“Good going. When we give God His part, He always blesses the rest.

Posted By Dorothy, Millersville, md. : October 15, 2007 11:49 am”

[gag] smart saving. could be more, if little g weren’t interfering with their thought process

Yeah right…when they retire they are going to spend money to hop on a plane…I don’t think so…people like this never enjoy money because they are too worried about what they are spending.

Excellent, well rounded article covering important aspects of their finances.

Way to go Justin, I am so proud of you. That’s the way to do things right for your family. You are a good Father and Husband. You are also a good friend, Thanks for all of your kind words.

When you add inflation to the mix. A million dollars will have the same buying power as $4 or $500,000 today. They will need a lot more to live on at retirement for 20 or 30 years. If you add in health care costs after retirement……$0

Good going. When we give God His part, He always blesses the rest.

so what about the vast majority of the people who make no where near 70K annually. There are people in debt because they charge food and and extraordinary medical expenses. what are they to do?

It really says something about their faith that even with a very modest income they give more to their church than the average millionaire in my town.

She should start her IRA immediately, even if they are both not fully funded. Should they divorce, she is going to be left wanting–especially since he is working on a pension plan and she is not. Since women live longer, they need more retirement resources or they will unable to retire.

theyre also makeing theyre church a millinaire whee theyre famous for millionaires who dont work and live off dummys

Proof that military pay is enough to live on contrary to what some say

lease your cars..

Anyone that has an income of $70,000 per year can become a millionaire over time if they save and watch their expenses.
I would like to see some stories about people making less than $25,000 per year that have gotten rich. The middle class in the United States for the most part are making somewhere around $40,000 on average and most are struggling to make ends meet. Too many good jobs have been shipped to China.

A thought for Justin might be to consider whether an officer’s commission would make sense - if he’s planning on staying the full 20 years, it might make financial sense.

They are doing very well.The only thing that bothers me is their auto expenses.Way Way too much !Cars are a horrible investment not to mention the price of fuel.30k-40k minivans and suvs are a sure sign of a big money “blood-letting” on a family’s financials. Just because you have 2 kids dosen’t mean you need a tractor-trailer to haul them around in.For the price of their minivan they could have bought 2 brand new toyota camarys and cut their car expenses by 30%

Congratulations to the Bergmans. They have more sense than the Joneses who live next door. Get it?

Bravo, Justin & Emily,
Your choices and disipline are amazing. I’m passing your story onto my 27 year old son!

After paying off the car, they should put that payment each month, into an interest bearing savings account. Then when they have to buy a new car, they will have the cash to pay with, and avoid paying interest on a car loan.

As a 23 year old, entertainer, I found this story very informative. I shall begin looking into a better savings program.

I’m a 46 year old female and I’m trying to save for my future - I live on credit cards and I have almost ten thousand dollars in credit card debt! I do not make enough money to even live right now. I have a BA from a good school and I work in sales - the problem is I’m now fighting age discrimination and companies want 20 somethings. When I was younger I was poor and had to work way way through school only to graduate ten years ago. I had to move from my hometown twice just to get a good job and was laid off. I need to earn at least 60 to 70,000 to save for my future. How do I do this when companies only want young people? Everybody says take anything - this is why I’m in so much debt because I had to take anything just to survive! I spent ten years in law enforcement and I have a small IRA;however, I have had to borrow from this to eat. I need to earn good money for the next 20 years to build a nest egg - how do I do this when companies get rid of you at a certain age? I’m not alone - I meet people everyday in similar circumstances? Help! If I could have had a start when I was young - but I was poor and did the best that I could.

He already has a pension, she has nothing. It seems it would be more important to invest the ROTH money in an account for her, if they must choose. A widows benefit is half, if something should happen to him. There is no guarantee in life.

“Justin has been in the Navy for seven years and plans on staying for another 13 years so he can receive a pension, which will be 50 percent of his base pay at the time of his retirement.”

Don’t know where you got your information but I retired in 1993 and at that time the retirement for NEW personnel was 35% at 20 years.

All these stories are the same. None of these people have mortgages!!! sorry my parents didn’t buy me a house and nobody has died yet. So what do regular people do!!!???

