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I don't object to helping those who need assistance while they get back on their feet, regardless of their age.
I do think though, that the older such a person is (especially if they are in their 60s and beyond) the less likely they are to be able to get back on their feet. Many middle-income-class seniors would feel very fortunate if they were able to find a part-time job (and most of those are going to be at minimum wage) that they were physically able to do.
Here's an example: A new specialty market is about to open in a nearby town and they held on-site job applications for several days recently (which I went to). There were a LOT of people there waiting to be interviewed and you know what? The majority of them looked to be at least in their mid 50s and older with a few 30-ish moms whose kids are probably in school fulltime. ALL of the jobs were part-time (between 10 and 29 hours per week, varying from week to week as needed). No benefits provided. Paying just barely above minimum wage. And this was not in an economically depressed area by any means; it and the surrounding communities are average middle to upper income for this area, with the average house price in the mid $500s and the average property taxes ranging from $10K-$20K per year. In other words neither a wealthy nor a disadvantaged area. But I bet you dollars to donuts that the majority of people who get hired for these positions are not the oldest applicants but instead the younger ones. I've seen it happen too darn many times.
Sometimes it is literally a perfect storm. Recession + bigtime medical expenses + health conditions that aren't Medicaid-disability level but nevertheless prevent someone from returning to an employment level that can sustain them without having to draw on their savings.
Also don't forget the huge chunk a divorce can take out of someone's assets. Depending on the state one lives in, that alone can make a big dent and it doesn't ALWAYS happen when the couple is only in their 40s or early 50s either.
This is why an emergency fund is important, as is medical insurance, and for that matter long term disability.
And yes, some divorcing couples spend $30k or more on legal fees but I think a bigger issue is buying a house you need two incomes to pay for and then getting a divorce.
IMHO, if you need two incomes for the house, you'd better be willing to take in a boarder/roommate in case of loss of spouse (death or divorce).
My question is, how many of that 31% did have retirement savings before the crash of 2008 gutted it? (assuming that "savings" encompasses any type of product: savings account, IRA, 401K, pension plan) How many of that 31% lost their jobs during the worst of the recession and have not been able to replace that level of income, thus having to draw on and erode their original retirement savings either mostly or completely?
What I'd like to see is what percentage of that 31% did have retirement savings AT ONE TIME but through factors other than irresponsible spending they no longer do. Versus what percentage of the 31% never bothered to address their retirement income needs at all.
It's a good point but I doubt if they were financially irresponsible spendaholics, they would tell the survey taker.
And yes, some divorcing couples spend $30k or more on legal fees but I think a bigger issue is buying a house you need two incomes to pay for and then getting a divorce.
I wasn't thinking only of the legal fees but also if a couple is in a community-property state.
A couple I know got divorced when they were in their mid-50s. The husband already owned a house in his own name before they were married. While married, they sold that house and with part of the money from the sale bought a less expensive house for cash and invested the rest. This house was put in husband's name only, investments were joint account. A few years later, wife filed for divorce. Husband thought the house was "protected" because it was bought with the proceeds from the sale of the house that he alone had previously owned prior to the marriage. Turns out that because the wife had used some of HER money to pay for certain things for the new house (insurance payments, new kitchen, landscaping, even paid the tax bill one year after he got laid off) the house became part of the divorce settlement. AND she ended up with 50% of the investments even though the stocks were originally purchased with funds acquired before the marriage. Nasty divorce ended up with a forced sale of the second house at Great Recession market value and he only got 50% of the proceeds. Ouch.
We have a gallon size Ziplock drying in the kitchen at this time after having been washed. Old habits die hard.
Welcome to my world!
Darn things won't fit in the box after washing so have them stashed in one of the cabinets. Am here to tell you woe to anyone I catch reaching for a *new* gallon sized ZipLoc bag when there are clean used one's to be had. *LOL*
Darn things won't fit in the box after washing so have them stashed in one of the cabinets. Am here to tell you woe to anyone I catch reaching for a *new* gallon sized ZipLoc bag when there are clean used one's to be had. *LOL*
One of my pet peeves is my two "poorer" sisters who will use a small ZipLoc Bag is lieu of a much less expensive sandwich bag. I use ZipLoc bags sparingly. And then there is my mom who washes paper plates and reuses them - I sometimes do this but not that often.
I wasn't thinking only of the legal fees but also if a couple is in a community-property state.
A couple I know got divorced when they were in their mid-50s. The husband already owned a house in his own name before they were married. While married, they sold that house and with part of the money from the sale bought a less expensive house for cash and invested the rest. This house was put in husband's name only, investments were joint account. A few years later, wife filed for divorce. Husband thought the house was "protected" because it was bought with the proceeds from the sale of the house that he alone had previously owned prior to the marriage. Turns out that because the wife had used some of HER money to pay for certain things for the new house (insurance payments, new kitchen, landscaping, even paid the tax bill one year after he got laid off) the house became part of the divorce settlement. AND she ended up with 50% of the investments even though the stocks were originally purchased with funds acquired before the marriage. Nasty divorce ended up with a forced sale of the second house at Great Recession market value and he only got 50% of the proceeds. Ouch.
Two things -- anyone CAN save money and invest it. That's why we hear about people who worked menial jobs like shoe shiners or newspaper vendors who die and leave millions. It really does happen.
And with an increasingly gimme pig society, where any idiot can open a gofundme account for any stupid reason, and people want want want with no idea of work (like a friend told me -- one of her coworkers who didn't last a week said -- I don't want to work, I just want a paycheck) just a gimme gimme gimme attitude...
I think a lot of us are compassioned out.
And frankly -- the ones that need compassion aren't asking for it.
We earned money and worked hard, lived below our means, and did crazy things to save even more money -- things that make people laugh, like wash ziplock bags. I don't know why that's funny, but it makes people laugh. We still wash zip lock bags.
I read books about money management, and investing, and we jumped in with both feet.
I was a part time bank teller, and my husband was a security guard, until he got laid off and couldn't find another job, and we fell into janitorial. We've never made so much damn money....but even now -- where we live, we are earning less than the local average.... and yet we have a net worth of over a million dollars... and it's not in our house.
I didn't work miracles. This isn't magic. It's taking the bull by the horns and taking control.
How much do you expect out someone earning minimum wage to save?
How much do you expect out someone earning minimum wage to save?
None or very little, but then again, how many workers really could never earn more even if they tried? Very few, I'd surmise.
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I use ZipLoc bags sparingly. And then there is my mom who washes paper plates and reuses them - I sometimes do this but not that often.
