It's layoff week at my company. I have mixed feelings in that I'm far enough along that I wouldn't hate a funemployment break, but given I'm not quite at my number yet and the state of the tech market, I'd really hate to start burning through my savings. I just want to know which way the dice rolls for me because it's really hard to make plans for this next year when it's 50/50 if I'll have a job this year.

[–] [email protected] 2 points 2 days ago (2 children)

Ah, I'm really sorry to hear that. It's a stressful place to be. If it's any consolation, I think many of us understand what you're going through; I suspect many of us are in the tech industry, since that's one of the few industries that actually pays well enough to contemplate early retirement, let alone retirement of any kind.

That used to be the rule, with pensions and retirement after 30 years, but now 1950s and '60s-style solidly middle-class salaries that allow for home ownership and a single-earner household are few and far between...

Some people I talk to still have this impression of the tech industry from, like, the Google of 20 years ago (although that impression is fading). I explain to them that the tech industry has been in a multi-year recession. All those perks disappeared long ago. They've been replaced with stack ranking, rolling layoffs, and pressure to repeatedly do more with understaffed teams.

I know part of it has to do with the change in corporate R&D tax deductions, but I think the industry also finally realized after the frothy period ending around early 2022 that regular layoffs keep it an employers' market, and in those controls they really could do more with less, since workers would work harder to avoid the next layoff.

My own retirement is still a long way off. My current target is owning my house outright, so in this uncertainty I'll never have to worry about getting my savings if I'm laid off for an extended period. If you're able, I suggest everyone do this. I'm currently debating whether or not to just swallow the short-term capital gains tax in order to get in before the wider economic correction.

[–] yenahmik 2 points 2 days ago (1 children)

Deciding to pay off the mortgage is a tricky decision, especially for those of us who locked in super low rates. I always assumed the best choice was to pay off the mortgage asap (long before I'd learned about FIRE), but with a 2% mortgage I'm inclined to never actually pay it off early. I have more money and flexibility by keeping my savings invested than if I dumped it into my mortgage.

If I had a higher rate (like 5%+), I think I'd be more inclined to agree with you. Though it'd have to be obscenely high rates for me to decide taking the tax hit of selling investments in order to pay off the house.

[–] [email protected] 2 points 1 day ago

Yes, that's true. While I'm fairly risk tolerant in my personal life, I'm not with finances. I invest in index funds and prioritize cash flow. I would rather spend a fixed amount up front for a guaranteed "dividend" (benefit) than be leveraged with more money in the bank.

For example, after my home is paid off, I'll probably explore a solar roof to reduce my monthly utility expenses. What's the payoff, like 10-15 years? But knowing I can survive on a small, relatively fixed amount each month means I have more security and flexibility. It's approaching the same goal, just in a different way.

But I also bought my (latest and probably last) home in late 2022. I have a 7.5% interest rate or something, so, you know, not a particularly difficult decision in my case.

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