Terry Yamashita

Terry Yamashita

Kent

Then: At age 58, after 31 years with Northwest Airlines, the team supervisor's once-secure retirement was thrown into question by the carrier's Chapter 11 bankruptcy filing.

His goal: To retire at 62.

What he's done since: Part of a pay cut NWA employees took has been restored. He's sticking with his job, as he hasn't found anything better-paying that would make up for the benefits he'd lose by leaving (the planners suggested he look, rather than wait for a feared layoff).

The bad news: The company has frozen pensions, so Yamashita isn't accumulating any additional benefits, a change he estimates will rob him of about $400 a month in retirement. To make up the difference, Yamashita continues socking money away in his 401(k) and IRAs.

Another setback: Yamashita's plan to cut costs, including for a car, by moving to cheaper housing at walkable Kent Station has been delayed as the project is behind schedule and now plans to open in 2008.

Best tip he got: "Just being sure I don't get myself into debt," says Yamashita. "I watch the extra spending."

-- Carol Tice