Florida Unemployment Compensation - Follow Up

During Mr. Sam's unemployment, I posted about how difficult it is to obtain unemployment compensation.  It took several rounds to just get through the application process and we were amazed at how it seemed like the State was making it almost impossible for the unemployed to obtain benefits.  Mr. Sam, with a MBA and a reliable internet connection almost could not obtain benefits.

Well, the unemployment system in Florida was replaced, on October 15, 2013, with a new system.  But the new system has a whole host of problems.  Well now the Department of Labor is heading back to Florida to investigate the new system.  The DOL estimates that Floridians have lost $20 million in benefits due to the faulty new system.

2013 Goals - Progress Has Exceeded 2012

(1) Max out 401k(s) -        $28,327 (80%)  (goal is $35,000)
(2) Max out IRA(s) -         $11,000 (100%)  (goal is $11,000) completed
(3) Add to e/r fund -          $10,400 (104%)   (goal is $10,000) completed
(4) Pay down mortgage -   $5,000 (100%)    (goal is $5,000) completed
(5) Trading account fund - $5,000  (100%)    (goal is $5,000) completed
(6) House projects -          $3,100 (103%)     (goal is $3,000) completed

Total:  $62,827 (91%)

Because I have contributions to our emergency and house fund on automatic transfer, those contributions continued even though we completed those goals.  As a result, our total has nudged past our 2012 total of $62,446.  Of course, we are going to fall short on our 2013 goals due, in large part, to Mr. Sam's layoff.  But, I am happy that we have at least completed 5 out of 6 goals and that we have saved more this year than last year.

Hopefully in 2014, we will save more than in 2013.  And sticking with that theme, I've already put away $800 into our 2014 IRA savings account.

2013 Savings Goals - 5 Down

(1) Max out 401k(s) -        $28,327 (80%)  (goal is $35,000)
(2) Max out IRA(s) -         $11,000 (100%)  (goal is $11,000) completed
(3) Add to e/r fund -          $10,000 (100%)   (goal is $10,000) completed
(4) Pay down mortgage -   $5,000 (100%)    (goal is $5,000) completed
(5) Trading account fund - $5,000  (100%)    (goal is $5,000) completed
(6) House projects -          $3,000 (100%)     (goal is $3,000) completed

Total:  $62,327 (90%)

Completed, completed, completed - feels fun to type that five times in a row.

In July when Mr. Sam was laid off, I assumed we would just have to throw our 2013 savings goals out the window.  But, he was able to find reemployment before his severance ran out.  And while he took a pay cut, I received a raise that off set his pay cut so overall our household income remained the same.  Even so, we had to work hard to catch up since I had put many of our savings efforts on hold while he was job searching.

I have one more pay check before the end of the year, so the 401k number will increase and, as a result, we will exceed our savings from 2012 and come close to saving $63,000 in 2013.  

Good News - Salary Adjustment

Last month I posted on the impact of The Great Recession on our career and salary . Overall, our salaries from our professional careers were down between 2008-2013.

 But, I am happy to report that I just received an upward salary adjustment, a 7% increase!, which means a couple of things.  First, this kind of increase outpaces inflation.  Second, this increase almost brings me back to my pay level in 2008.  Third, this increase almost makes up for Mr. Sam's pay cut that he took at his new job (post layoff).  Fourth, this big increase reflects on the kind of work I am doing, the level of complexity, the results I am attaining and the fact that my company is placing an increased value on me (it feels good).

I think, although I've not done the nitty gritty math, that our salaries are still down between 2008-2013, but now down just a bit.

2013 Savings Goals - Rapid Catch Up

(1) Max out 401k(s) -        $25,581 (73%)  (goal is $35,000)
(2) Max out IRA(s) -         $11,000 (100%)    (goal is $11,000)
(3) Add to e/r fund -          $7,600 (76%)    (goal is $10,000)
(4) Pay down mortgage -   $3,735 (75%)    (goal is $5,000)
(5) Trading account fund - $3,900  (75%)    (goal is $5,000)
(6) House projects -          $1,900 (63%)     (goal is $3,000)

Total:  $53,716 (78%)

Since my last savings goal update post, I've done some noodling and some moving of monies.  As such, we are now on target to complete most of our 2013 savings goals.

First, as previously noted, I have maxed out our 2013 IRAs savings account, meaning that I have that money sitting in cash but ready to invest.  And depending on the market, I may invest sooner rather than later if the government shutdown continues to depress the market.

Second, I have taken a chunk of Mr. Sam's severance monies and put it into our trading account fund. Again, this money is simply sitting in cash, but the idea would be for Mr. Sam to invest these funds, even if not tax advantages, to make up for the fact that he was unable to max out his 2012 401k due to his layoff.

