What if you lived to ripe old age of 107? Would your retirement accounts hold up?

Consider the interesting case of Leonard McCracken who has done just that. Retired for 41 years, he has managed to live on his personal savings, a lifetime annuity and social security. So what can we learn from Leonard?

Well here are his six principles, as spelled out in the article, with my commentary following:

• Thrift. Perhaps Leonard had to be a bit too thrifty because he was not managing his investments well (he didn’t have investments), but his wisdom in not “keeping up with the Jones”, buying used vehicles and making sure he broke even each month served him well.
• Real Estate Investments. The real point here is that Leonard had a “job” and a second business via his real estate transactions. We would all do well to diversify our income streams too.
• Use Debt Well. Leonard “borrowed as little as possible…and paid it back as quickly as he could.” That’s really NOT using debt well, but using it sparingly. Sound advice for sure, but just imagine how well he would have done if he understood the concept of “being your own banker.”
  
• Work Even When Jobs Are Hard To Find. Leonard was not too proud to take any job to support himself and his family. That is a good work ethic. But the more difficult question is what is one to do if there are no jobs to be had? Clearly we should all be moving toward expanding our skill base, having tools for our trade and practicing the arts of self-sufficiency.
• Save And Invest Conservatively. Leonard touts “CDs and bonds” as safe investments and the reason for his success. However, it is his frugality and thrift that has kept inflation from eating him alive. And while no one would argue against safe investing or cash savings, one better have a mechanism for dealing with the destructive influence of governmental monetary policy (inflation) or be prepared to live much more frugally in the future than Leonard has had to be in the past.
  
• Stay Healthy. Leonard is wise and knows that it is better to have health over wealth any day. Stay healthy, Mr. Leonard, stay healthy!