This article and the posters make the assumption that their current income will not increase before their retirement. They are only 23 and 25!! There will be chances for advancement, promotions, and raises in their future. Best of luck guys, keep spending less than you earn, and I don’t doubt you’ll do well for the rest of your lives.

I agree with Bill from New Orleans. Ditch the Mustang and get a Yugo. Buy low, sell high.

Aaron in KC, you obviously missed the point of what I was trying to say. I never said I was counting on my house to appreciate that much especially in the current market. I am simply stating that I am financially able to purchase a home, as expensive as they are in SoCal, while most of my friends in the Midwest are not. The house I’m buying is also 7 minutes away from my office, not a dump, and nowhere near $750k. My point was since you have never lived on the coasts; do not predict the lifestyle of every individual. I agree with you that driving 90 miles each way to work is ridiculous, but not everyone does. As mentioned before, I grew up in the Midwest. My entire family lives there, and I love it there. I may even move closer to them in the future once my wife and I start to raise kids. However, we are young and wanted to live somewhere different and fun for a while and ended up in CA. There are a million different places and lifestyles to live in this country, because not everyone wants to live in LA, NY or even KC. The point is, you can make it anywhere with common sense and responsibility. And I agree with everyone else, this couple should not be paying off a mustang on their salary, but there are a lot of people in OC driving their BMW’s and Benz’s they also can’t afford… to each their own I guess.

Good for you guys.
People like you are the new hope for America. Understanding that wealth is security. Taking responsibility for yourselves, not depending on government assistance like so many other underachievers. I salute you. There should be more of you.

This couple needs to read Dave Ramsey’s books. and the first thing he tells you, is you don’t need a 17,000 car. believe me if you follow his plan you will be a millionaire by 50. maybe even sooner

First of all, to the couple in the story. Kudos. You’re saving money, which is more than most people do.

Secondly, to all of the negative posters on here, say whatever you want. I don’t believe half of the stuff I read re: income and discipline amongst you. Anybody can say anything on these things.

Yes, of course, you make a billion dollars, own a bunch of homes and are set for life. I believe it.

Or you could be like most folks: have a job of some sort, save as best you can and possibly have some minor debt.

To those who live in the trendy coast markets or anyplace in between; to those who have the advanced degrees or to those who are just lucky enough to have a job I have two things to say to you, one about life in general and one about general finances. (Feel free to disregard, if you like, just an observation, take it or leave it):

1) Be good to the ones you love

2) Spend less money than you earn.

At the risk of sounding simplistic, it seems to me if you do that you’re doing alright.

Just my 2 cents.

I think this couple is doing a great job but I think they have the wrong dream. Who really wants to work their whole life and retire at 50? I mean 50 is still young and you can do so much after you retire. 1 suggestion could be to get rid of all your loans/car payments and use that income to buy an investment property. Rent it out. Let the house appreciate value then sell. Something like that. There are just to many ways to start building finanicial wealth than just throwing money into a retirement account though it is still very important to. I would I like to see more people thinking of retirement accounts as backup plans. Great job guys and keep up the great work..

Although I commend this couple on ambitious goals I just don’t think they wil be able reach the 2m mark by 50 on their salary. I agree with Ryan from pittsburgh, it doesn’t seem like there is a lot of advancement in their current professions as well. What are they going to do once they have children and the bills start adding up. By the way the mustang needs to go, your car shouldn’t be worth a third of your annual income. My wife and I make double their income and we bought a 22 thousand dollar accord. C’mon guys a mustang, who are you kidding, get a corolla

Rahul

I think these two need a realty check. If and when they plan on having kids that is going to be a huge expense all things considered. Second I think one of them should invest a little more time in education, it seems they don’t have careers but rather day to day kind of jobs. Of course this is coming from a physician who has spent his whole life in school.

Wow, the elitism of some people is really showing through on these boards! I knew my comments would be provocative. First, opportunities are no greater as a result of E or W coast. Look at Dallas, Chicago, Denver, Atlanta, Minneapolis certainly not expensive places. The argument that location results in better opportunities is bunk. Only specific industries is this the case, ie IB in NY, entertainment in SoCal. Also, this whole obsession about the weather is strange - you’d rather trade clean air, easy commutes, low costs, lower taxes, and strangers that say hi, for 75* everyday? You spend most of your time in an office or traffic anyways. Moving for family is a different story. Mundane lifestyle, huh? Far from it: while you are spending your 90 min each way commute, I can actually enjoy life - hiking, boating (yes, we have open water here), biking, hunting, pro-sports (not including Royals), theatre, symphony, art, high-end shopping, world class BBQ, great jazz scene, etc. Other than surfing, we have anything you have. This isn’t the 1800’s on the Great Plains where it was just wheat and bison. BTW, Jim in the OC, don’t EVEN talk about housing price appreciation - you’ve got to be joking me that you are counting on your house you don’t own to increase in value that much in the next 5 years! And, your $750k dream home is probably 2 hours from your office anyways. I’m 7 minutes. Spencer - glad you moved out of the region. Ultimate point is, this couple, at their income in the beautiful Ozarks are way ahead financially of young people on the coasts in the same situation. Haven’t you read all the stories about young people moving back home after college because they can’t afford the coasts on their own? Sure there are the few who get to the upper eschelon in NYC or LA - and if you’re one great, but the vast end up much worse off in expensive metros where they shouldn’t be anyways.

This couple is doing a great job. I say to their critics - lighten up! The only extra advice I have for these two is get as much extra education as you can before you have kids. Those kids will tie you down!

They are doing a great job. They should be complemented on saving and investing at such a young age, because nobody does this!

However, this is what they should do. Stop retirement contributions for now and GET OUT OF DEBT, except for the mortgage. Then save 3-6 months of living expenses just for emergencies. Then I would begin sinking funds for future purchases (cars, appliances, furniture, etc) AND investing for retirement. The key to retire wealthy and at a young age is to STAY OUT OF DEBT! No car payments, no credit cards (unless you can pay off the balance each month) nothing! Pay cash for everything, SAVE money so they can buy that next car, furniture, etc, with CASH.

They also have to consider the possiblity of children, if they decide to have them. Will one parent stay at home to watch the children, or will they use daycare? If so, how much does daycare run in your area? Children are obviously very expensive, and they have to consider this option as well.

However, they are doing a great job!

