Little Old Lady Saves $9 Million then Dies
Anthony GaydenPro Member
Rental Property Investor · Omaha, NE · Member since 2014 · 2k+ posts · 3k+ votesLittle Old Lady Saves $9 Million then Dies
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Investor · Boston, MA · Member since 2015 · 1k+ posts · 3k+ votes
8yShe made her choices, we can make ours. That is the beauty of America.
What I don't get is that people, after reading less than 10,000 words on a person's 96 year-long life, somehow glean enough information to questions her decisions and throw around phrases like "more like a hoarder of money than an investor and I am not impressed" and "total lack of caring for family".
No talk about her work ethic, loyalty, selflessness, wiliness to learn, discipline? That all goes out the window because she made choices with her life and her money that are incongruent with what other people would have done?
Everyone seems focused on $9m and assumes that she cared as much about money as they do. That's Fundamental Attribution Error. What if investing money to her was like mowing the grass to you and I? Something that had to be done and while you may not enjoy it, you still do it well?
We all seek wealth for different reasons and no one on this post grew up in the middle of the Great Depression, so passing finding flaws in someone who accumulated a net worth an order of magnitude above their peers may not prove too fruitful.
25 Replies
- Flipper/Rehabber · Saint Paul, MN · Member since 2018 · 85 posts · 65 votes8yWow, what a story! The only real explanation I can come up with is that maybe she lived through the Great Depression. I have worked with many an elderly couple who keeps legitametely everything that comes to them. Buttons, boxes of canned vegetables, clothes from the 60's, you name it. It is a common state of mind for those who have experienced extreme hardship to hold onto everything.
- Member since 2016 · 13k+ posts · 12k+ votes8y
You will find a lot of real estate investors are hoarding cash. They often save to invest, pay off real estate, and end up dying before ever cashing out. Their desire is to leave a portfolio to their children however they will usually liquidate it as soon as they inherit and live a life of luxury.
Thanks mom and dad.
Donating to charity is even worse. Shows a total lack of caring for family. They should donate while alive.
- Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes8yAnthony Gayden I’ve read several stories like this before. I personally would never do something quite like this. First off let’s make note of the fact that if you live that long into your 90s and invest most likely you will rich even if you do simple investing. At the Berkshire Hathaway event this last weekend, buffet illustrated this best. If you put 10k into the S&P 500 in 1942 you would today have 51M. Think about that for a second. That length of time is about the same as her 70 years. I also don’t understand why you’d never tell anyone. I would maybe never get into specifics but I would tell my kids and family well before I died. My kids will be groomed to take over my real estate empire long before they’re even of age. If they decide it’s not for them, I will likely liquidate it all long before I’m done. I would leave some to charity but most likely it would be a college institution
- 8yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
there no doubt is a balance....
But really its what ever makes you happy .. if your happy saving all your money and such.. then that's your right to do.
if you want to spend every penny on your car and cloth's and live in an apartment and have 200.00 in your savings account with 50k in CC bills that's your right..
for me personally a good safety net of cash is what makes me happy along with some key real estate bought an Paid for and what I choose to be extravagant with others would probably think its nuts or not necessary..
I find some will not help their kids with collage thinking the child should pay for it themselves.. myself that was one of my highlights paying for my kids collage and setting them upon the world with no debt after school..
I could have saved all that money and bought a rental or what have you ..but its choices..
and its all personal.
- Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes8y
I'e heard that happiness is correlated with happiness up to something like an income of $100k/year. Above that they are not associated. The idea of being wealthy and my neighbors having no idea has an appeal to me, but I definitely want to help my children with their future. However, I do think just giving people free money can oftentimes have negative consequences, whether it be to family or charity.
- 8yMike CumbieBusiness MemberREALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
I do have a little motivation in the fact that it is the "Golden Rule": Treat others like they may have secretly hoarded $9Mil and have nobody to leave it to. More people would be opening doors and helping carry groceries :)
- lakewood, NJ · Member since 2017 · 282 posts · 156 votes8y
@Mike Cumbie Nice point taken from the story :)
I guess there is no 'right thing' in these situation: that old lady made the best choice she could with the information she had and the background she came from.
Now the rest of us get to choose if we want to take her path or do it differently...