Third, I have caught up on our principal prepayment goal and I'm now back on track to complete the goal of paying down an extra $5,000 on our mortgage (on our primary home)

Accordingly, right now we are $600 ahead on our savings goals.  Whoo-hoo!!

2013 Savings Goals - September Update

(1) Max out 401k(s) -        $24,233 (69%)  (goal is $35,000)
(2) Max out IRA(s) -         $9,631 (88%)    (goal is $11,000)
(3) Add to e/r fund -          $7,200 (72%)    (goal is $10,000)
(4) Pay down mortgage -   $2,075 (42%)    (goal is $5,000)
(5) Trading account fund - $50  (1%)           (goal is $5,000)
(6) House projects -          $1,800 (60%)     (goal is $3,000)

Total:  $45,819 (66%)

At present we are @$3,200 behind on our savings goals.  I have restarted goal number 4, prepayment of mortgage principal, and if I double up on our payments for a couple of months I can get back on track.  I also expect to complete goal number 2 over the next few weeks.  We are on target for goal number 3 as well.  We will not be able to complete goal number 1, maxing out our 401ks, due to Mr. Sam's layoff.  But, I am hopeful that we can add some money to the trading account fund to make up for that shortfall.

Since it is September, and because of Mr. Sam's job situation, I am starting to think about how to close out our savings year such that we can beat last year's savings number ($62,066).  We need to save another $16,281 to exceed last year's total.  That is going to be a stretch.  If we complete goals 1 (by adding to goal 5), 2, 3 and 4 we will reach $17,000.

We shall see.  

Hopefully I'm Not Getting Ahead of Ourselves

Working on bill paying today, I sent off a $415 mortgage principal prepayment to my friends at CitiMortgage.  While, Mr. Sam is only in the early stages of his new job, I have opted to get back to our 2013 plan in full force.

We need to make two extra payments in addition to our regularly scheduled principal prepayment to end the year on target.

Good News!

Happy to report that Mr. Sam has accepted a job offer.  More details later.

2013 Savings Goal - August Update

(1) Max out 401k(s) -        $23,633 (68%)  (goal is $35,000)
(2) Max out IRA(s) -         $9,125 (83%)    (goal is $11,000)
(3) Add to e/r fund -          $6,400 (64%)    (goal is $10,000)
(4) Pay down mortgage -   $2,075 (42%)    (goal is $5,000)
(5) Trading account fund - $50  (1%)           (goal is $5,000)
(6) House projects -          $1,600 (43%)     (goal is $3,000)

Total:  $42,883 (62%)

At present, we are about $2,200 behind on our 2013 savings goal.  While I continue to contribute to my 401k and I continue to add to our emergency fund and our house project fund, I've otherwise mostly ceased efforts on our other 2013 goals due to Mr. Sam's lay off.

I did add a $100 to our 2013 IRA fund to make myself feel like we were still making some forward progress, but that money sits in cash so we could still use it if necessary.  We won't make our 2013 IRA contribution until we see what happens with Mr. Sam's job search and we have until April 15, 2014 to do so.  Our emergency fund and our hose project fund are both liquid as well, so we can draw on them if we need to.  

Unemployment Compensation - Follow Up # 2

Earlier I posted regarding Mr. Sam's Florida unemployment compensation adventures, and the fact that his application was denied because he received severance.  Well, now Florida has changed their minds and determined that he is entitled to benefits because he is not receiving ongoing severance.

As a result, yesterday he received a payment representing two weeks of benefits ($550).  Somehow I expect the State to change its mind and ask for the money back so we will be prepared to repay it.

Unemployment Compensation - Follow Up

Earlier, I posted about how difficult the State of Florida makes it to obtain unemployment compensation.  Well, after Mr. Sam worked on this task for a few weeks, jumped through all the hoops, spent hours completing forms and making his way through the mice trap the State of Florida has set up (in order to deny benefits) he learned he is not eligible since he received a severance package.

Ugh times a hundred.  Such a huge waste of time and red tape.  Assuming Mr. Sam is still unemployed when his severance package expires he can reapply and the severance doesn't reduce the number of weeks of payments.

2013 Savings Goals - August Update

(1) Max out 401k(s) -        $22,285 (64%)   (goal is $35,000)
(2) Max out IRA(s) -         $9,020 (82%)    (goal is $11,000)
(3) Add to e/r fund -          $6,000 (60%)   (goal is $10,000)
(4) Pay down mortgage -   $2,075 (42%)     (goal is $5,000)
(5) Trading account fund - $50  (1%)        (goal is $5,000)
(6) House projects -          $1,500 (50%)      (goal is $3,000)

Total:  $40,930 (59%)

We are about $300 behind on our 2013 goals.  And with Mr. Sam's lay off I expect that number to grow.  In July, I kind of kept up with most of our goals in that I continued to fund 2, 3, and 6.  But, all that money is sitting in my Capital One 360 (formerly know as ING) savings accounts, so I know that I can access that money if we need it.  I didn't put the $415 towards paying down our mortgage in July, since I'd rather have liquid assets available.

