How much e-fund

[Anonymous]

I work in the tech industry (as a software developer) which is experiencing large scale layoffs. I currently have 6 months spending in cash for emergencies, this accounts for needing to pay for healthcare if I lose my job, assuming 2k/month premiums. I’m thinking of increasing it, maybe double or triple, because I’m the sole breadwinner and have children. But this also seems kind of excessive and I want to stay invested as much as possible.

What should I do?

[Anonymous]

Idk if this is an option for you but we pulled a HELOC on an investment property we have so we could keep our savings / investment rate up while hedging against the same risk.

Depending on your company you may also get a significant severance package if laid off that will cover 3-4 months paychecks (or more) and healthcare for 6ish months so with your current savings you’re already close to a year. That’s what Meta and Coinbase did recently.

[Anonymous]

Increase it to one year, but investment account can also be your emergency fund. Your income should be lower in the year 1 or two of job loss and it's ok to sell long term stocks.
Is working any job an option for you or your partner? I worked at nights and weekends while home with kids.
Could you downsize fast? I have done it several times in 30 years. Being flexible when it comes to moving or selling even real estate, has served me well. I retiring very early partly because my fast pull-backs and then full steam ahead.

[Anonymous]

Get to one year

[Anonymous]

I would increase it, but it doesn’t all have to be in cash.

[Anonymous]

Anonymous wrote:Idk if this is an option for you but we pulled a HELOC on an investment property we have so we could keep our savings / investment rate up while hedging against the same risk.

Depending on your company you may also get a significant severance package if laid off that will cover 3-4 months paychecks (or more) and healthcare for 6ish months so with your current savings you’re already close to a year. That’s what Meta and Coinbase did recently.

I’ll look into a HELOC, we have decent equity. Also I’m going to start churning 0% credit cards to always have 6-12 months of interest free spending available.

Likely in the event of layoff I’d get a decent severance but don’t want to count on it

[Anonymous]

Anonymous wrote:I would increase it, but it doesn’t all have to be in cash.

+1
Look into something like a balanced fund if you are comfortable taking on more risk. A HELOC would be a hard no for me if I were in your situation: single breadwinner, kids, possibly unemployed, etc.