The OP has plenty of flexibility thanks to being FI.HomeStretch wrote: ↑Thu Oct 31, 2019 8:02 amWith a $4.26k portfolio and $75k annual spend, you have 57x annual expenses saved (before SS income).
You will absolutely positively be fine if you are laid off even without a severance package. Do start updating your resume etc. just to feel like you are doing “something” about a work situation you have no control over. Best of luck.
ETA: if you haven’t already, read CyclingDuo’s thread about layoffs. It has a lot of good info:
He has the latitude of taking a part-time job, or a lower paying job in an area of interest without all of the stress if so desired to fill up some time, purpose, and challenge all while he delays having to tap the savings. Perhaps getting medical coverage, and continuing to save while at it.
OP wrote: Quite honestly, I have been thinking about leaving work for quite some time, but I would really like to save up another $135K to $175K before doing so. But that might not possible now. And while I'd rather be able to leave on my own terms and timeline rather than on my employer's, that might not be possible now either.
Although I was age 56 at the time of my layoff, I can relate to what he said. Especially two of his thoughts (which are rather common thoughts by the way): leaving on my own terms and saving up another chunk of money.
The former did not happen. I was given a 3 month time line for my last day of work, and a 6 month time line for receiving my final paycheck (academia spreads the salary for 9 months of work across 12 months of paychecks). Not quite the leaving on my own terms that one envisions.
The latter included my own internal plans for saving another $250K via maxing out my 403b each year for what I thought would be my remaining years in that position. That was just a calculation based on maxing out the 403b with my pre-tax salary contributions (using the catch up rules for being over age 50) to continue to save and add with an effort to create an additional $10K per year in retirement income (4% of $250K) on top of what we had already saved. The leaving on my own terms to retire at or around a typical professor's retirement age at the institution where I was teaching was simply chosen based on what I had seen many of my former colleagues do in the past 15 years (retire in the mid 60's on average).
The latter did not happen. At least it didn't happen at my previous job. I secured replacement income by the time my last paycheck arrived at the end of 6 months of finding out I was being terminated. So the latter is still underway of happening via different venues as I have continued socking away a healthy chunk of my replacement income.
It looks like the OP could go in many directions since he is FI, only age 42 and still possesses plenty of human capital he could tap into if he chooses to deploy it in case the layoff actually materializes. He may lose out on quitting on his own terms this time around, but could still achieve his other goal of saving another chunk of money via another job/venue. His runway for landing and taking off again is also much longer than the one I faced in my mid 50's. This should provide the OP time to contemplate it all and make some decisions.