The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/my-grandmother-had-some-very-good-savings-ideas-21393365.aspx

Subject:  Re: My smart grandmother. Date:  10/3/2004  12:16 AM
Author:  Adenovir Number:  42559 of 78168

My grandmother had some very good savings ideas. She worked until her Alzheimer's got bad and she had to go to the nursing home. She didn't really need the money, but said that the job kept her young.

Her favorite way of "investing" was cashing her check, taking the money and putting it in a book or old jacket pocket. Then she would promptly forget about it. Some time later she would open a book or put on an old coat, find the money and consider it a 100% return, since she couldn't remember putting it there in the first place. Often, when she found money, she would call us up and ask if we needed anything. We would say, "No, grandma, we're doing fine, keep it for yourself."

Back in the 1980's she saved up a good chunk of change that she had "hid" from my granfather. Apparently, while he made good money as a painter, he would take any extra and gamble it at the track or playing cards. He always had enough money for necessities, but never enough for vacations or new cars. If she wanted anything special, she knew she had to save it herself.

So, she took this money and put it in a CD at the Dime Savings Bank. They had very big, substantial buildings, so she knew that her money was safe there. The CD paid something in the low teens in interest, rates were very high then. Just like her books, she forgot about it until it came time to roll it over. She was shocked to find that her money had nearly doubled (probably in 5 years, but I'm not sure). I guess you could call this a 200% return.

Between her cash savings, her CDs, and her job wrapping packages at Bloomingdales she h