I’m anxious about another layoff despite earning $600k a year – is there a faster way to reach our retirement goals?

With all the mass layoffs that have been in the news in recent months (more like recent years), it’s natural to feel just a bit anxious en route to an early retirement, even with a massive six-figure salary. Arguably, it’s the larger salaried employees that could be targeted first as firms look to go after the most sizeable of cost cuts first. Add the potential for AI- and agent-driven automation into the equation, and one has the right to be concerned about what the future holds. Indeed, AI is advancing at a rapid pace, and the concept of “digital labor” could be entering the mainstream.

In any case, I’m not here to provide comfort and say things will be okay because the future is just not knowable, especially given some profound technologies are improving at a rate that can be pretty difficult to fathom. Either way, one should be aware of the risks and seek to redirect their energy towards efforts that can help them take their retirement journey into supercharge.

Of course, not everyone is pulling in a jarring six-figure sum to make a “chubby” early retirement a reality. Either way, by spending far less than one brings in and investing the proceeds in high-quality, undervalued stocks or broad market index funds, one may just be able to set the stage for an early retirement, even before the next wave of layoffs hit.

Cutting the personal budget can supercharge one’s savings rate

Undoubtedly, various firms have many different reasons for cutting the budget. And if an organization you’re working at has undergone several “waves” of layoffs, the best way forward, at least in my view, may be to spend as though you’ve already been laid off. Indeed, by cutting one’s personal expenses and taking on a more frugal approach, one will have a bit more cash after every paycheck to stash in a high-yield savings account (HYSA) or investment portfolio.

Indeed, it’s not easy to embrace minimalism or no-buy years, especially if you’ve embraced “lifestyle creep” and have cranked up spending to match the recent rise in one’s income. That said, less spending really is the key to pulling one’s retirement ahead by some amount of time, whether it be a few weeks, months, or even years. At the end of the day, money spent in the present stands to push back an early retirement by some amount of time. 

For someone like this high-earning but burnt-out Reddit user, who’s pulling in $600,000 annually, it can be pretty easy to save up well north of 80% of one’s paycheck. And while you don’t need such an obscenely high savings rate, a goal of those anxious about job security should be to put away more acorns before the winter time arrives.

Investing in stocks is the way to growth.

A higher allocation towards stocks will make the market’s rough patches that much more noticeable and even nauseating, but if you want a “faster way” to reach an ambitious retirement goal such as “chubby FIRE,” stocks are the asset class to stay in, even when fluctuations get wilder. At the end of the day, more volatility doesn’t have to be a bad thing if you’re buying the dips and riding things out gradually with a long-term view at the top of your mind, at least in my opinion.

While you don’t need to reach for the high-multiple growth stocks that have more than doubled in the past five years, I do think that a broad market index fund alongside a good chunk of gold exposure can help one stay in the wealth-creation fast lane. Of course, do chat with a financial advisor before altering your asset allocation, as your risk tolerance must first be assessed.

Of course, those heavy on stocks should be aware of the bear. Bear markets happen, and it’s important to have a long-term focus to avoid substantial losses that could turn a chubby FIRE kind of early retirement into a more traditional one taken at around age 60-65.

As always, understand the risks and be careful not to give into “shortcuts,” as they often lead to speculative securities that could lead to steep losses in a hurry.

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