Dwight Ford's nickname is "The Miser," and he's proud of it. Thanks to some savvy real estate investments, frugal spending habits and sheer luck, Ford and his wife, Marciana Wilkerson, have amassed a net worth of more than $2 million and are headed for an exotic retirement in Panama.
Back in 1989, it was a stretch for the couple to buy a luxury home in Potomac, Md. But the gamble paid off. "We always thought of the house as our primary retirement vehicle," says Ford, 52. "We ate canned beans for months to pay the mortgage."
In early 2006, just before the local housing market started to soften, they sold their seven-bedroom, 7.5-bathroom home in a golf-course community for $2.35 million. After paying off their first and second mortgages, Ford and Wilkerson, 55, had about $1.3 million left to invest, just as the stock market was picking up steam en route to record highs. In addition, they have $1 million in retirement-plan assets.
Throughout their marriage — the second for each of them — Ford and Wilkerson have channeled the bulk of their substantial salaries into saving rather than spending. Ford, who works full-time for a technology company and runs a consulting business on the side, maxes out his contributions to both his employer's 401(k) and the SEP IRA he maintains for his own business. Wilkerson, an obstetrician, does the same. Ford is proud to carry only two pieces of plastic in his wallet: a debit card and an American Express card that he pays in full each month.
In 2005, the couple bought side-by-side penthouse condominiums in Panama City for $440,000 apiece, putting 10 percent down. Each of the condos is now worth almost $700,000. The couple plans to live in one unit and sell the other, using the cash to pay off their loans. Says Ford: "We'll have no mortgage, and I get to choose who my neighbors are."
Since selling their house, Ford and Wilkerson have been renting a nearby apartment while they wait for their new condo to be built in Panama City. Wilkerson, who was born in Panama and is fluent in both English and Spanish, may continue to practice medicine part-time. Ford expects to continue consulting with clients back in the States or in Panama City, a major banking center. They both look forward to an active retirement in a year-round tropical climate.