Wealthy Americans have revealed how they’ve built a decent savings account for their retirement — and how they’re spending it.
To be a retiree in the upper 0.1 percent wealth bracket, you need to have about $5 million in the bank.
And now, a fascinating Wall Street Journal profile details six such retirees who shared tips for building a massive retirement fund on a modest salary — and how to save money even when you have plenty of money.
Pilot, $6.1M: 13 years in the US Air Force would have helped him strategize for retirement
Paul Shemwell retired in December after four decades of flying airliners and jet fighters
After a 40-year career flying commercial aircraft and 13 years in the Air Force, Paul Shemwell, 65, was poised to retire in December.
Despite the millions he had ready for the rest of his life, he had a hard time adjusting to a more casual lifestyle.
“My plan is to continue to live within or below my means, to stay invested and to leave my children behind,” he said.
Paul Shemwell retired in December after four decades of flying airliners and jet fighters.
He claims his military service pushed him to be pragmatic and cautious in retirement, owning a home in Texas that Zillow estimates at just under $724,000 with about $300,000 of mortgage left over.
The property was bought at an interest rate of 2.9 percent and Shemwell said he was in no rush to pay it back.
Shemwell continues to travel even in retirement. Four trips totaling about $12,000 are planned for the fall, while continuing to provide $9,000 a month to the government and insurance companies.
His other passions include tennis, training, skiing and diving. Shemwell, a divorced woman with two children, spends a lot of time visiting her at school and hanging out with friends.
The former pilot has been asked several times to return to work but says he doesn’t need the money, especially after paying $40,000 a year in Social Security once he reaches full retirement age.
“I like to keep things simple,” he added.
He claims his military service pushed him to be pragmatic and cautious in retirement, owning a home in Texas that Zillow estimates at just under $724,000 with about $300,000 of mortgage left over
Vet and Nurse, $6.1M: More money than you can spend in a lifetime
Bob Frey, 80, and his wife Pat, 75, have managed to save $6.1 million despite years of money woes and his decision to borrow $150,000 to open his veterinary practice.
After graduating from West Point, Bob also spent 26 years as a reserve officer, paying retirement contributions to the maximum in his 30s, receiving $60,000 a year in military pension and $14,000 in disability benefits for serving while serving in Vietnam lost his hearing.
Bob and Pat collectively collect $56,000 in Social Security and have retirement accounts totaling $6.1 million.
“We have more money than we can spend in our lives,” Bob said.
The couple moved into a $1.2 million home in Bozeman, Montana 30 years ago to be with nature. Both continued to work, Pat as a nurse while Bob changed careers and became a financial planner.
The couple, who have five children together, don’t spend much. Bob points out that he hasn’t bought a new jacket in two decades.
They prefer to live and be out in nature in jeans and sneakers rather than wearing formal attire.
In addition to traveling expenses of $35,000 a year, Bob often goes on hunting trips with friends, while Pat often takes a friend on hikes in Europe.
What will they spend some of that money on? Around $1.5 million to educate her nine grandchildren and $40,000 a year to charity. Her plan is to donate a million dollars when they both die.
The Freys have no debt and don’t worry about retirement plans, although they invest 70 percent in stocks.
The couple has no debt and doesn’t tinker much with their investments, 70 percent of which are in stocks.
Bob Frey, 80, and his wife Pat, 75, saved $6.1 million despite years of money troubles and eventually borrowed $150,000 to open his veterinary practice
The couple moved into a $1.2 million home in Bozeman, Montana 30 years ago to be with nature. Both continued to work, Pat as a nurse while Bob changed careers and became a financial planner
Doctor, $4.1 million: Still works part-time and makes $300,000 a year
dr Henry Hwu’s tactics are slightly different from Shemwell’s, and he’s still making a six-figure salary every year despite retiring in 2018 and being worth millions of dollars.
He owns two properties totaling $2.7 million, has $1 million in his pension fund, and earns an additional $300,000 a year working part-time.
Hwu, 72, admits he “loves” to travel away from his home in Irvine, Calif., and now plans trips around his part-time job, which is well below the 80 hours a week he used to put in. His travel budget is around $100,000 per year.
His wife, with whom he emigrated to America in 1979, died shortly after his retirement and said he “didn’t like the feeling of not knowing what to do with himself”.
The widower has taken up popular senior sports like golf and pickleball, while trying to rekindle his love of the guitar and hiking.
He has traveled through many countries in Europe – a visit to Switzerland gave him enough chocolate to break his suitcase – but he still sees his mother, 98, in Taiwan.
Hwu, who lives in an estimated $2.3 million estate in California, according to Zillow, missed work and began accepting assignments at his former practice.
dr Henry Hwu’s tactics are slightly different from Shemwell’s, and he’s still making a six-figure salary every year despite having millions of dollars in savings when he retired in 2016
Hwu, who lives in an estimated $2.3 million estate in California, according to Zillow, missed work and began accepting assignments at his former practice
Software engineer and dental assistant, $4.1 million: ‘buy what they knew’ with stocks
Retired software engineer Jay Myer and his wife Anita, a couple who have spent their lives preparing for this moment, have benefited for decades from maximizing contributions to his 401(k) grant.
Jay Myer, 61, prepared for retirement at age 25 by reading books that got him into trading in the stock market and a big hit at Home Depot at an original price of $3 each stock, following the “buy what you know” advice.
“I was young to read about retirement, but it made a lot of sense to me. “When you lower your capital costs, you keep a bigger chunk of the profit,” Myer said.
Both he and his 60-year-old wife, Anita, had tight budgets that allowed them to drive used cars.
This allowed Jay to retire early, but the couple continued to worry about money, especially as the pandemic hit.
Retired software engineer Jay Myer and his wife Anita, a couple who have spent their lives preparing for this moment, have benefited for decades from maximizing contributions to his 401(k) grant
The Myers live in a $925,000 home in North Carolina after selling their first home in Atlanta
Worried at first, he tagged every purchase he and his ex-wife made as a dental assistant before realizing how stupid it was to have saved so much and buy a $925,000 home in North Carolina , after selling his first home in Atlanta.
The couple spends about $20,000 a year on travel and $130,000 a year, of which $5,000 is on property taxes.
At $700 a month for groceries and $1,000 a month for health insurance, they’re still reasonably on-budget.
While they enjoy cooking and gardening, Jay Myer claims he’s learning to love doing nothing at all.
“Now that I have more time, I’ve learned to deal with boredom, slow down and sometimes accept that reading a book or riding a bike is enough,” he said.