Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Another one of those articles
Old 10-10-2011, 07:45 AM   #1
Thinks s/he gets paid by the post
Helen's Avatar
 
Join Date: Oct 2004
Location: Portland
Posts: 1,355
Another one of those articles

About people who had high incomes but didn't save a cent, then hit a rough patch.

For formerly wealthy, poverty comes as a shock | cleveland.com

One guy lost his job at age 56 and was hitting the food pantry within two months. Another was 63 and had been laid off for two years and was broke. Both had been high income earners.

The article doesn't mention any credit card debt. I'll bet Mr. Baschoff had a lot of it.
__________________

__________________
Helen is online now   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-10-2011, 08:49 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
TromboneAl's Avatar
 
Join Date: Jun 2006
Posts: 11,201
Some of those people are now on wall street (occupying it).
__________________

__________________
Al
TromboneAl is offline   Reply With Quote
Old 10-10-2011, 08:59 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
TromboneAl's Avatar
 
Join Date: Jun 2006
Posts: 11,201
Interestingly, the article doesn't mention explicitly that if they hadn't spent every thing they made, they wouldn't have fallen so hard. Also they still live in an expensive area and all the kids have cell phones.
__________________
Al
TromboneAl is offline   Reply With Quote
Old 10-10-2011, 09:14 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
donheff's Avatar
 
Join Date: Feb 2006
Location: Washington, DC
Posts: 8,649
I don't know, the banker doesn't sound like a jerk. He hasn't been able to get a well paying job in his field but he takes work where he can get it, including $11/hr jobs. The kids have cell phones because the in-laws pay for them. I would pop for that if I had teen age grand-kids and my son had been laid off and working low wage jobs for three years. I would probably even pop for the rent assistance the in-laws are providing. I certainly don't begrudge the guy trying to keep the kids in the top notch schools they are lucky enough to be able to stay in (with tuition waivers).

So what do we LBYMers feel? If this guy put loads of dough into 401K's like we did (admittedly not addressed in the article), should he be draining them now and paying penalties? Or should he be taking food stamps and whatever hand outs he can get in addition to his subsistence wages and trying to hold on to his retirement accounts? I don't know but thank God I don't have to find out for myself.
__________________
Every man is, or hopes to be, an Idler. -- Samuel Johnson
donheff is offline   Reply With Quote
Old 10-10-2011, 09:22 AM   #5
Moderator Emeritus
Bestwifeever's Avatar
 
Join Date: Sep 2007
Posts: 16,375
I feel sorry for both families. Somehow I would expect a banker to have more money in the bank than a customer support professional. I wonder if the banker even has retirement money--the article doesn't even mention that and usually these articles talk about how the unemployed go through their retirement funds first. I hope so, because he's pretty much retired involuntarily, it sounds like.
__________________
“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
Bestwifeever is offline   Reply With Quote
Old 10-10-2011, 09:25 AM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,387
Quote:
Originally Posted by donheff View Post
Or should he be taking food stamps and whatever hand outs he can get in addition to his subsistence wages and trying to hold on to his retirement accounts? I don't know but thank God I don't have to find out for myself.
There is no merciful god on this board, only the god of hard and unforgiving justice.

This family has undergone the Mother's cancer and some complications, the father's losing a good job shortly after uprooting the kids and moving west, and also alluded to is marriage stresses. The man has a good tight extended family, something else not very popular around here.

I say they are doing exactly what they should be doing.

Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Old 10-10-2011, 09:42 AM   #7
Recycles dryer sheets
 
Join Date: Dec 2009
Location: Cleveland
Posts: 343
Laying a guy off 8 months after he moved for the job is pretty low.
__________________
skyvue is offline   Reply With Quote
Old 10-10-2011, 09:49 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Amethyst's Avatar
 
Join Date: Dec 2008
Posts: 5,900
We can point to his described lifestyle and say, "He shouldn't have lived so high on the hog - should have lived in a cheaper neighborhood," but even if he did have lots of savings - 3 years with no job can draw those down pretty fast.

I think he should keep the retirement accounts (if he has them) till the very last. Take unemployment insurance, in-law assistance (which he's very lucky to have - Mr. and Mrs. Amethyst's parents are all deceased, and could not have afforded to assist when they were alive) - and go to food pantries and thrift stores. Food stamps (EBS card) are really for folks with no other financial assets, but who am I to judge. As people often say on this board, "There is no such thing as retirement insurance."

Amethyst


Quote:
Originally Posted by donheff View Post
I don't know, the banker doesn't sound like a jerk. He hasn't been able to get a well paying job in his field but he takes work where he can get it, including $11/hr jobs. The kids have cell phones because the in-laws pay for them. I would pop for that if I had teen age grand-kids and my son had been laid off and working low wage jobs for three years. I would probably even pop for the rent assistance the in-laws are providing. I certainly don't begrudge the guy trying to keep the kids in the top notch schools they are lucky enough to be able to stay in (with tuition waivers).