O.K. get ready for a negative reality check. These kids are getting lots of praise for their forward thinking, but there seems to be a world of difference between what these two want and what they are actually doing. First, the credit card debt. This debt shows a history of spending more than they take in. Maybe they have some discipline now, but their track record doesn’t suggest this. Second, the car. Are you kidding? This car doesn’t suggest any fiscal responsibility, just the opposite. Third, failure to max out the free retirement money. Why? Why are they passing up the free money? Suggests they can’t afford to, which means their need to spend (rather than save) their income is higher than they are letting on (by the way, what are they paying for insurance on their house and car?).

Even if you ignore that their actions don’t really match their words, the numbers don’t make sense. If they plan to live in Podunck (yeah, I know, its Pottsville) forever, and are happy with that, they can probably retire earlier than most, but only because they need less of a monthly retierment income in Podunck than anywhere less. But you’re not getting to 2 mil in 25 years, even if the wife doubles her salary. Run any retirement calculator out there. They can’t get where they want on these numbers.

Kids. THEY SAID THEY WANT KIDS a couple of times in the article. This isn’t speculation. If they have a child, forget it. Even if daycare in Podunck is very cheap, you still have to clothe and feed the rug rat. At least the kid will force them into a more reasonable vehicle.

I would congratulate these two if I thought their spoken goals were more than empty words.

I’m not going to harp on this couple for making good or bad choices with their money, but I do want to say that the best thing both of them can do is to go back to school. Stagger this so that one is working while the other studies, and they are almost guaranteed to more than double their current income. It’ll be a tough couple of years, but once one of them is out and making $60-70k the other can do the same and they’ll be able to live much more comfortably. Unless you want to work deadend jobs like used car salesmen or office assistants for the rest of your life, get your act together and get an associates/bachelors/masters. Only then will the real money come. Heck, even a technical degree will get you something. I know mechanics and electricians who make big bank. They were smart and combined their talents with a bit of creativity and now are living very nicely.

Aaron,

It’s expensive on the coasts bc of the unmatched opportunity and quality of life they offer. Granted NY is very expensive but the opportunities and excitement it offers outweigh the dull and mundane life you probably live…

“Point is, those of you in expensive areas need to realize that you can’t get ahead finaicially in life by living in expensive metros.”

How many millionaires live in NY and how many live in Kansas City?

Hey Aaron from KC, I grew up in ‘Middle America’ also, however not in AR (thank God). Obviously, the cost of living is far below the ‘expensive metros’, but I’m making about 35-40% more than my friends with similar jobs that still live in the Midwest. So yes, everything costs me more money, but I make more and invest more than all of my friends. In fact I’m currently looking to buy a house, while all of my friends are still renting. Homeownership is a distant dream for them. You can get ahead in the expensive metros if you are smart with your money. Unfortunately, most people handle money very poorly and that applies to all people from the coasts to Pottsville.By the way when that $750k dump in LA sells for $1M in 5 years and your $350k acreage sells for $375k, we’ll see who is getting ahead financially. The fact is people always will be moving to the coasts, while the only people in Pottsville are from Pottsville. You’ve obviously never been to CA, because $750k will get a lot more than a dump.

Great decisions! You two are still young and have plenty of decisions to make. You will have plenty of opportunities to make the most and the best of your finances. You have proven you care about and are disciplined with your finances. You will retire with your millions because you have set a goal and you have proven that you are responsible for obtaining it. You have maintained the course you set! Keep on keeping on! It’s yours for the taking and as you get older you will have more opportunities.
Good Luck, I doubt you’ll need it.

I would think that one of the things that everyone might want to think about is doing a homebased business on the side. No matter where you work today you can lose your job. Don’t ever plan on staying somewhere for 30 years and retiring. Doesn’t happen anymore.

Do something so that if anything happens to your job you have something to fall back on. Not just a savings.

Believe me I know. My husband has been out of work a few times due to downsizing and we were not prepared. Now were are starting over and working on two businesses on the side plus we both have jobs.

We are not young and looking to be able to retire from our jobs within the next 5 years. We have a lot to do.

I am telling you this because I think most young people are brought up in homes believing the american dream is getting an education, getting a job, getting married and raising a family. Can’t do that today. you have to have more than each one of you working. Because you never know when that job can come to an end.

Sounds like a perfect plan. But have you ever thought of the worst scenario: how about if one of you lost the ability to work within next 5 years? Do you still have the income then?

Everything could happened? Do you have any back up plans for your 50 year’s retire one?

I think it is commendable that this couple has goals and are saving money. Most people their age have no concept of savings at all and simply live for the moment. That said, I don’t think they are at all likely of becoming millionaires. Yes, they have savings, but what good is that with car payments, credit card debt, student loans etc. If they want to really get ahead they need to pay off all that consumer debt and start saving for the next car in advance, so they can pay cash for it, and break out of the cycle of car payments. They need to have cash on hand so they don’t need to charge anything. To me, having all that consumer debt pretty much cancels out any praise they merit for having retirement savings. They’re farther ahead than people who don’t save at all and have no goals, but I don’t find their savings and investments very remarkable at all, and hardly the makings of millionairs.

Good luck the Wells!

You are smart to think about your future, too much people are so short term minded… Don’t get me wrong it is good sometimes to “carpe diem”, but we have a retirement planning issue in the USA, most of the retirees will see their income drop or they will be school bus drivers…

Priority #1
Drop the credit card debt

Priority #2
invest in education

Good luck again and forget the snoody, the wise asses…

These two are doing great for their age and are headed in the right direction. I hope these two achieve their dreams and goals. Hopefully, they don’t let all of the jealous and jaded posters on here get them down.

And, for all the people out there who say you can’t buy a house for $125,000 in the United States you all are just simply wrong. There are still many places across the country where you can buy a decent house for $125,000. My house was purchased 2 years ago in the city of Columbus for $121,000. The house has 2 bedrooms, and 1100sft and within walking distance to bars, shops, and, The Ohio State University. I am happy to say a similar 2 bedroom just six houses down sold this month for $142,000 after being on the market for less than 30 days. I guess the housing market is not getting crushed everywhere…

Some of you people are looney. Who on their death bed says, “I’m glad I didn’t have any kids, look at the money I saved.”

If money is your main reason for not having children, thank god you didn’t reproduce.

I am glad that the majority of people who have commented on this board are not paid financial planners and NO ONE benefits from irrelevant pessimistic “advice.” This comment section could be beneficial for the couple if the respondents were to actually provide sound financial tips, encouragement, and relevant advice with the understanding that the couple is young and as they mature they will adjust their savings and financial strategy - just like the rest of us. Even Warren Buffett, who is regarded as one of the world’s greatest stock market investors, was not born with a full understanding of savings and investments – be gracious and know who your audience is.

