Devin and LaShonda Foy are a picture-perfect example of the easy way to save for retirement: start early and keep at it. With annual contributions of $20,000 toward both of their retirement funds, they've amassed almost half a million dollars. The Foys, both 42, began contributing to their retirement funds when they entered the workforce as single professionals. Twenty years later, LaShonda, who works as a director for Assurant Specialty Property, a division of Assurant Inc., and Devin, a real estate agent for Better Homes and Gardens Real Estate Metro Brokers, through their combined salaries of $220,000, have nearly $470,000 in their retirement funds. Their portfolio is a mix of long- and short-term investments that also include domestic and international stocks and mutual funds along with real estate properties. The Foys re-evaluate their portfolios once a quarter, eyeing each investment's performance. The Foys understand that how you save is just as important as how much you save. Every time they get raises at work, the extra money is deposited into their 401(k) accounts. "Retirement is wealth for life. You want your children to be better than you and at the same time you don't want to be a burden on your children when they're older, which is sometimes the way it is,†Devin explains. "We participate in seminars, watch investment strategies on TV together, and we have mentors in our life who give us good advice. We talk about the advice and then we make an informed decision. We also have a very good financial adviser and we utilize that advice as well,†LaShonda explains, adding that diligence is very important. "Our retirement savings combined with company 401(k) matching benefits, pension plans, and investment income position us to retire comfortably,†says LaShonda.The couple currently employs a moderate risk strategy, as they would like to have a seven-figure savings when they exit the workforce in their early 60s. (Continued on next page) Where their daughters are concerned, the couple started small, putting aside $50 a month in the account of their oldest daughter, Paris, 10, an exceptional student. As Paris got older and was no longer in daycare–which cost $1,600 a month for both girls–they took the extra money and increased the amount that went into her savings. They used the same strategy when they started contributing to 6-year-old Sydney's college fund in 2005. Currently, there's about $25,000 saved in Paris's account, and $12,000 in Sydney's. Now, each month $300 is directly deposited into each of the girls' education savings account that's part of the State of Georgia-sponsored Path2College 529 Plan. The contributions are based on projected college expenses, which LaShonda estimates to be about $50,000 per year for each girl, or $400,000 total. The girls' grandparents also make biannual contributions to their college funds on birthdays and during the Christmas holiday. "Based on their academic achievements I think they'll be offered some type of scholarship. Out of that $400,000, I estimate that we will pay only about 25% of that. My sister, brother, and I all went to school on scholarships,†she says, pointing to the lottery-funded Georgia HOPE Scholarship Program, which offers scholarships to students with high GPAs, as a resource that could ease the expense of paying for college. The Foys, whose respect for education motivated them to save toward their children's college savings, hope to reach their desired goal of $75,000 to $100,000 saved for each girl's fund by their respective 16th birthdays. For the Foys, retirement and college planning simply came down to prioritizing. Like many Americans, the largest bill the Foys have is their mortgage. They currently pay a nearly $2,500-monthly house note for the six bedroom, 5.5 bathroom home in an upper-middle class Atlanta suburb, Suwanee, that they've lived in for nearly seven years. And now that interest rates are lower, they're considering refinancing their home a second time so they can pay a smaller mortgage amount. (Continued on next page) While the Foys' home may be roomy, the couple does "conserve on other things.†Unlike the reputation metro Atlantans have garnered for being extravagant, the Foys have decided to keep things simple. They are avid couponers who've opted to focus less on flashy clothing, expensive cars, and copious material possessions. Remarkably, both of their cars are paid off and they haven't had a car note in four years. Devin is such a big proponent of buying cars with cash that he hasn't had a car note in the 16 years they've known each other, LaShonda shares. To do this effectively, the Foys start saving ahead of time and use any extra income from income tax returns, commissions, or bonuses to contribute to significant purchases such as cars, which they keep on average eight to 10 years. The couple also earns income from three rental investment properties they purchased over the last decade. LaShonda says that the amount of income each property generates varies depending on the market. During a good period, they generate about $10,000 annually from the properties compared to $3,000 annually or breaking even during a slower period. Their life insurance policies are another safeguard the Foys invest in. The policies cover up to $1.5 million for each of them, ensuring that if one of them passes unexpectedly, the other can continue to maintain their standard of living, educate their children, and position them for financial stability and success. "We used a life insurance calculator online that tells you how much money you or your spouse would need in case one of them passes. So we used that and bumped it up by 10%,†says LaShonda. HOW THEY DID IT n Save for retirement first. While the Foys are saving for their retirement and daughters' education fund simultaneously, they both say paying for the former is the priority. If there's money left over, only then should it be put away for college because there are a lot of ways to pay for it otherwise, Devin advises. "Your retirement is crucial. We take care of ourselves, we're both in excellent health, there's a possibility that we can live a very long time,†he says, adding they don't want to be a burden on their children. LaShonda adds that it would be hard to assist their daughters if they themselves had financial instability. (Continued on next page) - Live below your means. The Foys are definitely advocates of living with as little debt as possible. Aside from their monthly house note, the couple opts for making cash payments upfront. "I think it's important not to take on too much debt, be it credit cards, department store cards, or car payments,†Devin says. An exorbitant amount of debt adds not just financial pressure but an emotional strain and unnecessary stress on all household members, including children. "It's all about your priorities,†Devin continues. "You have to look at the bigger picture.†- Talk about expenses with your spouse. If you want to save money toward your retirement, child's education, or any other goal, you have to make sure you and your spouse are on the same page. And that requires open and honest communication. Have an ongoing conversation about finances, says LaShonda, adding that they manage everything jointly. In the Foys' household, Devin says, "Nobody's spending money behind anyone's back. There are no secrets. We have one checking account.†The payoff is that they are able to meet their financial goals with very little debt. - Take advantage of free outings. The Foys have become pretty savvy at cutting expenses where they can. That's why they generally opt to eat out as a family on Mondays and Tuesdays versus the weekend because many restaurants offer free dining options for children on those days. Although their daughters participate in activities that cost money such as soccer and piano lessons, they do enjoy outings to the park, library, or nature walks. "I think a lot of people don't take advantage of free activities and events. We enjoy a lot of free outings and activities as a family to conserve our spending,†LaShonda says. Grabbing free opportunities generally requires spending a little time researching and planning ahead of time, something LaShonda says some people may not take the time to do.  Â