Losing job-financial advice

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Boglemama
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Losing job-financial advice

Post by Boglemama »

Hubby was told that he will lose his job. He will have a job until next year. We do not like the area where we live currently, and there would not be a job for him within driving distance anyway.

As to money. I intend to save every penny for a beefed up emergency fund, get our house ready to sell next year, & have already pared down our monthly expenses. Any additional advice?
Last edited by Boglemama on Fri Mar 06, 2015 10:45 pm, edited 1 time in total.
Njwolf
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Re: Losing job-financial advice

Post by Njwolf »

Tough situation. I would try to sell the house now without a broker and rent a condo or apartment if that makes financial sense. If you can't sell the house this year on your own, use a broker next year as you planned to do.
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Boglemama
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Re: Losing job-financial advice

Post by Boglemama »

Njwolf wrote:Tough situation. I would try to sell the house now without a broker and rent a condo or apartment if that makes financial sense. If you can't sell the house this year on your own, use a broker next year as you planned to do.
I had actually considered selling now and then renting, but it would be too much of a stress on the family when we don't need any additional stress, we only pay $400 per month in interest over what our mortgage payment goes to principal (rent would definitely be more), and I believe that our house should sell quickly as it's in a very desirable area of town and comps have sold quickly.
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Boglemama
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Re: Losing job-financial advice

Post by Boglemama »

The idea of not using a broker is very appealing. I am considering offering 2%, as opposed to 3, to each buyer and seller's agents. Our house should sell for 3 to 4 times what most houses sell for in our area, therefore the commission would still be more than other homes.
GenXer
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Re: Losing job-financial advice

Post by GenXer »

No real advice, but wanted to say sorry. Are you interested in moving to a particular part of the country, or will everything depend on the job search?
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prudent
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Re: Losing job-financial advice

Post by prudent »

If relocation is possible, keep track of all job search expenses in case you reach the threshold (2% of AGI) where you can deduct some of them (and possibly bundle in some other expenses that count towards the 2% of AGI number.
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Boglemama
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Re: Losing job-financial advice

Post by Boglemama »

GenXer wrote:No real advice, but wanted to say sorry. Are you interested in moving to a particular part of the country, or will everything depend on the job search?
Thanks. It's really hard right now. We have a 3 and 6 year old. SO much to do. Thankfully we do have some time to get things together.

I would really like to move somewhere warm. We have to see what the job search turns up.
Last edited by Boglemama on Fri Mar 06, 2015 10:46 pm, edited 1 time in total.
GenXer
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Re: Losing job-financial advice

Post by GenXer »

What I wanted to add, but edited out at the last minute, is that it's important to keep an eye on the bigger picture: a happy and supportive spouse/family. In my experience, that ends up being so, so important in quality and satisfaction w/life. Your willingness to be strong--and supportive--is huge. #@%$ happens to everyone; it's how you deal with it that matters. It will probably be a tough year in some ways, but, on the other hand, you both may realize the depth and strength of your love. (This sounds corny, I realize, but I know from personal experience.) Wishing you the best.
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Clever_Username
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Re: Losing job-financial advice

Post by Clever_Username »

Boglemama wrote:Any additional advice?
Depending on the school where the tenure isn't being granted, consider applying to next-tier schools. It isn't uncommon for someone who is denied tenure at, say, a U. Cal school to apply to Cal State schools if there is still the desire to stay within academia.
"What was true then is true now. Have a plan. Stick to it." -- XXXX, _Layer Cake_ | | I survived my first downturn and all I got was this signature line.
ubermax
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Re: Losing job-financial advice

Post by ubermax »

Boglemama , don't know what support systems you have where you are, i.e. family, close friends, etc. and also whether you have a job ?? sounds like you're dealing with pre-school and school - something to consider both short and long term if not already true is getting a job and arranging for daycare coverage .

Good Luck !!!
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Boglemama
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Re: Losing job-financial advice

Post by Boglemama »

GenXer wrote:What I wanted to add, but edited out at the last minute, is that it's important to keep an eye on the bigger picture: a happy and supportive spouse/family. In my experience, that ends up being so, so important in quality and satisfaction w/life. Your willingness to be strong--and supportive--is huge. #@%$ happens to everyone; it's how you deal with it that matters. It will probably be a tough year in some ways, but, on the other hand, you both may realize the depth and strength of your love. (This sounds corny, I realize, but I know from personal experience.) Wishing you the best.
It is corny, but it's so important to keep in mind. The big picture. Thanks for the reminder.
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patriciamgr2
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Re: Losing job-financial advice

Post by patriciamgr2 »

Sorry that your family is suffering this temporary setback.