Advice for the Couple: 1) Continue to live below your means, 2) remember to adjust your financial planning strategy as life events happen, 3) maintain constant lines of communication with your spouse regarding the expectations for your family’s financial future (e.g., can you financially support the lifestyle you want to have and/or maintain? 3) Enjoying life is not about money – it is about attitude and focusing on what is important to you – don’t wait until you retire to enjoy your life and 4) take negative comments with a grain of salt, everyone thinks they have the “right” strategy and that you should do it their way… it is your life, not theirs, and you have the freedom to figure out what will work for your family.

My wife and I started of much like these two. At the time, just getting out of debt was our goal. I was earning about 48K she was a stay at home mom. (This was 7 years ago) I was in debt about 12K in credit cards, I had just got my MS and started working. She managed the money, juggled credit cards for the 0 interest offers, and honestly that is how we got out of debt. 2 years after our mariage I landed a new job and was earning 6 figures. We saved as much as possible, drove older cars, both our cars were worth about 5K each. We bought a decent town house. The fact that we had jugled credit cards mattered little because we had enough money to pay for about 20% of the town house at the time of purchase. She finished her MeD and I worked and went to schoold and got my doctorate degree. (We did this together with no help from the parents) Two years latter we had saved up enough to pay off the loan for the house.

Rather than paying off the loan, we sold everything, liquidated everyhting we had, and moved to Thailand. Crazy yes, but we have a net value of 300K, and pay peanuts in taxes compared to what folks pay in the states. We earn about 20 times the average Thai does, and so we are able to still save a lot of money.

I too hope to retire by the time I am 50, or even 45 for that matter. But the truth is, in order to do this, you have to sacrifice, you have to take some risks and sometimes they work and sometimes they do not.

I wish everyone luck. We are all going to need it.

Penny pinching is a tough life. There are many events in life that may come up that can throw a wrench in your plan and what do you have to show…??? All those trips, luxuries and experiences that you gave up to retire early. I think you should get educated, work hard, think creatively and get ahead in life. I’m twenty five and making more than double these people. Not that there is anything wrong with living an average life (but its not for everybody).

I see many comments on their $19K Mustang. I kind of disagree. This couple is very financially disciplined. I think they deserve some nice things as part of the enjoyment of life. Reach a good balance in life will help to maintain good financial.

On the other hand, I think “retire at 50” may should not be a “main stream” American dream. It is not for everyone, and not for majority. The society simply can’t support that. Although, I am thinking about early retirement myself, but I never plan to stop working after retirement. I just want to work on something I enjoy more, and not to worry about money. I am lucky to have a job I enjoy now, which makes the retirement dream less significant.

TMS - I dont see what the big deal is. Let these people try to make the million. all the naysayers here dont have a clue. You dont need a lot of money to make a million by retirement age. All you need is to continually invest for a long period.

Aaron from KC,

expensive metros=increase opertunity.

these guys are doing GREAT!
a) their ccards are at 0% so they are literally MAKING MONEY off inflation. I would recomend that they open a 4% ING account and put their ccard “payments” there and then pay it all off right before the 0% expires.

b) the cars are what they are. they already made the choice. its done. he sells cars so im sure he got at least a fair deal. AT LEAST.

c) $300 per month on entertainment is fine. they only have a 560$ mortgage. in boston, if they make 30k, theyd pay AT LEAST 1000k per month in rent.

d) no one is accounting that they will make marginally(or substantially) more money as they get older…

Those of us from “middle america” and have moved to the southern cal area, realize we do enjoy beautiful weather ALL year long. We do realize we pay $300K, minimum, for a one bedroom 750 sq. ft. condo. We do realize we could have a mansion back home. But who wants to be paid less and deal with snow and ice storms?

My only comment is in the response of the “money expert” - With a down market, concentrate on the emergency cash fund??? What??? When the stocks are down…invest, invest invest! Buy low, sell high.

Who is the guy from “middle america” laughing at people in Coastal Southern California? You have got to be kidding me ! A guy in Kansas City thinks he is living better than me in San Diego? OMG ! I grew up in PA and vacationed all over the east coast. Everything back there is 1 of 3 things. OLD , dirty, or broken. Just a fact. Stating something as foolish as …………… you can not get ahead in life financially by living in expensive metros ………….. is simply dumb. It is easy to be successful in Kansas City, it is a challenge to do it in places like San Diego, LA, New York City, San Fran, etc. Blanket statements like yours are a sign of poor education

Good for them. I think thier goal is doable. I am sure that the plan isn’t to be making the same amount forever. I think with the restraint they are showing that over time as income increases so will thier savings.

I have seen a couple comments about CA and NY that are fairly narrow minded. My wife and I are in our late twenties and have worked hard to get where we are at. I won’t use dollar amounts since anybody on these forums can say they are making this or that. We aren’t rollin an escalade on 22 inch wheels but we live comfortably and own a condo in a very nice neighborhood in a suburb of LA. We also still but 16% of our income in our 401k and 403b.

I am sure we could find employment else ware in the country making a similar salary, buy a MUCH bigger house and our bills would be slightly less expensive. My wife might even be able to buy that Porsche she wants. But you can not put a dollar amount on how close you are to family. Is the 1500 dollars a month I save on my mortgage going to buy me a better quality of life? Maybe for the short term. I say this from experience, since my in-laws moved back to southern California from the south east because they missed their daughters.

My point is, a larger home and less expense does not equal a better quality of life or make us idiots. Set your priorities, stick to your goals and you will get ahead.

Sounds like an ideal situation at this moment. They would pay-off $125,000 mortgage within 20 years or so at $570/month. However, a million won’t even be close to ‘enough’, to consider retirement after 15 years based on the recent inflation hike.

I totally agree with investing in education. It doesn’t have to be MBA though.

Those of us in ‘Middle America’ laugh at the quality of life of people on the expensive coasts. I grew up fairly close to Pottsville, AR, and understand how much it costs to live around here. The $750k you pay in LA for a dump is silly by our standards. A top-of-the-line house with acerage in this part of the world would be around $350k. Because I can allocate more of my income to investing, I am blowing away my counterparts in expensive cities who make $10k a year more for the same job. Point is, those of you in expensive areas need to realize that you can’t get ahead finaicially in life by living in expensive metros.

although i think they too optimistic about their early retirement, they should be proud of themselves for at least doing something about it, that’s better than 90% of americans and I’d like to congrat them for.

