Author Topic: Looking for Direction/Advice to Prepare for Future Job Loss  (Read 2906 times)

Roadsidetreasurehunter

  • 5 O'Clock Shadow
  • *
  • Posts: 43
  • Location: USA
Looking for Direction/Advice to Prepare for Future Job Loss
« on: April 02, 2016, 11:55:28 AM »
Hello All -

Love this site and all the shared information.  I've been visiting often and recently joined.   

I'm 55, single, I expect my long term job to end in 2020, I'll be 60.  I have no debt, house is paid for.  I make $60,000 year.    I fully fund my 401k and Roth and everything else is thrown into after tax accounts.  Total investments $312,000 + $37,000 cash/emergency (I know it's high, but it makes me comfortable).  House is worth about $300,000.  Yearly expenses = $24,000, not including health insurance thru employer.

My job is unique in that I will not be able to find the same field/income in the future.  In addition to my future job loss, my concern is that it will be difficult to find a good full time job with good health insurance when I'm 60.

My thought is to continue doing exactly what I am doing by maxing all investments out for the next 4 years and to continue to live as frugually as possible (which comes quite naturally for me), but I'd like a mustachians opinion....should I be doing anything different investment wise?  Does anyone have any suggestions of what I can do better to prepare?  Should I build a bigger cash reserve ilo Roth or 401k?
 
Many thanks for your input.
« Last Edit: April 02, 2016, 12:25:28 PM by Roadsidetreasurehunter »

Chrissy

  • Handlebar Stache
  • *****
  • Posts: 1498
  • Age: 46
  • Location: Chicago
Re: Looking for Direction/Advice to Prepare for Future Job Loss
« Reply #1 on: April 02, 2016, 02:31:08 PM »
Pension?  Do you qualify for Social Security?

Roadsidetreasurehunter

  • 5 O'Clock Shadow
  • *
  • Posts: 43
  • Location: USA
Re: Looking for Direction/Advice to Prepare for Future Job Loss
« Reply #2 on: April 02, 2016, 02:49:21 PM »
No, I do not have a pension.  I can draw Social Security at 65, but I'd rather wait and draw when I'm 67 if I can. 

Chrissy

  • Handlebar Stache
  • *****
  • Posts: 1498
  • Age: 46
  • Location: Chicago
Re: Looking for Direction/Advice to Prepare for Future Job Loss
« Reply #3 on: April 02, 2016, 06:24:22 PM »
+1 to doing the Case Study.  When you do it, you might also answer the following questions:

Have you figured out what your health insurance payments will be (if any!) once the job/career evaporates?
What's the amount of the SS at age 67?

I'm assuming when you say you're maxing your 401k and ROTH that means $18,000 (plus the company match) and $5,500 respectively.  If you can throw any of the money currently going to the taxable accounts into an HSA, that would be my only suggestion.  And, I don't think you need a bigger cash reserve; all your money should go to beefing up your investment portfolio.

I'd estimate you're on the right track to retire in 4 years.  You're just going to make it, though.  You'll have to cover your expenses in full from age 60-67, which will be a little more than the safe withdrawal rate of 4%, but, after that, SS will pick up, what--half?  Your portfolio should support this. 

aFrugalFather

  • Stubble
  • **
  • Posts: 220
    • Life/Finance Blog
Re: Looking for Direction/Advice to Prepare for Future Job Loss
« Reply #4 on: April 02, 2016, 11:54:06 PM »
Any generally transferrable skills that could be leveraged into part time work?

Roadsidetreasurehunter

  • 5 O'Clock Shadow
  • *
  • Posts: 43
  • Location: USA
Re: Looking for Direction/Advice to Prepare for Future Job Loss
« Reply #5 on: April 03, 2016, 06:06:33 AM »
I do contribute the over 55 allowable contribution of $24000 to 401k and $6500 to IRA.  Employer contributes $3000 max to 401k.  Thank you for the shared thoughts and ideas, I'm learning from all of you and appreciate your input.   
« Last Edit: April 03, 2016, 06:10:56 AM by Roadsidetreasurehunter »