| Millionaires in the Making: The Wisneskis They say it takes a village to raise a child and Nate and Nicki Wisneski are a good example of how true this old adage is - especially when it comes to planning for a sound financial future. Married since 2005, the Wisneskis and their 6-month-old daughter Ashlyn live in Oneida Wis., home to the Oneida Indian Nation. Nate, 27, is a member of the tribe and works for its newspaper. Nicki, 27, is a claims specialist at Ameriprise Auto & Home Insurance. Together they earn about $90,000 a year and - except for a $200,000 mortgage - have little in the way of liabilities. But with a baby and hopes of retiring at age 55, the Wisneskis will have to stay disciplined in order to meet their goals. ÒMy family has been very blessed to be in the financial position we are in now and we decided very early to stay ahead of the game and think long term in regards to money,Ó Nate says. Indeed, the Wisneskis have shown considerable dedication to cutting costs whenever possible. The couple, who started dating in the 7th grade, kept a log of all their spending before they were married. ÒIt was important for me that we go into the relationship with a sound financial plan,Ó Nicki says. Neither has any student loan debt. NateÕs education was financed by the Oneida Tribe and Nicki received scholarships. And the couple saves on childcare by having NickiÕs mother, who works from home, take care of Ashyln during the day. Credit card debt is another pitfall the Wisneskis have managed to steer clear of. ÒWe hate debt and avoid it any costs,Ó Nate says. Though they do use cards, they keep spending under control and pay the bills off at the end of every month. They own two cars - a 1998 Saturn and a 2005 Chrysler - which they paid cash for. But when it comes to filling up the gas tank, an expense that many American families are currently struggling with, the Wisneskis have a unique advantage. As an Oneida tribal member, Nate is able to purchase tax exempt gas within reservation boundaries. ÒThis helps a lot and saves us about 25 cents a gallon,Ó he says. When it comes to down time, the Wisneskis like to keep the traveling to a minimum and prefer to stay home. ÒWe have been planning for a family and never really put a premium on going out,Ó Nate says. They spend very little on entertainment, about $85 a month. While they have cut back on trips to the movies, they try to make up for it by having friends and relatives over to visit. ÒWe have a sound support system,Ó Nicki says. ÒFamily is number one for us.Ó At present, the couple has $44,000 in retirement savings. Both contribute double-digit percentages to their 401(k) accounts and both receive 3% matching funds from their employers. Additionally, they put $200 a month in a Roth IRA account. They have about $16,500 in a traditional bank savings account that earns 0.3%. In case of emergency, they keep about $4,000 in Ameriprise Cash Reserve Certificates. The Wisneskis recently set up a 529 savings account for AshlynÕs college costs but they do not plan on funding her education entirely. While they have saved a modest amount for her college tuition, they also feel it is important that Ashlyn contribute to her own education costs. ÒWe want to have as much money as possible to retire comfortably and as soon as possible. We want to maintain our lifestyles through retirement and not be restricted by money and bills,Ó Nate says. Our expertÕs take. At their current rate of savings, the Wisneskis should be able to build a nest egg of nearly $3 million by age 65 Ð enough to retire, assuming they require 70% of their existing income in retirement, according to Jim Hyre, a certified financial planner at Raymond James Financial Services. But to retire at age 55, Hyre estimates the couple would need $3.2 million. To get there, the couple would need to save an additional $1,070 per month. If they shoot for a more modest retirement target of 62, another $500 would do the trick, says Hyre, and bring them up to $3.1 million.
They have a sufficient emergency fund, Hyre said. But he recommends that they consider moving their $16,500 they have sitting in a bank account to an FDIC- insured money market account to earn greater interest.
The Wisneskis have some employer provided life insurance: $250,000 for Nicki, up to $100,000 for Nate and $5,000 for Ashlyn. But Hyre thinks they need more, ÒPeople generally need five times their earnings plus the total amount of their household debt plus enough to cover college tuition for their children,Ó he said. In the WisneskisÕ case, total coverage in the range of $640,000 is a more appropriate. Hyre also emphasized the importance of saving for AshlynÕs education. ÒMost parents get serious about saving for college costs once their child is entering high school. This is way too late,Ó he said. By Ben Rooney, CNNMoney.com staff writer
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