Money Problems - true story of a lost windfall
Money problems are everywhere. They're in your neighborhood, in the city council chambers, at the legislature, and with our federal representatives in Washington D.C. I'm certain they're in your home as well.
Most difficulties with finances are a result of not understanding some of the poor financial habits we have, and some of the poor decision-making we engage in. Modify our behavior, and our money trouble will diminish. Start adopting good behavior, and our money trouble will vanish and never return.
In this "money problems" series, I'm going to talk about real life examples, and point out some of the basic bonehead moves that some of us make when it comes to money. This example centers on the a windfall that isn't protected, instead it's left to blow to the wind.
Larry Gets Divorced
Married for many years, Larry and Lucy get a divorce. It's unexpected by everyone they know. Larry is stunned, and needs to start his life over again at age 42. Luckily, he's able to get financial help from his family until he can get back on his feet.
What a shock! Is Larry prepared for something like this? Not at all. And, it doesn't have to be divorce. It could be illness or accident that takes away his wife. Regardless, he's not prepared.
Lucy has always been the bread winner of the household, and Larry always had pedestrian level jobs in the marketplace - grease monkey, porter, retail sales, busboy. Sure, he contributed to family income, but not in a big way, and now he has to try to support himself on piddly income.
The answer to his money problems seems only a short time away. Together, Larry and Lucy has setup and financed a tax-deferred retirement account. It's to be split 50/50, to help out.but left left concept of ro.