What buying power will a million dollars have 30 years from now for this couple? Being 33 years old, I foresee a million dollars not being sufficent. Consider the possiblity of no social security, higher taxes, and inflation. They are on the right track but will need more than a million dollars. Without touching there nest egg they will have an income of approximately $2,800 a month. Factor in no social security, higher taxes, and inflation and there current goal will provide little.

These young military folks are on the right track. We are retired USAF career military. Living on base has tremendous advantages from the safety, financial, comraderie, medical, and educational levels.Military families have strong and lasting relationships. Young couples benefit enormously from price reductions in all areas of base facilities. Owning a home requires unforseen expenses in maintenance, taxes, insurance and monthly payments. I hope while their children are young they will continue to make use of the wonderful base facilities and reconcider moving off base and save, save , save!– Input from a former Deputy Base Commander’s wife.

I think it is wiser to invest in a CD (certificate of Deposit at the credit Union or Bank ) than rish in any stocks. If you put your childs education in Bonds is better than stocks or School bond for education. I say this becasue we lost all our stocks in my spouses employment account when it bely up, and lost stock in Eron when it folded. so youc ant count on stocks to hold up. Unless it is in gold.

With taxes so hi these days, perhaps we all should be working for the gov.

Way to go Justin!!! It’s awesome seeing you guys on AOL!

These folks have it made for college for their kids. UNC, a top ranked liberal arts school and NC State, a top ranked engineering school are within a short driving distance from them. Furthermore, in-state tuition is only about 5K/year in NC. So worse case scenario: the kids live at home, borrow 20K to go to a great school for 4 years, and leave with less debt than the average car buyer takes on. That is a pretty good worse case.

There are 100 times more people on these financial websites worrying about funding an Ivy League education than the total enrollment at the Ivy League schools.

People keep commenting on college being expensive, etc and knocking this couple’s savings plan. These folks should be commended. While it would be great if parents are able to pay for their kids to go to college, there are such things as grants, scholarships, and loans. Why shouldn’t young adults be expected to take on the responsibility of the cost of their education? I didn’t expect (or even want) my parents to pay for my college costs. Instead, I worked a little, received some small scholarships, and took out loans. Would it be great to be school debt free? Absolutely! But not at the expense of my parents. The sooner kids learn to be financially responsible, the better.

One thing that is not mentioned is life insurance…..they have 4 young children…..at least get some term insurance to cover you until they graduate from school. Also diability insurance do they have any????

congrats

I’d say this couple is well disciplined in setting and meeting goals. The most important savings will be their shorter term morgage at a lower rate by the time kids are ready for college, while the value of the home appreciates. They’re doing fine!

Not that the Bevelacqua’s efforts aren’t commendable but if those 4 kids go to even a state college they’ll be looking at a minimum of $300,000 post income tax dollars to pull it off. A two income family making $70,000 a year, even in the south, cannot save for both retirement and college in todays America. Say “hello” to the shrinking middle class.

in 1990 purchased a pool home on lake west of ft. lauderdale 4 bd 2 bth.150,000 sold in2005 for 435,000…….realestate is still the best hedge against inflation location location location…money just isnt the way to go u have your cake and u get to eat it also… livein low tax agri. zone in mobile home raising fruit trees not everyones idea of peace and tranquility buy land there not making any more of it….

Sounds to me like that couple have their heads screwed on the RIGHT Way. Congratulations.

whatever is the end results of their strategy in attaining their financial goals, i think this family is such a good example of a careful and responsible living just for now. for sure if they hold on to this lifestyle they would get a comfortable retirement they so deserves. but only if they maintain.

Have to say this was a great piece - made me think damn, with my much larger salary I can afford to have more than 1 child… maybe even 4? I have to salute them for having their priorities straight.

As a retired dentist-MBA and financial planner,I rarely see the self discipline exhibited by these examples of millionaires in the making.Most people I encounter either are in denial about htheir financial health or really believe they will somehow get through retirement unscathed by serious financial debacles. But I believe Americans are smart and durable …there will be more financial comfortable families/ individuals because of the resources now available.

Not everyone wants to retire at 60-65. I am 66 years old, have been in real estate sales for 20 years, office from my home and do lots of the “grunt” work on the computer. I really like what I do and I have ho intentions of retiring anytime soon. Retire to do what…watch daytime TV?
Everyone is not the same…just like the “one size fits all” panty hose did not work…neither does a retirement age.

