Laid off at 55, This Is How I Plan to Manage $400,000 in Cash Without a Tech Job

"Unfortunately, given the current job climate, there is an immediate concern that they won't be hired in the tech field ever again, so there's a potential worst-case scenario here. On the plus side, there is a strong financial situation already in place, composed of $950,000 in 401(k) accounts, as well as $1.25 million in a brokerage account that's split chiefly between various ETFs. There is also approximately $450,000 in cash, which will be used as an emergency fund for living expenses and any necessary home maintenance."

"As far as a home, there is a $640,000 balance on the home mortgage, but with a 2.5% interest rate, this isn't something that should be on the Redditor's immediate radar, at least as far as paying it off. The home itself is worth around $1.6 million, so there is a good chunk of equity. When it comes to home expenses, the Redditor is currently spending around $70,000 annually, which is inclusive of mortgage, property taxes, insurance, utilities, food, etc. Of course, the Redditor claims this is frugal living."

At 55, the worker was unexpectedly laid off after 13 years in a tech role in San Francisco. The worker fears not being rehired in tech given the current job climate. Retirement accounts total $950,000 and brokerage holdings equal $1.25 million, primarily in ETFs. Cash reserves stand at about $450,000 designated for emergency living expenses and home maintenance. The home carries a $640,000 mortgage at 2.5% interest and is valued around $1.6 million, providing substantial equity. Annual household spending is approximately $70,000 covering mortgage, taxes, insurance, utilities, food, and other expenses.

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