- Investor · Bayside, NY · Member since 2017 · 1k+ posts · 1k+ votes8y
I read the story as well, and to the vast majority, it seems to be a waste of ones life. By that I mean most folks live beyond their means, but some live way below their means, and yet, for these people, many asks, how could they be happy? They must be miserable.
But having read it, my mom and dad lived like that and is perfectly content. When I was growing up, my dad never owned a car, while in NYC, not unusual, but many of our neighbors do. Thinking back now, he owns a commercial property where his business is located, has an apartment behind it, where we lived. We had apartments upstairs that he rents out, plus another store. He had four garages he rents out. In fact, due to the lack of parking in NYC, people who rent his garages own brand new cars, by don't commute to work in it, they all take the subway. He didn't need a car for shopping either, there's one small grocery store across the street, another up the block, and two supermarkets two short blocks away. So all the arguments why he should have a car cannot be used. He told me once that by not making car payments, insurance, gas money, that alone can fund a retirement. I never analyzed it, but he could be right.
My wife and I did very well financially early on, took my mother in law along on our vacation and paid for her cruise. The following cruise, I took my sister and her daughter and paid for it. Then on the cruise after that, I invited my mom and dad told them I'll pay for them as well, but they declined. At that point he's retired, and said he rather not do the running around. He enjoys a quiet retirement, and would like to see all the photos of our cruise, but a cruising is not for him.
He never spoke to me much about his finances, but once, back in 1972, he needs a ride to open a new deposit account, and asked me to give him a lift. One of his CD's matured, and he wants to transfer his funds to a new bank which at the time was offering 18% interest while everyone is offering 16%. I was shocked the deposit was for $200,000. I said to him that I thought he invests in tax free municipals. He said he had them too.
Now, I'm thinking about it. He's living a life he thoroughly enjoys, though not the things that we as regular Americans enjoy. He certainly did not enjoy new cars, or cruises, even if I paid for it. But it's not for me to determine what they should enjoy. In fact, when the telephone system first introduced touch tone, he refused to pay the dollar extra it would cost him. To us, it seems strange, but still, I'm very proud of him for standing up for his beliefs and not follow along what others are doing.
- Investor · Boston, MA · Member since 2015 · 1k+ posts · 3k+ votes8y
She made her choices, we can make ours. That is the beauty of America.
What I don't get is that people, after reading less than 10,000 words on a person's 96 year-long life, somehow glean enough information to questions her decisions and throw around phrases like "more like a hoarder of money than an investor and I am not impressed" and "total lack of caring for family".
No talk about her work ethic, loyalty, selflessness, wiliness to learn, discipline? That all goes out the window because she made choices with her life and her money that are incongruent with what other people would have done?
Everyone seems focused on $9m and assumes that she cared as much about money as they do. That's Fundamental Attribution Error. What if investing money to her was like mowing the grass to you and I? Something that had to be done and while you may not enjoy it, you still do it well?
We all seek wealth for different reasons and no one on this post grew up in the middle of the Great Depression, so passing finding flaws in someone who accumulated a net worth an order of magnitude above their peers may not prove too fruitful.
- Real Estate Broker · Northeast PA · Member since 2017 · 2k+ posts · 2k+ votes8y
Here's my takeaways on this story:
Can't (or shouldn't) judge another person--hey, good or not so good, it's their party.
Live your life to the fullest, in your own way. Cherish the time you have, and spend it wisely.
No trailers on hearses-- ya can't take it with ya.
Lastly: Ain't NOBODY getting any YOUNGER.
- Investor · Richmond, VA · Member since 2016 · 1k+ posts · 2k+ votes8y
I also find it sad... what's the point of earning money if you can't enjoy it a little bit? I call it "Investing in Friendships" or "Investing in Yourself"... if all you do is save, that to me is sad... life is about experiences and people!
Maybe she had some huge tie to the charity, and that's why she wanted it this way.. I dunno, but I live by 1 simple rule.. "There's always enough time and money for what's important to you!"... leaving a huge chunk to the charity was important to her!
- Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes8y
@Anthony Gayden lots of wealthy people don't donate the bulk of their fortune to their family. Some people are motivated by a need to help the less fortunate. They feel their family can earn their own keep - or they taught them to earn their own. As far as donating while alive versus after death, some people are humble. Some want credit while they are alive, but not everyone is narcissistic, some are silent givers.
