Relative laid off - need advice

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babyvinny
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Relative laid off - need advice

Post by babyvinny »

Hi, asking for a relative! 59 year old, worked for 19 years as technician with same company, have limited skill set and limited English proficiency. The company is closing and laying off everyone. He will try to look for job, but future is unknown.

Assets
. Current 401K: $110k
. Cash: $35k

Current: spending ($500-700/month). Rent + utilities $1000

Plan:
. Plan to take SSI at 62, probably getting $1200
. Looking into applying for MediCal (Cali sponsored insurance) to cover for healthcare
. Rent + utilities - May get help from other family members. If not, will have to take 401K early distribution at 59 and half.
. Spending: $500, take out from cash saving. Should last till he turns 62?

Does that sound like a good plan? Any suggestions are welcome. Also, the current 401K is not good. I’m thinking to help roll it over to an IRA. I like Vanguard, and would like recommendations on a fund that is safe and easy to access in case of early distribution. Any advantage to convert to Roth IRA?

Thank you.
Last edited by babyvinny on Mon Feb 17, 2020 8:35 pm, edited 1 time in total.
toblerone
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Re: Forced early retirement with minimal asset - please help with planning

Post by toblerone »

babyvinny wrote: Sat Feb 15, 2020 3:26 am If not, will have to take 401K early distribution at 59 and half.
401k (IRA) withdraw at age 59.5 is not an early distribution, although it is the minimum age to avoid penalties (with exceptions).

So you are saying:
Monthly spend = $1700/mo
Before 62, withdraw $1700/mo from $110k IRA
After 62, withdraw $500/mo from IRA ($1200 coming from SS)

Ignoring gains, just 30 months of $1700/mo (to age 62) will draw the IRA down to 59k. After that, in 10 years @ $500/mo the IRA will be zero.
This person needs to keep working.
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simplesimon
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Re: Forced early retirement with minimal asset - please help with planning

Post by simplesimon »

Is there any way to reduce his spending? Does his spend already include all the benefits he can get from the government? (Food stamps, low income housing, etc)

Can he find a room to rent for less?
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Watty
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Re: Forced early retirement with minimal asset - please help with planning

Post by Watty »

babyvinny wrote: Sat Feb 15, 2020 3:26 am Does that sound like a good plan? Any suggestions are welcome. Also, the current 401K is not good. I’m thinking to help roll it over to an IRA. I like Vanguard, and would like recommendations on a fund that is safe and easy to access in case of early distribution. Any advantage to convert to Roth IRA?
He needs to get a job, any job, even if it is at something like a fast food restaurant.

In most areas the job market is still very strong so he will likely be able to find something better than that. Right now his full time job is finding his next job so he should be working 40+ hours a week doing his job hunting.

It is great that he does not have any debt and has over $100K but at 59 he cannot retire so do not refer to it as early retirement, he is unemployed.

He should apply for any unemployment insurance ASAP and with his limited English he may need some help in figuring out how to do that.

He will be mainly relying on Social Security so he really needs to delay starting that for as long as possible to get a larger Social Security check so he may be working until his late 60s if he is physically able to. The amount of Social Security you get is based on your 35 highest years of inflation adjusted earnings. If he does not have 35 year of good work history paying into Social Security then working longer will also increase his Social Security.

Moving the money to an IRA at Vanguard is a good idea but he may want to wait until he turns 59.5 years old if he is not that old already. The reason is that the age limit for withdrawals without penalty from a 401k is usually 55 but from and IRA it is 59.5. It is possible to have good low costs investments at other places too so he may want to check to see if there is some other mutual fund company that might be able to handle his native language better than Vanguard.

He can look at doing Roth conversion in December when his 2020 numbers will be better known but unless he can do some in the 0% federal tax bracket he should not do them. The reason is that he will likely not need to pay any taxes when he eventually does retire for good. If he does any Roth conversions then that may count as income which could mean that he would not qualify for MediCal or an affordable healthcare subsidy so be careful about that.
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Nate79
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Re: Forced early retirement with minimal asset - please help with planning

Post by Nate79 »

Agree with the others that there is no other option except to keep working.
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JoeRetire
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Re: Forced early retirement with minimal asset - please help with planning

Post by JoeRetire »

babyvinny wrote: Sat Feb 15, 2020 3:26 am Hi, asking for a relative! 59 year old, worked for 19 years as technician with same company, have limited skill set and limited English proficiency. The company is closing and laying off everyone. He will try to look for job, but future is unknown.

