|
| Wednesday, May 28, 2008 |
| Good Morning America does a Money Makeover |
 Good Morning America's story: Middle-Class Family's Financial Makeover profiles Mike and Karen Sefton who together make $75,000 and have two teenage sons at home. Here's a snapshot of what the Seftons owe:
$59,000 on their mortgage
$4,500 on a second mortgage
$12,500 on their car
More than $13,000 on their credit cards
Total Debt: about $89,000
With less than $2,000 cash in the bank, the family can't count on their savings, either. The ABC expert, Michael Farr author of "A Million Is Not Enough ," helped the couple set-up a budget and advised Mike to come out of retirement and head back to work until their debt is under control.
I am a bit shocked that this family has so little in savings and completely agree with the expert that retirement has to wait for the husband.Labels: Money Stories |
| posted by Boston Gal @ 11:02 PM *
* Subscribe to Boston Gal's Open Wallet |
Links to this post:
|
| 6 Comments: |
-
Another potential problem is that she's a mortgage broker - and a lot of people in the biz have been laid off lately. Having that much debt, no savings, and trying to put two kids through college - yeah, he needs to go back to work, sorry buddy.
-
Retiring with $2k in the bank? That is positively insane! One minor car repair will wipe out their savings. Cut off college payments, apply for aid, and git your butt back to work my man! All your earning go straight into a 401k.
-
What's with all the criticism of the husband, especially in the article's comments? He was in a union and has a pension, maybe he had to retire as part of a union negotiation package. Maybe he worked for Ford or Chrysler.
There's absolutely no reason they can't "get by" on $75k per year. If they can't control their spending, then in the absence of more information the wife is as much to blame as the husband.
-
The guy needs to work unfortunately. If they had planned and saved more he could have retired. As it is, well they can't.
-
@ Jon-
"Get by" sure, but get out of debt and live the way they're accustomed and put their two kids through college like they want to? Probably not. Yes, entirely possible he was forced into retirement - doesn't mean he can't still work somewhere else, does it? Her income and his pension aren't cutting the lifestyle they want to live.
-
What does him possibly being forced to retire in the past have to do with him working now? He needs to work now if he can. If they are unable to fund all their goals with the income they're making now their choices are to make more and spend less, preferably both.
|
| |
| << Home |
| |
|
|
|
|
Another potential problem is that she's a mortgage broker - and a lot of people in the biz have been laid off lately. Having that much debt, no savings, and trying to put two kids through college - yeah, he needs to go back to work, sorry buddy.