In the case of this 96 year old lady it is a generational thing. She would have been born in 1920 and as a child lived through the great depression. It was a blessing to even have food on the table. It was a double blessing to get a new pair of shoes. She grew up in a time before the American materialistic life style existed. When she was in her early 20's, she watched people her age go off to World War 2 and die. Many, many people died, people lost brothers, cousins boyfriends, you name it. It was massive loss that people can't understand today. There was sacrifice back home, through rationing and people worked well over 60 hours a week supporting the war effort without complaining.
In your mind she may have suffered in her frugality, but likely she was very happy and had everything she needed. She was probably more grateful than you and likely had a much better family life.
It is all a matter of perspective. I have heard people on this forum refer to sacrifice as not being able to go on a tropical vacation, giving up cable or not going to the bars on a Friday night. It is wonderful that the affluent life style of the poorest Americans is wealthier than the average person in the 1930's, but it is also a curse. We are the wealthiest generations ever, yet we fight with higher levels of depression and prescription pills than any generation before us. It is not a coincidence. Money doesn't buy happiness, it comes from within, from being content and appreciating what you have.
When people talk about entitlement mentality, this is what they are talking about. People are lacking a sense of what it means to sacrifice. People lack appreciation and generosity.
I hear plenty of stories of greedy rich people and their spoiled trust fund babies. Sorry it doesn't inspire me. This woman should be celebrated instead of belittled. Just my opinion, but I wasn't born with a silver spoon in my mouth and have no rich relatives (that I know of).
- Santa Rosa, CA · Member since 2017 · 325 posts · 701 votes8y
Everyone here is "filling in story"
- There is nothing in the article that says she did not enjoy life, lived like a monk, or anything of the sort. It simply says she lived below her means and invested for the long term. She was not flashy or bragging, not the same as being a hoarder.
- She donated 8.2 of the 9 million to various charities, so there is no indication her family was "slapped in the face". In fact the bulk of the money went to a cause her niece is a board member.
From a different article
Her donations, which altogether total $8.2 million, are intended to be used to finance scholarships. Henry Street Settlement, at which Bloom’s niece and estate executor Jane Lockshin is treasurer of the board, received $6.24 million. The remaining $2 million will be split between Hunter College, Bloom’s alma mater, and third scholarship fund.
She owns nothing to her family that she has not already provided in support when she was alive. In fact is doing them a favor by letting them succeed on their own merits. And he is setting up multiple future generations of needy people for help, which is even more selfless than "helping" family
My parents will most likely die with some kind of modest estate and I could care less if I inherit a single dime. That is their money to do with as they wish. They supported me (financially) up to and including college and have supported me (emotionally) my whole life. I dont want or need their money and I am not going to tell them how to spend it, they earned it. The same applies to this kind soul.
This woman had an impact on those around her for a century, and because of her forward thinking she has the opportunity to have an impact for another century to come. I have nothing but respect for her.
- Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes8y
What is money best for? Is it best spent by an individual to make life better for himself or herself, or to help others? And in helping others, is it better to help the people in your family, who may not need additional help, or to help others who most certainly do?
My wife and I don't have children. We do have nieces and nephews. My brother and my wife's brother have provided quite adequately for their education. We don't intend to give them lots of money when we go. We believe it would be a burden.
But it is a longstanding dream of mine to endow a struggling charity that I know well, to hand over just as much money to it as I can when I go. And every five dollars, every ten dollars, would make a difference.
Isn't it ironic that a forum thread like this makes an appearance on V-E day, the day the Nazis surrendered? One point not mentioned here is that Sylvia Bloom was, in point of fact, Jewish. And so I have to ask, just how many would make Oskar Schindler's choice if faced with it? How many didn't?
"This car. Goeth would have bought this car. Why did I keep the car? Ten people right there. Ten people. Ten more people. This pin. Two people. This is gold. Two more people. He would have given me two for it, at least one. One more person. A person, Stern. For this."