Assets
. Current 401K: $110k
. Cash: $35k

Current: spending ($500-700/month). Rent + utilities $1000

Plan:
. Plan to take SSI at 62, probably getting $1200
. Looking into applying for MediCal (Cali sponsored insurance) to cover for healthcare
. Rent + utilities - May get help from other family members. If not, will have to take 401K early distribution at 59 and half.
. Spending: $500, take out from cash saving. Should last till he turns 62?

Does that sound like a good plan?
Sounds like a terrible plan to me.

Despite your title, your relative was laid off, not forced into early retirement. The correct plan should be to find a new job, not play around with his minimal assets and settle for a subsistence living.
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Independent George
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Re: Forced early retirement with minimal asset - please help with planning

Post by Independent George »

Given those numbers, the best thing he can do is keep working and defer social security until 70. Even if he spends at the same rate (which is not guaranteed; many retirees start spending more due to the time on their hands), he's still starting from a deficit of $300-$500 per month before we even factor in medical expenses, or increases in rent & utilities in California. Even a modest market downturn would cripple his finances.

The bare minimum he needs to do is work until 65 (and preferably 70). If he had previously been planning on help from family, moving in with a relative to reduce rent may also be a necessity.
aristotelian
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Re: Forced early retirement with minimal asset - please help with planning

Post by aristotelian »

+1, he is going to run out of money. He needs to continue working, even if it is a low paying job that just covers expenses.

Might be a good candidate for an annuity once he retires.
HomeStretch
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Re: Forced early retirement with minimal asset - please help with planning

Post by HomeStretch »

He should apply for unemployment benefits, if eligible, as soon as possible while looking for another job.
slick_dealer_05
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Re: Forced early retirement with minimal asset - please help with planning

Post by slick_dealer_05 »

Where is he originally from? Move to a different country with lower cost of living in retirement?
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Sandtrap
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Re: Forced early retirement with minimal asset - please help with planning

Post by Sandtrap »

Another job is a must.
If not full time, then part time unti he can find full time work.

There is no reasonable stratgy here for early retirement, and even minimally with a standard retirement.

If nothing is done, there might be the eventual need for public assistance, subsidy, housing.

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Topic Author
babyvinny
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Re: Forced early retirement with minimal asset - please help with planning

Post by babyvinny »

toblerone wrote: Sat Feb 15, 2020 3:46 am
babyvinny wrote: Sat Feb 15, 2020 3:26 am If not, will have to take 401K early distribution at 59 and half.
401k (IRA) withdraw at age 59.5 is not an early distribution, although it is the minimum age to avoid penalties (with exceptions).

So you are saying:
Monthly spend = $1700/mo
Before 62, withdraw $1700/mo from $110k IRA
After 62, withdraw $500/mo from IRA ($1200 coming from SS)

Ignoring gains, just 30 months of $1700/mo (to age 62) will draw the IRA down to 59k. After that, in 10 years @ $500/mo the IRA will be zero.
This person needs to keep working.
To clarify:
. Monthly spending: $1500-$1700. Will need to cut down to $1500 or less.
. Before 62, withdraw $500/mo from cash saving. If he can’t find a job, I may be able to pay him up to $1000/month to help out with the house, but it’s not a guarantee. He may refuse to accept the offer. Best thing I’d not to touch IRA.
. After 62, get SS, and start withdraw from IRA as needed.

The ultimate goal is for him to find another job, and keep working until he can’t. But from personal experience, it will be very difficult at this age and with all limitations. So I’m just planning for the worst case scenario.
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Watty
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Re: Forced early retirement with minimal asset - please help with planning

Post by Watty »

babyvinny wrote: Sat Feb 15, 2020 3:48 pm . Before 62, withdraw $500/mo from cash saving. If he can’t find a job, I may be able to pay him up to $1000/month to help out with the house, but it’s not a guarantee. He may refuse to accept the offer. Best thing I’d not to touch IRA.
. After 62, get SS, and start withdraw from IRA as needed.
I not sure about the logic of giving someone $1,000 a month when they have $135K in the bank.

Using his IRA to support himself after he is 62 is in effect buying an inflation adjusted annuity that will last him the rest of his life.

If he needs $1,500 a month from his savings then if he spend down his savings five years, 60 months, would require $90K. He would have around $45K left then and he would be 64. I did not try to crunch the numbers his Social Security at 64 might be getting close to his target budget of $1,500 a month.

If you are going to help him financially then it might make sense to structure any aid to help him delay starting social security until later.

