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Some people like you just have unfortunate events occur and there is not much you can do to prevent it. However, if you put all your savings in your company twice, that was not good management.
The 2nd time around my savings were not in the company, but I lost them anyway when the market collapsed.
But, as the article stated, older employees are often laid off and when that happens they can not get jobs and if they do manage to get employment, it is usually at a much lower salary.
They do what I did.
In 2004, I was laid off from a job making a NICE salary. Was there for 11 years, but they needed to cut costs, so they laid me off, a senior engineer, and kept 2 junior engineers. (The company also almost went under because of that decision, the junior engineers could not do the job I was doing, and they lost 2/3rds of their business because of it).
For 18 months, after that, I worked 2-3-4 part time jobs a week, keeping things afloat. Mortgage, car payments, 2 children, medical, dental, food, etc etc etc. NO government dole, no welfare, no medicaid, nothing.
I found a full time job in 2005, and moved to a nice full time job in 2006, making less than HALF what I used to make. BUT, I knew I had the skill, and would move up, and I did. I am STILL making only about 2/3rds what I used to make, but I am saving in a 401K, building a pension, and living within my means.
The 2nd time around my savings were not in the company, but I lost them anyway when the market collapsed.
Another sad fact is that Americans got thrown into 401Ks with very little education.
"Here's your brochure. We picked out some funds. Go forth and invest for your future."
Now you own a 401K. You are playing on Wall Street in the stock market.
Did they follow market trends ?
Did they go over their portfolio and rebalance ?
No they didn't. Many treated their 401Ks like they were CDs. Invest the money in the fund that the company brochures recommended and forget about it. No rebalancing, no diversification.
Others that really didn't know put all their money in the company stock in their 401K.
I saw this over the years at my own company with college degreed engineers having no clue about the stock market or investing. They lost big time in 2008.
When Lehman (or was it Bear) took the fall I got out and move 100% of my money to stable.
Told a few others at work but only one other guy did it. And to this day he still thanks me.
We didn't lose any money.
I worked on Wall Street for 10 years and had my broker's license. While it was just a job at the time, it ended up being the best education I ever got on investing.
Correct in intent, but the reality is that many have nothing other than Social Security income. Nothing.
And that is whose fault? certainly not mine. Why should I be expected to shoulder their burden? As for SS not being enough. Stand in line at a convenience store waiting for the retired folks ordering their daily number lottery tickets. I struggle to feel sorry for them as they carp about not having enough to pay for their presciptions. Then they order 20 or 30 dollars worth of tickets.
They spend more in 1 day than I do in a year or more.
The bottom line is that some of us worked hard, sacrificed and saved even when quote" We couldn't afford to save."
Too many looked at SS as a main stay rather than what it is and was always meant to be, a suppliment.
All their eggs in one basket? How many are smokers? How that money they wasted on a disgusting habit if saved would have helped.
How many did their anual vacations? I took my first vacation at age 41.
How many hired someone to cut their grass instead of doing it themselves?
I make 80g a year and eat out about once a month.
There are many options that many could have chosen. The bad luck hard story is true enough in some cases but lets all be honest here. Not all or even most.
The 2nd time around my savings were not in the company, but I lost them anyway when the market collapsed.
Not to be mean, but when the bottom started falling out (Bear or Lehman collapse..forgot which one collapsed first), didn't that raise your "financial" flag to move your investment money to safety ?
I mean, how actively were you managing your money ?
No I am suggesting self education. I am suggesting taking responsibility for oneself rather than depending on Uncle sam to do it. Uncle sam has one interest and that is spending money. I bought gold when it was low. I have physical custody of the gold. The feds can and will raid safe deposite boxes. They have done it in the past. Then they will pay you a fraction of its value as they did in the past.
Hey I wont tell you how to invest, save or plan your future. Only you know what works for you. What I am saying is if your entire plan is depending upon SS you are in for a rough ride.
Perhaps because renting would be more expensive?
That happens to many people as they age.
They become stuck in their houses or choose to live there because the alternative is more expensive.
It's paid for except for taxes.
No need for the condescending eyeroll.
Try thinking it through.
Rent cannot cost more than the sale value of 10 acres. When money is needed, one must sell assets.
I live in a rural area that hasn't had a non-foreclosure sale in over 3 years. As I said before, my area has been hit very very hard by the real estate market. It not only dosen't have a "peak" value it has no value and since I do have it payed off, I at least have a roof over my head. I was in the real estate industry as a title examiner when the collapse came and I have a lawyer friend who does foreclosure work so I have a pretty solid knowledge of land values and sales in my area right now. On the local news our county and several others have been called the "dead zone" for real estate and won't recover for another 8-10 years. At one time it was valued at over $250,000. now I'd be lucky to get $20,000 for it if that. So I will continue to live here and try to survive until the market comes back, I at least have shelter. NO ONE and I mean NO ONE is buying, unless it's a foreclosure deal for pennies on the dollar, lots in SD's once sold for $200,000 sell for $5-8,000 on the courthouse steps (foreclosure sale). Those who own property are stuck, unless they just walk away and I don't have the $ to walk away or move...so I'll just stay here as much as I hate it, having a roof over my head and a crappy job is better than homelessness and no job.
$20k could buy you some time relocating to an area where better jobs are available. Why not view it as a means to a better return on investment via a change in income possibilities?
In 2004, I was laid off from a job making a NICE salary. Was there for 11 years, but they needed to cut costs, so they laid me off, a senior engineer, and kept 2 junior engineers. (The company also almost went under because of that decision, the junior engineers could not do the job I was doing, and they lost 2/3rds of their business because of it).
For 18 months, after that, I worked 2-3-4 part time jobs a week, keeping things afloat. Mortgage, car payments, 2 children, medical, dental, food, etc etc etc. NO government dole, no welfare, no medicaid, nothing.
I found a full time job in 2005, and moved to a nice full time job in 2006, making less than HALF what I used to make. BUT, I knew I had the skill, and would move up, and I did. I am STILL making only about 2/3rds what I used to make, but I am saving in a 401K, building a pension, and living within my means.
The highlighted phrase is the key.
Many people don't understand it, seriously.
I make more than I ever expected to make.
That said, I really don't need or want anything. I do have a disability that's expensive to treat and it's all out of pocket, but I can afford it.
I travel for entertainment.
I live in Europe so it's easy for me and I have a VW campervan so it's relatively inexpensive except for the winter when I have to stay in accommodations with heat.
My lifestyle hasn't changed much since I was part of the working poor maintaining a house with two jobs.
Many people don't understand this.
Growing up poor did help.
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How many are smokers? How that money they wasted on a disgusting habit if saved would have helped.
