The friend I mentioned earlier, now in his 6th year of paying storage unit fees, lost his job last week. He loved that job- he answered phone calls from Medicare beneficiaries with questions. He always told me about the people he encountered and how he walked slowly through things with the clueless, de-escalated with the angry and persisted in solving complicated issues. He had mentioned that time between calls was increasing so maybe they decided they needed fewer people, but I honestly have no idea why he was targeted.
His 401(k) has always been his piggy bank and his emergency fund. A few years before I met him, he lost a job, divorced and liquidated his 401(k) to spend a year in London studying Spanish legal translation. (He was pretty fluent in Spanish already.) He actually did use that training for awhile but stopped after he couldn't meet continuing education requirements.
So- started new job maybe 10 years ago with zero saved. He borrowed from the 401(k) to buy a car, for emergency vet bills, for various expenses when he moved, etc. I waited a bit till he had time to process the job loss and yesterday asked if he knew he had to pay back the 401(k) loans within 60 days or they'd be considered a taxable withdrawal. Yeah, he knows. Not doing anything because he doesn't have the money. That's a can to kick down the road till April, 2027, I guess.
He turns 75 in April and is collecting SS at least. He's looking for work and has a good network in his city but isn't suited for anything that would keep him on his feet all day.
Really sad to watch but I learned from my first husband not to make anyone's financial problems MY problems. It does not end well.
