Emergency savings vs retirement

[Anonymous]

As a government contractor, I could lose my job at any point right now. At the beginning of the year I stopped retirement contributions beyond the match from my company to get my liquid savings up. I am still employed thankfully although not sure for how long (almost certainly not after October 1). Should I continue to pad cash or switch back to retirement?

Currently I make $270K per year in my W2. I’m 40 and the job market for my field is trash so expect it will take me some time to find a job or that I will have to take a significant salary cut

If I lose my job, I’ll have:
$2200 per month in passive income (rental)
$2000 per month from spouse’s earnings (not stable — self employed)

I have $45,000 in high yield savings and another $100K in investments (non-retirement). I also have $15K in a separate account earmarked for end of year property tax payments (I don’t escrow with my mortgage).

I also have a $60K HELOC available on the house (no balance)

My bare bones budget is $2200 for mortgage and another $1800 per month for property tax saving and home insurance, ~$750 for utilities and house maintenance, $1200 for food, and $500 for other (2 kids with various expenses) so let’s round up to say about $6500 per month.

Is this enough at this point to shift back to retirement savings?

[Anonymous]

I’d keep increasing emergency funds. Keep retirement to match and save for emergency until the dust settles

[Anonymous]

I like 12 months emergency. Especially with essentially a single earner.

[Anonymous]

Anonymous wrote:I’d keep increasing emergency funds. Keep retirement to match and save for emergency until the dust settles

This! Get your match, but I'd get the EF as high as possible. You need $2200 for base living once you are without a job. That could unforntately be 12 months+.

[Anonymous]

Start cutting your budget now and save that too.

[Anonymous]

Anonymous wrote:Start cutting your budget now and save that too.

This. Live on barebones budget now and save every penny you don't spend. If you don't lose your job in October, then you just have more saved. If you do lose job, then you have that much more piled away to help get you through to new job.

[Anonymous]

Is the $100k in something safer, like bonds? Because the stock market is likely to be volatile for a while.

And I agree with others that saving a bit more in your hysa is a good idea.