$56K salary is a solid income for where they live and if they are decipline about the spending / investing, they will reach their goal. Maybe not as soon as they had hope but the key is they will have large net egg in their retirement.

let give them a word of encouragement!

Rebecca from Kansas City, MO,

You are a perfect example of what I’m talking about. If CNN profiled you, all of these people would complain about how you have a six-figure income and a nice life, so of course you will be a millionaire. What they don’t understand is that you worked your butt off to get there. You invested your time, talents and money so that you could be financially successful.

If you want to be a millionaire, follow Rebecca’s example. Don’t save $500 a month and hope for the best once you have kids, emergencies, etc. Put your first few years into investing in yourself. Then, once that investment is paying dividends, start investing in stocks.

Good job, Rebecca!

I think Money should bring back the old feature: Millionaire of the Month. Lets see some folks who have done it - especially now that lots of that fantasy Real Estate equity has disappeared!

One word - INFLATION. I tend to agree with some of the comments i.e. get an education and move to where the work is. GET OUT OF DEBT first. Americans love their credit cards don’t they!? Pay them off THEN think about investing. Its stupid to be paying 18% interest on outstanding credit card debt and making 10% on your investments/savings account, you are still losing money. Given that America is now in recession, they should perhaps consider investing overseas in emerging markets. Their focus should not be entirely on retirement, but focussing their efforts and money in the present conditions and make their money work for them. Best advice would be to go and see a financial advisor with a proven track record and listen to what he has to say.
NO CAR LOANS, NO CREDIT CARD LOANS, MODEST LIVING AND GOOD INVESTMENTS are the way to go

$570/mo MORTGAGE payment???
Did they buy a tree house?
I pay $2000/mo for my condo in San Diego, CA (including 250/mo HOA fees).
You can’t event rent anything out here for their mortgage payment…not even close….unless its someone’s closet.

I’m glad this couple has future savings in mind. But retiring at 50 I think is VERY optimistic if not totally unrealistic based on the numbers.
I’m glad they can have such a cheap mortgage though….that’s unheard of.
But the $19K car I think was a bad move. With almost $5K in cc debt…a 330/mo car payment to me is foolish. With their income a $10K car or less would have been smarter.

They should really be taking another look at their finances. $19,000 in car loans is way too much for that income. My soon to be fiance and I are talking to our broker about beginning our mutual fund together with an initial investment of about $5,000. I’m 22 and she is 23. I’m hoping to retire around age 58-60. No debt between either of us (school, vehicles, or credit cards). We pay save up and pay cash. Also we have already started a decent emergency fund. I’m hoping these steps will result in a much better personal finance situation!

They, and most people, could save a TON by not having children. There is no rule that says you must.

if they are transferring balances of $4500 from credit card to credit card, they are paying a transaction fee of 3% to do this for 0%.. that equals = $135… and they are paying $100 a month, they are losing $35 each time and they have to pay an annual fee.

it’s great that they are planning ahead…but with every couple facing 50/50 chance of divorce at some point, shouldn’t they each have a plan B as well?

“Also, remember to have fun because with fun life is not worth living.”

this is 100% true.

I bought a 1965 ranch home in 2000 with every window screen torn, some windows broken, single bathroom, floor rotted below the toilet, and all garage doors in need of replacement. Still cost me $140K back then. I’m afraid to even look at a $125K home in Minneapolis.

But as others indicated, add college loans and a couple kids to the mix. They’ll be paupers in the making like the rest of us in the X/Y-Gen.

These kiddies and their dreams are delusional. Medical coding is doomed with the inevitability of digital coding and standardization of those codes by insurance companies. Two Children will cut their investment contributions by 90%. Oil is certain to peak in the next few decades, consigning the memories of this era to that of the mythical Atlantis. The Global cheap-junk-from-China and mass-immigrantion machine will continue to destroy America until wages in the US match those of Asian workers and millions of slave-labor immigrants. This column is typical of mass media’s collusion with Wall Street in selling lies to the American people that life is a giant credit card-even if that de facto credit is leeching off the system after retirement at 50.

How much you make matters, how much you save should be your target! Its all about your attitude towards your spendings. Set a goal every year on your finances and be determined to do it. See below.

Put your savings into a money market account. (you can put some of your savings online too as they pay interest more)
Establish your retirement, get 401k or 403b(fedelity) combined with Roth IRA(vanguard).
Pay off cc bills, paying interest on them is bs!
Apply a 529 college fund for your children. (plans from the state of texas has the lowest fees)
Used up your car atleast up to 150,000 miles!
Focus on savings, concentrate on paying off your mortgage. (pay off one time, do not pay extra monthly, save that in a high yield interest savings instead)

Simple steps that you can accomplished can gain you confidence then success over your finances.

Wow, I just found this site today. Very interesting. Some comments are funny and some negative.

I think having kids will blow their plan right out of the water unless she is on the pill and is willing to wait 5 yrs.

I don’t strive to be a millionaire, just have the bills paid and be comfortable. Putting away money is not my top priority. Taking care of my family is. Getting thru daily life.

We are married with 3 kids. I went back to full-time in 2007, so hubby ($88K)and I ($30K)made $118K combined.
Hubby is on the list for promotion and we he gets it in a few months will be about $400-$500 raise.

3 kids ~ 11 yrs, 6 yrs, and 5 yrs. Schools these days send you home lists of things to buy for the classroom x3, is alot of money. Even just school photos $40 x 3 can hurt. Plus lunch, projects, donations to the class party.
I could go on forever about how kids and school suck up money. and Soccer x 3!! fees, balls, shoes, driving to practice and games, soccer snacks for 10 kids ~ouch~ and soccer party…

About us, Gross $10,400/mo Net$8,200/mo. We live in Southern California. Mortage $2500. Property taxes $4100/yr. We owe $240K on our house b/c I made hubby roll it all together (the 2 cars, boat, house, credit card debt). Our house appraised in Aug for $480K (4 bed, 2.5 bath, 3 car garage, 2100 sq feet).

We are both state employees. Hubby gets a 3% safety retirement and I get a 2% retirement. We are 35 and have 15 yrs to pay on our house. We will be 50 when the house is paid off. Hubby puts away $200 into 457 plan and $100 401k. it has around $20k combined right now. I had to talk him into putting this money away, he was banking on just his retirement. I am about to start my own 457K plan since I just got promoted. Plus we pay dues $80 mo for both unions. And we do have to pay into our retirement. I pay $122 and him $128. go figure ~ He makes $7274/mo and I make $3116/mo and I pay almost as much as him.

