Dear Mary: I started saving 3 percent of my salary when I was 34. (I was earning about $30,000 then.) With each yearly increase, I added another percentage point until I got to 10 percent. I'm 58 and have just surpassed $1 million in my 401(k) because the company I worked for did a 15 percent contribution and my investments did really well.

Now I have to figure out what to do with it so it will provide me with income through my retirement. I have no pension, and my husband passed away three years ago with very little insurance and only enough in his 401(k) to pay for his funeral. Saving any amount and adding to it each year is what got me my nest egg! -- Jeanne T., e-mail

Dear Jeanne: You are one smart lady, putting in practice what Albert Einstein called the eighth wonder of the world: compounding interest or, in your case, compound growth. The secret is time. You consistently have added to your account and then allowed it to grow over the span of many years. I am so proud of you.

Now comes the good part: managing that nest egg. You might want to sit down with a qualified financial planner, or consider creating your own financial plan using the excellent online software at www.eFinPLAN.com. Kent Irwin, the creator of eFinPLAN, is a chartered financial consultant whom I know and trust. Using his years of experience and professional knowledge, he has created a way for ordinary people to create financial plans that they might not be able to afford otherwise. To learn more about eFinPLAN, visit my Web site at www.DebtProofLiving.com and click on "Mary's Web Desk." I think you will be impressed that for just $89 and a few hours of your time, you will have a 60-page customized plan that will take you right through retirement in fine style.

Dear Mary: My husband says that it costs more to make ice in the freezer than to buy it in bags. I find that hard to believe. Do you know the answer? -- J.M., e-mail

Dear J.M.: Let's say a bag of ice at the store costs $1. A dollar's worth of water from your tap would be nearly 400 gallons, using the U.S. average price of 66 cents per cubic meter -- enough to make a lot of ice. You already are keeping the freezer at zero degrees Fahrenheit, so it will take virtually no more energy to make ice in it than you're spending now to freeze other stuff. Your husband's theory might hold water if he's talking about buying a separate ice-making machine that would be an additional appliance in your home, drawing its own electricity. Otherwise he's all wet.

Do you have a question for Mary? E-mail her at mary@everydaycheapskate.com, or write to Everyday Cheapskate, P.O. Box 2135, Paramount, CA 90723. Mary Hunt is the founder of DebtProofLiving.com and author of 17 books, including "Debt-Proof Living." To find out more about Mary and read her past columns, please visit the Creators Syndicate Web page at www.creators.com.
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