Compare similar life situations, assumptions, and retirement tradeoffs.
United States
Work & income
US freelancer: Solo 401(k) or SEP IRA for retirement?
For: Single US freelancer (38), renter, choosing between a Solo 401(k) and a SEP IRA
For a freelancer with uneven income, the better retirement account often depends less on headline limits and more on whether you can save steadily through the.
US self-employed: Solo 401(k), IRA, buffer, or taxable?
For: US self-employed consultant (40), irregular income, deciding whether tax shelter, cash buffer, IRA, or taxable savings comes first
For a self-employed worker with uneven income, the right first dollar may be tax shelter, cash reserve, or taxable flexibility. Compare three funding routines.
For: Single US worker (32), renter, $45,000 student-loan balance, deciding whether to pay loans faster or capture the 401(k) match first
If your student loans feel urgent but your employer offers a 401(k) match, this scenario shows why the match can be hard to skip unless the debt is high-rate.
A layoff-focused Austin FIRE scenario that shows how severance, COBRA, and a lower next salary ripple through your retirement math.
You are 35, single, and were on a strong Austin tech savings track before a layoff forced a reset. Rent, health coverage, and job-search costs can still chew through several thousand dollars a month before the next paycheck arrives, even with Texas unemployment softening part of the hit. The real choice is whether to keep pushing for very early retirement immediately, accept a later timeline, or spend a few years rebuilding stability first.
This pack compares three realistic branches:
Keep FIRE push: assume a shorter gap, then return to aggressive saving and keep the age-55 target.
Reset timeline: model a longer search and a lower next salary, then rebuild toward a later retirement with less monthly pressure.
Rebuild first: prioritize cash stability and mental recovery, then step saving back up over time.
Everything runs in today’s dollars under cautious, base, and stronger long-run market assumptions so you can see how sensitive the plan is to markets versus lifestyle changes.
How to read this: Savings effort is the simulator’s average monthly investing amount before retirement (after rent, health insurance, and other modeled costs). Planned spend is the retirement lifestyle baked into the entries; Safe spend is the guard-railed amount that keeps a 60-month buffer. Capital at retirement and interest earned are in real dollars.
Path (Base return)
Savings effort (avg)
Retirement age
Planned / Safe spend
Retirement capital / interest earned
Keep FIRE push
$4,341
55
$6,200 / $6,992/mo
$1,839,254 / $593,574
Reset timeline
$3,227
58
$6,200 / $6,990/mo
$1,688,988 / $621,938
Rebuild first
$2,887
60
$6,000 / $6,663/mo
$1,781,199 / $709,099
What jumps out:
The Keep FIRE push path still retires at 55 and delivers $1.84M at retirement plus $593k of pre-retirement interest. After adding larger late-life housing and civic-giving uses, it now ends with about $1.06M (roughly 14.3 years of the modeled $6,200/mo lifestyle) and a safe budget of $6,992/mo, so it stays inside the terminal-wealth guardrail without losing the early-retirement outcome.
Reset timeline cuts the savings load to $3.2k/mo (about $1,100/mo less than the FIRE push) and retires at 58. The safe spend only drops to $6,990/mo, so delaying FIRE by three years buys nearly the same guardrail while giving the persona more recovery time.
Rebuild first starts with the gentlest saving pace and only turns more aggressive later, yet it still earns $709k of pre-retirement interest and ends with $821k at age 90. Safe spend is $6,663/mo versus a $6,000 plan, so this branch shows how a calmer cadence can work if you accept a later retirement.
Weaker-market stress adds realism: in the pessimistic runs, safe budgets tighten to roughly $5,805 / $5,878 / $5,431. That means the planned $6,200 spend is too high in both the keep-FIRE and reset paths, and even the rebuild path should be cut closer to $5.4k/mo if markets disappoint. In the optimistic runs, safe budgets land near $6,478 / $6,717 / $6,847, which shows the upside is still healthy but no longer relies on leaving excessive end-of-life capital untouched.
Whether keeping an age-55 FIRE target after a layoff is worth the $1k+/month extra savings versus a slower, lower-stress rebuild.
