My husband and I are 61, we saved up $2 million, he’s retired and I will retire in a year. We are not lotto winners and our house was paid off almost 14 years ago. We have had middle class incomes. We’ve inherited nothing from anyone.
The key is to live below your means, pay yourself first, and save and invest over a long period of time. The biggest steps we took: always maxxing out IRA’s and 401k’s, paying off and living in the same very nice but modestly sized house and not buying brand new fancy cars. We are not tacky frugal tightwads at all. We’ve always lived comfortably and generously. We just decided early on that we did not have to keep up with the Joneses. Of course having good health so that we could work for many years has been a blessing.
You two are doing everything right. Let me ask you a question, of something my wife and I were discussing today. I have a life insurance policy, not worth much, just $100,000 (also have others of lesser amount). In my late 60s. The premiums keep going up every year, now at $165/month. My wife was talking about getting rid of it because it's getting more expensive. But I told her that is what the insurance companies are counting on, for seniors to abandon it. That over the next ten years our outlay would be less than $20G for a $100G payout if I die. Over the next twenty years our outlay would be less than $40G for a $100G payout if I die. Good chance I may die within the next 10 or 20 years. Good gambling odds for a payout. If I live longer, so what, most of the money comes back to her in insurance benefits. We have the means to pay the premiums, not in debt and have savings.
So would you stop the insurance payments? This is another reason why people should save for retirement, so they shouldn't have to abandon life insurance payments.
Come on you are a bloody genius. Ifeveryobe lived like you thete wouldnt be a democrat on the planet and i would not be so hateful.
Yup - most millionaires are like your family.
Good for you.
Just a quick question-—were you a two income family the entire time?
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While we don’t have that amount saved, we have a decent nest egg in annuities, and put them in Trust funds. We down sized the big house, carry the note, and the new smaller house will be paid off in 3 months. Van is paid off. Add in combining BD, Christmas, and Anniversary gifts for house fixing as you have most every thing you want or need and you’ve aced it. Last year we decided on the no clean gutters, and made arrangements to pay for them with gift cards at Lowe’s from Kroger’s saved on gas, Military discount, had it written in the contract. This year a new Recliner love seat, old one to go to Alpha Omega House so some Veteran can get some use out of it, still in good shape.
Next year replacing the Van if we can find what we want and go down to a 1 car family. And sell the still very good shape low mileage Corolla sedan to one of our 2 boys who can’t afford a new car. Car dealer won’t give us what it’s worth any way as it is a plain Jane car.
govt workers?