Even if he cannot find some sort of job, which is unlikely, he could still find some work doing things like mowing lawns, handyman, running errands, driving people to doctors appointments, etc if there is a large community of people that speak his language in your area. Elderly people are often looking for people to help like this.

You seem to be of the mindset that he will not get a job and that he will be starting Social Security at 62. That might not be helping him very much is that is rubbing off on him.
bltn
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Re: Forced early retirement with minimal asset - please help with planning

Post by bltn »

If he is able bodied and wants to work, he will be able to find a job. Apply for unemployment benefits .

If you help him realize that even if he finds a job that he doesn't t particularly like, not working will result in a life that he will like much less . He should try to not take his Social Sec. until his late 60 s.
ClaycordJCA
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Re: Forced early retirement with minimal asset - please help with planning

Post by ClaycordJCA »

If the company is closing, you may not have a choice about whether or not to roll the 401k account balance into an IRA. Since it is closing, I think it is almost certain that the employer will terminate the plan to avoid continuing administrative costs. I would have your relative set up an IRA with Vanguard, Fidelity or Schwab and initiate a roll over ASAP.
fuddbogle
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Re: Forced early retirement with minimal asset - please help with planning

Post by fuddbogle »

wrote: The ultimate goal is for him to find another job, and keep working until he can’t. But from personal experience, it will be very difficult at this age and with all limitations. So I’m just planning for the worst case scenario.
Have you been out and about and seen some of the people working? My dad is 75 and works full time at Walmart just to keep busy. You should hear his stories. If this guy can show up and breath, he will make it somewhere.
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Cubicle
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Re: Forced early retirement with minimal asset - please help with planning

Post by Cubicle »

Even a part time job will help immensely. Relative needs to continue working.
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Topic Author
babyvinny
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Re: Forced early retirement with minimal asset - please help with planning

Post by babyvinny »

Watty wrote: Sat Feb 15, 2020 6:54 pm
babyvinny wrote: Sat Feb 15, 2020 3:48 pm . Before 62, withdraw $500/mo from cash saving. If he can’t find a job, I may be able to pay him up to $1000/month to help out with the house, but it’s not a guarantee. He may refuse to accept the offer. Best thing I’d not to touch IRA.
. After 62, get SS, and start withdraw from IRA as needed.
I not sure about the logic of giving someone $1,000 a month when they have $135K in the bank.

Using his IRA to support himself after he is 62 is in effect buying an inflation adjusted annuity that will last him the rest of his life.

If he needs $1,500 a month from his savings then if he spend down his savings five years, 60 months, would require $90K. He would have around $45K left then and he would be 64. I did not try to crunch the numbers his Social Security at 64 might be getting close to his target budget of $1,500 a month.

If you are going to help him financially then it might make sense to structure any aid to help him delay starting social security until later.

Even if he cannot find some sort of job, which is unlikely, he could still find some work doing things like mowing lawns, handyman, running errands, driving people to doctors appointments, etc if there is a large community of people that speak his language in your area. Elderly people are often looking for people to help like this.

You seem to be of the mindset that he will not get a job and that he will be starting Social Security at 62. That might not be helping him very much is that is rubbing off on him.
Oh no, I’m not giving him money for doing nothing. Instead of hiring others for house work, I can help him by letting him do them instead, like watching my kids, take them to school, running errands, gardening etc. I don’t know if he wants to do any of that, but it’s just an option if nothing else works. If he thinks the job I’m offering is below him, then he will be on his own.

The same thing happened to my in-law a few years ago. He got laid off at around same age, couldn’t find any job and went into early retirement. They only had little 401K money, and made stupid decision to withdraw early and spent it all on unnecessary things. For 5+ years, we had to give them allowance, which had delayed our savings, yet they were never appreciate.I know we were enabling them to be that way, but we came from a culture where the young are expected to take care of the elders, there would be guilt trip and shaming coming from everyone in the family if you say no, or even ask why they need help. We learned from that mistake, so I’m trying to avoid the same issue here for this relative.