How much of the gap is driven by returns vs lifestyle: weaker long-run markets shrink the spending guardrail meaningfully relative to the base case.
The cash-runway math: rent, health coverage, upskilling, and job-search costs can burn through tens of thousands before the next role starts, so the model shows how long your investments can carry that.
Gap modeling: each branch includes a period of elevated layoff spending, temporary full-price health coverage, partial unemployment support, and a severance cushion.
Healthcare transitions: COBRA runs for several months before Marketplace premiums or employer coverage take over, so the gap does not assume an instant return to subsidized benefits.
Savings ladders: the saving pace rebuilds at different speeds by age band, so you can see how much pressure each path puts on the recovery years.
One-off shocks: all variants include car replacements, relocation costs, health deductibles, and later-life care reserves so the comparison doesn’t depend on unrealistically smooth decades.
Late-life generosity: each path bakes in meaningful family-support, housing, care, and community-giving pulses between ages 62 and 89. The higher-surplus branches also assume more family and community giving later in life, so the comparison stays focused on flexibility rather than unused end balances.
Retirement anchors: Social Security is treated as roughly $3,000/month from the late 60s, and the retirement budget assumes a fairly full Austin renter lifestyle rather than a lean FIRE target.
This is the highest-pressure version of the plan: a relatively short job gap, severance, and unemployment benefits bridge the shock. Once rehired, saving snaps back to an aggressive pace, and discretionary costs stay modest so the portfolio can keep compounding. The guardrail now shows $6,992/mo of safe spend against a $6,200/mo plan, so there is still room to loosen the budget later - but only if you refill the emergency fund and keep contributions elevated once income stabilizes.
Here the job search lasts longer and you accept a smaller next salary plus a relocation. Savings recover gradually, and Marketplace healthcare premiums run longer. You retire at 58 instead of 55, which adds enough compounding to keep a $6,990/mo safe budget even though the spending plan sits at $6,200/mo. This path also treats the later condo-style aging-in-place move as cash leaving the portfolio, rather than home equity that shows up in ending capital. In a weak-return run, though, this path needs spending closer to $5,878/mo, so it works best for readers willing to trim later if the recovery stays bumpy.
This branch protects mental health and liquidity first: saving restarts modestly, side income helps bridge the recovery, and the plan only becomes more aggressive once work feels stable again. Retiring at 60 sounds like a concession, but the longer investing runway generates the $709k interest boost by retirement and still leaves a $6,663/mo safe budget versus the planned $6,000/mo. Even here, the pessimistic case only supports about $5,431/mo, so this is the most forgiving branch - not a free pass to ignore market risk.
Update the Social Security line with your latest SSA estimate or claiming age; a different benefit can shift safe monthly spending by hundreds.
Change the job-gap dates to match your severance, visa timeline, or expected re-employment date, then compare how the updated results change your safe monthly spending.
Adjust the savings age bands to mirror your actual income progression or bonus cadence; the guide on how to edit income and expense lines walks through updating age-based entries quickly.
If you’re new to the simulator’s metrics, start with Reading your results so terms like safe monthly spending and capital at retirement feel intuitive before you tweak values.
Texas unemployment insurance currently caps weekly benefits at $605 (~$2,620/mo). Model a lower figure if severance delays eligibility or if you expect contract work.
COBRA vs Marketplace: COBRA can run 102% of your prior premium (roughly $750-$800/mo in this persona). The scenario switches to Marketplace coverage once COBRA ends, but you should change the duration if you expect faster employer coverage or subsidy eligibility.
Retirement accounts aren’t frozen: payroll deferrals stop during unemployment, but the balances can roll into an IRA or solo 401(k). The presets assume you stay invested and avoid cash-outs.
Healthcare / rent shocks dominate the gap. If your rent is above the modeled Austin renter assumption or if you carry debt payments, add them explicitly; otherwise the model can overstate your margin.
This scenario is an educational model, not financial advice. It simplifies taxes, employer-plan rules, debt payoff, and healthcare eligibility so you can spot trade-offs before validating with official resources.