Earlier quoted context omitted.
I am always terrified of losing my job. It's a fear I've had even though I've been a top performer the entire five years I've been professionally working. Maybe it's because I grew up poor or because I think things are too good in tech and about to crash any day. My antidote? $100k in liquidity. Preferably not invested in the NASDAQ. If tech crashes, you can take your liquid $100k and move to Thailand, Spain, Portuga…
> $100k in liquidity. That of course puts you into the 1% of people in terms of liquidity. Quite a lot of people are a long way below that: https://www.federalreserve.gov/publications/2019-economic-we... Retirement saving are interesting because for a whole bunch of public policy reasons most people have illiquid retirement savings. > move to Thailand, Spain, Portugal, Turkey Check your visa requirements: can you rea…
$100k sounds like a lot but....I live in San Diego. All in, it costs about $4,200/month post-tax to live here. Sure, it can be done on much less. That means $50,400/year post-tax. So your $100k whether liquid or not only lasts two years max.
Let's say a real recession occurs and you lose your job. If your $100k is in the asset that crashed -- say real estate (which I like real estate) or speculative tech stocks -- oh boy. You're now probably at $70k hopefully. If it takes you 12 months from losing your job to finding a job. Now you're looking at only $20k left in your account....that is scary.
I know I am being paranoid because you'd get unemployment + could probably find a lower level job quick in the meantime + you would cut your $4200/month to bare minimum. But that's my point, I live in this fear and the $100k provides some peace of mind.