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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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Thank you Donnie for this wonderful insight! Your story, among many things shows the great power in having the ability to delay gratification. You won’t regret waiting to get the max from S.S. Your COLA will be based on your original check and will be greater because you waited.
Also, I have a saying “Well finished, is Well started”
The simple action of investing in a carrier with an excellent retirement package will go so very far for the average worker, if they only think of the benefit of that and take advantage of the opportunity.
I had worked solid union represented jobs for almost all my work life which is good for the average work a day folk. My stint with the Denver Mass Transit gave me a tremendous boost in the ‘after work funds’ and I’m so glad I was there. Just 16 years and 10 months of work gives me a $3200 pension for life. The union steward had mentioned, “What amount of money would you have to have invested to kick off that kind of money?” To be sure, those with more time on the job will collect much more.
If we, while we are in the workforce consider the exit plan of the positions before we start, we can come out very well. Tell your children.
Great read. Impressed with your discipline and motivation. My hubby started buying savings bonds when he started working for the federal government a couple years after college. He had quite a stack when I met him. I was a little disappointed that he never changed the beneficiaries after we married (his mother and ex-wife!). Fortunately for me, we just cashed in the last of them a couple weeks ago. I’ve been debating with myself about buying I-Bonds.
Good article, Donnie, and good job with your money management.
Excellent article, Donnie. Congratulations on seeing your hard work and disciplined saving and investing pay off. And having your two kids complete their higher education with no debt is a terrific, and increasingly rare, achievement.
Thanks to Jonathan and everyone for their expertise, experience and insight. I continue to learn and grow. Because you don’t know what you don’t know. Knowledge Is Powerful.
As you have just demonstrated where there is a will and determination and prudent money management, there is a way. Many people can learn from your experience and your actions.
I wonder if based on your brokerage account experience, you would do things a bit differently if you had the chance? Perhaps rather than trying to pick and sell individual stocks as a small investor, stick with a variety of mutual – mostly index funds? I know I wish I had when I was much younger. Even today I only own two individual stocks.
As you will soon realize, working for a pension is the best investment you will ever make.
Great discussion. Many thanks!
Donnie, so glad you have joined Humble Dollar to write. Your voice and experience is needed here. We are also a few years out from retirement. I can relate to you more than some of the other writers, but respect that they are trying to bring a variety of view points.
Donnie, thanks for a great article. I helped found an investment club – it helped kick start my interest in investing and made me learn so much. Best of luck in your future retirement. Thanks for your service.
All well spoke. You’re living proof that there is more than one way for us working folks to achieve prosperity. I wish today’s complainers would look back at what their parents/grandparents accomplished. Raising special needs children is one thing, sending them through college is whole new level of accomplishment.