The Savings Game (Pt. 5) - Self Made Success
	The Savings Game (Pt 5) Self Made Success HOLMES: Welcome back, everybody. You can't watch TV these days without seeing an ad for one of those 10-10 telephone wholesale numbers. Dennis Jarman worked for the company that created the very first 10-10 number and it made him a millionaire. While you can't expect to have his good fortune, you can learn from it. Mr. JARMAN: My luck and success came when the small company that we had, that started with six people on the day shift, six on the night shift--we always laugh about it. Our refrigerator was the window sill. We put our sandwiches and cold sodas out there in the window to keep them cold. Guess I won't be needing these anymore. The company just kept growing and growing and all of a sudden I find myself in a lawyer's office signing all these documents and stating that they were going to wire six figures into my account. And I just kind of said, 'Boy, this is true and it's really happening.' And the next thing you know, you're getting these papers from Smith Barney saying that these are the shares of stuff that you had and that's how the money came in. Unidentified Woman #7: Thanks for everything. Mr. JARMAN: All right. You're the best. Unidentified Woman #7: No, you're the best. Mr. JARMAN: No matter how much money you have, if you're trying to do the right thing, you still have to budget your money. Sure, I purchased some toys, but even at the time that I purchased them, I was being quite frugal. Everybody was saying, 'Go buy a boat.' I ended up buying a 24-footer. Makes me kind of laugh. I have a friend that went on the boat. He has a 37-footer, a nice size boat, and I was saying, 'I think I need to buy a little dinghy to go in the back of the boat,' and his r--response was, 'Your boat is a dinghy.' This will be a nice view so you can see... Financially I'm on top of it, because I have a budget. I know exactly what's coming in and, more importantly, how much is needed to cover what's going out. No matter how much you have, it can go away very quickly. I look at a lot of success stories out there and people that have millions of dollars and five or 10 years later it's gone, and I don't want to put myself in that situation. The first thing I like to say is do not invest more than you can handle. Do not put your money into something thinking it's going to balloon for you over the course of years. Use your common sense. Dealing with stocks is going to vary from 7 to, last year, maybe 12, 13 percent. For those that are looking to double it, that doesn't happen. For those that go out and do a lot of gambling, remember the house always wins. I'm always working. So when I say retirement, it just means not being as structured as the regular job that I had before. I have a restaurant, which I find was taking more time than my normal job. The name of the restaurant is The Savoy. I feel the success of the restaurant, naturally, would be getting the customers to come in, but the idea is to get them to come back. So I think the employees that you hire is--is quite important for you to have the success that you're looking for. I had a training for chefs that lasted for five hours and it had nothing whatsoever to do with the restaurant. When I initially have my training class, the purpose is to try to instill in my employees that they have to have goals--short-, mid- and long-term goals--and they have to have that sense of energy to achieve and far exceed the goals that they have down there. And hopefully I have an employee that has goals that are a whole lot higher than what the company is trying to establish for them. HOLMES: That was your philosophy. That's--when the... Mr. JARMAN: Yes. That's--that's always been my key to success. I always wanted more than what was being asked of me. It happened to me and I'm just a regular, everyday Joe. I wasn't anybody that was born with a silver spoon. I wasn't anybody that was overly intelligent. I had basic common sense. But I worked hard, I stayed positive and when I saw an opportunity, I knew how to jump on it. And I think opportunities will continue to happen for me, so that I can maintain and increase the base that I currently call the Jarman Foundation. HOLMES: The last person you'll meet tonight isn't a millionaire yet. But like Dennis, she used her common sense to her financial advantage. Audrey Schaefer has made an average 35-percent return on her investments and she's done it all on her own. Take the next five minutes and learn her methods. Ms. SCHAEFER: What clicked for me was realizing that unless I get real smart with a financial plan, I'm gonna run out of money before I run out of life. One of the things that I feared most was becoming an old lady and eating cat food. They used to say that for old people, that's what would happen when the money ran out and there was no more Social Security money at the end of the month, and I did not want to be an old lady eating cat food. I wanted just to keep a civil roof over my head. I never thought about it. That was the thing. You just go through life every day and you do what you have to do to get through the day and get to the end of the week and you check off what you--what's on your list, and whatever fire's closest to you, you put that one out. And then when I realized, you know, the