Investing in the future: Larry and Brenda Breland's savings plan funded their retirement and put their kids through college.

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EDUCATING YOUNG MINDS FOR SOME 30 YEARS IS no small feat. But it was a love for children that inspired Larry and Brenda Breland to become schoolteachers. While educators don't always get paid their true worth, these native Mississippians managed to retire from the public school system in 2002 with $180,000 combined from their state retirement plans. The couple also owns several rental properties valued at nearly $1 million, which provide about $3,000 in monthly rental income.

The Brelands have always been good about planning for the future, so it's no surprise that they were able to leave the worlkforce in their early 50s. "We set a goal to retire early and enjoy life after retirement," says Brenda, age 58.

Each month, the couple brings home about $5,000 a month in retirement income, including funds from their other investments--namely real estate. In 1972, they purchased land in Picayune, Mississippi, for $1,000 and sold it for more than $20,000 in 2007. It's that kind of shrewd prudence that has allowed the couple to accumulate wealth over the years.

The Brelands started investing in rental properties to supplement their income. To date, they have acquired seven single-family homes and are in the process of building two duplexes. In 2008, along with their adult sons and daughter, the Brelands formed 3L Investment Group L.L.C. to acquire rental properties and business ventures and to ensure that the family's assets will be passed on to future generations.

The husband and wife team also helped put their three children, Larry II, 27; Larenda, 24; and Lorenzo, 23, through college at Jackson State University. The key to the couple's success is meticulous planning and preparation.

The Brelands--who were high school sweethearts--have been married for 36 years and have talked openly about saving and investing since they first exchanged wedding vows. "We were married for 10 years before we had our first child," says Larry, 61. "We planned it that way. For those first 10 years we went back to school to further our degrees." Larry holds a B.A. from Jackson State, his wife is a graduate of Mississippi Valley State University, and both received their master's degrees from Jackson State. During those early years, the couple focused on saving 10% of their income. "When we could save more, we did," Larry recalls. When they first began teaching, they each brought home about $ 700 a month; by the time the two retired they were each earning around $42,000 a year.

The couple saved a portion of their earnings mostly through bank certificates of deposit, varying the maturities and interest rates. Each time a CD came due--every six to 12 months--they left the earnings but reinvested the rest of the money in another CD to garner higher rates of return. Brenda points out that at the time, in the 1970s and 1980s, CDs were earning 9% or more. The Brelands held about 25% of their investments in stock mutual funds and blue-chip stock through ING and Barclays; the other 75% was in CDs, savings accounts, and U.S. Treasury bonds.

As young parents the couple earmarked money in savings accounts for their children's college education, holding CDs and U.S. Savings Bonds under each child's name. As the children got older, the couple would put 10% to 15% of monies earned from chores or part-time jobs into savings. They also practiced a kind of family 401(k) by matching their children's deposits.

Through diligent saving and investing, the couple covered the tuition costs of the first three years of Larry II's and Larenda's undergraduate studies, about $28,000 each. The couple had their children take out loans their senior year to help them establish credit. Their youngest, Lorenzo, received a full four-year athletic scholarship worth about $36,000, so the couple needed to contribute little to his college costs.

With respect to their golden years, the Brelands credit their home state with having a favorable public employee retirement system. Employees with 25 years of service are eligible to receive 2% of their salary for every year after retirement, Larry explains. After 28 years of service, the benefit compensation is around 2.3%. Basically, "you get a monthly check for the rest of your life," he says. "Our goal was to work 28 years so that we could get a lump sum when we retired."

When the couple retired seven years ago, they qualified for roughly $90,000 each, which they received as a lump sum. The two opted to leave their money invested (tax-free until they turn 70 1/2) through the state, where it earns around 3% annually, depending on interest rates.

THE BRELANDS' ADVICE

* Start early. The Brelands discussed and set their goals early on and continue to do so. A good way to boost your future retirement income is through your employer's retirement plan, whether it's a 401(k), 403(b), or some other defined benefit account. Ideally, you should contribute 10% to 15% of your annual salary, but it's OK to start small, Larry advises. "Then gradually build up, adding more money as you go along."

* Diversify. The Brelands spread their savings and investments across a variety of vehicles, including stocks, bonds, and mutual funds. For retirement savings, also look to Roth 401(k) plans, Roth IRAs, and traditional IRAs. For college funds, consider state 529 college savings plans as well as prepaid state tuition plans designed to keep up with tuition costs. For information and tools to help you choose the right plan, visit CollegeSavings.org, SavingforCollege.com, CollegeBoard.com, and FinAid.org.

* Adhere to a budget. A concern among many new investors is finding money to save and invest. Monitoring and curtailing your spending is one way. Preparing weekly, monthly, and yearly budgets is the norm for the Brelands; more importantly, they stick to them. Monitoring their household budget helped the Breland family meet their financial targets. Also, don't try to keep up with the Joneses. "A lot of times people get into financial trouble by trying to live beyond their means," says Brenda. The couple never spent more than they earned per pay period.

The 10 Wealth for Life Principles

1 I will live within my means.

2 I will maximize my income potential through education and training.

3 I wile effectively manage my budget, credit, debt, and tax obligations.

4 I will save at least 10% of my income.

5 I will use homeownership as a foundation for building wealth.

6 I will devise an investment plan for my retirement needs and children's education.

7 I will ensure that my entire family adheres to sensible money management principles.

8 I will support the creation and growth of minority-owned businesses.

9 I will guarantee my wealth is passed on to future generations through proper insurance and estate planning.

10 I will strengthen my community through philanthropy.