Company's 401(k) Plan.
01 December 2011
When Ron Davis retired in 2005, he had no idea that the biggest financial crisis since the Great Depression was just a few years away. Having already weathered the fallout from the tech bubble of the early 2000s, he felt confident that he was well prepared for retirement.
Then, in 2008, the stock markets went into a tailspin, just around the time that Ron's wife Kathy retired from her job as a middle school secretary.
"That was a scary time … particularly when you're not contributing through earned income to your retirement fund," says Ron.
Fortunately, Ron and Kathy were able to weather the crisis through a combination of slightly smaller distributions from their retirement accounts, Kathy's pension, and a strategic approach to taking Social Security benefits.
That approach has allowed Ron and Kathy the freedom to enjoy retirement. Ron, who spent 30 years working with the Sacramento Children's Home, including 20 years as Executive Director and CEO, has embraced the slower pace of life that comes with not working full-time. A brush with cancer just before he retired also convinced him that it was time to reduce some of the stress and busyness of his life.
"When you're the CEO of an organization, whether it's for-profit or non-profit, it's the kind of job you have to work at 110% or you just don't do it," he says.
Ron certainly gave 110% in his demanding, three-decade career in children's services. After earning his master's degree in social work from California State University, Sacramento, Ron began working as a social worker and clinician with Child Protective Services in Contra Costa County, where he served troubled children and families. He then moved on the Sacramento Children's Home, where he worked as a social worker and an assistant director in charge of a treatment program before being named Executive Director in 1983. By the time he retired two decades later he had seen the organization grow to three times its original size in terms of budget and employees.
While running the Sacramento Children's Home, Ron also established the Sacramento Crisis Nursery, one of the accomplishments of which he is most proud. The nursery provides a crisis respite for mothers who need help caring for their young children. There are now two locations in Sacramento providing critical support to mothers who need help, particularly those who are low-income and lack a strong support network to help them in times of need.
After leaving his position with the Sacramento Children's Home in 2004, Ron served for a year as an interim executive director for a social services agency in Southern California before entering full-time retirement. Today, he's enjoying his flexible, relaxed schedule, including playing golf, exercising more regularly, and spending time with his children and grandchildren. Two of his daughters live in the Sacramento area, and one lives in Iowa with her family.
Ron also makes time to serve as the president of his homeowners association, which, he says, is "like having a part-time job." He says that the administrative skills he honed during his career have been an asset in the role, allowing him to provide leadership and guidance to the association. "It's given me an opportunity to be involved in the community where I live," Ron says of his volunteer position.
Ron and Kathy are also enjoying the freedom to travel that comes with being retired. The couple has recently taken trips to Hawaii and Washington, DC. In the next year or two, Ron is hoping to go to Machu Picchu and hike the Inca Trail.
Mostly, Ron and Kathy are enjoying the fruits of a many years spent saving for retirement―and of a sensible retirement income strategy that takes into account shifting economic conditions. "We have all these different pieces and it all works together," he says. "I just knew that if I could be disciplined … it would be OK."