Fulfilling a Promise
MY INVESTING BEGAN in the mid-1980s with savings bonds. Initially, it was a way to set aside some emergency money. I would automatically buy EE bonds through payroll deduction and have the bonds sent to my home. This gave me a sense of accomplishing something for the future. It also showed me that you won���t miss something���money, in this case���if it never makes it into your hands.
Some argue there are better saving and investment strategies. They prefer certificates of deposit, annuities, exchange-traded funds, money-market accounts and other investments. I own some of these assets. Nonetheless, my savings bonds have served me well, and I continue to buy government bonds today, including Series I savings bonds, EE savings bonds and regular Treasury bonds. I purchase them as payable-on-death gifts for my extended family, and also for my wife���s and my retirement.
In addition, the savings bonds helped us meet an important goal. By the 1990s, I had gotten out of the military, had two children, entered the Air Force Reserve and started working for Atlanta���s metro transit system. Our two children were young. Both had special needs���though I���d argue every child is a special needs child.
My wife and I were determined to not only send both children to college if that���s what they wanted, but also to pay for all four years. After all, my wife���s parents ensured all six of their kids graduated college. Surely, we could find a way to pay for two. That was one of my reasons for wanting to learn how to invest: I wanted us to be able to cover the cost of college.
I cashed in some of my savings bonds and started a 529 college savings plan for our children. I also worked several jobs, on top of the Air Force Reserve and my primary job with the transit authority. I wanted to boost my income and make good on the covenant my wife and I had made���that we would pay for college for both kids. My wife and I did indeed fulfill that promise: My daughter now has a law degree and my son has a bachelor���s degree in psychology.
How did I learn about investing? I remember reading The Beardstown Ladies��� Common-Sense Investment Guide back in 1996. The book said that the Beardstown Ladies��� investment club had generated a 23% annual return since 1980���a claim that was later debunked. The actual return, calculated by PricewaterhouseCoopers, was 9.1%.
Still, the book influenced me to start an investment club with my fellow Air Force shop mates. It took only a few months to realize that, even though all the members agreed to the idea, only a few were truly committed.
But it wasn���t a complete loss. What I learned from reading the Beardstown book, from the materials from and calls to the National Association of Investors Corp.���which helps folks set up investment clubs���and from my own research, made me look differently at the stock market. This awareness stayed with me long after our investment club was dissolved. I started to understand the differences between stocks and bonds, as well as the various types of mutual funds that are available.
What about retirement for my wife and me? My job with the transit authority offered a pension and a 457(b) plan, but there was no employer match. Still, I made regular payroll contributions to the plan. As with the savings bonds I bought through payroll deduction, I never missed the money���because it never made it into my hands.
I���ve always kept my ears open���and an open mind���to potential investment opportunities. My friends, classmates and co-workers would often talk about stocks. Initially, I didn���t have a lot of money to invest. But just as I did with savings bonds, I had money deducted from my paycheck to invest. This money was sent to my brokerage account. I bought shares in familiar stocks like Home Depot, Coca-Cola, Microsoft and GE, to name a few. My results were good but not great. I would hold on to some stocks too long, while others I traded too soon. I soon learned you can never really predict the stock market.
Where do things stand today? My wife took a new position in 2020, one that���ll give her a pension after five years. Meanwhile, I have two years left before I retire and reach my full Social Security retirement age.
Investing started as a hobby, but it���s now all about saving for retirement. For regular income, I���ll have Social Security, my pensions from the transit system and the Air Force, and the savings I���ve accumulated in retirement accounts. I���ve also amassed a five-figure ���fun(d) money��� brokerage account. In addition, I���ve set up a trust fund for my nieces, nephews and any future grandchildren we may have.
Donnie Mattox is an
Air Force veteran and former radio technician with Atlanta���s metro transit system. He���s currently employed with Delta Air Lines as an aviation maintenance technician. Donnie has been married to his wife Viola for 34 years, and they have two adult children, Victoria and Darius. His previous article was A Perfect Score.
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