- Franklin, TN · Member since 2018 · 81 posts · 43 votes8yI think Hannah was probably dead on with the comment about having lived through the Depression. We’ve probably all never lived not knowing if we’ll eat for the next day or two. That would change a person. There’s many paths to wealth and that was just her way. I’ll say one thing, by keeping it a secret she kept her wealth and didn’t become a victim of some scammer or “friend”.
- Member since 2016 · 13k+ posts · 12k+ votes8y
To each their own. Personally I care far more about my family than anything else in life. I worked hard and saved to make sure they were always taken care all my life for their sake. I would never give my money to any charity for that very reason. No charity is more deserving than family. Does not matter how much I have it all goes to family.
As for this woman who really cares, not me, but I am judgemental by nature not because I care.
- Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes8y
Nearly half of all Americans don't have $400 for an emergency.
This lady should be inspiration for 'victims of the economy' to take action. If she or that NY janitor can save millions, anyone can. Nope- gotta have that car payment and fancy clothes. Broke but lookin' good.
If only more of us could be as selfless as her by just a little bit. Not all of us would or should give away over 90% of our estate, but talk about humble and generous! I guess our truer colors come out for some of us when talking about a strangers money and what they should have done...
- Specialist · Paradise Valley, AZ · Member since 2018 · 3k+ posts · 2k+ votes8y
Originally posted by @Anthony Gayden:
Every year or so we hear another story about a person who passed away and had secretly amassed quite a large sum of money. In this case a legal secretary who had a net worth of $9,000,000.http://m.newser.com/story/258891/secretary-lived-f...
The truth is that I don’t find this story motivational. In fact I think it is quite sad. I think a lot about the reasons I want to build wealth. Safety, security, opportunity for myself as well as family/friends, leisure, free time, etc.
When I read this story I imagined some super cheap penny pinching person who even though she was wealthy still lived in subsidized housing. She never shared her wealth even with her husband who had already passed away.
Why build wealth if you and your family never enjoy the benefits? Why bother? Donating the bulk to charity seems like even more of a slap in the face to family. This person seems more like a hoarder of money than an investor and I am not impressed.
A very Rich man died and at the funeral someone asked the Pastor how much the Rich man left and the Pastor responded with "All of it".
There is more to all of this than money.
- Rental Property Investor · Omaha, NE · Member since 2014 · 2k+ posts · 3k+ votes8y
When I hear about a wealthy person living in a subsidized apartment (that was written in the article) or about how she didn't even tell her deceased husband about the money (also in the article) I am left astounded.
Like it or not, I do not agree with her choice to hoard the money (Yes, she did hoard the money if she chose not to even share it with her spouse).
I am not at all inspired by the story of someone who hides and keeps their money secret from even their own family. I personally am a frugal person and live far below my means. I don't have fancy clothes or any of the other trappings of wealth, however I do not keep it a secret from my fiancée or family my income or wealth.
- Investor · Bayside, NY · Member since 2017 · 1k+ posts · 1k+ votes8y
Originally posted by @Anthony Gayden:
When I hear about a wealthy person living in a subsidized apartment (that was written in the article) or about how she didn't even tell her deceased husband about the money (also in the article) I am left astounded.
Like it or not, I do not agree with her choice to hoard the money (Yes, she did hoard the money if she chose not to even share it with her spouse).
I am not at all inspired by the story of someone who hides and keeps their money secret from even their own family. I personally am a frugal person and live far below my means. I don't have fancy clothes or any of the other trappings of wealth, however I do not keep it a secret from my fiancée or family my income or wealth.
I wouldn't begrudge someone keeping quiet about having an unusually vast amount of money for their circumstances. My dad did that, and I accidentally found out about some of it through the years, and never let him know that I know, He owns a commercial property and for many years told neighbors that he'll tell the owner if they mentioned any problems with it to him.
I just happened to watch to a real crime story in a cable channel that features crime stories, called "ID". It concerns a serial killer that was found to have murdered two people, possibly more. He befriends people, finds out if they have money, then murders them and assume their identity. He make sure his victims don't have close friends or relatives nearby. I was shaken enough after watching it to discuss it with my wife yesterday, as we lived frugally, and had quite a bit stashed away. She tells me she gets nervous when I talk to people about rentals that we own and 401K's we have. She tells me, the less people know about it, the better.
- Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes8y
Everyone has their own life.
