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Leonard McCracken

by Jennie L. PhippsMonday, January 17, 2011

Eight years ago, at age 99, Leonard McCracken failed the eye test for renewing hisdriver's license. He put his Lincoln Continental up for sale and got $1,600. "I sold it inthree days -- I got a good price. I love to haggle," he says.

McCracken, who lives in Florida, has been livingin retirement since about 1969, when he left aposition as a salesman with a now-defunct steelcompany in Ohio. Since then, he's been living onsavings, Social Security and a lifetime annuitythat he purchased before he retired. He has neverhad a pension. At 107, after living in retirement for41 years, he's still paying the bills and getting by

on his own resources."Dad never made more than $10,000 a year in hislife," says his son Bob, a 73-year-old retired GEaircraft 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 andcontinue to serve him well.

Thrift

In his whole life, McCracken says, he has only owned two new cars. The rest of the timehe bought used. He still shops at the thrift store. And he remembers vividly the time thathis wife was holding a garage sale and left him in charge. When she returned, he hadsold the living room sofa for $100. "I had a very understanding, frugal wife (Dorothy, whodied in 2002 at 95 after 75 years of marriage). We gave up a lot of things that otherpeople were buying in order to break even."

Real Estate Investments

McCracken bought and sold 35 houses inhis life, including five that he built himself.His son, Bob McCracken, says hisparents "always invested in a nice houseand that has helped my dad. He is livingoff the equity in the last home he and mymother owned."

The elder McCracken agreed that buyingand selling real estate was a smart movefor him. "We didn't make a lot of money inevery 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 losetheir shirts and learned from it. Throughout his life, he borrowed when he had to, but heborrowed 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 wentbankrupt. He had to take a job driving a truck that paid $5 per day. It was a low point inhis life, but between that and a commission sales job that he took at night, he and hisfamily 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. "Whenthe economy tanked, he made a lot of us look real silly," Bob McCracken says.

Stay Healthy

Focus on Lifelong Investing Living in Retireme nt View of Retirement at 107

View of Retirement at 107

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McCracken has hung onto his health and his wits and has had no major medical bills atall throughout his entire life. It has only been in the last year that he's needed a littleassistance. And even then, he doesn't need much, his son says.

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0 0Afolabi Hakeem 50 seconds ago Report Abuse

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

0 0Catherine Xu 3 minutes ago Report Abuse

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

2 0Frank0570618 7 minutes ago Report Abuse

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

0 0Perfectlybaked 8 minutes ago Report Abuse

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 thatmembership fee for the few places that actually do sell in bulk.

Replies (2)

2 0Christina 8 minutes ago Report Abuse

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

4 0A Yahoo! User 9 minutes ago Report Abuse




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Comments 1 - 10 of 3173 First Prev Next Last

good for him, he's seen and learned alot...

Reply

5 0Chelsea 11 minutes ago Report Abuse

I'd be more curious to know how he takes care of himself to reach a ripe

old 107!

Replies (1)

0 0LOVEITORLEAVEIT 11 minutes ago Report Abuse

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

4 0Patrick S 12 minutes ago Report Abuse

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

Reply

1 0Newbie S 12 minutes ago Report Abuse

Great Grandpa!!:D

Reply



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