Posted by Rob Minton
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Have you ever heard of Paul Navone? I read an article about him a little while ago, and his story seems relevant in these financial times. Let me share it:
Paul, who is nearing 80, never made more than $11 an hour at his job. However, last year he donated $2 million dollars to two schools. He also has about $1 million more saved for his retirement.
With his first job, he began saving money. At the age of 23, he purchased a duplex. He lived in one half and rented out the other half. He went on to purchase four more properties.
He used the income from his investment properties to cover his living expenses. In fact, here is what he said:
“I never spent any of my wages!”
Instead, he saved and invested 100% of his wages. The article stated “Navone invested in ‘a little bit of everything’ and stuck with a buy-and-hold strategy. He is partial to utility stocks, with their steady earnings and dividends (which he always reinvests).”
I found Paul’s story fascinating. He turned a job paying $23,000 a year into $3 million dollars. His process was exactly what I have been teaching in Income for Life. His first investments were real estate. Remember my article titled “The Velocity of Money?” He used the income from the real estate to cover his living expenses. He then invested his paycheck into the stock market. This was possible because he lived below his means. Had he spent his paycheck on toys, he would never have accumulated $3 million dollars.
Paul adhered to the buy-and-hold strategy with all of his investments, including his real estate. He saved and reinvested dividends. Isn’t this the same thing as trading one home for two?
It seems to me with the bargains out there now in both the real estate market, and the stock market, that now would be a pretty good time to start trying to duplicate what Paul did.
Something to think about, huh?
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