70 grand isnt bad at all per year.I dont see any reason they cant live great on that amount….The story said”only 70,000″ and I dont get it.

Their savings is great.I question that their combined salary is only 70, 000.Most pediatric therapists make that or more alone.

A new house would be nice but your true reward is that you got to raise your children not some stranger so you have enstilled your values. Also you are setting a good example for your children of how a real family works together-good job!

This is an excellent example of “smart” young people. I applaud them and wish them every success in life.
One comment: They need to still enjoy life along the way. Don’t put it all in the future, you need to enjoy some of it along the way. My son and daughter have also done well and I give them the same advice while we have cocktails on the aft deck of our 46 foot motoryacht.

I know it can be done. We have always been on the lower income of the middle class, I worked extra jobs so my wife could stay at home with our 5 kids. She worked part time after they were raised and out of school. We retired before 65 and have no debt and have a motor home and travel as much as we want. Also have half a million in investments. Our assets amost equal my total income of all my working years.

They might want to look into purchasing a foreclosure (as long as there are no liens against it). That way, they could have the larger house for their family and not the major expense. When they’re ready they should talk to a realtor and tell them exactly what they are looking for and let the realtor do the leg work..that may add a percentage to the final cost, but it would still be less than a tradisional real estate purchase.

Good luck and what a beautiful family!

Having $1 million in 25+ years isn’t much. In today’s dollars, in New Jersey, my parents were rejected, on paper alone, by a retirement community, because they ONLY had $1.3 in liquid assets. Imagine what a mere $1 million will be worth to us at retirement age. Not much.

What about the bigee - college education for 4 kids, it seems no one wants to own up to that one. That could take a big bite out of the retirement fund!

Financial analysts tend to forget that you have to meet your expenses besides life insurance, retirement and savings. You can only do so much. Stretching a $70,000 salary for six people is tough at it is and then expect them to do more. Maybe they should turn the electricity off or stop buying groceries? Then they could afford to add more to their retirement accounts, a life insurance plan and savings!?!

What about collage tution for the four children?

How refreshing to see a story about a family that lives within their means, and doesn’t make bad decisions and then expects everyone to feel sorry for them when everything collapses!

I missed a mention of a fund for their children’s college. With college expenses anywhere from $10,000 to $50,000 + per year, they might want to think of it. That will definitely put a crimp on their savings and should ber an important part of their portfolio.

I am writing not to comment on the family’s finances, but to object to having the ability to comment. MITM is supposed to encourage people to do the best they can with their individual finances. It’s not a comparison. But with the comment box, MITM will unfortunately, become a comparison between families. It’s a little sad and defeats the idea behind the articles in the first place.

This couple is doing a great job - at the very least, they are paying attention to their financial situation and trying to save and raise a family. I can appreciate that they are a middle class family, like mine. We need more examples like this so that we are encouraged to save and live within our means.

Three things helped me and my wife achieve financial security: Millionaire Next Door, an early encounter with debt, and reading these articles.

Ignore the critics.

Set a plan and stick to it.

We started ours about 8 years ago. The last two cars that we have bought have been paid with cash, our house is mortgage free, and we have diversified with cash, investments and assets. We are also in our mid thirties.

My original goal was to be a millionaire. That was easy.

My new goal is to be a great stress free father to my four kids and having a debt free life is allowing me to do so.

I read some cooments about living in big cities causing insecurity. Actually even the real estate market is going down in most cities, it’s a different scene in New York City. I invested about 600k(borrowed 300k from relatives and friends) and bought two condos in the past 3 years. I just sold one of them this month and made about 700k. I still live in the other one knowing that I can always cash in at least another 500k in profit if I choose to sell it. I know many people living in NY city making very good profit by buying big houses or condos. But the bottom line is - they are very good investments.

I think if the name was changed from “Millionaires in the Making” to “Responsible People in the Making”, no one would have a single negative comment, because none can deny that they are doing things the right way.

I wish this forum is moderated or posts be edited. Giving people freehand to negatively criticize featured MITM discourages others to give their story. This is supposed to be a motivational forum, no bashing please, and don’t compare yourself and brag that you are doing better, because there will be others doing better than you. Thank you.

