I was at a talk with some of the original Freedom Riders yesterday, thinking about how maybe I could have done that when I was their age (college-age, at the time), but maybe not even then, and there's no way I would do it now. Leaving school in the middle of finals, probably getting kicked out of college, to go someplace where you are likely to get beaten, arrested, and possibly killed? I don't think I could do it.

I think one reason people in the US making $175,000 can feel like money is tight is the lack of a safety net. During the last year of my dad's life I saw his medical bills. If he hadn't had both medicare and supplemental insurance he would have easily been on the hook for $350,000 that year for his health care, and his condition (lymphoma) was hardly rare. People have conditions that last for years, with similar costs. Dad's social security and union-ensured pension kept him in a moderately comfortable 2 bedroom apartment, but now both social security and pensions seem to be threatened.

It's not just what you have. It's what you can reasonably expect to have this time next year. And what you can plan for 10 years down the road. Will one bad diagnosis or a car crash wipe out everything I've managed to tuck away in the past three years? That could happen very easily. The latter could happen in the next hour.

With the constant assault on what's not that strong a safety net, I can see where people are feeling nervous about their financial security unless they have the purchase price of a well-rated teaching hospital in their back pocket.

That said, a politician making $175k (or $17k or $17,000,000) who is trying to kick the few remaining supports for fiscal security out from under people gets no sympathy from me.

It's not just what you have. It's what you can reasonably expect to have this time next year. And what you can plan for 10 years down the road. Will one bad diagnosis or a car crash wipe out everything I've managed to tuck away in the past three years?

This--although I definitely consider myself fairly financially comfortable, what with having been laid off three times, I worry that I might end up unexpectedly jobless, and now that I have a mortgage (which I can only barely pay on my own WITH a job)--what if my roommate left, and I lost my job? Or was in an accident or sick? (Heck, for my job, it doesn't even have to be THAT sick--just bad enough to not easily get through airports would mean being on disability!). But I definitely know I am lucky lucky lucky to have what I've got, and be able to make the choices I do. Growing up we didn't have much (I think after a year at my first job, I made more than my dad made my freshman year of college).

This--although I definitely consider myself fairly financially comfortable, what with having been laid off three times, I worry that I might end up unexpectedly jobless, and now that I have a mortgage (which I can only barely pay on my own WITH a job)--what if my roommate left, and I lost my job? Or was in an accident or sick? (Heck, for my job, it doesn't even have to be THAT sick--just bad enough to not easily get through airports would mean being on disability!). But I definitely know I am lucky lucky lucky to have what I've got, and be able to make the choices I do. Growing up we didn't have much (I think after a year at my first job, I made more than my dad made my freshman year of college).

Yeah. This.

Will one bad diagnosis or a car crash wipe out everything I've managed to tuck away in the past three years? That could happen very easily.

Yeah. That's one of the things I dislike about being single. I mean, I love my life, but my safety net, inasmuch as I have one, is the generosity of my family. And they all have their own financial responsibilities.

No-cancer-ma, Typo. I shall keep my fingers crossed.

Man, it's been a hell of a week for Buffistas.

Yeah, definitely. In terms of real stability, i.e., wouldn't be in trouble if something went south, I'm definitely not there. But the thing is, I wasn't when they were bringing us cash in wheelbarrows at the end of every day either. I think I'm just a lot closer to understanding that then I was then.

We're...ok. But we are likely 1 thing away from disaster. Either one of us being out of work and we're back to bologna and cheese sandwiches. We do have a little in savings and are slowly paying off our debt (painfully slowly) from when I was out of work. We just got to pay $1600 tax bill that wiped us out for a bit. I don't think we've ever been completely financially stable.

Timelies all!

No-cancer~ma to TB.

Much ~ma to Typo.

Hugs to everyone.

Suzi, if you're looking for a financial advisor, I might be able to help you out.

I'm so frustrated. I need to find me a financial advisor to deal with my financial mess. I just tried to see if I could do an early withdrawl of some of my 401k funds to pay off my current debts which would make life SO much easier and apparently I can't touch any of it. I'm willing to pay the crazy tax penalty just to get out from under my current mess, but noooooo.

Sorry for the mess Suzi, I hope you get a good local person you can sit down with. You can check here to find someone: [link]

Most financial advisors would (or at least should) tell you that you should never cash out a 401K unless you are facing foreclosure, since basically, between paying the 10% penalty and the income tax on the money, it is the equivalent of taking out a loan at 35+%.