How This Couple Retired At 55 With Just $200,000 In Their Roth IRA Account

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

My neighbors, Emily and Bob, retired with just $200,000 in their Roth IRAs. 

• They made several decisions early in life: They treated debt as a four-letter word, bought real estate early on and got teaching jobs.
• Their advice: Plan early and never take on more debt than absolutely necessary.
• Take control of your own money with Facet Wealth — a virtual full-service financial planning service with dedicated certified financial planners.

My neighbors, both retired teachers, spend all their time tending their chickens, going on long walks and figuring out where they’ll travel after COVID-19 disappears. They spend an hour a week talking about their big plans for 2021 — though I wonder what that’ll look like, because my neighbor Bob seems awfully content dinking around in his vegetable garden while his wife Emily watches him, drinking lemonade. 

I keep wondering, “Will I ever get there?” They sure had a lot to teach me when I finally asked how they did it. I apologized for being so nosy, but I was dying to know their secrets.

Mantra: Debt is a Four-Letter Word

Emily and Bob put a down payment on their first home the day before they got married, at age 25. “We got a 15-year mortgage,” my neighbors told me. “We paid it off by the time we were 40.” 

They moved out of that house and got another 15-year mortgage for a larger home — and paid it off in 10 years — by the time they turned 50. 

They’ve been collecting rent money for 15 years from their first house — for which they’ve gradually raised the rent for over time. 

They’ve paid for the following items in cash:

• Used cars — and they drive them forever (Emily’s perfectly happy in a 15-year-old Honda Odyssey)
• A boat 
• An RV
• College tuition for their two kids
• Anything else they’ve ever wanted

When I asked incredulously whether they have credit cards, Bob said, “Yep! We pay them off every month.”

They Both Have Pensions

Since both of my neighbors each started working at age 22 in their respective teaching jobs, they knew they’d get quite a few years under their belt with the Iowa Public Employees’ Retirement System in our state. They worked for 33 years and knew their pensions would float them in their retirement. 

“Who says teachers don’t make enough money?” Bob asked. “It’s all about how much you spend — not how much you earn.”

They Own a Tree Care Business on the Side

Surprisingly, my neighbors (yes, even lemonade-sipping Emily) like to don their bright orange jackets, pack on helmets and wield chainsaws through their own tree care business.

That brings in a significant amount of side cash — all through word of mouth in our town of 10,000 residents.

When I asked Emily what advice she would give for free, she said, “Work a job you love, plan early and never take on more debt than absolutely necessary.”

“But how can you really retire?” I asked them. “Just $200,000 in your IRA? Really?” I still had more questions: What do you do about insurance? Is it crazy expensive? 

But Bob waved his arms at me and said (probably because I was getting too nosy), “With our rental income, tree care business, pension and $200,000 in our IRAs, we’re set for the rest of our lives.” 

My Neighbors Put the Puzzle Pieces Together Early

It hit me then — retirement planning is like a giant puzzle. It doesn’t have to come from just one source, like your company 401(k).

It all comes down to prioritizing, planning and getting what you want out of life.

Let Facet Wealth’s dedicated certified financial planners guide you. Facet Wealth’s virtual full-service financial planning service can help you plan your future.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.