Thank you so much for this comments they have taught me alot and made me more knowledge with my finance

I admire the Bevelacquas for two reasons. First, with some tweaks in their planning, they could reach their goal by their planned retirement age, and depending on circumstances and revisions in some of their financial planning strategies, perhaps surpass it. Education and higher costs of raising their children in their teen-age and college years will have to be considered. Their children will undoubtedly be expected to get part-time jobs and be partners with their parents in their financial planning, just as they have probably already been involved as youngsters. In learning to manage money when they’re young for the benefit of the family so they’ll also understand how to effectively manage finances when they become adults.
Second — and I believe as important as number one, the Bevelacquas are making memories with their children by carefully planning for special family times and events. It sounds as though they are trying to make sure their activities are things the children will actually enjoy instead of having the attitude, “Let’s plan for the cheapest things we can do with the kids, even if there are other things that cost money they really want to do.”
Of course, there are lots of very inexpensive or free things that every member of the family can enjoy that should be taken advantage of by parents. But, we have to face the fact that there are also things children and teen-agers (as well as their parents) would like to have or do in which costs are inevitable. I’m not suggesting that parents spend frivolously on the needs or wants of their children or on family activities or “together” times, without careful planning, and involving their children in that planning, in the context of the family’s long-term financial goals, including retirement goals. In my opinion, money spent frivolously on children’s needs, wants, and activities is wrong for lots of reasons. Children need to understand that, for many activities, there is a cost and planning associated with them. Children also have to understand that, as a family, we are committed to reaching important financial goals and that not everything we want is going to be possible. Involving our children, even young children, in our financial planning, including allowing significant input on decisions about spending as they get older, teaches our children important lessons about life and life’s values. However, as important as all this is, we have to walk the fine line of emphasizing financial planning and our committment to it without making every decision about spending such agony that no one enjoys or cares about whatever it is on which we’re spending the money.
Retirement savings are vital in our world, but to put all our eggs in that basket without enjoying time with our children while they’re still at home is foolish. Planning for special times together as a family should be a crucial part of our long-term financial strategies and goal. Children know when finances are, or appear to be, more important to parents than they are, and knowing that may affect how they feel about themselves and their parents long after we and our retirement dollars are gone.
Many of my parent’s friends and my older friends are now at or beyond retirement age. For a lot of them, even when they were parents with children at home, meeting a retirement target of $1 or $2 million or more was their primary goal. However, I also suspect a lot of them wonder now why there isn’t any joy in their relationships with their kids. Some of them may realize at this point in their lives what they should have known many years ago — that their family priorities were trumped by their retirement goals. I know several of them would gladly give up a chunk of their retirement dollars if they could go back and celebrate times with their children and enjoy their kids’ interests while there was still time.
Like all parents, we’ve had ups and downs with our children at times, especially during occasional high- stress periods that are inevitable in life or at those times in the lives of our children when they were transitioning to new life phases (the “terrible twos” and early teen-age years easily come to mind!). However, at their ages now as older teen-agers, with another one in early college, it’s become easy to see that we will probably always have solid, happy relationships with our children. Our everyday times with them were usually special for all of us, and the many times we spent together enjoying activities or events that we planned, saved for, and experienced as a family, were always a major part of our lives and important aspects of our long-term financial planning and goals. My husband and I set a high financial goal for our retirement years that we are likely to meet, and will probably exceed. And, fortunately for the entire family, the goals that involved our children, including activities that made memories for all of us, were essential in determining and planning for the long-term, with both our children and our retirement dreams coming out winners.

I look forward to reading about the “Millionaires in the Making” and make it a weekly routine to check if a new one is out. I think it’s a real dissapointment that “Money” has allowed people to make comments on other individual’s financial status. This family is likely reading these “comments” and feeling hurt/upset by what some people are writing. I think these message boards will deter many people who would otherwise tell their story to come forward, which I think is sad. I am a Financial Planner who deals with an array of clients, some of which are 50 and have NO savings. Anyone making an effort is doing well in my book. Being realistic about future goals is the #1 way to be successful. Congratulations to this family for making a real effor - it’s certainly not easy with 4 children! Good for you! Keep it up!

