Company's 401(k) Plan.
03 May 2010
At 60 years old, Stanley Ohara is happily retired and has been for the last two years. He spends his days relaxing at home, fly fishing and tutoring math a couple of days per week. While he doesn’t view this as any great accomplishment, he has achieved what most Americans only dream of – an early retirement.
Fifteen years ago Stanley set his mind to retiring by the age of 55 and started counting down the work days to retirement beginning with approximately 5,000 days. As the days came closer to retirement, he realized that he would not be able to receive full pension from his company until he had reached 35 years of service, so Stanley delayed retirement until the age of 58. On April 1, 2008, the first day he was able to retire with a full pension, Stanley retired.
How was Stanley able to comfortably retire at the age of 58? With discipline and a “slow and steady wins the race” attitude. An employee of PG&E for 35 years, Stanley remained disciplined in investing money into his company’s 401(k) plan throughout his career, avoided debt and avoided lifestyle inflation. Whenever he received a raise, he would usually increase the amount of money the couple saved for retirement; so much so that his wife Janis claims she never saw money from any raise. The couple also followed a policy of never buying anything that they couldn’t afford and carefully managed an inheritance they received by investing the money wisely. While the Oharas managed their money wisely, they didn’t always do it “by the book.” Stanley went against conventional wisdom and decided not to max out his 401(k) contribution as generally recommended. Because he knew he wanted to retire before the age of 59 ½, the minimum age required to withdraw funds without penalty, he saved money outside of his retirement account so that he had money available in the early years of retirement and even before simply for fun things. Stanley also gives his wife much of the credit for their ability to save enough money for retirement since he believes he would have spent a lot more money if she weren’t there to reinforce the importance of saving. Even with an aggressive saving plan, the Oharas were always able to live comfortably and enjoy life.
What does Stanley plan on doing in the future? He plans on enjoying his money with his wife that they so carefully saved over the years. On his list of things to do is visit the “50 Places to Fly Fish Before You Die” and travel more once his wife retires in two years from her part-time job working with preschoolers.
Stanley’s story is an inspiration. He openly admits that he didn’t do anything “earth shattering” but his story reminds us that a disciplined approach to saving and investing can make the difference between living comfortably versus struggling through retirement. To put it simply, Stan and Janis developed a lifestyle of saving and prudent spending. Even if you aren’t in a position to take advantage of the strategies that Stanley and Janis implemented, it is a positive message that should be passed down to your children and grandchildren.