Jonathan Hoenig - Savings Lessons From My Grandmother
Although I attended a prestigious university and worked on the floor of the world’s busiest futures exchange, the best investment advice I ever received came from my grandmother, Esther Shlensky, who died earlier this week at the ripe old age of 106.
Born in 1904, the year the Wright Brothers flew at Kitty Hawk and the Dow Jones Industrial Average stood at 49, this remarkable woman witnessed the 20th century’s entire economy – from WWI to Y2K. One dollar invested in the Dow the year she was born would have compounded at an annual rate of 9.09% and grown to $15,800 today.
As a child, she’d reward me for good behavior with a few coins while asking how much of it I intended to put away. “If you get a dollar, save a quarter,” she’d implore. That discipline stuck with me at an early age.