Retiring at 40 more than just a dream for this Millennial
How getting her first checking account before age 10 shaped one businesswoman’s financial success
If there was one money lesson that Beck Bamberger’s parents instilled in her, it was this: “You make money, and you save money.”
“At 7 or 8 years old, my mom opened a checking account for my sister and me,” says Bamberger, now 32 and the CEO of BAM Communications, a public relations firm for tech start-ups in San Diego. “I learned that you go to the bank, deposit money, and it stays there.”
As children, Bamberger and her sister absorbed cues on how to handle finances from their parents. “My mom and dad were raised in Baby Boomer families with lots of siblings who received fabric to sew Christmas clothing but little encouragement from their parents to ‘become’ anything,” she says.
Despite her parents’ upbringing, they ran a dental practice for 20 years and retired while she was in high school.
“For years, I was shown how to pay off homes, make stock investments, save $2 on milk using a coupon and numerous other behaviors that showcased the ‘reward’ of retiring in your early 50s,” she says.
In fact, she bought Starbucks stock as a pre-teen. By then, Bamberger says, her saver’s mind-set had taken root.
At 19, she graduated from UCLA, thanks to acing AP exams and earning college credits while in high school.
By 21, she graduated from the University of Pittsburgh with an MBA and worked in television.
By 2008, she launched BAM Communications.
Today, she runs a multimilliondollar firm with more than 20 full-time employees that focuses on telling the stories of tech start-ups.
Although her business is growing, she drives a 1999 Corvette with 100,000 miles on it. Like her parents, Bamberger keeps things until they fall apart.
“I don’t need a Tesla. I love my car,” she says. Another lesson: Spend on experiences, not material items.
A big saver, she is socking away 60% to 70% of her salary. Plus, she owns four pieces of real estate — including her office space and residence — has no debt and always hunts for deals.
“I still shop at Marshall’s,” she says. “I was constantly reminded that you’re looking for savings no matter what level of success you attain.”
Her portfolio consists of cash, a 401(k), a Roth IRA and a handful of stocks that she cherry-picked. “I’ll probably never be able to shake this saver mentality, but then again, I’m planning to retire at age 40,” she says.
For other Millennials saving for retirement, Bamberger offers this advice: “Yes, live in the now, but plan for the future.”
Rianka Dorsainvil, a certified financial planner and founder and president of Your Greatest Contribution, a financial planning firm in Washington, D.C., says Bamberger is a great example of someone taking the right steps with her money.
Here’s some additional advice for entrepreneurial Millennials making moves.
Get a financial education. Bamberger’s parents played a huge role in how she approaches saving and investing. “Early exposure helps with understanding how the stock market works,” Dorsainvil says.
Automatically save 15% of your income. While everyone can’t live off of 40% of their income like Bamberger, “making saving automatic is a step in the right direction,” she says.
Protect your assets. Many business owners don’t think about a succession plan until they are ready to exit. “Speak to an estate planning attorney who can help with shielding your assets from estate taxes,” she says.
“I was constantly reminded that you’re looking for savings no matter what level of success you attain.” Beck Bamberger, CEO of BAM Communications