Boston Gal's Open Wallet

This supposed makeover actually seemed designed to do two things: Advertise the services of the financial advisor and advertise the success of the couple profiled. There is NO WAY this couple needed a "makeover." Their kids can go to college for free, Dave has a military pension of $45,000, they have a nice chunk saved for retirement, plus (after Dave retires) their income will still approach $200,000 per year.

I LOVE money makeovers, but this one was hilarious to me. These people have it made and they know it! Now all their neighbors know it, too. ;)

 

I have to agree with Katy

"It doesn't look like things are coming together in a very good way for us, financially speaking."

Retire at 60 with a pension? Send a kid to school free!?!?! Annual income > $200k?

Poor them!

-Frank

 

His kids qualify for free tuition because he's a "disabled" veteran, yet he's able to teach full-time? I'd love to figure out what's going on there...

 

I guess this is what "needy" looks like in California :)

 

They've pension, retirement fund, and already able to send a child to college free.

Why they need makeover? Are they trying to show off?

 

california couple.. all about showing off.. worst state in the union

 

@Anon 6:47

Let me explain a bit. I am a disabled vet and I have a nice job. I had three knee surgeries in two years in the military. I was released on a medical discharge. I am rated 20% disabled.

My husband was in the first Gulf War. He works as a Mech. Engineer. He is 40% disabled. He had some munitions explode near his face and is deaf in one ear. He has many other lingering injuries from his "ranger" days.

Almost all Army people who retire after 20 years have a disability rating. We will feel the effects for the rest of our lives. Expect benefits for veterans to grow in the next 20 years after war.

We plan to use the disabled college benefits for our child if we need them. We also use the VA for medical care related to our injuries. My husband is having full facial reconstruction later this year.

Another way to "shield" savings from universities is to put money away in a life insurance policy.

 

Why so hard on these people?
They have worked hard, saved diligently and are now trying be smart about what they have built.

I assume readers of this blog have this enviable dilemma as a goal.

Just because you have money in the bank doesn't mean that you "have it made" or that don't need to be careful.

 

Let me explain a bit. I am a disabled vet and I have a nice job. I had three knee surgeries in two years in the military. I was released on a medical discharge. I am rated 20% disabled.

My husband was in the first Gulf War. He works as a Mech. Engineer. He is 40% disabled. He had some munitions explode near his face and is deaf in one ear. He has many other lingering injuries from his "ranger" days.

Almost all Army people who retire after 20 years have a disability rating. We will feel the effects for the rest of our lives. Expect benefits for veterans to grow in the next 20 years after war.


It makes sense to me that the armed forces would pay for the medical care of injuries sustained while enlisted -- in fact, it'd be shameful if they didn't.

But extreme benefits, like paying for a child's college tuition, only make sense to me when the injury is so severe that it prohibited the person from working.

 

I don't begrudge these folks their kids' free college education or any other benefit, and I certainly have nothing but admiration for the way they've saved and invested for the future. My only beef is the article making it seem like they have some big financial problem that others might be able to relate to. Maybe they needed to shift some money around to be in a more tax-advantaged situation, but that hardly constitutes "things not coming together in a very good way for us...."

For those people who won't have a pension (most of us), it would take 1.2 million in a 401K to be able to generate a $45,000 annual income, based on withdrawing 4% per year. And that only represents a minor portion of the income this family will have.

Katy McKenna www.fallible.com

 

They should only pay as much of their children's college education as they can without sacrificing their retirement. California public universities are more than adequate. If there kids want to go elsewhere they can pay the difference.

There was some really good advice in this article. I had not thought of shifting the account owners of 529s to grandparents.

 

Really?! You all think that you could retire with $400,000, some pension and be able to support your spouse, a mortgage, kids in college and whatever other expenses come up (like healthcare, transportation, family obligations...). What California are you living in?! These folks are doing well, but to make the statement that they are "showing off" seems a little ridiculous.

They clearly sought this money makeover to put themselves in a better situation without having to pay a financial planner...pretty smart!

Also, YOU serve in the military and then you can make statements about what benefits they deserve. Members of the military risk their lives for YOUR freedom, and while a 20% disability may not sound like much to you, try living the rest of your life with a 20% disability (mind you that that disability did not come from something reckless and fun, but from supporting the foundations of this country and for allowing you to live freely). These folks deserve as many benefits that they can get, including the money for their children's tuition.