More Than Enough: A Military Couple's Evolution from Saving to Sharing Their Wealth
Peaked at $5 Million Net Worth and are Now Intentionally Giving It Away
Exploring the Hidden Aspects of Wealth Building
The journey of this week’s millionaire couple follows them from their early days in the Navy to their current retirement. It is an example of the power of consistent saving, thoughtful investing, and a commitment to living a life aligned with their values. Their stories are not just anecdotes of military service but also valuable lessons in building a secure financial future and embracing life beyond traditional work. As they continue to navigate their retirement with intention and generosity, their story serves as an inspiring reminder that financial independence is achievable through discipline, learning, and a focus on what truly matters.
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In their 60s:
$3,300,000 net worth - A couple (ages 64/63) are a dual-military U.S. Navy veteran pair that have been married for over 38 years. They met in college and both embarked on careers in the U.S. Navy, began their financial journey with a clear focus: saving. He served for 20 years in the submarine force, reaching the rank of lieutenant commander, while she dedicated 25 years to active duty and the Navy Reserves in meteorology and oceanography, retiring as a captain. Their accumulated net worth is 90th percentile for their age group. More than half of their net worth is in real estate (primary home and an investment property - both in Hawaii) and the remainder is in equities (taxable and Roth IRAs).
Their income started in 1982, wasn't extraordinarily high, but their commitment to saving a significant portion of their dual-military income was their superpower. They frequently saved half of their earnings. This high savings rate compensated for their initial investing mistakes, which included chasing hot mutual funds and paying high fees.
Life in the military, with its frequent deployments and demanding schedules, instilled in them a practical approach to spending. They tracked their expenses meticulously from 1982 through 2014, initially on paper and later using software like Quicken. This diligent tracking allowed them to identify and cut out wasteful expenses, aligning their spending with their values. Their best tip for spending less? Rigorously track your spending and gradually eliminate what you deem unnecessary. They also embraced do-it-yourself skills to save money on home and auto maintenance.
By the late 1990s, their consistent saving and aggressive investment strategy (eventually shifting towards low-cost equity index funds) propelled them to millionaire net worth status by age 36 in 1997. This milestone, however, was not a trigger for drastic lifestyle changes. They maintained their frugal habits, a mindset they described as "challenging & fulfilling" rather than deprivation.
He retired from active duty in 2002 at age 41, receiving an active-duty pension. His decision to retire was partly due to a lack of promotion and a sense of burnout. She transitioned to the Navy Reserve in 2001 and fully retired in 2008, starting her Reserve pension in 2022.
Despite not needing to work, he found fulfillment as an author (see book below) and speaker in the realm of military personal finance. In retirement, their financial picture continued to evolve. By 2021, their net worth stood at $4 million. Their income streams diversified to include pensions, investment earnings, and rental property income. A significant shift occurred in their mindset, moving from an "attitude of scarcity" to one of "abundance and gratitude".
A key aspect of their retirement strategy became aggressively passing along their wealth while still alive to enjoy sharing it. They began gifting substantial amounts to their daughter, son-in-law, and granddaughter. This included the significant gift of a third house in 2024, a deliberate act to help their family establish roots in Hawaii. This generosity led to a temporary decrease in their net worth, which peaked at $5 million in 2023 before dropping to around $3.3 million more recently.
Net worth Progression:
Facing the prospect of a potentially large estate and Hawaii's estate tax laws, they developed a dedicated spend-down plan until 2031. Their conservative assumptions in this plan include continued gifting, philanthropy (1% of their net worth annually), increasing personal spending (especially on travel), and delaying Social Security until age 70.
Their approach to investing remained consistent: a high allocation to passively-managed total stock market index funds with low expense ratios. They recognized that this strategy, while potentially volatile, is "easy to manage". Their reliable, inflation-adjusted pensions and eventual Social Security income provide a safety net, allowing them to tolerate the equity risk.
Take-aways
•Prioritize saving: A high savings rate can overcome many investing mistakes and accelerate your progress towards financial goals.
•Invest aggressively and simply: Opt for low-cost, passively-managed equity index funds.
•Track your spending: Understanding where your money goes is crucial for making informed financial decisions and cutting unnecessary expenses.
•Live below your means: This allows for consistent saving and investment.
•Embrace frugality: Find joy in saving and spending intentionally on what you truly value.
•Don't wait to enjoy life: Travel and spend on experiences while you are still able.
•Consider the Reserves or National Guard: For military members, this can offer a better work-life balance than pushing through for 20 years of active duty if the work becomes unfulfilling.
•Plan for wealth transfer: Discuss your plans with your family and consider gifting assets early to provide support and allow them to become comfortable managing larger sums.
What is the meaning behind Ten Wilsons?
The $100,000 bill is the highest denomination ever issued by the U.S. Federal Government. Woodrow Wilson is the president on the $100,000 bill.
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