Still, the couple worry whether they are on track for a comfortable retirement and whether they'll have enough money for Kyle's college education in about 17 years. (Nicholas' university costs will be taken care of by his natural father, Kelly's ex-husband.)

"I just wanted to know where I stacked up against our peers, and whether Kelly and I were doing the right thing," Kevin said.

In the near future, the 'Aiea couple would like to buy vacation property in Pennsylvania, where Kevin grew up. He likes to hunt and fish and misses the change of seasons. Kelly is from Seattle.

After leaving the military, Kevin plans to study to become a teacher or guidance counselor, with tuition paid by the U.S. government. He expects to be working while in school. Just in case, they have enough money to tide them over for six months.

"Their portfolio just needs some tweaking,"' Alvarez said.

The Smyerses' investments total $106,000 in retirement accounts, a thrift savings plan (military version of a 401k), a college stash for Kyle, mutual funds and cash in money market accounts.

They have another $100,000 in untapped equity from their home.

Aside from their $250,000 mortgage, they owe $13,000 on a truck.

The couple stash $13,000 to $15,000 a year into investment retirement accounts, Kyle's college plan and savings.

Currently, about 54 percent of the couple's money is in cash, 14 percent in fixed income, or bond, mutual funds and 32 percent in growth funds (stocks).

Bonds are IOUs from the federal government, companies or municipalities such as Honolulu. Investors who buy them are paid interest while they wait for the debt to mature. Then they get their original investment back.

Stocks represent part ownership in a publicly traded company. They are more volatile than bonds — their prices rise and fall faster — and tend to be riskier. Stocks don't pay interest, but some pay cash dividends, giving shareholders a portion of company profits.

Growth stocks, which the couple own, are shares in companies whose most compelling characteristic is the pace of sales and profit gains. As such, earnings are plowed back into the company for expansion instead of being distributed to shareholders. Microsoft is considered a growth stock.

Alvarez would maintain the Smyerses' current allocation in growth funds and fixed income investments, but recommends shifting half their cash reserves into growth and income funds. He wants to raise their current return from an average annual 6 percent to at least 8 percent.

The Smyerses said they are earning about 1 percent a year on their money market account. After taxes, they might be left with around 0.7 percent.

Cash might look safe to the Smyerses, especially in a volatile stock market, but they're actually losing money because of inflation, Alvarez said. Prices are rising faster than what they're earning in the money market, he said.

Stashing money in a mutual fund generally helps alleviate volatility and decreases risk, because the fund invests in many securities. When one stock or bond falls in value, others tend to prop them up. When investors buy just one stock, their money is gone if the company fails.

If the Smyerses continue to save at their current pace but increase the return to 8.5 percent, they could retire when Kevin reaches age 59 and still maintain their current lifestyle. If they want to retire four years earlier, they have to sock away $100 a month more, Alvarez said.

Kevin and Kelly Smyers are putting $2,000 a year into a tax-sheltered Coverdell Education Savings Account. At their current pace, they'll be able to pay for Kyle's education at places such as the University of Hawai'i and University of Nevada in Las Vegas, Alvarez said.

But they should also consider opening a state 529 plan, a tax-sheltered college savings account, he said, in case they send Kyle to a private school.

While the Coverdell ESA lets parents withdraw money even for elementary and high school costs, the 529 plan does not. (Nor does it tie them to enrollment in Hawai'i colleges.) But they can put vastly more than $2,000 a year into the 529 plan and stay in control of the money. Details of 529 plans vary by state.

As for buying property in the Northeast, Alvarez said the couple have enough for a big down payment. They could pay it all in cash if they take money out of their taxable, or non-retirement, funds. Kevin believes he'll need about $75,000 for a cabin.

Finally, Alvarez recommends setting up a household budget. The Smyerses have been able to sock away money by using direct deposit, in which money is taken out of their paychecks and saved before they even see it. They pay off most of their credit card bills monthly.

Alvarez thinks they can benefit by finding out exactly where their money is going each month, so if they want save more, they know where to pull back.

How could the Smyerses save so wisely while many of their peers do not? By being disciplined and not flinching from starting early, even in small amounts.

"Start small and work up to what you feel comfortable with," Kevin said.

The Marine said he's been saving and investing seriously for 10, years and wished he had started a decade earlier, when he joined the military. He got his first taste of saving when he was 18 and the military recommended that new recruits buy savings bonds. Like a good troop, he obeyed.

The last three years of bear market haven't been kind to their portfolio, but because they're not just invested in stocks, they were somewhat protected from severe downswings. Kelly said some relatives in their retirement years lost a lot.

They don't want the same experience, so they were grateful for Alvarez's advice.

"My main concern is living comfortably," Kelly said.