I’m not good with the numbers, and not sure how long he can stretch his saving out, so it’s very helpful that you broke down the numbers. I talked to him today, and he’s looking for jobs, so we are hoping for a positive outcome. He will try not to withdraw his 401K till 62 or older. He did say he wants to retire at 62 though, because he feels burnt out. I’m not saying it’s justified, but I think he has some depression (his job has been unstable for the last 2-3 years). Unless he finds joy in a new job, he will retire as soon as he can live on his IRA and SS.
basspond
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Re: Forced early retirement with minimal asset - please help with planning

Post by basspond »

His savings to expense ratio is too high to retire now. Look at SS number because their projections assume he will be working to full retirement age. He needs to work to at least full retirement age then reevaluate. Rolling over the 401k is a good idea but be aware of expenses of new IRA.
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legio XX
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Re: Forced early retirement with minimal asset - please help with planning

Post by legio XX »

babyvinny wrote: Sun Feb 16, 2020 1:36 am . . . He did say he wants to retire at 62 though, because he feels burnt out. I’m not saying it’s justified, but I think he has some depression (his job has been unstable for the last 2-3 years). Unless he finds joy in a new job, he will retire as soon as he can live on his IRA and SS.
As one who has been there and done that, I agree 100% with those who say your relative must find another job, even an "entry-Ievel" job. When I was 59, my retirement savings, spread out over an IRA, TIAA and 401-k were a big 64K. I had just lost the part-time job that gave me medical benefits. Getting another job was the obvious move, but a middle-aged humanities PhD also has a limited skill set. Past efforts at "learning something that you get get a job with" left me skeptical about that route. Depressed? Check. So - the short version - over time I expanded my network, worked on scholarly articles, learned new skills (teaching online), remained active in professional organizations - a lot of effort with no immediate tangible return. Can't say I prospered, but managed to scrape by, and it adds up. I just reached full-time status - teaching enough classes to qualify for benefits - in mid-70s. Retire? The numbers still don't add up. The hustle is now to keep the job, and it is a hustle.

Unless his health is very poor, your relative is not old. I would advise you to help him to 1) get a reference from his former employer, immediately. He will want proof that he has been a reliable and valued employee for all that time. If he delays,it might be impossible to track them down later. Having the reference will show initiative and that he is serious about getting a new job. 2) Apply for unemployment benefits. 3) Put together a resume. An entry-level applicant who can present a basic resume, including employment before coming to the US, will be a step up on those who can't. 4) Start or restart English Language Learning. Even if he won't become fluent, it may help if he can give basic information - describe the job he did - in English. Just the fact that he is in ELL classes could gain points with an employer. 5) Is there any organization within your community that can help him learn the basics of job-hunting in the US? 6) Does he have basic computer skills such as applying for benefits or getting his resume and references to employers online? You could help with that or, better, get him into a class where he can learn to do it himself - and maybe work on ELL at the same time. Learning some new skills could also help with the depression.

Good luck!
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Re: Forced early retirement with minimal asset - please help with planning

Post by Herekittykitty »

COMMENTS:

First: Good for your relative for maintaining stable employment for 19 years with a company and only facing job loss due to the company shutting down. Good for him for having the job skills to be valuable to the company for those years. Good for him for having the 401k and cash savings. And for not being a big spender. And for paying taxes that result in his qualifying for Social Security retirement benefits which he can collect at age 62 if he needs to collect then.

Next: He is deserving of compassion for being laid off (or about to be laid off) after 19 years with the same company at an age that can be challenging to find work and with a financial situation that is challenging at best if he stops working now. Many/most people in his situation are scared and demoralized even with good English and good understanding of how the various systems work regarding layoffs (benefits, rights, and so on) and benefits including any severance (unlikely but possible), job counseling for employees getting laid off, unemployment benefits, health insurance, and so on. He could easily be feeling demoralized and overwhelmed.

NOW FOR SOME ADVICE, A SUMMARY OF HIS SITUATION, AND MORE ADVICE:

Retitle the thread to something like "Relative laid off - need advice" or "Relative facing layoff - need advice." He is not retired. He should not think or talk that way and neither should anyone else. Retirement means he is going to stop working. He is too young for that especially given his financial situation. His situation should be described as "Laid off and looking for work."

As to the original question asked: An assumption was that the relative is going to stop working and "retire" due to a lay off (or impending lay off) of all employees at his company, which is shutting down. And that the relative cannot fully support himself without working to bring in an income and that the solution is for family members to support him. I suggest the assumptions that he has to stop working at all anywhere due to being laid off and the assumption that therefore the solution to getting laid off is that he needs family to financially support him are understandable but incorrect.

He does need family support though - emotional (empathy and encouragement), likely administrative (applying for unemployment - he might need help with this) and getting signed up for COBRA or other insurance, and with networking and generating ideas.

SUMMARY (Make corrections and I will edit them into this post):

Situation: "The company is closing and laying off everyone." Is he laid off now or is he still working for the company? What has the company told employees?