Saving is hard, especially with a hubby like mine. Right now he wants a new mini-van so he doesn’t have to drive his diesel Ford Excursion around. (its for pulling the boat! haha) I wouldn’t let him buy it, with his promotion comes him transferring to another office, possible housing costs and extra money spent in commuting. So I really don’t need a car payment right now. so now he wants to fix up the house! egad! the ceiling fan alone cost $530!

Then add ~ that my 6 yr old is AUTISTIC. What is gonna happen to that couple’s plan when things don’t go as planned. the first yr of therapy ($15K) is a dozy! $500 yr speech therapy right now, plus gas.

We save a little. Savings $200/mo. I think its up to $5400 but don’t count on that for too long, hubby wants to re-upholester the boat. Kids have more money that us. our daughter has around $10K and the youngest has around $4500. We put $150/mo in her acct and $75 in his. Now my middle one, the autistic one, can’t have more than $2000 b/c he is on Medi-cal. He has around $1600. The kids get saving bonds at xmas and birthdays ($100 bonds that double to $200 later on)
I have been trying forever to talk hubby to making it into a 529 instead of just a saving acct, but he doesn’t watch the money, he thinks his ATM is never ending…

Life insurance $152/mo. Universal and term combined, $500K each.
Health insurance $112/mo family plan

Car insurance (3 cars) $300/mo.
Boat insurance $300/yr.
Tags, don’t these people pay tags on their cars? I think we pay about $400 yr in tags. Plus the cost of maintain 3 cars and a boat, oil changes, brakes, tires, batteries!

Gym- $80/mo for both of us
cell phone (4 phones) $160/mo
home phone & internet $90/mo
cable (hubby wanted hbo) $78/mo
electric $200/mo (will go up in summer)
gas $100/mo (will go down in summer)
water $100/mo
groceries - ??? $1000/mo???
entertainment? we just spent $21 to see a movie last night and $35 eating out for date night. that doesn’t even count what taking the kids to Chuck E Cheese is gonna cost, plus my dtr’s birthday party this month! and gifts!
child care $500/mo

does anyone her wear contacts/glasses?
$250 for my glasses or $60/yr for contact.

and I just spent $150 (I got like 10 pairs of pants, 2 shirts and 2 jackets) at Osk Kosh on my boys. Kids grow and need clothes and shoes…. $$$$

Dentist? just wait until your kid needs to be knocked out to have a tooth pulled or the upcoming braces I am sure my dtr will need.

kids get sick $30 copays last week, boys had ear infections, $10 for meds.
dtr has allergies ~ take Claritin, bought in bulk at Costco. And its only March…

pets? 1 dog, shots $38/yr. plus grooming, food, and FEES! you have to register your dog every yr. $9-10.

We are doing fine for the moment, but our autistic son may need more help, possibly meds.

So while this young couple has a plan, I don’t think they planned how much kids are gonna cost.

Get another job continue to save at your age you should be working three jobs. and have even more money.

You guys are missing out one thing in the discussion. The free falling dollar, the dollar has eroded almost 20% in the last couple years (only after Bush came into power). If the Chinese and the Arabs convert their money to a basket of currencies (as they are doing right at this moment), you guys will be left with NOTHING! Imagine a Japenese couple bragging about owning 2 million yens in today’s world!

Oh to be young and dream, I would bet a years salary on the fact that they won’t be retiring at 50.It is ingrained into Americans at a very young age to spend more than you make. With credit being so easy to get the banks trap people with debt and some never recover.

wow they absolutely have NO expenses!
forget about the other stuff my student loan payments are only 2500.00 a month ..
how can you become a millionare by making 56k a year? I guess by living in Arkansas!

For All Those So-Called Experts and MBA’s

It is nice to see that you have discounted what $2 Million will be worth in today’s dollars in 30 years and reasoned that it is best to give-up — you have effectively earned an “F” in Wealth Management 101.

Please rework your model showing a yearly increase in salary, plus a higher savings rate each year, plus a solid dividend growth factor, plus a flattening expense structure in later years.

True wealth for the average person is created over time by managing and growing monthly FCF (Free Cash Flow) which is [Net Income] less [Expenses]. And then, investing and re-investing that FCF for long periods of time.

For all of those that are 100% certain you will by broke in 30 years, you are probably correct. Your plan works for you.

For all of those that are really committed and willing to “work the plan”, you will probably succeed.

Start the journey, develop a plan, work hard, save hard and enjoy the moment. And, most importantly, never, ever take financial advice from someone who has never created wealth.

There are 1,000’s of good books on this subject. I suggest you begin your journey by reading a few.

And finally, surround yourself with people that will encourage and educate you as opposed to all those people who can only offer daily reminders that they want you to fail as badly as they have.

Start your own business doing something you really and truly love and are talented at. Every person has a gift and has something special to offer. Quit working for someone else as soon as you can, if you really want to get ahead. That is really the only way you’ll be able to retire at 50! I started my own business with an SBA loan when I was 29. I’m not planning to retire until my 50th anniversary, I love it so much. I was a single mom and my staff covered for me, while I was off spending time raising my child. I was the best off single mother that I ever met! Go for it and good luck!

Maybe these kids are a little misguided as to how much money they will need in retirement, but at least they are working hard and have goals.

The majority of America goes through life as though they are clueless. The lower income people all blame the higher income people for their problems, but whatever happened to being responsible for your actions and your own choices in life.

I’ll tell you right now, I’m a 34 year old single woman. I have a master’s degree, make a 6-figure income, have a 225,000 mortgage on a 333,000 house, no credit card debt, paid off 80k in student loans in 8 years and have 500,000 for retirement in mutual funds. I didn’t have help from anyone. I made choices that affected my future positively and made SACRIFICES!

I lived above a pet store in grad school and I hear people whine about how they can’t afford to get an education. Well, I have a solution. Work part-time, take out Stafford student loans, live like a pauper for a few years and reap the rewards later. I still only eat out 1-2x/week, I clip coupons, buy generic/store brands, etc. I don’t buy something unless I have the money to pay for it. I live a great life and don’t have to worry about finances.

