I was laid off in early December 2025 and had been with my firm for over 9 years. I look at the balance today and it's close to $410k (I'd say split between a regular 401k and Roth 401k in terms of amount).
I was thinking of perhaps just letting it compound from there? Right now, I'm 40 (Turning 41 this year) and thinking would it'd look like by the time I'm 65 years old. And I've been investing in a Vanguard TDF 2065:
| Annual Return | Balance at 65 |
|---|---|
| 5% | ≈ $1.32M |
| 6% | ≈ $1.66M |
| 7% | ≈ $2.06M |
If I do get a new job, I do plan to contribute to just to Roth IRA and max it out every year, too. Other than that and perhaps the 401k RMDs later, is there anything else I should consider or be worried about?
Thank you.
Laid-Off : Should I Stop Contributing and Just Let my 401k Compound?
byu/Ok_Assignment4100 ininvesting
Posted by Ok_Assignment4100
3 Comments
Are you… planning on not getting a new job? Why wouldn’t you just start contributing again once you have a new gig?
Not sure what your plans/goals overall are, I think you are leaving lots of things out. But sounds like you might be a candidate for Coast FIRE. I recommend looking into it and see if that is what you’re asking for, and there are associated calculators for it.
A 401k is pre-tax money. If you contribute money while you aren’t employed, you’d be contributing money that has already been taxed, right?