future will be here whether I like it or not and I better do something about it, that's when I started to get real serious about it. Unidentified Man #5: I'll see you later. Have a good day. Ms. SCHAEFER: OK. All right. Unidentified Man #5: OK, guys. Ms. SCHAEFER: And then also started to learn about the markets, how to make the most of what I do have so it'll work for me. It's very intimidating, but most anything is before you start to just do a little digging and learn a little bit. The Wall Street Journal put out this guide to investing for beginners, so I started with that and then I started looking at magazines and newspapers as kind of like a soap opera on finance. I think that it's just something that gets integrated like brushing your teeth and having your coffee in the morning. I invest online so I'm able to do research really quickly without leaving the house, without picking up the phone. I could just click on here, click on there. I do watch the market during the day a couple of times just to see what's happening, not because I'm going to do anything necessarily, unless there's something I've been looking for, but just because you've got to be curious how it's--how it's going. It's like--otherwise it's like buying a ticket at a horse race and not watching the race. You have to see how your horse is doing. Unidentified Photographer: There we go. Say chocolate. Group of Children: (In unison) Chocolate! Unidentified Photographer: There we go. Great stuff. Ms. SCHAEFER: I think that I'm a great example of it. You don't have to be particularly wise when it comes to finances going in. I think that, in order to be successful in investing, you--there are just more things that you--you can't be. You can't be stupid. You can't be greedy and you can't be impulsive. I--I'm hoping that I'll always do well. We'll--we'll have to wait and find out. HOLMES: Are you smarter than everybody else? Ms. SCHAEFER: Oh, indeed not. One thing that I heard Peter Lynch say years ago at a talk is buy what you know and really go with your instincts about certain things. And there are a couple of companies in industries that I've followed because of work, that I felt really strongly about and they've done phenomenally well, really, really well. Will that continue? Gosh, I hope so. All I want is the time to be able to enjoy each other, because we're here for such a short period of time--it's a blink of an eye--that it's just about really enjoying your days. It--it's not about the stuff. HOLMES: Audrey and her family are well down the road to financial freedom, but the first step on that winding road to retirement is figuring out how much money you'll need when you get there. Our Choose to Save partners have come up with a worksheet to help you figure it all out. Don't worry. It's not complicated. It's called the Ballpark Estimate and all you need is a fifth-grade level of math or access to the Internet. We leave you with the phone number and the Web site to help you get started. The information is free. I'm Horace Holmes and best of luck playing THE SAVINGS GAME. (Graphic on screen) Ballpark Estimate 1-800-998-7542 www.choosetosave.org Mr. JARMAN: I also believe in karma, doing the right things in life, being good to people, nice to people and if you do good things, good things happen. Ms. SCHAEFER: It's a lot of fun, because when you--when you pick something and it does really, really well, oh, I am--it's just--it's great fun. Mr. JACOBS: Whatever it is, live a good, happy life within your means, because life goes by fast. Mr. BRITTON: I don't want to turn it into a "Father Knows Best" kind of thing, but I certainly think that in this particular case, it's true. Mr. GARDNER: If you were putting away just $300 a day--just $300 a month--excuse me, Horace. Can we cut that again? If you're putting away just 300 bucks a day, I mean, what are we asking for now? Is that too much? I mean, can't we put $9,000 away a month, people? Announcer #9: If you'd like a copy of THE SAVINGS GAME, please send $7 for a transcript of $24.95 for a videotape, along with the show name and date, to the following address, or call 1 (800) 777... (Graphic on screen) Tapes and Transcripts Send $7.00 for a transcript or $24.95 for a videocassette to: The Savings Game Burrelle's Transcripts P.O. Box 7 Livingston, NJ 07039-0007 Or call: 1-800-777-TEXT Mr. SALISBURY: THE SAVINGS GAME is part of a multifaceted educational program, Choose to Save. Its purpose is to help individuals of all ages become aware of the importance of saving for retirement. Choose to Save was created by several partners and underwritten by Fidelity Investments. It has made a difference for the community, lawmakers and consumers. You may have seen our news stories on TV or heard them on radio. Perhaps you noticed our ads in the newspapers or on Washington's mass transit. Many are finding that preparing for retirement does not need to be complicated nor severely impact your family's finances. Choose to Save has helped millions by providing them with the tips and tools that they need to get started. The message of Choose to Save is clear: Each of us hopes to retire. Saving for that day is essential. If we don't, we may get the opportunity to work forever. Announcer #2: Choose to Save. (Graphic on screen) Choose to Save. www.choosetosave.org 800-998-7542