Mellody on the Move: Unemployment Questions

Unemployment benefits, health care and reitrement, your questions answered.

ByABC News via logo
April 26, 2010, 1:02 PM

April 28, 2010— -- There are 15 million Americans looking for work and trying to find ways to pay their bills. So "GMA" financial contributor Mellody Hobson hit the streets of Chicago to give financial advice and answer your questions about unemployment.

I'm Unemployed, What Do I Do About My Retirement Accounts?

Hobson said that it is "very very important" to consolidate all of your retirement accounts because as you get older you may forget where they are.

"The average American has 11 jobs in their lifetime. So, a lot of people leave their company and they end up with all of these separate IRAs and 401(k)s. And what happens is terribly disappointing, is that many people forget about them," Hobson said.

If you are still looking for work, 25 states have passed legislation to extend unemployment benefits, Hobson said.

CLICK HERE to find out if you can apply.

Hobson also suggested taking advantage of the COBRA subsidy that the government has extended to May 31. This credit allows people to only pay 35 percent of their premium and their employer pays 65 percent, but your employer claim a tax credit for the amount they paid.

If you are eligible, Hobson said you can receive this subsidy for up to 15 months. This credit decreased the average family bill from $1,100 a month to $389.

How Do I Manage My Financial Priorities?

Carol, whose husband was out of work for six months, asked Hobson about how to prioritize her financial obligations. She has two children in college and her daughter's wedding is approaching.

"This is not going to sound very charitable of me, so I'll put this right up front, but your priority is you and specifically making sure that you are financially sound," Hobson said.

Hobson encouraged Carol to make sure her and her husband were financially secure in their own life and retirement before worrying about their other obligations.

"You have to be supportive without hurting yourself. That means continuing to contribute to your retirement before loaning money to your kids," Hobson said. "If you can spare the money, share it with them but be clear that it is a loan. If they move in charge them rent and expenses, even if they can't pay it now. It will make them more responsible with the money they do have."