Currently unemployed (with no intention of getting a job while I take care of a new baby), working on a book (that will hopefully one day bring $$) and living on savings.
Savings in a HYSA: $121K
Investments (Roth, 401k, stock, etc): $346K
Monthly mortgage & car: $2500
Monthly lifestyle: $2000+
Partner pays health insurance and pays for other bills, food, etc.
Essentially, what can I do to boost what I have now while I’m not working? I’m obviously burning through $5k/mo, which will be concerning to me after my HYSA dips under a $100k. (Soon!)
Should I invest more of my savings into stock? Leave it alone? Invest in some other way? What would you do?
What are you doing in this situation with no job but good savings/investments?
byu/Boy_Tears_8 inpersonalfinance
Posted by Boy_Tears_8
4 Comments
Honestly with a newborn I’d keep that emergency fund fat and not mess with it too much right now. Maybe throw like 20-30k into index funds if you’re itching to invest but don’t go crazy – babies are expensive and unpredictable
The book thing is cool but don’t bank on it financially, most don’t make much even when they’re decent
Follow this: https://www.reddit.com/r/personalfinance/w/commontopics
If you don’t have any income it’s a good time to rollover 401k to traditional IRA and convert to Roth. Standard deduction is $16,100. You can convert that amount tax free. You can also realize gains in your taxable brokerage tax free. The 0% bracket goes up to around $49,000.
Moving savings into stocks while you’re actively burning cash is risky. I’d keep at least 2 years of expenses in that HYSA before even thinking about more investments. You have a solid cushion, but a new baby and a $5k monthly burn rate will eat through $100k faster than you think.