George and Virginia Filart have seen their share of financial ups and downs since they emigrated from the Philippines more than 30 years ago with just a few hundred dollars in their pockets.
Back then, George landed a job as a design engineer and Virginia found work as a nurse. But George's career has had some rough spots -- he was laid off four times during construction downturns, and each time, the couple exhausted their savings, then rebuilt their financial safety net.
Now, with George's retirement perhaps five years away, the Filarts wonder whether they can ride out another rough market and reap the rewards of a lifetime habit of saving -- aided by their knack for living below their means.
"We know we can go over the hurdles of hard times," George said. "But I'm nervous because of the stock market."
The huge Wall Street plunge this year has battered their retirement accounts, which they now realize weren't arranged well in the first place.
"When it comes to stocks, I'm just throwing darts," George admitted.
Through the rough patches, the Chino Hills couple held on to real estate as a long-term investment, and they've done quite well with those holdings. George, 62, and Virginia, 57, own two homes for themselves and rent out two former residences.
"They've been a bit lucky they haven't gone off the deep end with their stock investments. It's really the real estate that's saved them," said Dirk Huybrechts, a certified financial planner with HFM Advisors in Brentwood.
During this downturn, the couple have more than just experience to rely on. The Filarts now earn nearly $228,000 in combined annual salaries and $27,000 in rental income. They also have amassed nearly $1.8 million worth of real estate and $536,000 in savings.
Their debts -- car loans, credit card balances and two mortgages -- amount to $685,000.
"We came from families that know how to value money. Even when we didn't have much money, we wanted to make what we had grow," George said.
Huybrechts noted: "It's really the old story that if you start young and save consistently through thick and thin you can survive the downturns."
The couple are used to buckling down during hard times. When George endured a year of unemployment, he became an expert coupon clipper and hand-delivered his resume to random companies in nearby business parks.
After another layoff, he took a job in another state for two years while Virginia doubled her shifts at the hospital to help keep the family afloat.
