Leaving the Bay Area: Critique my Coast FIRE plan

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yosemite_mountain
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Leaving the Bay Area: Critique my Coast FIRE plan

Post by yosemite_mountain »

I’m currently 33; I'm looking to leave the US in 5 years time at age 39.

At age 39 I plan on having a $3m retirement portfolio of stocks/bonds invested in a three fund portfolio. I do not plan on withdrawing from, or contributing to this $3m from age 39 until full retirement at age 60.

After I leave the US, from age 39 to age 60 I plan to take a lower paying job in the destination country that will cover ~$75k annual expenses, but will not allow me to make further contributions to my retirement portfolio; I’ll spend all I earn.
The plan is for the lower paying job in the destination country to be a combination of remote work with a US salary, plus rental income from an apartment block in the destination country.

I will have dual citizenship in the destination country. I left the destination country as a teenager, and I have been visiting every year since then.

STATS:
-Single, 33, Bay Area CA
-Portfolio: 80:20 stocks/bonds; all in three fund portfolio

Question:
-Anything else I should plan for? I'm I missing anything?


*******Captured feedback from comments ******


-Health insurance while overseas: Research health insurance in destination country (To qualify for ACA one must be living in the US. Look into international insurers like Bupa, Cigna. I'm looking into Cigna Global health plans, which covers healthcare at any licensed provider, anywhere in the world outside the US. I know my current employer offers this plan for expats; so it must be legit. Also get medical evacuation; Cigna Global offers medical evacuation as part of its health insurance. Have a plan for where to go to if you need advanced medical care. Consider returning to US after 65 for medicare.
-Severe ties with CA before moving overseas: Officially severe ties with CA before moving so CA franchise tax board wont come after me. Keep a US address in state with no income tax
-Social security: Generate 10 years of Social Security earnings before leaving the US in order to qualify for SS. If you didn't work for 35 years then you get $0.00 for each of the missing years.
-Medicare: Pay medicare taxes for 10 years before leaving the US in other to be eligible for Medicare when I hit retirement age
-Hire tax professional/lawyer to understand tax pitfalls for US citizens living abroad: Hire tax professional/lawyer to look at pitfalls for a US citizen living abroad. Get a good tax advisor who specializes in international. A Bogleheads member recommended using Global Tax Network; which he used when he was an expat. Being a US citizen, you will have to continue to pay US taxes, plus taxes in your foreign country.
While living abroad, I wont have US taxes due on any income earned outside the US that is less than $107,600. However, I will have US taxes due on dividends earned on my $3m US portfolio at Vanguard. I may have US taxes due if I'm living overseas working remotely for a US based company, even if I make below the $107,600 threshold.
Research whether tax-advantaged accounts are eligible for all the same tax benefits while living abroad. Do some research to make sure that you can actually use your retirement accounts as intended once you reach full retirement age.
-1 year trial period in destination country: Consider living in destination country for a year and try it out first before quitting; then decide what you want to do then
-Keep a US address while overseas: Research keeping a US address while overseas. You'll need this US address for brokerage accounts, banks, etc.
-Budget for private security in destination country: Wealth may stick out so consider living in gated community with private security.
-Keep investments, money to a minimum in destination country: Have as little money as possible (<10% of net worth) in the destination country, in case local politics become unstable. Consider having your paychecks deposited into a North American or European account.
-Keep passport current: It might be necessary to leave on short notice.
-Use VPN while overseas to access brokerage accounts: Vanguard may lock trading accounts when people logged into them from the wrong parts of the world too many times.
Last edited by yosemite_mountain on Sat Jan 15, 2022 1:03 am, edited 31 times in total.
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LongTermHorizon
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by LongTermHorizon »

What if you find a partner and want to get married, or have a family, or what if your spouse/children/or your parents have a medical condition?

Expecting lower pay likely won't work as inflation will eat you alive so you'll have to dip into your reserves.

I would leave SFO sooner than 5 years, say in 12 months, and instead move to somewhere like Texas or Florida.

