Should I stop contributing to my 401(k) and build up my cash?

I am 55 years old and losing my job in 6 months. My wife and I have zero debt, $38,000 in cash, $14,000 in mutual funds, and $1,400,000 in our IRA's. I want to accumulate a large cash cushion. Should I stop contributing to my 401(k) and just bank that money?

401(k), IRAs
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6 days ago
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Not knowing your income or living expenses in this scenario can make for a more complex situation but I think it would be wise to hold off on contributions to the 401k for now and build up your cash cushion over the next few months. I’m not sure if your wife brings in any income but either way it’s generally best to be on the safer side and sit on more cash than you may need during this time than to have a less than sufficient cushion and have to dip into your retirement savings.

Remember once you're working for a new employer you can contribute to their 401k or similar program and invest your larger than needed cash cushion into other vehicles such as a deferred annuity, additional life insurance, brokerage account, etc.

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