Hi everyone - I've been a lurker for a long time after discovering MMM a few years ago. I now have a dilemma and could use some help/guidance.
I am going to be laid off from my job in the next few weeks/months. The catch is, I don’t know when it’s going to happen. Long story short, my manager no longer seems to like me and they are looking to push me out. I know there are politics involved because my department is going through a reorganization and I was the last one hired into the team 5 years ago. From the looks of it, they’re looking to avoid paying out severance. I’m actually on a final written warning for using the word “scare” on a team call (as in “I had a scare this week, but I’ve resolved the issue.")
I am actively looking for a new job, but so far, I haven't had much luck so I'm trying to plan for worst case scenario. Worst case, I’m on unemployment for a few weeks/months. The good news is that I live in NYC, but work in New Jersey so I would be eligible for NJ unemployment benefits which are slightly higher. I live well below my means – my monthly expenses, including mortgage/maintenance, come in at about $2100 a month and that even includes an entertainment budget. My only debt is my mortgage and it's 160,000 at 4.5% I’ve maxed out my 401(k) and Roth IRA for the past 6 years, plus I save/invest about $1200 a month. Not too shabby, in my opinion!
Here’s my dilemma/question: I’m worried I won’t find a job and unemployment will run out. I have no problems taking temp or retail work, but it’s still a genuine fear that I have right now. (As you might imagine, my self-esteem has taken a major hit over the past 6-8 months. For 4 years everything was great, but now I can’t seem to do anything right and am quickly told so.)
For the time being, does it make sense to stop contributing to my Roth and bring down my 401(k) to just get the employer match? I have about $25,000 sitting in general savings as well as around $50,000 in stocks/funds, which in my mind is a decent amount. And, to be perfectly honest, I can live fairly comfortably on unemployment and would even be able to save about $100 a month or so. I would prefer to keep contributing as long as possible, but the fear element is making me rethink everything.
Any thoughts or advice?