‘She ran rings around Warren Buffett’: This IRS auditor secretly turned a $5K nest egg into a $22M fortune — here are the 3 simple strategies that made Anne Scheiber rich

Disclaimer: We adhere to strict standards of editorial integrity to help you make decisions with confidence. All links marked with an asterisk ( * ) are paid links.

Anne Scheiber never brought home more than $4,000 a year or received a promotion in her 23-year IRS career — but when she died at the age of 101, the former auditor had amassed a fortune of over $20 million.

Scheiber, who strongly believed she was held back due to being a Jewish woman, had retired at 51 in 1944 with just $5,000 in savings.

Over the next five decades, she turned that nest egg into a portfolio of carefully-selected stocks, launching herself from her unremarkable first career into a stunningly successful second act.

"You think Warren Buffett, you know, that guy, was good at this sort of thing?" her lawyer, Ben Clark, told The New York Times after she died in 1995. "She ran rings around Warren Buffett."

Here’s how she put the Oracle of Omaha to shame.

Don’t miss

• Commercial real estate has outperformed the S&P 500 over 25 years. Here's how to diversify your portfolio without the headache of being a landlord

• Only 20% of Americans are confident they'll have a comfortable retirement — use this 1 magic move to get back on track ASAP (It will only take seconds but most people don't do it.)

• Take control of your finances in 2024: 5 money moves to start the new year off strong

She invested in what she knew — and for the long term

Like Buffett, Scheiber was a patient, long-term investor who reinvested her dividends and interest and rarely sold any of her stocks, even when they were floundering.

"She was never looking for a quick buck," Fay told The New York Times. "Her whole idea was to get performance on a long-term basis. She felt over the long run the value would grow."

It takes dedication to invest for the long term like Sheiber did— you have to have your eye on the prize, stay motivated and monitor how your investments are doing.

But you don't have to go it alone. Having a professional to guide you can help you stay on top of your financial progress. With Zoe Financial's* free platform, you can find a financial advisor that matches your unique needs and goals.

With no fees to get started, you can browse your advisor matches* with Zoe Financial's comparison tool and book a free, no-obligation consultation. Having a professional advisor can help you start building your fortune.

She was a tax-efficient investor

As a former employee of the tax agency, Schieber found ways to avoid paying them more than she had to. She held onto her stocks rather than selling them, which helped her avoid capital gains taxes. And since she reportedly hated paying commissions. Later in life, Schieber transferred some of her dividends into tax-exempt bonds.

There are other ways you can be more tax-efficient with your investing as well, using a Gold IRA.*

One of the most trusted precious metals IRA companies in the country, American Hartford Gold boasts a 5-star rating on Trustlink and holds an A+ with the Better Business Bureau.

Read more: This Pennsylvania trio bought a $100K abandoned school and turned it into a 31-unit apartment building — how to invest in real estate without all the heavy lifting

By opening a Gold IRA with American Hartford Gold*, you get the tax advantages of a traditional IRA with the inflation-resistant properties of gold. While inflation has increased expenses so that you may have a pricier lifestyle than Schieber did, precious metals are known to resist rocky economic conditions— so a Gold IRA might be the way to build your nest egg.

Conveniently, Schieber always planned to leave her money to education, which, as a charitable donation, ultimately reduced her estate’s tax burden.

She was extremely frugal

Even while growing her substantial wealth, Schieber kept a frugal mindset, choosing to live off just her small pension from the IRS and her Social Security, her broker William Fay told The Washington Post.

"She was saving 80% of her salary, at least," said Clark, according to Money Magazine, adding that he didn’t think Scheiber spent more than $2 on food a week.

In this day and age, it’s pretty hard to imagine spending no more than $2 on food a week. And yet, you need to eat. It is possible to make essential spending work for you, even if being as frugal as Sheiber isn’t quite as achievable.

You can do this with the Acorns* app, which automatically rounds up the price of purchases you make and puts the spare change in a smart investment portfolio. All you have to do is link your bank account to the Acorns app and start spending. From there, your money can grow* as Acorns invests it based on your financial goals.

While Scheiber often went to extremes to save money, she was clearly dedicated to spending far less than she earned, which left her plenty of funds to add to her portfolio and savings.

A high-yield savings account is a safe, reliable way to make the most of your money, with higher returns than the national average of 0.57% APY. Consider one of our picks for the Best High-Yield Savings Accounts to build up your savings.

What to read next

• Robert Kiyosaki warns: ‘Cash is trash’ — Discover the power of diversifying with gold now

• Jeff Bezos and Oprah Winfrey invest in this asset to keep their wealth safe — you may want to do the same in 2024

• Millions of Americans are in massive debt in the face of rising rates. Here's how to take a break from debt this month

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.