Him:
Marital status?
59 years old
Health: How healthy is he? Are there any physical limitations?
Limited English (be specific - what are his English skills and are they conversational, reading, writing?)
19 years as technician at the same company (be specific - what kind of company? what kind of technician and what exactly did/does he do on the job? That will help us generate ideas.)
"Limited skill set" - Specifically what is his skill set? That will help us generate ideas.

Social Security qualifications: He will qualify for Social Security retirement benefits at age 62. If he continues to work at his current taxable reported income he should "probably" get $1,200 a month. (Where did this number come from?)

Assets:
401k: $110,000
Cash: $35,000

Liabilities:
Car loan?
Credit cards?
Other debt?
Is he sending money to his home country regularly and if so do people depend on this?

Spending:
Rent plus utilities $1,000
Other spending $500 - $700 per month

"Plan:
. Plan to take SSI at 62, probably getting $1200 -
. Looking into applying for MediCal (Cali sponsored insurance) to cover for healthcare
. Rent + utilities - May get help from other family members. If not, will have to take 401K early distribution at 59 and half.
. Spending: $500, take out from cash saving. Should last till he turns 62?"

ADVICE: (this may change based on answers to questions above)

I see no need for him to do anything with his 401k right now and I don't think we have enough information to advise on that. (Caveat: I don't know what happens to 401k's of companies that are going out of business. Others here may know.)

If he is still working he needs more information about what is going to happen to his job and when, and what benefits are available from the company should he be laid off. Is it certain he will be laid off? Is there a specific time line? Will there be COBRA (health insurance) and if so how much will it cost? Will there be any severance? Is there any counseling available for employees in his situation (such as job counseling to help with getting a job)? Is there a purchasing company that wants to retain any employees?

If he is laid off he needs to apply for unemployment benefits immediately. He will likely need help with this. The unemployment income will help him bridge the gap between the job he held for 19 years and the next job and withdrawals from savings if needed to make ends meet while he navigates the transition. In addition, the unemployment office may have programs or other help to help him get back to work, and he should take advantage of those opportunities.

It is possible there are programs to help with education, training, and so on to help bring job skills up to the level that would help him get a new job. (On the other hand, he may be employable in a good job right now - we don't know.)

He should keep up his health, exercise, socializing, place of worship, and appearance. Those will help him feel more positive about his situation which will lift his mood and help him make the transition to a new job.

IMHO the best things you and the rest of his family can do for him is encourage him and help him stay positive and to get another job. And help him understand any processes and paperwork he needs to take care of (such as applying for unemployment). If he needs you to go to the unemployment office with him then do it.

He needs a real job with real benefits. I don't see anything that tells me he can't get one with the right emotional and practical support. He might need some training to get him up to speed but then again he might not. He succeeded at his 19 year job and presumably would have continued succeeding at it had the company continued.

Best wishes.

ETA: I agree with advice to work on his English skills. He may have better language skills than family members who may be speaking with him in his native language know, especially since he has functioned in a job for 19 years and gets around town and so on. But improving the skills he has is a good idea if he does have room for improvement.

Here's a great online resource for learning a number of job related skills, including resumes, interview skills, English language learning, and much more. Public libraries may have resources too, or know where to find free classes.

https://edu.gcfglobal.org/en/
Last edited by Herekittykitty on Sun Feb 16, 2020 6:58 pm, edited 1 time in total.
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ram
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Re: Forced early retirement with minimal asset - please help with planning

Post by ram »

Can he find a coworker who was fired along with him and is in a difficult financial situation like him.
Can he share an apartment with him leading to substantial reduction in housing costs.
Ram
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Watty
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Re: Forced early retirement with minimal asset - please help with planning

Post by Watty »

One thing to look into is that if you are supporting him and meet a list of criteria you may be able to deduct him as a dependent on your tax return.

You may also want to consider if you should get additional life insurance to provide for him in case something happens to you.
MathIsMyWayr
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Re: Forced early retirement with minimal asset - please help with planning

Post by MathIsMyWayr »

If he is able to work and not working is not an option, he has to work. No way to sugar coat.
CurlyDave
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Re: Forced early retirement with minimal asset - please help with planning

Post by CurlyDave »

HomeStretch wrote: Sat Feb 15, 2020 8:36 am He should apply for unemployment benefits, if eligible, as soon as possible while looking for another job.
+1

Also, economic conditions are that this is the best time to find a new job of my entire life. And I am a lot older than your relative. This is the best time in his entire lifetime to find another job.

