Sure.
It’s easy to see that situation unfold.
It’s also easy to prevent it.
It’s called a Savings Account.

There’s a reason why folks are told by every financial advisor on the planet (and plain common sense) to have at least 6 months worth of income available in a savings account (or the like). By “45-50ish” years of age, most every “engineers and white collar folks” (especially) should have easily been able to accomplish this.

Also - I think Hatt’s post #4 pretty much covers it all.

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1980 300D - Veggie Burner !

When I think of how precariously close I was it's frightening. Our company has been around for 116 years now, but that doesn't guarantee a thing except that we've been around for a long time. If the doors closed or had I had to take an extended time off due for health/injury issues I'd have been seriously F-ed.

I think I'm still generally sympathetic because I know how easy it is to get yourself in a financial hole, even when you know it's not smart. OTOH I just have a tough time with people just "throwing in the towel" (overly simplistic I know) or expecting the gubmint to fix their personal situation. Those who get in the rut due to job loss have my sympathy, though.

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1980 300TD-China Blue/Blue MBTex-2nd Owner, 107K (Alt Blau) OBK #15
'06 Chevy Tahoe Z71 (for the wife & 4 kids, current mule) '03 Honda Odyssey (son #1's ride, reluctantly) '99 GMC Suburban (255K+ miles, semi-retired mule) 21' SeaRay Seville (summer escape pod)

Perhaps we have something here for the “Things you don’t see anymore thread.”

Jobs/Careers that last to retirement age. Or people staying with them that long.

Anyone working for the same company for 30+ years like many did in the 40’s and 50’s? A few, sure. But not like folks could/did in the past.

I think the “Gold Watch and a Pension” days are fading fast.

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1980 300D - Veggie Burner !

Borrowing a lot of money is like gambling that the future will always be bright.

I try to save and invest as much as I can. I have no real desire to retire to a life of idleness, but who's to say that I won't get sick, injured, or otherwise become unABLE to work? If everything works out and there are no catastropic events in my life, great! If there are, I hope that I will have prepared well enough to weather them without being a burden to anybody else.

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" We have nothing to fear but the main stream media itself . . . ."- Adapted from Franklin D Roosevelt for the 21st century

OBK #55

1998 Lincoln Continental - Sold
Max 1984 300TD 285,000 miles - Sold
The Dee8gonator 1987 560SEC 196,000 miles - Sold
Orgasmatron - 2006 CLS500 90,000 miles
2002 C320 Wagon 122,000 miles
2016 AMG GTS 12,000 miles

As I stated the sitution in the article is stupid and far from typical, either the author is misinformed or was attempting to portray how stupid some people are.

He had his 6 months saved...and then some at the end of six months it was getting dangerously low and certainly not enough to cover the negetive equity in his modest home-25% loss in value plus fee's to sell it. I didn't mention that he also lost his health insurance and he had to pay $1200 a month for coverage.

It's easy to make calls from the arm chair, I'm seeing it from the sideline and its not pretty. Michigan has been in a one state recession for years with very little good news in the forecast.

Nobody can be prepared for everything, but a lot of people have gotten into trouble needlessly.

I read somewhere that many of the bankruptcies these days are due to staggering medical bills and no insurance. That's a real problem and not the fault of most of the people going through that.

Saving is good. Borrowing for depreciating assets and for things you don't need is bad.

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" We have nothing to fear but the main stream media itself . . . ."- Adapted from Franklin D Roosevelt for the 21st century

OBK #55

1998 Lincoln Continental - Sold
Max 1984 300TD 285,000 miles - Sold
The Dee8gonator 1987 560SEC 196,000 miles - Sold
Orgasmatron - 2006 CLS500 90,000 miles
2002 C320 Wagon 122,000 miles
2016 AMG GTS 12,000 miles

I think that pretty much covers my reply.

Thank you, Dee8go.

I’ll just add that this has nothing to do with arm chairs or sidelines.
Face it. Most folks don’t sit down and discuss/determine savings requirements by starting with the phrase “What if…”

I'm just saying, perhaps they should. And that most can, but don't.

"...not pretty"? No. It's not.

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1980 300D - Veggie Burner !

I'm saying they did, actually they did exactly as you described. No what if's about it.

“Nobody can be prepared for everything...” as Dee8go stated.

I guess at this point. They could look back on it all and ask: “How could we have been better prepared for this?” Once they get that figured out. It sure would be nice if the whole story could be shared. Something many folks could learn from.

By "What if..." I was referring to figuring the worst case scenario of a job loss. I guess that's not something most folks are capable of seeing.
Why I recommend advisors. People who know about the unforeseen issues and their potential costs.

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1980 300D - Veggie Burner !

With 30yr mortgages and health insurance tied to employment, I don't see what a person can do to be completely prepared for a job loss. A person could pay off their house ASAP but health insurance will still be a killer. A person in his 40's or 50's could easily be unemployed for more than 6 months. I know engineers in that age range who have simply given up on ever finding employment in their field again.

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1977 300d 70k--sold 08
1985 300TD 185k+
1984 307d 126k--sold 8/03
1985 409d 65k--sold 06
1984 300SD 315k--daughter's car
1979 300SD 122k--sold 2/11
1999 Fuso FG Expedition Camper
1993 GMC Sierra 6.5 TD 4x4
1982 Bluebird Wanderlodge CAT 3208--Sold 2/13

“Completely prepared” perhaps not.

I agree with you, and Howitzer. I see what you are saying.

But there certainly are plenty of things that most people can do (or not do) to help cushion the blow of a job loss that they simply are not doing.

Living a life style they couldn't afford to begin with is where most of it all starts.

(But, we’ve certainly been over that one before in other threads, and I have no intention of rehashing it all here.)

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1980 300D - Veggie Burner !

I agree. One obvious thing is not having credit card debt. If everyone followed that rule, it would undermine our economy as we know it. Perhaps that would be a good thing.

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1977 300d 70k--sold 08
1985 300TD 185k+
1984 307d 126k--sold 8/03
1985 409d 65k--sold 06
1984 300SD 315k--daughter's car
1979 300SD 122k--sold 2/11
1999 Fuso FG Expedition Camper
1993 GMC Sierra 6.5 TD 4x4
1982 Bluebird Wanderlodge CAT 3208--Sold 2/13

X2 100%

…or two new cars with 60 month notes every 36 months.

This list could go on forever….

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1980 300D - Veggie Burner !

I have just read Dave Ramsey's book to financial peace and am well on my way to financial security. Three to six months of expenses in savings and no credit card debt is the only way to go. This all can be avoided by living within your means. I have been living beyond my means since I left home and it's time to stop that. Its too bad these people and thousands of others didnt either until it was too late.

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1984 300SD Orient Red/ Palomino
1989 560SEC
2016 Mazda 6 6 speed manual
1995 Ford F-150 reg cab 4.9 5speed manual

Dave Ramsey BK's his way out of his debt, he is now selling his bankruptcy alternitive. While I agree with almost all of his advice, he's a bit of a hypocrite.