Great article and thank you for featuring someone more like ‘us’. I think someone from the inside is really reading our comments and taking them to heart. I admire this family for their sense of putting family first while living a financially responsible life. Congratulations on saving early, often and as much as you can assume.

So big overpriced home + big cities = High expectations of ones living style. Really, to me it sounds like High Insecurity and maxed our credit cards.

I don’t think people are negative or jealous of this couple. They are just saying what they think. Remember a million dollars these days can’t even buy a decent house or condo in big cities like San Franciso or New York. Some people choose to live in a big house in big cities because they have high expectations of their living style. I make about 500k a year and I know some bright and hard working people who make close to 7 figures a year. These people do not come from rich families at all. In fact, most of them come from poor to middle class families. If you can’t afford to live at a higher standard of living, that’s just a matter of reality. For people who can afford to buy luxury houses and cars, it’s not because they want to showoff, they just simply have a higher expectation.

Geez everyone is so negative. They are doing a great job and people are jealous because they “have” to live on the overpriced coasts or must have a 2000+ square foot house. Heaven forbid anyone not use a credit card too.

Get over it people, they are doing fine and will be millionaires since they’re house will be paid off soon.

Not being in debt to giant corporations is something everyone in America should strive for.

This couple only has a networth of 280k of which 150k is pretax money. Based on their age of 35 and 40, they are just doing ok but definitely not great.

I tip my hat to the Bevelacqu’s. It’s obvious that this family understands their finances and that they understood the impact of saving early and often. If my calculations are correct (401k and ESOP balances) they will hit the Millionaire ($1.6) mark when Keith hits 65. That is if Keith and Elizabeth never put another dime in their Retirement accounts and the account avgs 8% are yr. And if you read the article carefully, you notice this little known fact that Elizabeth plans to go back to work in about 3 yrs. I live in the Raleigh, NC area and I know that Physical Therapist make on avg between 65-75k a yr. So, it appears that this family should be over the century mark in a few yrs and I would imagine contributing heavily in the retirement accounts.

These story profile MIT “MAKING”..not overnight.. This family is truly a MITM…

I agree - Thank you for doing an article on real middle class people. If you want your magazine to be truly effective, give us something that we can relate to. More of the stories where we can see ourselves in thier shoes and say if they can do it, so can I, will do wonders. Keep it up!

Two items concern me here:

1. People assume you are a bad parent if all of your children’s education is not borne by the parents. While some financial help could be expected, it is foolish to pay for someone else’s decision to attend an expensive out of state school to get a degree to get a job that doesn’t justify the costs. Parents’ involvement should be to ensure their children understand the choices they are making.

2. Once that degree is obtained, it is necessary to live in a high cost area and have a house that others have worked years to obtain. Don’t tell me that there is not affordable housing in the areas, as all those areas rely on a broad economic group to maintain daily operations. As a new graduate, it may be necessary to live with people that make the same salaries as you, and not to live with the group above you.

I am not saying it isn’t tough, but it is a far better sight than our parents and their parents had in the past. People need to make responsible, intelligent decisions and have the discipline to follow those through or adjust as necessary.

Hopw are you are house rich and house poor at the same time?

Their mortgage is at a very reasonable rate and they will pay it off in 9 years which is great. Putting money towards a mortgage of less than 5% and neglecting their retirement savings would not be wise. They are doing very well.

My wife and I are both 30 with a combined salary of 130k. We started investing in our 401k and roth about three years ago. Unfortunately I’m a resident physician so real life starts later for me. I find it impressive that there are couples with this kind of savings when I’m just thinking about paying back my loans. Good Work

