Mid 30s, HCOL, likely getting fired in ~60 days. Should I stop 401k contributions? Any other tips here?
Trying to think clearly instead of emotionally.
Current situation:
Income:
– ~$7.5k/month take-home after taxes/401k
– Currently contributing ~$1.1k per biweekly pay period to 401k
– Employer match is 50% till max 401
Assets:
Illiquid:
– ~$100k home equity (rental – slightly cash flow negative)
– mid-six figures in private company equity (illiquid for at least a year)
– ~$250k in retirement accounts (illiquid till 65)
Liquid:
– ~$50k cash
– ~$30k taxable investments/crypto
Expenses:
– ~$7-10k/month (this is high and can be reduced but have some specific circumstances that make this hard to reduce below $5-6k)
I’m on a 60-day PIP and expect termination . Assume no severance.
I have strong experience, but the market feels rough and I’m mentally trying to prepare for a potentially long job search.
Would you:
-
continue maxing 401k for the match
-
reduce contributions significantly
-
temporarily stop contributions and prioritize liquidity/runway
My instinct is cash preservation, but it feels wrong to walk away from a 50% match.
Also, anything else that I should do right now to prep for a long search?
Checking Strategy Iminent Job Loss
byu/Agreeable_Culture463 inpersonalfinance
Posted by Agreeable_Culture463
2 Comments
You’ve got to get those expenses down asap. Not sure what your situation is, but with $50k cash saved up, you need to hold on to every last dollar because this economy is unpredictable. Move if you can/have to. Keep putting the same amount into your 401k though, don’t stop those contributions until you actually get fired; 50% match it crazy. Also… start looking for a job if you haven’t already. Don’t let the firing be the impetus, 60 days is breathing room, but it’s still a sprint
A 50% match is excellent, but emergency runway matters more when income risk becomes uncertain. Once layoffs become real, cash stops being idle. Consider reducing 401k contributions to only capture the full employer match and start acting as if your income has already dropped.