My suggestion would be to front load dental, vision and medical (e.g. regular checkups, prescriptions) expenses while husband is still employed. If you have FSA, have a strategy for spending that down (to reduce future expenses).

Also, spend time and effort (but not large amounts of money) making sure your home is ready for sale. Decluttering and completing all of the little maintenance tasks (we all have them!) will help. Because failure to sell your home as quickly as you envision is a major risk to your planning, I would strongly suggest you reality test your views on its marketability. If I read your post correctly, you have an expensive house for the area--sometimes those aren't the fastest ones to sell. While I never advocate wasting any professional's time, IMO, asking for a market analysis from a respected realtor that you would consider listing with should you decide to use a realtor is not inappropriate. You also need to be sure that families buy homes in your area at the time you plan to sell. (I'm not a mom, so I'm reluctant to say the following, but...) While it's natural you want to protect the little ones from any unnecessary changes, I'm routinely amazed at how well children I know react to moves, etc. If the parents have a positive attitude, and the little people's immediate areas (bedroom furniture, toys, etc.) are constant, many children take this sort of thing in stride. Avoiding being stuck with an unsold home in the old location (which might require renting in the new location & then moving to a home once you sell) is an important goal for your family. Of course, we know nothing about your local real estate situation; you're the expert on that.

I'm very conservative so I always believe in having a back-up plan. If potential employers haven't come to their senses & recognized DH's value by the end of this contract--what will you and your husband do to get alternate jobs (& arrange affordable, high quality childcare). Do you have enough liquid savings in your emergency funds to handle a transition and to handle any necessary big ticket items (e.g. car maintenance). IMO, having a back-up doesn't indicate a lack of confidence in achieving your desired future; it just allows you (and especially Dear Husband) to move forward with confidence in pursuing that future.

Best Wishes for you and your family.
Professor Emeritus
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Re: Losing job-financial advice

Post by Professor Emeritus »

Boglemama wrote:Hubby was told that he did not get tenure. He will have a job until next May.
May I assume you mean May of 2015?

It is tough since you don't like the area. But the reality is you have to go into "move now" mode. Hubby is now or should be aggressively job hunting. In my experience academics who move down in University tier find jobs right away, they often don't stay for the notice year. (we grabbed someone from Princeton the day after he got the No Tenure letter).

One hard emotional reality. Did the denial come as a big surprise? I've chaired P&T committees. Department chairs always knew who the weak candidates were. The enthusiasm of the department is probably the biggest predictor of Market value. We had a case of a person who was turned down at the Eng School for Full prof and was immediately hired by a peer institution as a Department Chair.

In other words was the rejection related to local politics, priorities or personalities, or is it a fair statement of stature in the field? Only Hubby can answer the question but it is critical to future employment.
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tractorguy
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Re: Losing job-financial advice

Post by tractorguy »

+1 on use any medical benefits from current job before they go away
+1 on get your house ready for sale NOW. I would be highly concerned if it is more expensive than others in the area. That will limit potential buyers. If you wait for the last minute, you may have to sell under market in order to avoid a mortgage payment you can't afford. There is no guarantee that the slight improvement in homesales will continue.

I would have your husband start looking for a new job NOW with the idea that you will move as soon as you get a good offer. Don't wait for the last minute. It can take several months to find a good professional job. I'd plan on giving the current employer 2 weeks notice (unless he has a contract that requires more). They have already told your husband that he is not wanted. He has no reason to give them any more loyalty than the minimum that is professionally acceptable.
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lululu
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Re: Losing job-financial advice

Post by lululu »

I'm sorry that this has happened. My understanding is that it is far more difficult to get tenure nowadays than in the past.

Like a poster above, I'm asking, May of 2015? So you have some breathing room. I would very aggressively job search, being open to variations in occupation, and be ready to dump the current institution quickly. Does your husband have connections via friends to other universities? Companies?

If need be, can you work?

Another vote for getting rid of the house asap, so you don't have that to deal with during or after moving and you have more money in the bank. Why is it so much more expensive than the average house there?
Calm Man
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Re: Losing job-financial advice

Post by Calm Man »

Boglemama, what about your job? Please don't tell me you don't have one because your husband does. Pretty please or you will depress me to no end. Because I always plead with women not to stop working because their husbands can lose their job, die or leave them.
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BL
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Re: Losing job-financial advice

Post by BL »

I agree with the suggestions.

Get the house ready now and be ready to list it. It is no fun to stay behind because of needing to sell the house. It would be much better to move to an apartment rather than not be ready to take a job right now. Be positive and creative and your kids may consider it an adventure.

Your husband should immediately start the job search. Networking is very important right now, so contact everyone he knows. Be prepared to accept immediately.
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