As for our 401ks, Mr. Sam can no longer contribute to his 401k this year, but with his match he has saved $15,676 for 2013.  While we don't normally count the match towards our savings goals, he is happy that he's not too far off our goal of maxing out his 401k.  In fact, with his match he is only short $1,824.

I would like to continue to fund my 401k during the lay off, although we've talked about whether it makes sense to scale back.  Frankly, I almost think it is more important to save towards our future during this time.  I still need to crunch the numbers and see if it is feasible.  And while I keep our 2013 IRAs money liquid, I'd like to be putting that into our IRA if we can (and we have until April 2014 to decide). 

Dreaming of Faraway Lands

I've been dreaming about a 10 day or two week trip to a particular country for more than 10 years.  While we keep a "travel" savings account that we add to each pay period, I've decided to start a travel savings account for this dream trip. 

It may seem odd to be thinking of a dream trip in the middle of dealing with Mr. Sam's layoff, his unemployment, and the uncertainty of our finances and future savings.  But, I've been thinking about this trip for a long, long time and I want to start planning for it.  Opening a savings account, which if necessary can be used for other expenses, is a way for me to do a little dreaming and planning without incurring any real costs. 

Unemployment Compensation

Mr. Sam has been working on applying for unemployment benefits.  Sadly, Florida makes it super difficult to apply and obtain benefits.  Florida puts up so many road blocks regarding the collection of benefits that they are being investigated by the Department of Labor.  Mr. Sam's application process took about three hours, which includes a very long application and a skills test.  Luckily Mr. Sam has access to internet, the only way one can apply, he speaks English and he is educated.  Even so, he remarked at how difficult the process was, which is probably why only 17% of Floridians who are eligible actually received these benefits. 

Florida also provides a maximum weekly benefit of $275, which is the fifth-lowest amount in the country.  Mr. Sam should qualify for the maximum benefit which means $1,100 per month for three months (benefits cut off after 12 weeks).  

Working Vacations

Even with Mr. Sam's work issues, we just returned from a long weekend.  While, we could have cancelled the trip, this preplanned long weekend will probably be our only vacation together this summer so I voted to move forward with our trip.  I do have an upcoming family trip which is not really a vacation and Mr. Sam will not attend.

And, even though Mr. Sam was not really excited about this trip, mostly because he is worried about finding a new job, we had a great time.  We spent time together, we relaxed, we spent time with friends, we had fun, etc.

But, like most professional Americans, I never really disconnected from my office.  My normal vacation/work protocol is to work, in a focused manner, during travel time.  I specifically bring work that is easier to tote or that is in .pdf form on my iPad so I can read or review materials while flying or driving (assuming that Mr. Sam does the driving).  Then when I arrive at our vacation destination, I generally stop working but I continue to attend to emails/deadlines and issues that may arise.  I try to limit how often I check emails to early morning, lunch and then mid-afternoon (before my assistant leaves for the day).

I would like to disconnect when I'm on vacation, but coming back to several days of unread emails almost ruins the point of vacation.  Today is my first day back in the office and I've spent nearly half the day reading all my emails even though I was keeping an eye on them and responding to important ones.  If I had disconnected altogether I'd lose even more time.

What do you do?  If your stay connected to the office during your vacations, how does that impact your ability to relax and recharge?  How does your spouse feel if you work during a family vacation?   

Good News

Can there be any good news when it comes to a layoff?  I really don't know, but I do choose to see some positives.

First, Mr. Sam gets a decent number of weeks of severance.  We have not figured out our "lay off budget" yet but my tentative plan is to try and save the vast majority of that money.

Second, Mr. Sam' health benefits, which are good, generous and cheap, continue well into the fall.  I am also covered by his health benefits due to the good, generous and cheap nature of them.  We do have to pay the biweekly amount (the amount that was deducted from his pay for his portion) to maintain these benefits but it makes economical sense to do so since my benefits are good but cost 4 times (or more, still figuring this out) as much as his.

Third, we have a decent amount in our emergency fund.  This money was bookmarked for other purposes but it is there.

Fourth, Mr. Sam started preparing for this lay off last year by taking some certification courses so he has some additional skills and certifications to add to his resume.

Fifth, I have a good job.  Frankly, this is the most important item on this list.  I have a good, professional job for which I am fairly compensated.  While we have not figured out our "lay off budget", will work on that this weekend, I'm generally confident (since I am well versed in our monthly income and expenses) that my salary can cover our fixed and basic monthly expenses.  I also have opportunities for bonus monies and we need to think about whether I should up my output to make sure I am eligible for same (and at what level).