So what do we LBYMers feel? If this guy put loads of dough into 401K's like we did (admittedly not addressed in the article), should he be draining them now and paying penalties? Or should he be taking food stamps and whatever hand outs he can get in addition to his subsistence wages and trying to hold on to his retirement accounts? I don't know but thank God I don't have to find out for myself.
__________________
If you understood everything I say, you'd be me ~ Miles Davis
'There is only one success – to be able to spend your life in your own way.’ Christopher Morley.
Amethyst is offline   Reply With Quote
Old 10-10-2011, 09:50 AM   #9
Thinks s/he gets paid by the post
Helen's Avatar
 
Join Date: Oct 2004
Location: Portland
Posts: 1,355
Quote:
Originally Posted by haha View Post
There is no merciful god on this board, only the god of hard and unforgiving justice.
I think they could have had a much softer landing had they been putting money away instead of living such a high consumer lifestyle. $40k in private schools, expensive vacations, nice cars, nice home, etc., but no savings by age 56. How many more years was he planning on working?
__________________
Helen is online now   Reply With Quote
Old 10-10-2011, 09:53 AM   #10
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,149
Quote:
Originally Posted by Helen View Post
How many more years was he planning on working?
With four kids still in school, probably a bunch more.
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 10-10-2011, 09:59 AM   #11
Thinks s/he gets paid by the post
Helen's Avatar
 
Join Date: Oct 2004
Location: Portland
Posts: 1,355
Quote:
Originally Posted by REWahoo View Post
With four kids still in school, probably a bunch more.
Especially at $40k per year.
__________________
Helen is online now   Reply With Quote
Old 10-10-2011, 10:04 AM   #12
Thinks s/he gets paid by the post
Rustward's Avatar
 
Join Date: Apr 2006
Posts: 1,573
Trying not to be too judgmental, and speaking in strictly financial terms, were they ever really wealthy?
__________________
Rustward is offline   Reply With Quote
Old 10-10-2011, 10:41 AM   #13
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,492
People are critical of the media for shallowness, yet quick to criticize those portrayed poorly by that same media. That family may have transgressed by living up to their means and not saving enough, but we will not know from this article.

The lack of jobs and the household debt overhang have become critical issues for our country.
__________________
MichaelB is offline   Reply With Quote
Old 10-10-2011, 11:35 AM   #14
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,949
I cannot understand why any sentient person, in this economy, would not keep at least a couple of years' expenses in the emergency fund. With unemployment compensation and LBYM, this could last 3-4 years.

This is sad, but what's worse is the stupidity IMO.

Quote:
In October 2008, less than two months after Baschoff lost his job, his wife walked into an Illinois Department of Human Services office to apply for food assistance and Medicaid.
Oh, please.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is offline   Reply With Quote
Old 10-10-2011, 11:48 AM   #15
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,291
More than likely he got a good severence package, being an SVP...

Also, didn't the bank pay his rent And it says they paid 8 months after he was let go...

All sounds like a person who changed his lifestyle to fit his income.... I know that we have a few where I work today... I am amazed when someone needs an expense reimbursement check 'right away' because they do not have any money saved... and their retirement account is very low. If they were to be let go, they would look exactly like the guy in this article....
__________________
Texas Proud is online now   Reply With Quote
Old 10-10-2011, 12:00 PM   #16
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Brat's Avatar
 
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 5,914
Almost all in Cleveland metro who want their kids to have a decent education put them in private schools.
__________________
Duck bjorn.
Brat is offline   Reply With Quote
Old 10-10-2011, 12:16 PM   #17
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,492
Quote:
Originally Posted by Brat View Post
Almost all in Cleveland metro who want their kids to have a decent education put them in private schools.
A middle class family does not need private schools in the US. The working parents may need to commute but there are school systems just about everywhere that are adequate.
__________________
MichaelB is offline   Reply With Quote
Old 10-10-2011, 12:40 PM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
HFWR's Avatar
 
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 12,964
Quote:
Originally Posted by skyvue View Post
Laying a guy off 8 months after he moved for the job is pretty low.
Nothing personal; just business...
__________________
Have Funds, Will Retire

...not doing anything of true substance...
HFWR is offline   Reply With Quote
Old 10-10-2011, 01:26 PM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 9,965
Quote:
Originally Posted by donheff View Post
So what do we LBYMers feel? If this guy put loads of dough into 401K's like we did (admittedly not addressed in the article), should he be draining them now and paying penalties? Or should he be taking food stamps and whatever hand outs he can get in addition to his subsistence wages and trying to hold on to his retirement accounts
This LBYM'er feels he should take every penny of that sweet, sweet gov't money he can get and avoid, as much as possible, depleting his retirement accounts. Unemployment insurance, food stamps, rent subsidies, go for it!

It's a shame this family lost a home to foreclosure. The evil bank should have written off the mortgage as a bad debt and delivered title to the family free and clear. Hopefully the loan was non-recourse and that future federal legislation wipes the forclosure off the family's credit history.
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Old 10-10-2011, 02:31 PM   #20
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 9,906
Quote:
Originally Posted by W2R View Post
I cannot understand why any sentient person, in this economy, would not keep at least a couple of years' expenses in the emergency fund. With unemployment compensation and LBYM, this could last 3-4 years...........
By this definition most Americans, in fact most humans, aren't sentient.
__________________

__________________
Yes, I have achieved work / life balance.
travelover is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Euro debt crisis : any good books or in-depth articles? walkinwood FIRE and Money 8 09-30-2011 01:36 AM

 

 
All times are GMT -6. The time now is 01:19 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.