Despite what we are saying about his unpreparedness, he is actually about in the middle of the pack of all people his age. When he really does have to retire, he needs to think about moving to a very low cost of living area.
averagedude
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Re: Forced early retirement with minimal asset - please help with planning

Post by averagedude »

Don't ignore temp agency's. Should be easy employment until he finds better. Sometimes these temp agency's can be stepping stones to finding factory jobs with good pay and benefits. I know people who have done this, and now have unskilled jobs that pay 50k + in a low cost of living area.
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babyvinny
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Re: Forced early retirement with minimal asset - please help with planning

Post by babyvinny »

legio XX wrote: Sun Feb 16, 2020 9:34 am
babyvinny wrote: Sun Feb 16, 2020 1:36 am . . . He did say he wants to retire at 62 though, because he feels burnt out. I’m not saying it’s justified, but I think he has some depression (his job has been unstable for the last 2-3 years). Unless he finds joy in a new job, he will retire as soon as he can live on his IRA and SS.
As one who has been there and done that, I agree 100% with those who say your relative must find another job, even an "entry-Ievel" job. When I was 59, my retirement savings, spread out over an IRA, TIAA and 401-k were a big 64K. I had just lost the part-time job that gave me medical benefits. Getting another job was the obvious move, but a middle-aged humanities PhD also has a limited skill set. Past efforts at "learning something that you get get a job with" left me skeptical about that route. Depressed? Check. So - the short version - over time I expanded my network, worked on scholarly articles, learned new skills (teaching online), remained active in professional organizations - a lot of effort with no immediate tangible return. Can't say I prospered, but managed to scrape by, and it adds up. I just reached full-time status - teaching enough classes to qualify for benefits - in mid-70s. Retire? The numbers still don't add up. The hustle is now to keep the job, and it is a hustle.

Unless his health is very poor, your relative is not old. I would advise you to help him to 1) get a reference from his former employer, immediately. He will want proof that he has been a reliable and valued employee for all that time. If he delays,it might be impossible to track them down later. Having the reference will show initiative and that he is serious about getting a new job. 2) Apply for unemployment benefits. 3) Put together a resume. An entry-level applicant who can present a basic resume, including employment before coming to the US, will be a step up on those who can't. 4) Start or restart English Language Learning. Even if he won't become fluent, it may help if he can give basic information - describe the job he did - in English. Just the fact that he is in ELL classes could gain points with an employer. 5) Is there any organization within your community that can help him learn the basics of job-hunting in the US? 6) Does he have basic computer skills such as applying for benefits or getting his resume and references to employers online? You could help with that or, better, get him into a class where he can learn to do it himself - and maybe work on ELL at the same time. Learning some new skills could also help with the depression.

Good luck!
Thank you for sharing your experience and wisdom. Your efforts and achievements are very admirable, I could see how difficult it was for you, but you have overcome it and still working for the better. I’ll be following your advice to help him out, I do believe it is best for him to keep busy, so his mind and body won’t get shut down.
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babyvinny
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Re: Forced early retirement with minimal asset - please help with planning

Post by babyvinny »

averagedude wrote: Sun Feb 16, 2020 10:58 pm Don't ignore temp agency's. Should be easy employment until he finds better. Sometimes these temp agency's can be stepping stones to finding factory jobs with good pay and benefits. I know people who have done this, and now have unskilled jobs that pay 50k + in a low cost of living area.
Thanks, I thought about it. Good to know it worked for someone.
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babyvinny
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Re: Forced early retirement with minimal asset - please help with planning

Post by babyvinny »

Watty wrote: Sun Feb 16, 2020 8:57 pm One thing to look into is that if you are supporting him and meet a list of criteria you may be able to deduct him as a dependent on your tax return.

You may also want to consider if you should get additional life insurance to provide for him in case something happens to you.
I really hope he’ll find a job, but thanks for these suggestions.
What is the minimum life insurance would he need though?
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Watty
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Re: Forced early retirement with minimal asset - please help with planning

Post by Watty »

babyvinny wrote: Mon Feb 17, 2020 8:31 pm
Watty wrote: Sun Feb 16, 2020 8:57 pm One thing to look into is that if you are supporting him and meet a list of criteria you may be able to deduct him as a dependent on your tax return.

You may also want to consider if you should get additional life insurance to provide for him in case something happens to you.
I really hope he’ll find a job, but thanks for these suggestions.
What is the minimum life insurance would he need though?
The life insurance that I was referring to would be on you to provide for him in case you die.

Anything would be a big help for him but maybe $100K would be enough to support him for years.
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