Reply #66: I can guess because I have been there... [View All]

[stevenleser]

You have a good job for 4-6 years, you think you are OK, you upscale your car a little, maybe some other aspects of your life, then the economy changes and the next thing you know your boss says "sorry" and hands you a pink slip.

OK, no big deal you think because you have a decent severance (8-10 months pay) and just a few weeks ago, you were beating away the recruiters with a stick. Only now when you call one, you can literally hear the head-shaking on the phone as he says, sorry, we have no jobs and hundreds of people like you who want them. OK, you still aren't worried, but when the next 7 recruiters say the same thing, and that represents the balance of the headhunters in your area, you feel your first flash of fear. Still, you have a long severance so you think, its gonna be ok.

8-10 months pass by with you calling all of the recruiters every other day and now you are really worried. To keep afloat, you cash in your 401K which buys you another 12-16 months or so. Fact is, even if this additional lifeline gets you to your next job, your retirement is screwed. Unfortunately for me (in 2003) and probably the guy in the beamer, this too runs out 12-16 months later with no job for you in sight. You take whatever minimum wage job you can find and supplement it with any way you can scrounge up additional income. Meanwhile, now all of your bills cannot be paid ontime and that includes your car payment, car insurance, rent/mortgage, electricity, cell phone, etc. If you are really unlucky, you have made a mistake on how much tax you should have paid on your 401K and now you have to come up with that additional money with no realy short term possibility of doing it.

My guess is, the guy you gave the $20 is in a situation like that. As I said, I know, because I have been there. It has taken me from then (2003) to the last year or so to get back into a decent place. That is a long time in the economic wilderness.