If layoff is looming, reduce 401K?
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Anonymous
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I feel insecure in my job now, and I am actively looking for a new one. While I look (and while I'm still employed), should I reduce my 401k contributions so that I have a better rainy day fund?
FWIW - spouse has stable employment and we have about 8 months of expenses socked away. |
Anonymous
Nope. With 8 months reserve, I'd say keep saving. |
Anonymous
| I'd contribute up to the match and take the rest home for awhile. |
Anonymous
| Nope, id increase it and complete the years contributions early. |
Anonymous
| Nope. With 8 months savings + a spouse with stable employment who will likely carry the household bills if you aren't working -- keep putting money into the 401k. Hopefully it doesn't happen - but what if you aren't working for a few months -- you'll be falling behind on retirement savings; no reason to set yourself behind purposefully. If you're trying to build up cash - scrimp and save on other things for now -- like eating out; bagging lunch etc. to add to your 8 months in savings. |
Anonymous
| All depends on how difficult it will be for you to find a new job. Are you in a niche field/job or would you be able to find a job pretty quickly - i.e., 60 days or less? |
Anonymous
I would too. Even if you find a job right away, there's usually a waiting period before you are eligible to participate in the retirement plan, and/or get the match. |
Anonymous
Yup. My dH got let go late February, new job starts May 15. It will be a few pay periods of absolutely no net pay to mak up for 2.5 mos of lost 401k contributions. |
Anonymous
| Keep saving. One never knows how many months may pass before the layoff. It'll workout OP. Try not to worry too much. |
Anonymous
+1. |
Anonymous
I agree. |