Aftermath of layoffs and living off 401k, SOS anyone?

22 Comments

1. AnonymousFebruary 2,2024 at 1:18AM UTC

   During the Great Recession I was in a serious unemployment situation. I not only used my savings, I dipped into my IRA

   I was unemployed for 14 months and got by with Obama extended unemployment benefits. bartending under the table and odd temp jobs (also under the table) to try and survive. As soon as I got my next job, I put the max into my 401 which had a match which helped. I also got a side hustle and kept my bartending gig. I worked 3 jobs for 3 years and continued to budget frugally to build my financial health back up and then some.

   I now have a nice financial portfolio and still am wise with my money. I never think it wont happen again.

2. AnonymousFebruary 2,2024 at 1:40AM UTC

   This is a super helpful perspective! Thank you! I wonder if the Obama extension is still a thing. I have to lol into that.

   so from your experience, you room 3 solid years to bounce back with maximum input towards ur Retirement. This gives me hopes and ideas on how to recover. Thanks so much!

3. AnonymousFebruary 2,2024 at 2:18AM UTC

   At the time Obama extended benefits was life saver.
   Unemployment was extended for something like 98 weeks and added something like $50 extra per week. so it helped ease a bit of the stress and believe me every bit helped. That was a dark time.

4. AnonymousFebruary 2,2024 at 3:39AM UTC

   When I was married, my ex refused to work, and left me to support him and two young boys. When I divorced him, I became EXTREMELY frugal and it's paid off...literally. I live below my means, rarely eat out, and save every chance I get.

   My priority is experiences, not random stuff. Avoid the mall; save for travel

   You never know.

   That mentality got me through a raging pandemic as well.

5. AnonymousFebruary 4,2024 at 11:04AM UTC

   Are you me? I was in the same boat: ex-hubby refused to work and I was full-time with two kids. He used every penny I had saved up. So - finally divorced after I was laid off and cashed what was left out of my 401k to pay lawyers and pay him off. At age 58 I am starting over and trying to build up a little money in my new 401k and new job with kids in public high school and college (sole custody and no visitation) Probably end up in poverty after I am too old to work in my 70’s.

   Things did not turn out as I planned and it will be tougher for this next generation.

6. AnonymousFebruary 2,2024 at 11:38PM UTC

   Got my last severance check yesterday and I have trained one small IRA which will last 2-3 months. I feel your pain.

7. Colleen MurphyFebruary 3,2024 at 1:18PM UTC

   I am in the same position now and I absolutely cringe at it. I didn’t get much unemployment , and burned through my savings. Month 8 now with nothing on the horizon. I have just now burned through my first withdrawal from my retirement account. I need more. Uncle Sam isn’t kind either when you touch it. But you have to live and pay your bills. I stay very frugal, and don’t buy anything that I don’t need, I definitely am with the pain on this, and am praying for all of us ☺️

8. Maria TaylorFebruary 3,2024 at 1:42PM UTC

   I have been unemployed since last July, and my husband has been unemployed since last May. Unemployment ran out last October. He took a temp/seasonal job from November through December, which helped buffer our finances. I had no choice but to take out all my 401k. That money is all we have left. I'm job searching full-time while I continue to work on Travel Agent classes, and my hubby will start training for a new job next week. We are barely staying above the water.

9. Stephanie Branch LekowskiFebruary 4,2024 at 2:52PM UTC

   It sounds like you and your husband are doing all you can. Do not let anyone shame you about using 401K, you built it up over years so it's YOUR money. I also have withdrawn 401K money because I was in a toxic job situation and had to resign for anxiety and depression. Taking classes is a great step, hope you stick with it!

10. Heather MattissonFebruary 4,2024 at 5:11PM UTC

    That's really tough Maria. I wanted to just appreciate your struggle and how you and your husband are facing it with dignity. In 4 days, I'll have been laid off a full year. Last year, the panic, deep urgency and the depression were like a sledgehammer. The struggle is real.

11. AnonymousFebruary 5,2024 at 7:51PM UTC

    These are challenging times, for sure. I also was laid off in July after 24 years. I took unemployment and am now doing project work. Please consider also getting a part-time job to stay above water while you work on your travel agent classes and look for a new job. It will help to give you some breathing room and enable you to not use all of your 401k funds. Best of luck!

12. AnonymousFebruary 3,2024 at 1:57PM UTC

    I guess my question is, how is the job search going?

    Can you get a PT job that will cover expenses while you look?

    If you aren't getting any hits, maybe you should review your resume and make sure it lists your achievements, even if you think they are minor.

