Tom Tom

I was in contact with two Tom s this week. Tom 1 came in because he was crashing and burning in a financial sense. He has worked for the same company for 25 years, no raise in last 4, he was lleft a property in Florida---really want to get back at people leave them a peice of Florida real estate. Tom, upon being left that property about 6 years ago suddenly started having thoughts that he ultimately would retire there and it was probably that idea that sustained him for some time. But the reality was that his tenants have been less than stellar. They variously did not pay, did not pay and did not pay and trashed the place. Although he is quick to point out that the last ones did pay and did not do too much damage. Nevertheless, the gifted Florida real estate barely carried itself and when the repairs came in , it was a dead bang loser. But to finance that and his dwindling ability to make ends meet at home he tapped his equity and tapped it again and again. Each succeeding tenant in Florida cost him more in equity financing in NJ.

His wife during the middle of this spiral announced that she no longer wanted to work and amazingly did just that . She stopped working.

So he arrives for our Saturday appointment, which I set so he would not lose time from work and he looks like the poster boy for someone run through a meat grinder. I am left with the impression that if this man gets no relief, his burdens will kill him. I go through his numbers and tell him that the house in Florida must be sold to raise the cash to pay off his home debts.
I write the letter that will allow him to get hardship relief from his 401K program, and as I do so I am reminded of the admonition that baby boomers are not saving enough for retirement. But what other choice is there. His account will now hold less than $500 for each year of his working life.

Another straight up middle class guy has just hit the wall. My role in this play was to make his decision for him, one that he could not make for himself, for he was still clinging to some version of the American dream that would have allowed him to retire to a little house in Florida.