Learning To Live Through A Layoff

The Williams family must make major adjustments to keep their financial dreams within reach

then each should purchase at least $412,000 worth. It makes economic sense to purchase the recommended amount only.”

While Diane has long- and short-term disability coverage at 66% of compensation, Whitney has no disability insurance and should make getting a policy a priority, says Williams.

Financial Snapshot: The Williamses

HOUSEHOLD INCOME

Gross Income $150,000

ASSETS

Market value of home $260,000
Diane’s 401(k) 49,000
Whitney’s stocks 1,000
Market value of two cars 34,000
Checking account 2,000
Savings account 1,500
529 plan for children 600
Series EE savings bonds 5,000
Household furnishings 10,000
Total $363,100

LIABILITIES

Mortgage $160,000
Car loans 28,000
Student loans 26,000
Credit cards 11,000
Private school tuition 13,000
Total $238,000
NET WORTH $125,100
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