Now if you had $30 million or $300 million then it'd be a different story.
Last edited by LongTermHorizon on Tue Jan 11, 2022 7:14 pm, edited 1 time in total.
cbs2002
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by cbs2002 »

Who knows? You didn’t provide much info. With $3M you have lots of flexibility. Good luck
AnnetteLouisan
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by AnnetteLouisan »

Can people who have “lower paying, stress free” jobs chime in here? What jobs are those and what are they like?

(Crickets)
MarkRoulo
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by MarkRoulo »

yosemite_mountain wrote: Tue Jan 11, 2022 7:02 pm I’m looking to leave the US in 5 years time at age 39.

At age 39 I plan on having a $3m retirement portfolio of stocks/bonds invested in a three fund portfolio. I do not plan on withdrawing from, or contributing to this $3m until full retirement at age 60.

After I leave the US, from age 39 to age 60 I will take up a lower paying job that will cover ~$75k annual expenses, but will not allow me to make further contributions to my retirement portfolio; I’ll spend all I earn. I plan on using the Affordable Care Act for health insurance from age 39 until age 65 when I can qualify for Medicare.
How does this work?
Californiastate
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by Californiastate »

What lower paying job did you have in mind? Why do you think you'll be happier living hand to mouth?
boogiehead
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by boogiehead »

yosemite_mountain wrote: Tue Jan 11, 2022 7:02 pm I’m looking to leave the US in 5 years time at age 39.

At age 39 I plan on having $3m in stocks/bonds invested in a three fund portfolio. I do not plan on withdrawing from this $3m until full retirement at age 60.

After I leave the US, from age 39 to age 60 I will take up a lower paying, stress free job that will just cover my expenses, so I won’t be able to contribute to my portfolio; I’ll spend all I earn. I plan on using the Affordable Care Act for health insurance from age 39 until age 65 when I can qualify for Medicare.

STATS:
-Single, 33, Bay Area CA
-Portfolio: 80% stocks/bonds; all in three fund portfolio

Question:
-Anything else I should plan for? I'm I missing anything?
A couple things ... if you are moving out of the USA why would you even need ACA for health insurance? Shouldn't you plan on getting insurance from the country you will be living and working there? Also... not sure what your $3 million split is between retirement and non-retirement, but I'm assuming you will be moving to a country where the cost of living will be significantly less than SF, and if you are single and not supporting anyone I think with $3 million even with a conservative 3% withdraw rate you'll be generating 90K a year which I would imagine that would be more than enough for you to coast.
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yosemite_mountain
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by yosemite_mountain »

Californiastate wrote: Tue Jan 11, 2022 7:20 pm What lower paying job did you have in mind? Why do you think you'll be happier living hand to mouth?
Where I plan to move to I can live in luxury with $75k annual expenses.
Normchad
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by Normchad »

Your plan is completely fine and reasonable.
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yosemite_mountain
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by yosemite_mountain »

boogiehead wrote: Tue Jan 11, 2022 7:22 pm
yosemite_mountain wrote: Tue Jan 11, 2022 7:02 pm I’m looking to leave the US in 5 years time at age 39.

At age 39 I plan on having $3m in stocks/bonds invested in a three fund portfolio. I do not plan on withdrawing from this $3m until full retirement at age 60.

After I leave the US, from age 39 to age 60 I will take up a lower paying, stress free job that will just cover my expenses, so I won’t be able to contribute to my portfolio; I’ll spend all I earn. I plan on using the Affordable Care Act for health insurance from age 39 until age 65 when I can qualify for Medicare.

STATS:
-Single, 33, Bay Area CA
-Portfolio: 80% stocks/bonds; all in three fund portfolio

Question:
-Anything else I should plan for? I'm I missing anything?
A couple things ... if you are moving out of the USA why would you even need ACA for health insurance? Shouldn't you plan on getting insurance from the country you will be living and working there? Also... not sure what your $3 million split is between retirement and non-retirement, but I'm assuming you will be moving to a country where the cost of living will be significantly less than SF, and if you are single and not supporting anyone I think with $3 million even with a conservative 3% withdraw rate you'll be generating 90K a year which I would imagine that would be more than enough for you to coast.
I do not plan on withdrawing from this $3m until full retirement at age 60.
sailaway
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by sailaway »

Could you elaborate on the plan to rely on ACA while living outside the US?

