A Conversation With Tom Lippo - A “Super Saver”
Photos Courtesy of Tom Lippo
I recently had the pleasure of speaking with Tom Lippo to get his input on how he believes young people like me should prepare for retirement. Tom is a 35-year veteran of the Philadelphia Police department, who is entering his 12th year of retirement. His day-to-day has shifted from researching his own investigations to watching them on television. Rather than hanging out with his fellow officers everyday, he gets to hang out with his wonderful granddaughter (Did I mention that was me?). Although Tom has a healthy pension, his savings and investments are what granted him a comfortable retirement. In our conversation, he shared his tips and tricks, and also stories of hardship that led him to be a “Super Saver.”
Tom recalls his young adult life as something not to be modeled. “My parents told me to get my life together and I would tell them they didn’t have to worry. Then, your grandma got pregnant, and I realized that I should’ve been worrying.” He had plans to take a year off before attending college, working in construction with his father, but once he had his son, he ended those ambitions and decided to become a police officer. It was 1971, and his parents lived a very traditional lifestyle that didn’t allow him to live in their home with a baby. He and my grandma had to find an apartment quickly. “I couldn't get much for the money I had. The apartment I found was so small. I couldn't believe I had to start my family there.” From that time, Tom began to save as much as he could. He worked more overtime than actual hours, doing whatever he could to earn and save money. As a result, he had saved enough to buy their first home right before the birth of his first daughter. “I learned that it is hard work that makes money, not the job itself," Tom recalled. "I could buy a house in two years, and your Gram didn’t have to work at that time. I was proud of myself for stepping up, but I also knew I was going to need to work like this for a while to feel comfortable. I still get nervous that I didn’t do enough.”
During his career, Tom climbed the ladder quickly and was able to make a name for himself that still reigns today. In his personal life, his third child didn't arrive for another 11 years, giving him time to comfortably save before his second daughter came along. Tom joked, “You can save and save, but life happens. I had two very easy going kids. Then Allie came, and to this day I spend more money on her than I have on Jenni and Brian combined.” Even though the bumps in the road halted some of his savings, he was still able to move to a nicer area in the city, put his kids through catholic school, and eventually sent two through college. What was the method to his personal saving madness? Coins, cash, and organization.
Tom understands we live in a different world than he did. He has tried his best to utilize different shares, or specialized sections in his bank account, but he admits nothing has compared to his use of coin jars and cash binders. In his retirement, he tutors people to prepare for police exams. He has them pay him in cash because he feels "it is just easier than all the tech nonsense.” He said cash gives him a sense of protection from digital banking. He recommends utilizing different methods when saving and labeling them, for example, one for holidays, one for vacation, and one for regular savings to help to keep him organized.
When he does deal with a bank, Tom recommends researching how your bank sets their interest rates in different types of savings accounts. He admitted, “I had money just sitting in my regular savings, hardly earning any interest. I grabbed a brochure at the credit union about a ‘High Yield’ account and couldn't believe how much extra money I was losing from not putting some funds in one of those. The interest you get back is like 10%, which is really great when wanting to save.”
With all the time on his hands in retirement, Tom has also taught himself how to navigate the Stock Market. He has spent many days trying to explain it to me, and I hope someday, I will understand more about it. His main advice includes exercising caution and being patient. He told me, “If you want to talk about retirement and saving, then you have to invest, at least something. Your stock may be doing badly right now, but Lyss, when you retire, you'll have a fortune! Look at how much I made from Disney in the 90s! It works.” The man has a serious point, even if I am a little petty that the stock he had me invest in is down at the moment. Investing your funds will only help them grow in the long run, and you can always pull them out if the risk is too much for you. Doing your research will help you become more informed about investment choices. One place to start is a site called Investopedia.
Tom’s life before retirement wasn't easy. He grew up in an immigrant family, started his own family young, and worked very hard to get to where he is today. In all of it, he was able to utilize his money in a sustainable way that has given him the opportunity to thrive in his retirement. His advice on saving may be a bit outdated, considering he has 3 “UTZ Pretzel Rods” containers filled with coins in his closet, but he pushes the basics to show how great the end goal of saving can be. His advice for saving and investing is keeping the faith and staying organized. Though there will be some obstacles, Tom wants you to see the bigger picture. For his last point, he said to me, “I know I am a broken record, and you don't want to listen to me half the time. But, one day when you’re old you’re going to say, ‘I wish I listened to my Poppi and didn’t waste all my money!’” Sometimes, I do think he’s a broken record, but I will continue to listen and learn from him, and I hope you all can, too.
