>> Melanie Einbund: Hi I'm Melanie Einbund
>> Nate Einbund: And I'm Nate Einbund
>>
Melanie: I'm looking for a job as a financial analyst
>>
Nate: And I'm a manufacturers rep.
>>
Melanie: This is the first time in 15 years I have been without a job.
>>
Nate: And of course I'm here to support Melanie and help her out on her job search.
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>> Sumi Das: 62 year olds Melanie and Nate Einbund have been happily married for more than 20 years. They own their home in the San Francisco Bay Area and have always had successful careers. In 2008 Melanie was earning a good living in the finance industry but then the economic crisis hit.
>>
Melanie: We're at a crossroads. We're where we didn't expect to be. Certainly some hopes and dreams have been sidelined
>> Sumi Das: And Nate's business as a sales rep has also been affected.
>>
Nate: A little insecure because I see what's happening so it's a little scary especially to have a wife that's unemployed.
>>
Nate: Hi.
>> How are you?
>>
Nate: Good.
>> Sumi Das: Melanie has been searching for gainful employment since January; scouring the net, combing the want ads and using career resources at the Jewish Vocational Services in San Francisco and Melanie and Nate aren't planning to retire any time soon.
>>
Melanie: I'm not ready to retire. I don't think I'll ever be ready to retire.
>>
Nate: I enjoy what I am doing and mentally I'm only 39 as far as I'm concerned so why retire?
>> Alright great.
>> Sumi Das: To help the couple figure out their finances MoneyWatch.com introduced them to our Editor at Large and Financial Advisor Jill Schlesinger.
>> Jill Schlesinger: Is there still some money set aside? How are you doing right now?
>> Sumi Das: Schlesinger believes that the Einbunds are in decent shape financially because they have built up an emergency reserve fund over the years. Her advice, they need to cut back on their expenses and increase their cash flow. This will help cover necessities like health insurance costs. One of the ways they can pay for their high health care premiums is by refinancing their mortgage. But because Melanie is out of work it is going to be difficult.
>> Jill Schlesinger: My suggestion was that they explore the new Housing Forbearance Plan that the government has rolled out. Now there are 2 components to this plan and the details are different whether you qualify for each so I'm encouraging them to go talk to a couple of mortgage brokers, some mortgage bankers so that they can see whether now they can qualify under those 2 new plans.
>> Sumi Das: They should also think about drawing from Melanie's 401K account.
>> Jill Schlesinger: The rules for withdrawing are that you have to wait until you're 59 1/2 until you can actually take money out of that account penalty free. So once you're 59 1/2 you have access to that money but and there is a big but that money has not been taxed yet so every time you take money out of the account you must factor in that it's going to be taxable income.
>>
Sumi Das: The Einbunds should also consider rebalancing their assets within their 401K account.
>> Jill Schlesinger: One of the things that was interesting was I asked Melanie what's your asset allocation and she said she was about 65% in stocks and 35% in bonds. My recommendation was I would prefer her to be 50/50 because I think this is a time in your life where you should not have to absorb big huge hits to the market.
>> Sumi Das: And finally they need to research better health insurance options because their premiums are so high.
>>
Nate: When Mel lost her job we were paying about 400 and something a month through her work for both of us and now going through the same company it's $1751 for us.
>> Sumi Das: Schlesinger says they have options.
>> Jill Schlesinger: In some cases that people have gone into some older associations, some trade groups where they can find cheaper health insurance so what we're really gonna try to do is Melanie is gonna just absolutely keep knocking on doors, she's working so hard to find a job, to find a job that offers health insurance.
>> Sumi Das: Schlesinger is hopeful that couple will bounce back and Melanie will find work but if not they are going to have to think about last resorts.
>> Jill Schlesinger: It would be a last option taking social security early. Now here's the problem with taking social security early. If Melanie were to take it early her benefits would be permanently reduced. So people go out and they think oh I'm 63 my full retirement age isn't until I'm 65, I'll just take it and it'll be done. It's not so easy. Once you elect to take those benefits you are really locking yourself in.
>> Sumi Das: But the Einbunds believe it won't come to that.
>>
Nate: As the economy turns around so will my business as a manufactures rep because people will be buying again.
>>
Melanie: The economy is not going to sit in this trough for ever because there are a lot of people who do not want it to be this way and so where there is thought there is action and it will happen it will just take time.
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>> Sumi Das: For MoneyWatch.com I'm Sumi Das.
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==== Transcribed by Automatic Sync Technologies ====
