reply

A Yahoo! User 9 minutes ago Report Abuse 4 0

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1/18/2011 view-of-retirement-at-107: Personal Fi…
good for him, he's seen and learned alot...
Reply

Chelsea 11 minutes ago Report Abuse 5 0

I'd be more curious to know how he takes care of himself to reach a ripe
old 107!
Replies (1)

LOVEITORLEAVEIT 11 minutes ago Report Abuse 0 0

Lets see he worked maybe 50 years of his life now thats a stretch. He also
never made more than 10k a year so a whole lot of years he made a whole
lot less but we will go with 10 k a year x 50 years comes out to a cool half
million dollars awesome for him. Now lets see he never paid in 10 k a year
for social security more likely a very small percentage of that went to SS.
Now he has lived 41 years and gets 1600 a month x 12 =782,000 dollars
so he has gotten back many fold what he ever paid into social security. As
people grow older and older SS will no longer be possible to maintain. Even
if you retire at 70 after a few years most of us have pulled out everything we
ever paid into social security. How long will this program contine? who will
maintain surely not our children who number less than us in population...
Reply

Patrick S 12 minutes ago Report Abuse 4 0

retired for 41 years? can you imagine?! good for him!
Reply

New bie S 12 minutes ago Report Abuse 1 0

Great Grandpa!!:D
Reply

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