Based in San Francisco. Was just laid off from my job at a software company after 13 years there. Am not hopeful for being immediately hired in tech again soon, if ever. So Im assuming worst case scenario that Im not working a well paid job or perhaps any job anytime soon (Im talking years). Here is my current financial picture:

401K accounts (Fidelity and Vanguard): $950,000, with about 50% in VWENX (balanced 60/40 US stock/bonds), 40% in FXAIX ETF (tracks S&P 500), 10% in FBALX (balanced 60/40 US stocks/bonds).

Brokerage Account: $1.25 million, with about 70% in VTI, 10% in VGT, 10% in VOO + VOOG, and varying amounts in XYZ (Block), NVDA, IBIT. $50,000 in BND (Vanguard total Bond ETF).

Cash: $450,000 (a chunk of this is meant for emergency fund, and home maintenance (new roof, at the very least)).

Home Mortgage remaining: $640,000, 2.5% interest.

Home Value: $1.6 million, according to Zillow. At the peak in 2022, Zillow estimated it to be $2.1 million.

Total annual expenses: $70,000 (this includes mortgage, property taxes, insurance, utilities, food, etc). Im frugal.

I want to downsize and sell the house, and will pay CASH for a condo with a target of $900,000. But will likely hold out for a few years for, HOPEFULLY, improvement in the housing market.

Oh, and I have had a side gig for the past 20+ years that has reliably brought in about $25K-30K/year (pre-tax).

No other liabilities. Single. Child independent and working. No intention of ever leaving SF.... unless im desperate and really running out of money.

Oh yeah, and I have $330,000 in previous tax losses that I can harvest ahead, due to some significant losses in individual stocks (now I stay away from individual stocks and stick with ETFs).

My BIG question is..... what do I do with that $400,000 in cash? I have a real fear of not finding another well paid job at a tech company again b/c of my age (and alot of the assets Ive accumulated was due to the success of my last company's IPO). Ive worked in tech for a while, but in pre-sales (not engineering/product). Once I downsize and sell the house to pay cash for a condo, I will be relieved of a mortgage and my annual expenses will be much lower. But what's the best way to put my cash to work now, while optimizing returns and minimizing risk, since Im not working now and may not be for a while????

Thanks for any input!!

(http://www.autoadmit.com/thread.php?thread_id=5777382&forum_id=2,#49282695)

also

> Home Value: $1.6 million, according to Zillow. At the peak in 2022, Zillow estimated it to be $2.1 million.

literally never seen any bay area home value decrease except for a very brief period in 2008

(http://www.autoadmit.com/thread.php?thread_id=5777382&forum_id=2,#49282791)

if ur that unhirable i know boomer tech guys that got jobs at colleges writing custom software to integrate into salesforce

(http://www.autoadmit.com/thread.php?thread_id=5777382&forum_id=2,#49282794)

(http://www.autoadmit.com/thread.php?thread_id=5777382&forum_id=2,#49283233)

Let’s divide this into buckets based on your needs and timeline.

🪣 1. Short-Term Cash Reserve (~$100K–$150K)

This covers:

Emergency fund (ideally 1.5–2 years of expenses since you're not working): ~$105K–$140K

Home maintenance (roof, etc.): Reserve ~$25K–$50K depending on condition

Best options:

High-Yield Savings Account (HYSA) – e.g., Marcus, Ally, SoFi, etc. (currently ~4.5%–5%)

Treasury Bills (3–6 months) via TreasuryDirect or brokerage

Money Market Fund – e.g., Vanguard VMFXX or Fidelity SPAXX (~5%)

Goal: Keep this liquid, safe, and accessible.

🪣 2. Mid-Term Holding (~$300K–$350K)

This is capital you won’t touch until you sell your house and downsize into a condo (likely in a few years).

This is the chunk you want to grow conservatively while minimizing drawdown risk, since you may need to deploy it for a cash purchase.

Best options:

Laddered Treasuries or CDs (1-3 years) – rolling ladder with staggered maturities

Short-term or ultra-short bond ETFs – e.g.:

Vanguard Short-Term Bond ETF (BSV) – low volatility

iShares Short Treasury Bond ETF (SHV)

Vanguard Ultra-Short Bond Fund (VUBFX)

Multi-asset conservative ETF – e.g., Vanguard LifeStrategy Conservative Growth (VSCGX) (~40% stocks, 60% bonds), if you want a slight growth tilt

Avoid: Long-duration bonds, volatile equities, or speculative assets for this pool.

📈 Strategy for the Rest of Your Portfolio

Let’s think beyond the $400K cash and align your entire portfolio for early retirement readiness since you're possibly in a "coast FIRE" or semi-retired mode.

1. Brokerage Investments

You’ve got:

~$1.25M in mostly ETFs (VTI, VGT, VOO, VOOG, NVDA, IBIT, BND)

Suggestions:

Reduce concentrated bets in NVDA and IBIT — trim gradually to lower risk

Target more balance: Add more BND or VTIP for stability

Use tax-loss harvesting and $330K carryforward losses:

Trim winners (like NVDA) and offset gains

Rebalance without tax hit

2. 401(k) Allocation

Since you’re not working and might not touch this until 59.5 or later, let this ride a bit more growth-heavy. But given market cycles, you could:

Keep 60/40 allocation

Or go 70/30 in FXAIX + BND for a slight growth tilt

You’ll want to consider eventual Roth conversions during low-income years (now?) — we can get into that if you're interested.

🏡 Should You Sell Your House Now or Wait?

Your instinct to hold for a better market makes sense, as long as you don’t urgently need to tap equity.

Pros of waiting:

You have low mortgage rate (2.5%)

SF market might rebound somewhat

Delays a taxable event (cap gains)

But don’t wait too long if:

Maintaining the home becomes burdensome

Market continues to soften

You can find a great condo now (condo prices may be more attractive than SFHs)

Just remember:

Once you sell and buy a condo for cash (~$900K), you’ll free up ~$600K in equity.

That equity becomes part of your investable portfolio (with no mortgage burden).

🧮 Are You "Work Optional" Now?

Let’s run the numbers assuming you never work full-time again:

Total Investable Assets (excl. home): ~$2.65M (401k + brokerage + cash)

Net home equity: ~$960K

Total annual expenses: $70K (less if no mortgage)

Side income: $25K–$30K

So, your net draw is only ~$40K–$45K/year.

At a 3.5% withdrawal rate, you'd need:

$1.15M–$1.3M, and you have ~$2.65M+

✅ You're already financially independent (or very close). You could “coast” without a full-time job and supplement from your side gig.

✅ Final Recommendations

🔒 For the $400K Cash:

Bucket Amount Where to Park It

Emergency + Home $100K–$150K HYSA or money market

Downpayment Reserve $250K–$300K Treasury ladder, BSV, SHV, or VSCGX

💡 Other Actions:

Rebalance brokerage portfolio – trim risk assets (NVDA, IBIT), shift toward more BND or VTIP.

Harvest capital gains using your $330K tax loss carryforward.

Evaluate Roth conversion strategy – could save on taxes long-term.

Monitor housing market – but don’t be afraid to sell/move early if the right deal pops up.

Don’t rush to go back to tech — explore freelance, consulting, or even nonprofit work if it’s fulfilling.

(http://www.autoadmit.com/thread.php?thread_id=5777382&forum_id=2,#49283053)

Oh wait....

(http://www.autoadmit.com/thread.php?thread_id=5777382&forum_id=2,#49283063)