My wife and I thought about trying to post our story, but after seeing how some people here rip everyone a new one, we changed our mind. I think the part that most of those people with the negative comments are missing is that it is not how much you make, but how much you save out of what you make. There are some families that make $44k have 4 kids and can’t save… I get that. But I think there are more families that make $44k yet they have a $400 car payment, cable, cell phones, credit card for “emergencies” and it is okay b/c they pay them off every month. Eat out 4 nights a week and have name brand everything. Making comments like we have too much debt so why even try to save money just floors me. Try paying off your car note and paying cash for your car. That way you won’t be upside down in 3-4 yrs. Pay off your car, continue to make payments as investments to mutual funds and replace your car with a used $15-20,000 car every 3-5 yrs. Over 30 yrs you could have $400-$500k by not having a car payment. Get an EF and do the same thing with credit cards and you could double the amount saved in 30 yrs. You may say it is easier said then done, but it is the first car, that you pay off is the hardest, or not using credit cards to get “points” Make a budget and live on less than you make. When you get a raise, invest it instead of spending it. You got by the whole year without, why find a reason to spend it now. If you get a tax refund, adjust your withholdings and invest that money. Or just keep things as they are and invest your refund each and every year. All of these “little” things add up. I for one like seeing all incomes profiled on MITM b/c just like there are people that make $44k and spend every bit of it, there are people that make $150k yet have nothing to show for it. Everyone can save, everyone can be a MITM if they really want to.

While I have made some mistakes with money and credit. I am well on my way to fixing it. School cost is a concearn but can be handled. I went to a state school because I qualified for schoalrship. Then when I didnt study so hard and lost my scholarship I found a job on campus that paid for housing. Worked and loans to pay for school and ended up graduating with 6,000 in loan debt in 2001. All of it was just paid off earlier this year. School can be done if your smart a Harvard Diploma is prinnted on the same paper as State U. Hopefully one day I will be on the millionaries in the making as soon as I get my mistakes reigned in (the mistakes were not aquired while in school but when i was out trying to keep up with the Jones).

Why is everyone so entranced with a low 15 year mortgage rate from 3 years ago? Is everyone forgetting the re-finance boom? Remember a 15 year refinance is alot cheaper than a purchase and normally have better credit quality than a 30 year.

The message in these stories are to point out that you can only have money in retirement if you save. Not everyone is going to win the lottery so whether you make $10,000/year or $1M, you still have to save money. If you cant save anything on a $10,000 salary you will probably not do any better on a much larger income.

This family is really to be comended, and I think they will be fine even with 4 kids. I would recommend they forego the bigger house and make due with what they have. We have 4 kids and make significantly more money, and decided against a bigger house because we decided we’d rather save the extra money instead of saddling ourselves with more debt. Money isn’t everything - but having a few $$ in the bank can sure make you sleep easier. Most families these days are just a few months or even weeks away from financial ruin in the event of an unforeseen problem, so they should keep maybe $10-15,000 of their after-tax investments accessible - don’t lock them up in IRA’s for the tax benefit. You have to plan for contingencies first - then save for retirement, and then save for college for the kids.

Tweleve years ago when I came to this country, I only got $2000. That’s all the life savings my mom can gave me. I borrowed against my credit card to finish my education.
Tweleve years later I am a multi-millionare. I successfully started my own business and sold it. If an immigrant can do it, you can do it too. Be ambitious, the sky is your limit.

Whatever. You should look into having a higher level of income if they are gonna support that many kids.

150k house in the midwest can get you a heck of a home. Ive traveled some in my work and get tired of hearing people complain about home ownership costs. I started the save 10% of what you make when I was in my mid 20’s. I’ve increased that some over the years realizing for each percent I only took home about 14 dollars less a week. Its what you put away when your young that counts the most. I play with the online calculators now and changing my contributions only adds little change in my total outcome. It seems like people are living backwords these days. Having everything your parents accumulated by age 30 and spending the rest of your life paying for it. Unlees you know your going to die by age 50 maybe this somehow makes sense.

I have a 30 year fixed at 4.87%. Got it in 2005. Personally speaking delaying marrage and starting a family helps with the savings. I’m 29 with a bachelor’s and a master’s degree. I have no debt! A home with a morgage (an asset not a debt) that I own 30% of. Almost 6 months of salery in an emergengy acount. Just broke $40,000 in the 401k. Oh, I almost forgot, I make $47,500 a year. I’m not on my way to millionare status (yet), you don’t need to take home a big check to be finacially secure.

Sounds like they have a plan. I don’t think they qualify for Milliionaires in the Making though. They need to buy another house maybe rent the one they have in this down real estate market. It’s said that cash is king but there is greater return in assets than dividends. Yes risk is higher but that is how real money is made. Tired of reading about all these people that are sticking money into mutual funds or index funds with no other options.
Remember people, Bonds, Stocks, etc you buy through a broker is paper not assets.