I always get amused when I hear Ramsay, Bachman,etc. talk about do not have a Starbucks for 40 years and you to could be a millionaire!! LOL Then just buy their stuff for hundreds or thousands of dollars. LOL
Come on folks 40 years from now isn't guaranteed. The 1 million by then likely will be worth 400,000 with inflation.
I find it funny people are always trying to find way to save 10 cents off of making 30k a year income. You can only stretch it so much. You have to figure out instead what you can be doing that you are passionate about to increase your money 200k,300k,500k a year etc.
I want to live for today. I still plan for tomorrow but I enjoy today. I am spending a few thousand for 4th of July party because it is one of my favorite holidays. I go to Starbucks weekly,etc. My income is also in the top percentile so I do live well but compared to what I make I live frugally. If I am self made then my extended family can learn to do the same. Giving handouts doesn't help people in the long run. Earning what you create for self mastery helps give purpose in life. If people are just given everything then they do not typically understand the value it has and effort took to create it.
- Rental Property Investor · Omaha, NE · Member since 2014 · 2k+ posts · 3k+ votes8y
Originally posted by @Account Closed:
A very Rich man died and at the funeral someone asked the Pastor how much the Rich man left and the Pastor responded with "All of it".
There is more to all of this than money.
Says the person who live in Paradise Valley....lol
In all reality I'm not begrudging her lifestyle choices, I am frugal myself and live far below my means. I also am not skeptical of her decision to not tell strangers. I am however extremely skeptical of the fact that she didn't tell her own husband and even though she was wealthy, lived in subsidized housing.
- Investor · Bayside, NY · Member since 2017 · 1k+ posts · 1k+ votes8y
Originally posted by @Anthony Gayden:
Originally posted by @Account Closed:
A very Rich man died and at the funeral someone asked the Pastor how much the Rich man left and the Pastor responded with "All of it".
There is more to all of this than money.
Says the person who live in Paradise Valley....lol
In all reality I'm not begrudging her lifestyle choices, I am frugal myself and live far below my means. I also am not skeptical of her decision to not tell strangers. I am however extremely skeptical of the fact that she didn't tell her own husband and even though she was wealthy, lived in subsidized housing.
Some years ago, I took real estate courses at NYU, and a professor who taught one of the most popular real estate courses happens to be a real life investor, who made a fortune in commercial property. Many students believed that he's a faker, he's not really that wealthy, otherwise why would he be teaching. I did a little sleuthing, and found out not only is in on the board of the Real Estate board of NY, but his name is on a plaque hanging in the lobby for people contributing at least $1,000,000 to start the NYU program for real estate. I understand he contributed way more than a million.
One feature of his course is he answers all questions, real estate and personal. I remembered he was asked one time where he lived, as we all assumed it's a fancy mansion somewhere. His answer shocked us all, he said he lived in a rent controlled apartment in midtown. Back then, if you or your parents lived in one in NY, it's grandfathered, no matter how many millions you made. When we got over the shock, he said "why not, could you find a better real estate deal"?
As to keeping a big secret from her husband, in my culture, it's not unusual for wives to keep secrets from their husbands, especially financial. Spouses even have 2nd families that they keep secret from the respective spouses.
We all have a stereotyped image of someone with $9 million, riding around in a chauffeured limo, but real life is a little more complicated.
- Specialist · Paradise Valley, AZ · Member since 2018 · 3k+ posts · 2k+ votes8y
Originally posted by @Anthony Gayden:
Originally posted by @Account Closed:
A very Rich man died and at the funeral someone asked the Pastor how much the Rich man left and the Pastor responded with "All of it".
There is more to all of this than money.
Says the person who live in Paradise Valley....lol
In all reality I'm not begrudging her lifestyle choices, I am frugal myself and live far below my means. I also am not skeptical of her decision to not tell strangers. I am however extremely skeptical of the fact that she didn't tell her own husband and even though she was wealthy, lived in subsidized housing.
Your comment: :-) "Says the person who live in Paradise Valley....lol"
Yep. The more you make the more you can give to church, missionaries, street "bums" ;-) (Phoenix Rescue Mission), etc and the more time you have to "help give a hand up". I make no excuses for being successful. I hope ALL who venture onto Bigger Pockets do as well as I have and even better.
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