[USER]

I’m behind in my retirement savings and I’m about to be unemployed. I’m a mid-40s female doing work that I can only describe as similar to computer programmer/developer.

Often the work I do is classified as engineering.

For the past 4 years I haven’t had access to a 401k. For the next month I will have access to a 401k and then my contract is over at the end of Feb.

I’d like to use this time to catch up a bit. I feel comfortable putting at least 6k into the 401k. Beyond that I’m not sure.

I don’t want to put myself into a bad situation if I’m unemployed for an extended period of time.
It’s possible I might be able to contribute up to 9k into my 401k and I’m curious if that sounds like a bad idea.

The following is where I stand with regards to emergency savings, backup possibilities, etc.

If I strip my expenses down to the bare minimum they should be about 3200-3500/month. I live in San Francisco so it won’t get much cheaper than that.

I have about 60k in cash and CDs. I also have about 40k in brokerage accounts.

There is another 23k in an HSA. **Only about 20k of this is what I have actually earmarked for an emergency, but if worse comes to worst this is all that’s available.

A friend has also offered to take me in, but this would mean moving out of state.

In case it matters, I was unemployed for most of the first half of last year. And the job market for what I do is not looking so hot right now.

At the beginning of the pandemic I started a certification course to change careers.

I’m exploring opportunities in both my current profession and in the one I’ve been preparing to switch to. I’m trying to cast my net as wide as possible.

I think that covers the bulk of it, but let me know if I left anything out.

Would you contribute up to the 9k?

[Noa]

Do you get a match on the 401k? If not, I’d do rothIRA for 2024, then 2025

[John]

You have to survive before you worry about retirement. Step one for me would be get out of San Francisco and California.

That place would bankrupt a billionaire

[Rochelle]

With the instability you have going on right now, you may want to put less into your 401k right now. A potential move to another state and a career change as well, you won’t know how much money you will need to hold you over until your next job.

That’s good that you already put money into your ROTH for last year and this year.

Maybe you can buy some ETF’s which mimics the S&P 500 in your ROTH.

Having a roommate will help with your expenses. Once you are settled into your new career, then you can start investing in your ROTH 401k.

Good luck

[Fricke]

Not exactly answering your question but park all cash in fltr. Low risk flat etf with a high dividend

[Author]

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