I realize not everyone is meant to go to college, but for those people, why not learn a skilled trade. My plumber makes more money than I do! What it comes down to, is I think we’ve become a nation of people who want everything for nothing. People want the champagne lifestyle, but have a beer budget. Really folks, do you expect me to feel sorry for you when you make $37,000/year and take out a mortgage for a $700,000 house and then foreclose a year later. I don’t think so and in case you’re wondering, one of my parents clients having their taxes done did just that.

I’m sorry you don’t make $200K/year, but that isn’t everyones lot in life. If you think it is, then make some sacrifices and get a different education/job. It’s called working hard. I’m tired of bailing out everyone that makes excuses for their finances and hate you for causing my portfolio to take a nose dive. You can’t have everything just because you want it. Life doesn’t work that way.

I see people bashing their $330 car payment, and then saying $300 for entertainment is unrealistic. If they said $150 car payment, and added the other $180 to entertainment (thats what the sports car is, in part), would that be more reasonable?

That utility budget seems pretty high to me, it probably includes things like cellphones, highspeed internet, and premium TV packages, that some would consider “entertainment”. My wife and I hit $300 for utilities only in the winter, including cellphones and cable internet. In the spring/fall its about half that.

Mortgage, and other comments about spending 300/week on groceries in NYC, etc.. Yes, big cities are expensive. The obvious solution is to move away. When your bills get cut by 75%, taking a 50% paycut isn’t a bad deal.

I’ve read some of the reviews regarding this Millionare in the Making article. It’s disappointing to know that the majority of the American public has been blinded by mainstream media and the government that inflation has been sustained on average between 2 and 4 percent. People wake up! With a rapidly declining dollar, out of control national deficit, and the fed’s printing money at their own whims call inflation is growing rampent. It’s more like 15 to 18 percent and increasing! Even with a dual income it can be difficult. This is usually a result of not living within or below your means. If you’re not making over 150k a year or more it’ll be difficult to sustain a modest living. Goodbye to the middle class. Buy assets that grow greater than inflation such as commodities. Make it a greater portion of your so called “diversified portfolio”. Best wishes.

The amount of money the parents have to spend on their children’s higher education is just amazing. Basic medical procedures are charged very high compared to income of a new employee.

Quality education and health care should be in the range common man can afford.

Inheritance tax needs to be abolished and there should be uniformity and transperency on these issues. A large section of society cannot afford legal charges to workaround the law, hence they are deprived of privileges, a common policy on such issues can be economical and in the best interest of the society.

Medical cost related to pregnancy/child birth depletes the saving of lower middle class people (those without insurance), higher education of child is a major expense, a shelter, housing as he/she grows up is another long term debt. Thus if you look at the cycle of some section of our society, they are in their debt cycle throughout their life;

Child birth; parents and these day’s even single parents, given the rising amount of single parents in the nation, are in debt, higher education: yet another debt, housing, assuming a 30yr fixed loan, retirement: although some people do save, with depreciating dollar and rising prices, that too is being depleted in terms of it’s value.

Some of you people in NY and CA are idiots. “$125,000 won’t buy much in most of the country?” Yeah, well, my wife and I live in a gorgeous 2,100-square foot house on about 1/4 of an acre in an older suburb of Dallas. Price at purchase four years ago: $120k. Not sure what it would go for today — we haven’t had the real estate bust the rest of the country experienced, but we didn’t have the ridiculous run-up here, either. Here in fly-over country, we have good schools, solid educations, well-paying jobs ($120,000 combined — which we made a little more than half that when we bought the house), and can afford both a mortgage payment ($1,100 a month including principal, interest, taxes and insurance, on 3% down FHA loan) and eating.

I’ve visited NY and CA. Both fine places with good restaurants, great museums, lots of fun people and an interesting lifestyle. No way you’d get me to move there. Don’t like your mortgage payments/taxes, look for a new job elsewhere and move. It’s not rocket science. I have friends in the same industry as me making more than me in northwest Arkansas, with similar housing prices. Perhaps if some of you (not all of you, but definitely some) were a little less snobby about this couple’s Arkansas address, you’d realize there’s something to be learned from these folks.

You wish,

You have to live in reality. You will pay for the sins (or hardships) of your youth. The whole point is that no one can go back in time. I’m truly sorry that reality is harsh for you. I’m sorry you will have to save a substantial amount of your income and probably work during retirement. This column cannot help you, though. There are no quick fixes, no magic bullets for you. Do you really expect CNN to come up with a solution for you that is easy? Are they supposed to defy mathematics and logic?

For those of you that do not want to repeat the mistakes of those who complain on this board, go to college, get a good job and start saving early. If you want to work dead end jobs until your 40, buy cars and clothes you can barely afford and think only about the present, please don’t come on this board and complain in a decade or so. Those of us who made financially savvy choices are tired of hearing it. We sacrificed, now it’s our time to enjoy life.

This is the worst example I’ve seen on this thing. These people won’t be millionaires until being a millionaire is the equivalent of a 10 thousandaire is today (inflation). Lets be realistic guys. You don’t become wealthy selling cars for 25k dollars a year. Sorry to be negative, but its reality. On the positive side, they will be much better off than most of their peers and that is a great thing. They will probably be able to retire at 65 and everyone else they know will be working till they die. Enjoy the mustang (which is not exactly an exotic for those of you saying they spent too much on a car) and enjoy life.

While it’s nice to see they are saving, they’re on their way to welfare and not millionaires. They hardly make enough combined to get anywhere close. Add kids to the equation (teenagers these days need all the technology) and they’ll be trading that mustang for a yugo. They need to double their income and still will have it hard if they really intend to retire so young. I can draw a military pension and work in the civilian world at any day past this coming May and being single will still be hard pressed to get to a million at 50 and I currently save $1800 a month. I applaud their effort but they’ll be lucky to 400K once inflation is added in.

It is great to see these kids starting so early. If they are reading this please take this small bit of advice, do not listen to the haters out there that have nothing better to do than try and trash someone else’s dreams. You find a 12month 0% credit card and do your last balance transfer. Now here is the hard part, take a year off from the entertainment expense and apply that additional $300 to your credit card debt. You should be able to pay that off in just a little over a year. It sounds rough now but imagine what it will be like to have that burden off your shoulders and then have those additional funds to invest and take yourselves out for a night on the town !!!!

Good luck and keep the faith,

P.S. Go to moneymastery.com and find your FINANCIAL FREEDOM !!!

You guys are young. If you continue on the path you are going, “DON’T GET DIVORCED”, be loving to you children and teach them finanical responsibility like you both have, you will have $2 million by 50 years of age. You must invest properly as you age and educate yourselfs.

