- BI spoke to 4 older Americans who retired comfortably with over $1 million in assets.
- Dozens of older Americans said they still maintain frugal habits despite having significant wealth.
- Still, some retirees said they regretted how they balanced saving too much with enjoying life.
Brian Loffredo, 68, still does his own yard work and watches his grocery spending despite having millions in the bank.
Loffredo, who lives in Connecticut, worked in retail management for decades but said finances were tight early in his career while raising four stepchildren. He recalled winters where he could “see the breath coming out of our mouths” because he couldn’t afford heat.
As he navigated higher-paying jobs, including management roles where he worked 50 to 70 hours a week, he learned how to do home improvements himself to save money. In addition to smart investments and staying at one company for 26 years, these strategies helped him grow his wealth during difficult times — and he plans to keep them.
“You do what you have to do, you learn to do it yourself, and you can get it done,” Loffredo said. “In the meantime, you’re saving money that allows you to buy presents for the kids.”
Loffredo could be seen as an example of a “millionaire next door,” as described in a classic 1996 finance book. Many wealthier Americans live in middle-class areas and achieve their wealth through careful planning and investing instead of risky business moves or very high-paying jobs.
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For many Americans like Loffredo, more money doesn’t necessarily mean a drastic lifestyle shift. Business Insider heard from dozens of older Americans who retired comfortably but still remain frugal. Some older Americans told BI they’re working while enjoying seven-figure net worths, whether for financial security or simply having something to do.
Some regretted over-saving and not enjoying their money when they were younger, but most said they would change little about their retirement strategies and believe they would not be who they are without making these sacrifices.
Loffredo hadn’t thought seriously about investment strategies until 2000, a few years after his wife died. He watched financial cable news channels and read about diversifying his portfolio. He took $100,000 of his savings and day-traded it before taking the buy-and-hold approach.
After searching for areas with less costly real estate, he sold his 2,200-square-foot house for a 3,500-square-foot home that cost only $10,000 more. Despite a demotion from a six-figure income to about $60,000, his investments, including his 401(k) and IRA accounts, continued to grow.
“I could have bought a house for a million and a half, and my investments have made some money,” Loffredo said. “I don’t believe in wasting that kind of money, and every house you get that is more valuable costs you more to maintain it.”
Loffredo retired in April 2021 and volunteers in the community. He recently splurged on a Corvette, though he continues living frugally in other aspects. He still sometimes waits until he has a coupon to get new clothes.
“Before you spend money, think about what that money could have earned if you hadn’t spent it,” Loffredo said. “Whether it’s a frivolous vacation or a fancier car, is that more important to you than what that extra money might have earned?”
A magazine article sparked a financial awakening
Ken Curell, 73, recalls reading an article from a financial magazine decades ago arguing that people save money before spending it. Curell said except for wishing he had invested more in Roth IRAs, his retirement planning strategies worked well.
The Ohio resident served in the Air Force for over three decades. During this time, he married his wife and raised two children. He left active duty to fly for airlines until his retirement in 2012, and he taught his children how to fly planes.
“Angry perseverance for me was the impetus, the fuel, the ignition source for not giving up on flight and doggedly pursuing an avenue where I wanted to go,” Curell said.
Curell said one of his major regrets was devoting too many hours to work. “My employers conditioned me to the idea of more time spent in the office and after-work-hours attention to work-related actions made me the better employee,” Curell said.
Many older Americans who told BI they retired well wished they had worked less. In December, BI released a series on older Americans’ retirement regrets, and a common theme was over-saving — being too frugal or putting in long hours without vacations.
Curell read extensively about retirement planning, investing in stocks, bonds, low-cost funds, and IRAs that have grown to seven figures. He said his portfolio is about 70% stocks and 30% bonds. In the early 2000s, amid pay cuts for pilots, he said he cut coupons and cut back on unnecessary expenses. He and his wife of 46 years, also an Air Force veteran, receive annuities that have made retirement planning less stressful.
“The first rule of thumb is to check your emotions at the door when you start dealing with your finances, making it purely about the numbers,” Curell said.
Working too hard but celebrating the little things
Deborah Hrustich, 69, has rediscovered herself in retirement.
Hrustich, who lives outside Albany, worked 5 a.m. shifts as a neurosurgeon so she’d finish early enough to attend her three children’s activities. She spent years sleeping five hours a night, working until she was 61.
Hrustich said she had few regrets about her spending, as she spent a lot on her children’s activities but cut back on cars, clothes, and her home. She and her husband spent her money and saved his — they took extensive trips, bought Super Bowl and World Series tickets, and paid off their mortgage early.
They hired an accountant to manage their money, as she said neither of them knew how to properly invest. She said they had saved enough money to live until 100 and be financially stable.
“I don’t think young people at 35 understand that you have to have money to retire, that you can’t live on Social Security, but you want to balance that with fun times,” Hrustich said. “If you dream of taking a trip somewhere, take it.”
However, with millions saved for retirement, she said it took a few years to fully enjoy it. Her husband died suddenly three years ago, putting her retirement plans in flux. She also wished she would have taken more time for herself earlier in life.
“I never ate the last piece of cake,” Hrustich said. “I always put the needs and wants of everyone else first.”
She said it took two years after her husband’s death to rebuild her life and surround herself with people who share her values. Hrustich volunteers as a caregiver for Alzheimer’s patients and as a tutor, and she hopes to continue traveling.
Careful saving, tragedy in retirement, and bouncing back
Karen Jones, 69, didn’t have stable work or actively save until her 30s. She worked as a customs broker while her husband stayed home with their children, and she started a customs brokerage and forwarding firm in Boise at 44.
“We were in our late 30s before we even thought of or cared about retirement, and we had a lot to make up,” Jones said. “We maxed out our 401(k). If we had to make payments for two years for a couch, we didn’t buy it.”
She ran her company for 16 years, working long hours and saving much of her earnings. She and her husband stayed in the same house for 25 years, drove their cars for over 20 years, and bought a camper in cash. She planned to find a buyer for the firm after 10 years, but she ran it until she was 61 and retired at 64. She sold her company for about $700,000, including the payout for three additional years, and paid off her house and other debts.
“We were the only customs broker for a long time in Boise, but I treated my customers like there were a million of us around,” Jones said.
Three days after her retirement, while preparing for a camping trip, her husband had a heart attack and never fully recovered. She spent two and a half years as his caregiver until he died, and she regretted not taking more time off while working to go on trips with family.
Jones teaches college courses, takes piano lessons, tends to her garden, and travels frequently. She earns about $5,000 a month from Social Security and investments and plans to move to Madrid.
“My finance guy keeps telling me to spend more,” Jones said. “People save all their lives, and then they can spend it, but they don’t know what to spend it on. Still, I don’t think I have to worry about money.”
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