How is the economy impacting you?

[gwd-scouter]

Just curious. We all hear on the news about millions of Americans losing their homes, their jobs, their retirement savings. I'm sure it's true, but I don't know anyone personally who has lost his/her home or job. Everyone I know, however, has seen retirement savings plunge.

 

I was just wondering how you forum folks are faring. Husband was just notified that all employees where he works will have their hours, and therefore their pay, reduced by 25 percent starting next month. That's a good sized hit for any family, but we will manage. My company just started a mandatory one day furlough each month for all employees. Not too painful really, but I expect they will probably expand it.

 

I am helping with this year's District Friends of Scouting effort and have noticed a sharp decline in pledges from past years.

[sheldonsmom]

My husband lost his job and has only been able to find work at Target at about 1/3 of his previous income. We are a one income family so we are definately hurting. Anybody need a computer expert? The Omaha market got flooded when 3 or 4 companies dumped a huge portion of their IT departments. Ironically, I don't know that many other people (other than my husband's former co-workers) personally who are laid off.

[shortridge]

My employer had two rounds of layoffs last year, in August and December, and several good friends were among those who lost their jobs. One fellow has a young baby, less than a year old, and he's scrambling to find work to get medical insurance. Those of us remaining were recently instructed to take five days' furlough during the first quarter, and there are many rumors of layoffs coming in April.

 

Right now, it's more anxiety than anything - the constant wondering and worrying that eats at you daily. That's not as painful as losing a job, but it's difficult in its own way.

[GernBlansten]

My wife's and my work is steady and looks like it will survive. She has been asked to take as much personal and vacation time as she can. I work as an independent contractor, but the projects I'm assigned still need to get done and the funding is solid.

Retirements? I've lost nearly 50%. The kids college funds are well below our initial investments in them. Our house is paid off and we have no car loans. So when college time rolls around, we will probably just take out a mortgage on the home to pay for it. The value of the home as depreciated about 25% from the high but we have been here for 20 years and plan on being buried in the back yard with the dogs.

[SR540Beaver]

My company froze increases last year. It appears they will do the same this year. So I'm operating in 2009 on a 2007 salary which only saw a 1% increase over 2006. My wife works for one of those banks you've been hearing about in the news. Increases frozen there as well. She does project work and puts in about 60 hours per week (salary based on a 40 hour week), is on call 24/7/365 and has to travel the country. She usually gets a really nice bonus each year end. Her bonus this time was about a third of previous years. Her bank has already gone thru one round of layoffs and are announcing more this week. We are kind of holding our breath to see if she still has a job.....which is pretty important as she makes more than me. Our neighbor across the street is losing his job. One of our committee members just lost his job.

 

The good news, mortgage rates dropped and I refinanced a couple of weeks ago from a 6% to a 4.75% rate and dropped my payments by $225. My 2004 truck will be paid off in June and that frees up another $400 per month. Those savings will be put away for little Beaver's college.

[SR540Beaver]

Gern,

 

Your dogs will enjoy the company!

 

Mine is in a decorative tin on the shelf by the fireplace in the living room. He weighed 155 lbs and was a tad too big to bury in the hard red clay in the backyard.

[Ohio_Scouter]

Still have a job, but not sure for how long. House and cars are finally paid off, but over half of my retirement savings and the kids' college funds have been wiped out, so I just plan to work until laid off or expire, whichever comes first.

 

Prior to that, was planning to retire to northern New Mexico/southern Colorado and working gratis as a Philstaffer. Haven't bought burial plots yet. Was kinda hoping that maybe Gern had some extra space in the back yard?

[Eagledad]

We are dealing with the fear of the fear. I have a sister inlaw that work for one of the banks that took the hit, but she saw it coming a year ago. Other then that, most folks we know want to spend money but are unsure because the media keeps saying harder times are a head. I need to replace an old car or consider just a new motorcycle but I can't get comfortable about doing those because of the threat the worse is yet to come.

 

Barry

[Tokala]

Oddly enough, my business has increased since around September 2008. From January 2001-September 2008, my business was a rollercoaster. I would go 3 months without any work and then get slammed for 3 months. Luckily, I learned about "thrifty" when I was much younger. My business is in injection mold manufacturing and overall the local industry has lost about 60-70% of the companies. The Chinese, greedy corporate boards, and Americans that like cheap disposable goods, severely impacted this business. There were no bailouts for manufacturing when it became a struggling sector of the economy. Guess we weren't as important as the banks. I make 25% less than I did in 1993 when I started the business. At one time I made more than double what I do now. There does seem to be just enough work around to maintain the business although I won't be retiring early. What some people would consider odd is that my business has always been markedly better with a Democrat in the White House.

 

My IRA-SEP is down by about 30-35%, but I'm 20-25 years away from drawing on that so I'm not too concerned right now.

[scoutingagain]

Currently still working, but like others living with the uncertainty of what's down the road. 401K took a big hit but not as bad as some. Have two boys in college. Will definately be able to get the first through, he finishes next year. The Freshman will be OK as long as I have a job. If not he may need transfer or take some time off to earn his way through or be prepared to pay off big college loans. He plans to teach and there are programs and scholarship help for those planning teaching careers especially in science or math.

 

So we're not as bad off as some, but are feeling the pinch. Doing our best to limit expenses and pay off debt.

