Job layoffSubmitted by Financial Planning Solutions, LLC on March 1st, 2018
This past weekend, I hired a company to come out to my rental property to clean out the basement.
My mom who passed away two years ago, had lived here for over 20 years. Needless to say, a lot can accumulate over 20 years (not to mention the stuff she brought with her when she initially moved in).
To be honest, I had a few items as well. An old fence that the city trash folk wouldn't take, a bunch of miscellaneous wood and other construction materials that have accumulated over the years, and even stuff that came with the house when I bought it back in 1982.
I got to chatting with one of the workers who told me his story.
He was recently laid off from a manufacturing job, earning a pretty good hourly wage of $35 an hour, free medical, a small 401k with a company match, 4 weeks' vacation, life and disability insurance, and even child care reimbursement.
Since he had no savings, he cleaned out his 401K (He didn't know until after, that it was all taxable and subject to penalties but felt he had no choice anyway).
The disability coverage ended when he left his job and he didn't opt to keep the life insurance.
It was obvious he wasn't working with a financial planner. As Paul Harvey, the radio broadcaster used to say, "And now for the rest of the story"
This young man was a single dad of two young kids. His girlfriend had left and he had full custody. His biggest concern seemed to be childcare as the lion share of this was covered by his old employer. He had some relatives close by to pitch in but they weren't in the best of health so he didn't feel that was a long term solution.
He also told me he wasn't earning anywhere near what he was and received no company benefits.
A sad story indeed and is a reminder that one must really have a financial plan to prepare for these life challenges. It wasn't a case of laziness. This young man wants to work. He delivers newspapers early in the am before going to the clean out job.
Hopefully, you aren't in this place but if you know anyone that was recently laid off or seems to be living day to day with no real plan in place, feel free to pass my name along.
I'm here to help.
All the best.
Rick Fingerman, CFP®, CDFA®, CCFS®
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