Tony Barzar could retire. Instead, the 60-year-old still clocks in at Costco, where he has worked for nearly four decades and now earns $32.90 an hour.
His job is ordinary. He helps shoppers through self-checkout, fixes scanning problems and talks with longtime customers. His retirement account is extraordinary. According to The Wall Street Journal, his 401(k) has grown to more than $1 million.
In 1986, Barzar was earning $3 an hour at a grocery store when a friend suggested he apply to Price Club, which later merged Costco. The new job paid $5.85 an hour.
Barzar started by collecting carts at a store in Tucson, Arizona. He later stocked shelves, unloaded trucks, greeted customers and eventually moved to the checkout lanes. He considered becoming a firefighter and repeatedly tried to pass the entrance exam, but when that did not work out, he stayed at Costco.
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From little acorns great oaks grow
When Costco moved workers into a 401(k), Barzar began putting part of his paycheck into the account. He did not benefit from a sudden windfall or lucky investment plan. He worked, contributed regularly, and allowed the money to grow for decades.
Now his retirement savings exceed $1 million. Costco Chief Financial Officer Gary Millerchip told the Journal that “many thousands” of the retailer’s U.S. hourly workers have at least $1 million in their 401(k) accounts.
Slow but steady
Barzar was offered a supervisor position and turned it down. He liked working with customers and believed he could help younger employees without becoming their boss.
Career progress does not always mean chasing the next title. A stable job with strong benefits, retirement contributions, and work you can realistically keep doing into and beyond retirement age may be more valuable than a promotion that adds pressure without much improvement in your long-term finances.
When life throws a curveball
Last year, Barzar’s son-in-law died by suicide. Months later, his wife of 26 years was diagnosed with stage 3 brain cancer.
Barzar told the Journal that his Costco health insurance covered the full cost of his wife’s three brain surgeries. He also took paid leave for nearly a year to care for his family and used therapy benefits while coping with the losses.
Retirement accounts are easy to measure because there is a number on a statement. Good insurance and paid leave can be harder to value until something goes seriously wrong.
The millionaire cashier
Barzar and his family bought a three-bedroom home with a pool in 2009 and have traveled to Europe twice over the past decade. He says he could retire, but he has returned to Costco part-time.
“What would I do?” he told the WSJ.
When Barzar took the job 40 years ago, he could not have known it would allow him to build a seven-figure retirement account. The lesson is that you don’t need a high salary, lucky bet or fluke investment to make a million. Done right, saving regularly and managing a retirement account over decades can have the same results with far less stress.
Get matched with a SmartAsset fiduciary advisor now and start the process of turning your $100,000 into $1 million.
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