Plan Well, Retire Rich

If You were to accuse Tony Gittens and his wife, Jennifer Lawson, of being obsessive when it comes to saving and investing, you would probably be right. The couple illustrates that you don’t have to be “rich” to assure yourself of a prosperous retirement.

Gittens, 65, insists he and his wife have always planned ahead because they expect to live long, healthy lives; devising a budget that allowed them to build a financial cushion for their golden years. “Before we got married we talked about money,” says Lawson. In the early ’80s, the couple would spend their nights soaking up money management tips from public radio show host and financial expert John Ferguson who helped the couple map out their future shortly after marrying in 1982.

Gittens spent most of his career as a professor for the University of the District of Columbia for 20 years. In 1996, he left academia to become the executive director of the District of Columbia Commission on the Arts and Humanities. He retired in 2008 but still devotes time to directing the Washington, DC International Film Festival, an organization he founded in 1986. This part-time pursuit provides Gittens with an annual income of about $60,000–added to about $23,000 he receives from Social Security benefits.

Lawson, 64, has been a general manager at WHUT-TV in Washington, D.C., since 2004, earning about $175,000. Lawson also runs a small business, Magic Box Mediaworks, a production company she has owned since 1995.
An innate drive to be prepared for the future explains how the Washington, D.C., couple has been able to amass a retirement nest egg of about $4 million. “I started my retirement savings shortly after completing graduate school back in the 1970s,” says Lawson, who realized that she could have a comfortable lifestyle while saving for retirement. So, she got into the habit of socking away money. In the mid-1970s she invested in a 403(b) plan through her employer at the time and Teachers Insurance and Annuity Association College Retirement Equities Fund (TIAA-CREF). “Eventually, I split

my TIAA-CREF contributions evenly between fixed income and equities and invested in an additional Schwab retirement account,” she says. She invests about 10% of her salary from WHUT into her 403(b) each month. Lawson also puts the maximum allowable amount into a tax-saving annuity. Her portfolio includes low-yielding stock and secure mutual funds.

Financial teamwork has been a hallmark of the Gittens-Lawson marriage. Lawson is thankful that her husband shares her philosophy about money management and retirement planning. “We have managed to send our sons to great schools, live comfortably, and travel extensively,” she says.

The couple hasn’t done it alone. In 2007, Gittens and Lawson started working with Antwone Harris, a vice president and financial consultant with Charles Schwab & Co. Harris, a certified financial planner who specializes in high net worth clients, says Gittens’ and Lawson’s individual investment accounts were already well established when they came to him. However, he advised the couple to get rid of redundant investments, slash hidden fees that they were paying on their

mutual funds, and generally protect their portfolio from stock market volatility.
“I persuaded them to strategize and pursue investment vehicles that would not only protect their current holdings but allow them to protect and multiply their existing assets,” says Harris. “They are an active and healthy couple,” Harris says, “and if they continue to live a healthy lifestyle, there is no reason why they couldn’t each live to be 100 and still have the financial resources they need to live comfortably.”
–Additional Reporting by LaToya M. Smith

Glittens and Lawson’s advice

Talk money. “You shouldn’t feel uncomfortable talking about money and future financial arrangements when the relationship is getting serious,” advises Gittens. “If it’s not clear in the beginning people have different points of view and philosophies, that will cause problems as the relationship gets more serious.”

Cherry-pick your financial planner. “We didn’t want to be a ‘standard package.’ Find someone who can give you individual attention and identify your goals and objectives and devise a plan that is tailored specifically for you,” says Lawson. Ask about their background, how long they have been with the firm, and their client load.

Get yearly financial check-ups. “In the same way you go for a medical and dental check-up, go for a financial check-up at least once a year,” recommends Lawson. Adds Gittens: “Your goals and situations change and you have to be ready for those changes. Check-ups help you see whether you’re prepared.”

Plan for a long life. “Early on, I heard the blues line, ‘If I had known I would live this long, I would have taken better care of myself,’” Lawson says. “I started saving for retirement when I was in my 20s–small amounts that were painless and barely noticeable.”

Eliminate debt. Lawson says: “I envisioned the life I wanted for myself and my family and planned for it by eliminating any debt and increasing savings to buy big ticket items such as a house, car, international travel, and quality education for my children.”