I agree with Jake from MN. My husband and I make close to to $200K combined which at first glance seems obvious that we should be on the road to millionaires. We are but it is because we are constantly making choices about how to spend our money. In MA, housing is very expensive and we also have two small children (daycare is beyone expensive and staying at home is not an option for either one of us). There is only so much money to spend each month and it’s important to us that we retire in our 60’s. We don’t live extravagantly and we prioritize how we spend our money.

Most people live beyond their means because they don’t really like the lifestyle they can realistically afford. That is fine but if your overspend, you need to realize you are going to have either serious debt or no savings or both.

They are doing a good job saving, and with 4 kids on only 70k a year they seem to be getting by pretty well. I have to say though I don’t see them being MITM. Yeah, they may be “millionaires” by the time they retire, but a million $ in 20 years for 2 people to retire on…they aren’t going to be living the country club lifestyle.

this is a great article….regardless of whether they become millionaires or hit a finacial bump along the road, they are doing the best they can and with a little luck hit or exceed their financial goals

Thank goodness! Finally a family most Americans can relate to. I got so tired of reading about child-free couples making $150K+ per year who were being lauded for having a net worth of $250K or so. I would like to point out, however, that in assessing the Bevelacqua’s net worth at $280K, the writer did not figure in their mortgage debt. If they paid $150K 10 years ago, it’s reasonable to assume they still owe around $100K, even with extra payments. That would put their net worth around $180K. Still, on $70K per year, raising four kids, that is quite an accomplishment!

Yes that 4.875% is correct. I picked off the bottom of the bond market back in June of ‘03 for a 15-year lock of 4.625%. I paid a $200 fee, no other expenses and no points. If only my wife could understand that brillance. Did I spell that right.

In response to Natacha’s comment, I would like to say that everything requires balance. People that try to pay off their homes early with extra payments often end up sacrificing investment growth and or cash savings. A balanced approach of a reasonable mortgage , investing, and having an emergency fund are the ingredients to financial success. Once you have a mortgage payment you can afford, focusing too much on decreasing your principal balance of your loan will stifle your overall growth potential significantly. I only wish these same people would also consider sending a check to their mutual fund company every month just as diligently.

Linda - I’m not questioning that they are doing a good job by controlling their expenses and saving towards retirement, but how are they going to become millionaires ? and what age?

Its easy to say that kids can go to community colleges, but raising kids also costs money and the expenses increase as they grow old.

The only “home” you can buy in Las Vegas for $150,000 is a two-bedroom apartment conversion condo 30 minutes from downtown. A nice house here seems to start at 280,000 and go straight up from there. Combined, my wife and I make $114,000/year, and our only debt is $25,000 in student loans with payments starting this December. Right now, after taxes and expenses, we’re banking about $3300/month. The catch is we got started in our careers less than 6 months ago, and buying a house in this town at those prices will destroy our ability to save. I don’t even intend to look for a house until I’ve got $80,000 to put down, and we’re only half way there.

I am very happy for all the people featured in millionaires in the making for their commitment to save. However, paying a house off is a better tool for financial security. It dosent matter how much money in investments people have. Bottom line, if you are carrying a huge mortgage, you are house rich and house poor so further away from being a millionnaire.

While my wife and I are better off than this family (we’re a little older, make $125K total), we’ve made similar choices for our finances. 3 years ago, we refinanced our mortgage to a 15-year at 4.875, but our house is very modest ($150K), where we could easily be approved for a house 3 times as expensive; but, who needs that albatross? We are well on our way to becoming millionaires with a net worth of around $400K (not including the house). But we scrimp and save, not going out to eat, not taking vacations (we’re saving up for a 10-year anniversary trip) and driving cars with 135K and 152K miles on them (we’re also saving for new cars when the time comes, so that we don’t need a loan). Be realistic in your goals, don’t spend all your money now and have more money in your future.

Finally, a more realistic couple with kids to support! I’m not sure about them being “Millionaires” in the future though–kids are expensive. Most of the other people featured are usually childless making six figure salaries so of course it would be easier for them to save.