 

So far my industry, Heavy engineering & const. seems to be holding it's own. There are projects out there, the big concern is will those that are in the pipeline be able to keep financing that's already been negotiated. The industry is practically panting for infrastruture $$. Industrial investment also seems to be holding up, but some projects are being slowed down. Seems like some folks believe there is an end to the tunnel, just don't know how long or dark it is.

 

Biggest concern is a sibling who has been out of work for the better part of the year. She has two boys and is the primary bread winner. She was in the financial services business and is paying the price for being employed in an industry that imploded. She needs a break or the rest of us in the family may have to help out once unemployment runs out. That will hurt, but we won't let her lose the house or medical insurance.

 

SA

[Twocubdad]

Gross volume last year was down two-thirds from what it was in 2006. I've only had two small paying jobs in the past four months. We're living on a steady diet of seed corn.

 

The thing that sucks about being self employed is that when you get laid off you still have to go to work everyday.

[scoutldr]

I am a federal employee in DOD. I still have a job, which I am grateful for, but my last real "promotion" was in 1991, so I have been topped out for years (mainly because I was unwilling to relocate to the beltway). Consequently, my take home pay is less now than it was 5 years ago, as things like health insurance, life insurance and taxes keep going up. The bulk of my retirement fund is in a 401k type plan and I've lost half of that in the past year. SWMBO is a school nurse (RN) and after 15 years on the job, just went over $40K. The school system announced today that salaries are frozen for the coming year, and several programs, including Drivers Ed, some gifted academies and year-round schools are being cancelled. She is concerned as things get worse, because there is no legal requirement in this state for schools to have nurses. MIL lives with us, and in spite of about $30K in annual income from survivor pension, SS and dividends, contributes nothing to the household. (Don't get me started on that.) I was hoping to take early retirement in 2010 and start a new career somewhere else, but it looks like that's a pipe dream. Until the Dems start slashing DOD, I will probably have a job as long as I want one due to seniority, but I expect salary freezes and declining budgets. At home, we are not considering any major purchases, we are eating out and traveling a lot less, and my focus now is to increase savings to try to make up my retirement fund and pay down my two mortgages. I am done paying for college (x2) due to a modest inheritance from my parents who died in 1995. I guess all in all, I'm better off than a lot of people. If I do get another "stimulus check", it will go straight into my IRA, stimulating nothing.

PS: My wish is to be cremated, and scattered at the Scout Reservation. My buddies know my wishes, and said they will dump a scoop into each latrine, since I spend a lot of time there anyway! Over the years, I have come of the opinion that the casket, viewing, burial, headstone thing is silly. Return me to the compost heap where I can continue to do some good.(This message has been edited by scoutldr)

[Lisabob]

Things aren't looking great here but I'm still currently employed and happy about that. I work at a public university that has been hard-hit by state funding cuts for several years in a row (even when they don't cut, they freeze funding, but costs continue to go up resulting in a net loss). Last year about 10% of the people in my job classification were cut and replaced by cheaper part time instructors who get paid poorly and have no benefits, and it is expected that there will be further cuts of 5-10% again this summer. I'll be one of the ones on the bubble this time around because my contract is up for renewal (and I don't have tenure). Given the nature of academic calendars, if I still have a job in September, I'll be good for another school year. But I honestly don't know if that's likely and probably won't know until August. The uncertainty is a bit scary. I had been planning to take the summer off from teaching in order to work on a research project because research is the lifeblood of academic life (and "publish or perish" is not a myth), but now I'm thinking that if I'm offered classes to teach in the summer, I'd probably better take them.

 

What's much more difficult is talking with my students about how things look from their perspectives. A large percentage of our students come from working class/working poor backgrounds. They're doing all they can to better their chances for the future but they are getting priced out of college in growing numbers. Many have had to drop to part time, some have decided to leave school. Quite a few have told me their families were foreclosed upon, including some who rented and the landlords failed to give their families any notice that the apartment building was being foreclosed. I've had more young students tell me they were living in shelters. I've never had so many students come to me and ask for help getting copies of the textbooks because they can't afford them. Enrollments this year fell about 5% and are expected to fall again next year. There's a real hunger for a college education (well, or at least for the piece of paper), but their options are constricting rather than expanding.

[packsaddle]

Me too, Lisabob. I took my furlough in a lump a few weeks ago and I think I'm good for the fall semester (mostly because my courses are popular, go figure). One is a requirement for the curriculum in several departments and I'm the only one of my 'kind' here. I may survive nicely.

That said, I've decided to seek a better position in the private sector. I have greatly enjoyed academia but (scoutldr, you need to pay attention because I also used to work for DOD) there is NOTHING in the Federal Government that comes close to the level of incompetent management that I observe at the state level. It is of a lack of quality and bloated quantity of stupidity that must be by intentional, unintelligent design.

So I'm going to give the private sector another go if I can locate a good position.

Like scoutldr, my 401K is essentially doodoo and I was also in the new version of the federal retirement system (no real pension). One child still in college - tuition at $40K per year. I used to joke that I'll work until I die. I say it with conviction now.

But at least I'm still ticking away. My complaints are small and insignificant compared to many others and I know it. So outside of this thread, I don't complain.

[GernBlansten]

Pack, I'll save a spot between me and the dogs for you. Well, perhaps on the other side of the dogs. They have been very good to me. I'm sure you will understand. Ohio? We can stack.