Road to Millions: The Favors
From Dave Ramsey.com
Don and Sandy Favors (top right) are building a wonderful legacy for their family with the guidance of their investing professional.A couple of years ago, Don and Sandy Favors were in the same boat as many Americans. They'd had their income cut due to the recession, and they were doing all they could to keep the bills paid. Don worried that they would never save enough money to be able to retire.
The Favors finally got mad at their debt, and today they're debt-free and saving for retirement. But now that they're almost 50, do they have time to build a nest egg that will give them the retirement they want?
Not Where We Thought We'd Be
In 2009, the Favors were $43,000 in debt. Making their truck, boat and credit card payments wasn't a big problem until Sandy, a teacher, and Don, an auto technician, were both forced to take pay cuts, reducing their $100,000 income by $10,000.The turning point came when Don and Sandy's son, Jason, returned from Afghanistan to his Army base in Anchorage, Alaska. Don made the trip to Alaska to welcome Jason home, but they had to pay for it with their credit card.
"At our age, we should have had the money in savings to pay for that trip without having to put it on the credit card," Sandy said. "So I just got mad at the debt. Dave says you have to get mad at it, or it will never go away."
Don and Sandy signed up to take Financial Peace University (FPU) in the fall of 2010 and were immediately gazelle intense. They shopped differently, used money received as gifts to pay off debt, skipped vacations, and didn't buy anything they didn't need.
One year after their FPU class began, the Favors were debt-free!
Building for the Future
Don and Sandy are both 49 years old. They want to move from their current home in Lowell, Indiana, and buy a lake home in Minnesota when they retire at age 65. "We have vacationed in Minnesota for almost 20 years and love it there," Sandy said. "It doesn't hurt that our grandson lives there too."A few months before the Favors paid off their last debt, they visited Steve Brady, Dave's investing Endorsed Local Provider for their area. They'd already been investing in their work retirement plans, but they knew they'd need to do more to reach their retirement goals.
Steve coached Don and Sandy on paying off their remaining debt and building their emergency fund. He helped them reallocate the investments in their 401(k)s and showed them how to invest in Roth IRAs. They are now investing $400 a month in their 401(k)s and $350 a month in their Roth IRA.
Their Road to Millions
"The Favors are within three years of paying off their home and have decided to double down on their mortgage to get it done," Steve explained. "Then, they will begin investing an additional $1,300 a month toward retirement."Based on their mutual funds' strong performance record, Steve estimates that Don and Sandy will have more than $1.4 million when they retire in 16 years. "It is possible to retire with dignity even when starting late, if you get as serious as the Favors have."
"With no debt in retirement, it will be easy to live on our retirement savings," Sandy agreed. "We feel confident that Steve has helped us build a plan that will get us there."
Get Great Advice and Start on Your Road to Millions Today
It's never too late to start investing for your future. An investing ELP like Steve will show you how to make the most of your investments and help you make a plan to reach your retirement goals. Contact your ELP today!Inspirational Quotes@Inspire_Us from Twitter:
Don't take tomorrow to bed with you. -Norman Peale
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