Before investing, they need to pay down their loans, and then never barrow money again. If you don’t have the money to pay for something with cash, then you need to wait until you have the cash. More times than not, once you have the cash you will find that you no longer need or want what you were saving for in the first place. Without debt, and with proper investing a couple can become wealthy on far less than $56,000 a year.

Why do people on here say that we pay too much in taxes? This couple probably pays nothing more than their social security and medicare tax. After itemized deductions, education loan deductions, personal exemptions, etc, they pay next to nothing in income taxes. However, I do believe the federal government wastes 50 cents on every dollar of taxes. This is very clear if you live in or around DC. Admins making $60k a year and do not even know how to turn on a computer, so they are allowed to read a book all day. Management’s view on the issue? “She is only 5 years from retirement, so we will leave her alone.”

You know why most americans struggle with their finance? They need to live a very descipline life, e.g. not going to movies or eat out, in order to save just enough for retirement. The answer is Taxes. We pay too much taxes. We work nearly half a year just to pay uncle Sam. And what did they do for us? Yes, they spend most of the money to war, politics, etc. We wasted billions of dollars and we don’t even know where they are. Billions, that’s enough to make hundreds of millionaires.

It is just sad to see how most people struggle not because they are not hard working but because the whole govt system fails.

Amen Wise One, Amen

I’m 29 and married for 2 years from MO. This couple is definately on the right track. Much like them I started my 401(k) early having saved over 30k. However, my wife and I make more and we just had our first child.

We too are a mixed bag of savings and debt like the Wells. We have a strict budget, credit card debt, student loans, no car payment, mortgage payment (29% of take home pay), 529 plan, savings account and bokerage account. This isn’t the perfect formula to building wealth, but we are working on it.

To have a more secure future, I’ve been going to college to get my bachelors in business admin. We are also using our tax returns to pay off a CC and use the tax rebate to pay down another. By doing this we hope to completly pay off the final CC, build an emergency fund, and save to buy a family vehicle.

I don’t know if I’ll hit millionaire status, I am just concerned about making my money work for me.

Chris in Denver posted the following: “My wife and I are 34 and make $220K between the two of us. Our monthly mortgage is $2000 and the equity in the home is around $60K. (Who knows these days) We also both max out 401K’s where my employer matched 50% on the dollar. We also have $100K when considering mutual funds and 401K. Debt includes $35K for two cars (An Idulgence) and $10K for student loans. The wife recently completed an MBA and received a 20 % increase in salary. No kids yet. I think I will need close to $4 million to retire comfortably. …”.

The following caluclations show how low your $4 Million estimate is …

Assumptions first: (1) you both work until age 62 & then retire…. thats 28 more years (2) your compound annual salary increases are at 5% (3) you will need 75% of you final salary … in that year’s PURCHASING POWER, (noting that Social Security will give you some additional income not factored into my calculations) (4) Your retirement pot of funds must last for 33 years … until you are age 95. (5) you earn a (mildly conservative) REAL rate of return of 3% (via the combination of a 7% return and 4% inflation).

Now the RESULTS: (1) Your combined salary at retirement will be $862,428 (2) your first year annual retirement payout is $646,821 … and will increase by the assummed 4% inflation in each future year for 33 years (to age 95) maintaining your purchasing power (3) Your Target GOAL at retirement in 28 years to payout the indicated payment stream is $14,044,223 …. over 350% greater than your $4 Million guess.

Good Luck (seriously).

Oh wise one, can you turn back the hands of time so I can start early too? If not, try offering something usefull instead of rubbish!

Steve from Irvine,

Why do people who complain about others bragging about their wealth still feel the need to brag about their own wealth?

I think people are upset because this Millionaires in the Making article makes them realize that this is all just a big rat race. You can work your butt off for 40 years, make an above average income, and save diligently and you will still end up scraping by in retirement unless you take on a part-time job or work a few extra years. If you have the audacity to have kids as an average middle class family, forget it.

This is why people vote for Obama, play the lottery every week and escape into the TV when they get home. Financially, life sucks unless you are one of the fortunate few. Don’t get me wrong, I do not endorse Obama at all (the Robinhood mentality only works as long as the rich are willing to put up with it). In times of high taxes (which he will need to create the heaven-on-earth communist society he desires), investment capital flees this country like mice on a sinking ship. I just make these observations because people need to understand what is underlying their anger and that they are lashing out at the wrong people and calling for the wrong solutions. The person writing this story didn’t make the rules. Don’t get mad at them because life is rough. Instead, look at what you (on your own) can do to make your life better.

I’m sorry, but this story really disappoints me. How is this couple planning to live on 1.3 million for possibly 40+ years if they live to be 90? Additionally, 1.3 million in 25ish years will be nothing like it is today due to inflation….yet 2 people are planning to live on this for the possibly 40+ years?

Predicting what will happen next year is hard. Predicting what will happen 50 years from now is impossible.
First of all, why is there this overwhelming desire to retire at such a young age. Secondly, even if they do reach 2 million by age 50, whose to really say that the money is going last another 20-30 years. So much can change in that amount of time. Finally, this idea that the average investment is going to return 8% a year is based on historical trends, where there periods of much larger inflation. Investments overtime do not really beat inflation by as much as people like to believe. I am not objecting to saving and investing because its better than nothing, but early retirements are for people who were had high incomes that they saved, or had above average income investments. (Some of you are probably thinking that

My best advice to this couple is enjoy your work, save your money, try and make more money the best way you know how and that includes knowing yourself and doing your research, (and I don’t mean researching the mutual funds you are going to buy), spend your money on things that are only truly important to you, and don’t count on early retirement although you might just get lucky.

You people are crazy. You know why CNN cannot show you a single mother with two kids making $8 and hour in Queens who will be a millionaire one day? Because no such person exists! There is only so much a person can do in their present situation to build wealth. So take the hint. The reason they are showing you people who generally make a combined income of six figures and don’t live in NYC is because that is how its done. The people CNN profiles are meant to be examples of what you SHOULD do to become well-off. What do most of these people have in common? They started early, they have some sort of specialized skill (generally through higher education) from which they earn money, and they don’t live extravagantly. This is the model, people! If you are not in this situation, try to get there, don’t complain because they can’t show you someone in your current dismal situation who is going to become a millionaire. Instead, stop treading water and complaining and start swimming toward the examples they give you. That is how you will become wealthy.

“And bouncing around debt to different 0% promo cards probably isn’t the best idea, but hurting their credit is minor at best because what do people get good credit scores for?”