Great article. I have been able to relate to this article a lot better then many others.

This is a realistic story but as the commenter from Washington, DC noted those of use in the low to mid 20 range have huge problems. Cost for housing/rent is high and if you went to college you probably have student loans. I know that is the one thing that is holding me back is student loan payments. I envy my friends who parents had the money to get them through. I paid for part of education out of pocket and still have to contend with that. All that is money I would put into a 401k.

With a very low 15 year mortgage early payments would be a mistake. Run the numbers saved by early payment vs. investing the extra payments in an index fund.

They will not be millionaires until they turn 90 with that income. In reality, you need to save $10,000 minimum a year for 33 years and get at least a 7% return to have enough money to live comfortably in retirement. People waste time trying to save for retirement. Working until you die or get too sick to work is more of a reality for 75% of us out here. We have too much debt to ever save money and live comfortably.

This is a great story! Especially for those that are fresh out of college, with a job, and are living in a low cost area. Kudos to the Bevelacquas!

BUT, I’d really like to see CNN find a couple or person that makes this kind of salary (less than 80K) in a high cost area like the San Francisco Bay Area and is a Millionaire in the Making! That would REALLY be helpful.

Middle class family like these are fast becoming extinct, nowadays. Good to see that there are some out there, like ours, going strong. Tired of hearing about MITM, whose income is 200K+ and home equity of 500K+. Where are those people now?

They must have re-fied 2-3 years when rates bottomed, because I have the same terms on my loan, 4.875% at 15 yrs. Could have gotten a 4.25% 15 yrs, but I had to pay a point.

WHy does the children’s education need to be considered. There are scholarships, loans, and good old fashioned ‘get a job’ to pay your way through school.
I did it, so can they.

Looks like they’re in good shape it looks like there are a few rough edges not touched upon in the article.

First, I was surprised to see nowhere mentioned the $22k in taxable accounts which are IMO begging to go into an IRA. They could put all this in a couple of years to enjoy tax-advantaged savings.

And I’ve got to echo the concerns about having education savings. With 4 kids, a 529 plan seems like a good idea. Even if one doesn’t use it, the others most likely will. But they could need it in just about 10 years (and thus only 6-7 years of having both full incomes). Being aged 2-7, they’re looking at quite a few years with 3 kids simultaneously in college. They might become millionaires but with kids in debt if they all go to college.

Tushar- The children will have to go to a local state college and apply for schlorships and grants.

I am impressed. $70K with four children, they are living well below their means. There are some people that make more than that and are struggling.

I refinanced about 3 years ago and have a 15-year fixed mortgage at 4.5%, so 4.875% sounds right.

Good profile. I have coworkers with no kids in the same age bracket. They make 100-200k and they haven’t saved 150k in their 401K plans. Most are also living paycheck to paycheck.

To Philip Tacoma WA - Yes, 4.87% on a 15 year fixed is possible. I have a 4.85% on my home.

I have a 15 year fixed @ 4.85 mortgage that I got in July of 2003

I like this couple. Very inspiring with a salary more like the average American. They are doing great with the saving, especially considering that she only works 10 hours per week currently. The mortgage interest rate I believe is possible if they had excellent credit when the refinanced it.

wow, a couple w/o crippling mortgage debt… you don’t see that very often. a 190k house though, when did they buy, 1985? keep sending your tax dollars to the Beltway, middle America, we have a housing bubble that needs some more air in here!

Nice…that’s awesome. But 4.87% on a 15 year fixed loan? Can that be right?

This is a much more realistic couple — no crazy salaries or real estate portfolios that boomed. Thank you.

Now — for those of us under 35 who didn’t buy a home pre-bubble, how do we become millionaires with frugal saving, normal savings, and stratospheric rents/housing costs. Buying a home would make it impossible to have any other savings for most those under 35 who couldn’t buy ahome right out of school.

I think this article is more motivating than most of the others because their income more closely reflects that of CNNMoney’s readers. The DeCharles savings regiment is very impressive.

Are they really millionaires in the making ? Correct me if I’m wrong, but …
First of all, they don’t have any cash. One emergency will put them back.
Secondly, they have 4 children. So their education has to be considered.

Thank you for finally doing a story on middle class people.