    Double check that what you are asking for in salary is comparable with the area you are living in and experience.

    Practice your interviewing skills.

    Are you speaking with your local unemployment office? They do have some resources that will help.

13. AnonymousFebruary 3,2024 at 8:26PM UTC

    Thank you! Yea my area is in the high end and in the city so def asking for less than I prob should lol but anything to get back up on my feet. Thank you for the list l!

14. AnonymousFebruary 3,2024 at 2:39PM UTC

    If you’re not getting hits in your profession, please get a part time job (any job) to stop this financial bleed. Even if it’s hourly work or in the service industry it will be temporary.

15. AnonymousFebruary 3,2024 at 8:22PM UTC

    Yes def on that but even that is slow not getting traction in that sector quite yet. I did just start perhaps that’s why and I am targeting only remote roles at this time due to personal circumstances however, I agree with this advise very much!

16. Maria TaylorFebruary 3,2024 at 10:30PM UTC

    I've revamped my resume and all my social media accounts. I've expanded my job search into looking for part-time as well as full-time. I'm keeping specifics (like base pay) open and am being flexible. I'm doing everything that has been suggested for me with my search.

17. AnonymousFebruary 4,2024 at 6:36AM UTC

    Do you have unemployment insurance benefits? For example, in California, you can get California Employee Development Department benefits.

18. AnonymousFebruary 5,2024 at 1:31PM UTC

    I got laid off in September 2023. I have a toddler and a HS senior, as a single parent. I was mid divorce when I got laid off, and I also have a house. Our situations seem very similar. I received a severance and in my state one can double up and take out unemployment during their severance period. That really helped. I took my toddler out of daycare after a couple of months to save money and had family help me with him when I needed to interview. I took one small distribution from my 401K to cover a couple of months of expenses. Fortunately, after 24 interviews I finally found a job. It is rough out there. I ended up taking a job with a pay cut so I'll have to learn to readjust to my new salary. The pros of the job is that it will offer invaluable experience that I can take elsewhere. Good luck!

19. AnonymousFebruary 5,2024 at 3:15PM UTC

    Avoid tapping into your 401k at all costs. I know that money sitting there is awfully tempting, but don't do it unless you have no other options. I'm speaking from experience...prior to losing my job in 2021, I was planning my out (I wasn't happy there at all) and thought that would be the way to go. Come tax time the next year, I realized what a big mistake that was.

20. AnonymousFebruary 5,2024 at 3:53PM UTC

    FWIW, I recently learned from my financial advisor that you can borrow from it for up to 60 days penalty and tax free. Depending on how big your need is, might be worth looking into an option like that.

21. Tami L CannizzaroFebruary 5,2024 at 10:09PM UTC

    Back in the recession of 2009/2010 (?) my husband and I were laid off within 6 months of each other; he won the lay-off lotto first. We immediately went into "operation save-a-buck". Every expense - and I mean EVERY expense - was up for consideration and elimination. We limited ourselves to only antennae tv; worked just fine. Maintained internet at a low level for job search, yet considered eliminating that if necessary. We both got part-time jobs, even while collecting unemployment (you can do this; it simply reduces the amount of unemployment received yet it seemed to stretch the time we could receive the UE). We both joined networking groups + connecting with our personal networks. We maintained professional credits as needed and kept up are skills, even on volunteer levels so we had something to add to our resumes. Both of us were able to cobble together some contract work in our fields - Hubby actually found a contract gig from someone he met at his part time job. After 6 months he found full-time contract work, which eventually turned into perm. Took me a bit longer, almost a year yet I kept consulting and work part time. We were prepared to sell the house if necessary, and had started to look into that. Point Is: We have to make tough decisions in times like these. And it's amazing what we can do without , like cable. Or even living in an apartment. Yes, I know rents are expensive yet weigh the cost of annual house taxes, upkeep, etc vs the rent and you may come out ahead. Remember, this is a temporary situation even if it takes a few years to fully resolve itself.

22. Lynne PrestwoodFebruary 6,2024 at 6:37AM UTC

    I lost my full-time job in November 2022 but I was able to collect unemployment and also applied for early retirement which is what I receive now but I sure miss my full-time weekly pay. I signed up for Doordash and Ubereats for deliveries but I am also looking for a part-time job as well. I had to use my 401K because my retirement does not even cover my rent and I have a lot of credit card debt including a car repair bill. I am struggling but I am keeping my hopes up. I live with a brother and a son both of whom are mentally disabled and do not work so it's all on my shoulders. We used to depend on our sister's disability but she ended up in a rehab facility for 3 years after she broke her foot but then passed away last April.