To Dave in Fairfax, VA (quoted above):

Just FYI, for our entire lives, a good credit score is important for far more than just buying a home.

1.) Rates on every loan you take out are based on your credit score, loans for a new car should the need arise, home equity loans to consolidate debt or for home improvements, personal loans used for myriad reasons, such as unexpected medical bills, unexpected flood damage to your home, etc.

2.) Auto insurance rates, as well as other types of insurance, in most states are now based heavily on your credit score.

3. More and more employers are requiring credit checks as a condition for hire, especially in the financial industry but elsewhere more and more, as low credit scores can indicate likelihood of theft and fraud, etc.

Every new credit account they open is an additional inquiry (which adversely affects score), an additional open account (which adversely affects score), and leaves the balance to limit ratio high on the new account (which adversely affects score).

As we all know, unexpected events such as losing a job, having children, etc. WILL HAPPEN. And they are much easier to deal with when you are not carrying huge credit card debt and a low credit score, far more options are then available (speaking from expreience).

My two cents . . . prioritize, take a hit in the entertainment and food costs for a while and just pay off the credit cards.

My best advice to young people regarding cars: buy a cheap one you can afford with no loan as your first car. Our first one cost all of $400 in the 70s. Then, pay yourself in a savings account what you would have spent on a car loan. That first, old car was the only one we did not by new from the dealer. By waiting a fairly short while, we have had new cars, and no loans on them since then.

This couple looks like us a few years ago. We started saving early, and have kept at it. Their goals seem quite realistic to me, because we have done much the same as they hope to do. By watching overspending, but still enjoying ourselves, and keeping out of credit card debt, we can now enjoy the prospects of a great retirement. By the way, with four children, our total grocery bill (including those other things we got at the grocery store) is about 305/month. We have one child about to enter college, and one two years away. In addition to our retirement savings, we saved over $144k for each child for college as well. Average yearly income for us is around 73k. When there was something we really wanted, we carefully considered it, and then made the decisions needed. For instance, we always buy new cars, but make sure we have the cash to buy for cash. We drive them until they are trash, and then get another. We are in Riverside, CA. We got a nice home that did require some sweat equity which we invested. We certainly do not live in the dumps, but we worked to get this nice home. My experience is that while some costs in CA are higher than elsewhere, many costs, including food, are not. I encourage this couple to keep it up. Your vision of the future is great. By the way, we had nothing to start. We now have over 2.4Million in investments, an anuity payment for life, with some inflation protectin, of $60k starting in 6 years, and are saddled with no debt.

After raising 4 children- cheerleading, band, proms, clothes, medical, braces etc. it is hard to have alot of savings.Save and stash while you can in 401 and Roth. And you can buy a brand new house in Houston for 125,000.

I am glad to hear about young couples planning for retirement. Keep it up, pay off your debt and have some fun. Since you are not thinking about having kids soon…you guys will probable have paid off your credits, save for an emergency fund and pay off your car before the little one come along - which should really help you guys stay on track. Best Wishes!

So I guess you need to be a twentysomething living in Podunk, USA to be a millionaire in the making. Is that how it’s done? What if you don’t live in Podunk, what then? Move to Podunk so I can be a millionaire in the making too? Because I really don’t see being one as used car salesman in California!

I agree with the comment below. I also live in Thousands Oaks, CA and pay about $2K rent on an apartment and have a 10 year old. A $570 mortgage is hard to imagine!!

Wow. The negativity needs to stop. Seriously.

These folks are trying their best. Yes they’re not perfect, but who is?

I am 25, and I don’t have the 401(k) amount or savings they have.

Good luck guys.

My wife and I are 34 and make $220K between the two of us. Our monthly mortgage is $2000 and the equity in the home is around $60K. (Who knows these days) We also both max out 401K’s where my employer matched 50% on the dollar. We also have $100K when considering mutual funds and 401K. Debt includes $35K for two cars (An Idulgence) and $10K for student loans. The wife recently completed an MBA and received a 20 % increase in salary. No kids yet. I think I will need close to $4 million to retire comfortably. Money, please profile us. The two kids are on the right track, but can they control spending when the salary increases? Will it increase?

I wish they could’ve made a story on a any young So Cal couples! What a difference.

Why does everyone have to bragg about their wealth and status? Well, I own 9 properties all located in beautiful/sunny South Orange County with over $2 million in equity all from borrowed money from the bank. How’s that for wealth??

A follow up to my earlier post and what James in Dallas said…

Median Incomes of Various Jobs

Car salesman: $18.70 an hour (about $40,000 a year)

Sales engineers: $77,720 (about $40.00 an hour)

Financial sales: $68,500 (about $35.00 an hour)

Construction laborer: $12.66 (about $25,000 per year)

Construction manager: $73,700 (about $37.00 per hour)

Bookkeeping clerk: $30,560 (about $15.00 per hour)

Accountant: $54,630 (about $27.00 per hour)

Source: http://www.bls.gov/oco/ (check it out. clearly shows that for comparable positions, one requiring education and one not, education increases your earning power by at least 100%)

$5,500 in student loans to become a medical billing coder making less than $30,000 a year??? Yikes.

How can some of you be critical of what they have in the IRA/401K? Maybe he has been saving since he was 16 cutting grass or dellivering newspapers. I don’t think they can get to $2M without alot of help and an increase in salary and a good stock market. They should not be in stocks, but good mutual funds. Things are only going to get more expensive in the future. For all you others who criticize, send in your story and see if it gets published. I was in MITM 5 years ago and they predicted it would take 10 years and it only took 5. We save 30% of our income. Granted we don’t have kids, but we do lots of travelling and didn’t buy too much house, which we just paid off last week. Debt is Dumb. Go Dave Ramsey!!

Re: E. Devane

To your point of having $22.5k in a 401k by age 25, I had a little over that by age 24. I began my professional network engineering career at age 21. The university I worked for matched up to 8.5%. In 3 year’s time I had right at $25k in my 401k. At age 21 I was sitting in retirement meetings, taking notes, asking questions and planning for my future retirement. The other attendees were at least 20 years older than I was. Most were within 10 years of retirement age. Retirement planning is put off way to long in this country.

This couple is definitely on the right track, much more so than 95% of mid-aged folks out there and 99.999% of the people their age. I’d make a couple suggestions (besides paying down debt ASAP). They need to open a Learning Quest account now and at the very least contribute the minimums. They also need to need to open a Roth IRA and contrib