[pastor_elm]

>"She once had her own office, secretaries and assistants, along with titles like “director” that spoke to her decades of experience. Now, she’s a temp — one of many.

>Levi was laid off from her job at a law office during a merger in early 2015, and has struggled to find long-term work. In late 2016, she filed for bankruptcy."

How do you go from director at 59 to filing bankruptcy in fewer than two year after losing your job? Fiscal irresponsibility

[prolikewh0a]

>How do you go from director at 59 to filing bankruptcy in fewer than two year after losing your job? Fiscal irresponsibility

This is a very entitled and selfish statement. The act of simply existing is very expensive in the USA, and if you have children or have unexpected medical bills that can be tens of thousands or even hundreds of thousands, you can easily eat through all of your savings very quickly and not be able to pay back debts I'm sure they could pay before they were laid off.

[dsfyu404ed]

>The act of simply existing is very expensive in the USA

Someone who lives a lifestyle one typically associates with someone who's employment can be describes as "own office, secretaries and assistants, along with titles like “director” that spoke to her decades of experience" will become impoverished if they lose and do not quickly replace that job on any continent. It's not just a US thing.

[AnimalMuppet]

But it's a choice to live that lifestyle. Doing so is implicitly assuming that you will always have that income level - which is rather unwise to assume.

[tonyedgecombe]

This is a very entitled and selfish statement.

It doesn't take a huge imagination to realise the unexpected could happen, especially at that age. If you have had a reasonable career in a well paying job then it is irresponsible not to put something away for a rainy day.

[citizenkeen]

In the United States, a bad medical problem can cost five-to-ten years' salary. That's one hell of a rainy day fund.

https://www.cnbc.com/id/100840148

[tonyedgecombe]

The article didn't mention a bad medical problem, rather some low level issues.

I'm not sure using the lack of socialised health care as an excuse for not managing your finances is sensible. It's only a minority that need expensive health care before 65 but it seems it's the majority who aren't managing to live within their means.

[dragonwriter]

2 years is a lot of rainy days.

[commandlinefan]

I think about this a lot. I've always been a bit concerned with pricing myself out of the market. I've never really fought particularly hard for pay raises, but I have kept up my education and experience and my pay has risen pretty consistently, putting me in a very comfortable salary range. But I still consider the possibility that the bottom could drop out completely and every employer in the US could collectively decide that programmers aren't worth what they're paying us and find myself settling for a lot less than I've been used to. Before I got married and had kids, I organized my life around that possibility - I never put myself into a position where I _needed_ the paycheck I was getting. Since getting married and having two kids, though? My wife and I both make high salaries and we're still barely breaking even every month. It's all disposable stuff - lots of vacations, eating out several times a week, a handful of extracurricular activities for the kids; all stuff we could cut out in a heartbeat... _if_ she was willing to. Honestly, I'm not as worried about potentially losing earning potential as I am about convincing my wife that we have to make some cuts if we ever find ourselves in that position.

[citizenkeen]

My wife and I read the Two Income Trap early in our relationship. Then I went to grad school. Then she went to grad school. Then I went to grad school again.

After seven years, we had never really had two incomes, only one.

So when we had a kid, all of our expectations were built on one income. We maintained those - my wife has been a SAHM now for almost three years. She's going to go back when he starts pre-school one or two days a week, but she'll be choosing satisfaction over money, and only to keep skills relevant (she still gets job offers). If I ever lose my job, she can make a call, get a job (she's privileged in her field), and pick up 80% of my slack. We did this so that we never have to be too worried about my team scaling down.

It helps me sleep at night.

[germinalphrase]

I am in no position to judge one way or another - but it seems like you already know what you want to do.

[CryoLogic]

Indeed, bankrupt in two years after a high paid career speaks of financial irresponsibility. However, it does seem that in today's world the good jobs are far and in between. The middle class of the 1950's keeps getting squished. And the bridge from low class to middle class is financed by debt that takes often 30 years to pay off (student loans).

[pnutjam]

If you have a severe loss in income, bankruptcy after 2 years is probably too late. She probably cleaned out her retirement funds, which used to be largely protected from bankruptcy. Just because she looked important at work, doesn't mean she was compensated as much as you all seem to believe.

[dragonwriter]

It seems natural that bankruptcy filings would normally be “too late” from a retrospective position; the negative consequences favor delay if turnaround is reasonably possible, but the best time too have filed will probably be in the past once you've determined you need to.

[throwaway5752]

Poor budgeting and fiscal irresponsibility are one. Also: getting sick/medical coverage with existing conditions? Mortgate debt on a house that doesn't have equity sufficient to cover costs after sale? Divorce? Family emergency? A combination of these?

[coldtea]

>How do you go from director at 59 to filing bankruptcy in fewer than two year after losing your job? Fiscal irresponsibility

Or you know, fiscal responsibility, but a health issue or two in the house, and there goes your money...

[toomuchtodo]

Are you familiar with the cost of health insurance for someone in their 50s? Along with other non-discretionary expenses, a significant decline in pay can quickly deplete emergency reserves and retirement accounts.

To assume financial irresponsibility is to grossly misunderstand the issue.

[bfrog]

Healthcare coverage for a family of 3 at middle 30s costs 1200/mo, more than my mortgage. Do you believe paying for insurance, to cover some inevitable medical issue, irresponsible?

[EliRivers]

I understand getting sick is the number one cause of bankruptcy.

https://www.fool.com/retirement/2017/05/01/this-is-the-no-1-...