It sounds like you plan to move to a low income country, but have a very good income there. Why are you ignoring what healthcare might be available there? How realistic is your income plan? Have you researched immigration to this place?
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retired@50
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by retired@50 »

ACA plan offerings are determined by which state and county you live in.
I'm not sure you'll be able to select a plan if you're living in a foreign country. I guess you could start at healthcare.gov and see if you're allowed to select a plan with a foreign address.

Start here: https://www.healthcare.gov/

Regards,
Last edited by retired@50 on Tue Jan 11, 2022 7:27 pm, edited 1 time in total.
This is one person's opinion. Nothing more.
JBTX
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by JBTX »

So are you confident you can leave the country and get a low stress job that will cover $75k expenses? Curious what kind of job that would be.

Still confused about ACA out of the country.
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yosemite_mountain
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by yosemite_mountain »

JBTX wrote: Tue Jan 11, 2022 7:31 pm So are you confident you can leave the country and get a low stress job that will cover $75k expenses?
Yes, I am confident I can leave the country and get a job that will cover $75k annual expenses
Last edited by yosemite_mountain on Tue Jan 11, 2022 7:37 pm, edited 1 time in total.
drk
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by drk »

yosemite_mountain wrote: Tue Jan 11, 2022 7:02 pm I’m looking to leave the US in 5 years time at age 39.
[...]
I plan on using the Affordable Care Act for health insurance from age 39 until age 65 when I can qualify for Medicare.
:confused
Healthcare.gov wrote: To be eligible to enroll in health coverage through the Marketplace, you:
  • Must live in the United States.
  • Must be a U.S. citizen or national (or be lawfully present). Learn about eligible immigration statuses.
  • Can't be incarcerated.
Two out of three ain't bad, but I don't think it's sufficient.
jack.bauer
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by jack.bauer »

Great plan. No critique from me.
JBTX
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by JBTX »

yosemite_mountain wrote: Tue Jan 11, 2022 7:34 pm
JBTX wrote: Tue Jan 11, 2022 7:31 pm So are you confident you can leave the country and get a low stress job that will cover $75k expenses?
Yes, I am confident I can leave the country and get a job that will cover $75k annual expenses
OK you are confident you can do it, won't answer repeated questions about using ACA out of the country...no other details. Really don't know what you are trying to accomplish with the thread.

I don't think doing something different while you are still relatively young is a bad idea at all. But the devil is in the details.
FireProof
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by FireProof »

With $3 million, I would just retire. At a SWR of even only 3%, that's $90K/year, which is a) a lot of money b) more than the $75/k you are planning to live on. Like others, I'm not sure how you plan to use the ACA while living abroad, but as long as you don't live in the US, cost of medical care is not a big issue anyway.
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yosemite_mountain
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by yosemite_mountain »

JBTX wrote: Tue Jan 11, 2022 7:38 pm
yosemite_mountain wrote: Tue Jan 11, 2022 7:34 pm
JBTX wrote: Tue Jan 11, 2022 7:31 pm So are you confident you can leave the country and get a low stress job that will cover $75k expenses?
Yes, I am confident I can leave the country and get a job that will cover $75k annual expenses
OK you are confident you can do it, won't answer repeated questions about using ACA out of the country...no other details. Really don't know what you are trying to accomplish with the thread.

I don't think doing something different while you are still relatively young is a bad idea at all. But the devil is in the details.
I was not aware I can't use ACA out of the country. I'll look into overseas health insurance
02nz
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by 02nz »

yosemite_mountain wrote: Tue Jan 11, 2022 7:41 pm I was not aware I can't use ACA out of the country. I'll look into overseas health insurance
LOL the gov't should probably encourage everyone to use health care outside the U.S. It's a lot cheaper just about everywhere else!
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by AerialWombat »

With $3 million, you can retire at 39 and live off that for the rest of your life in about 98% of the US. So yeah, you’re good, and don’t need to work at all if you’re moving to a very low cost country.
For entertainment purposes only.
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yosemite_mountain
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by yosemite_mountain »

02nz wrote: Tue Jan 11, 2022 7:43 pm

LOL the gov't should probably encourage everyone to use health care outside the U.S. It's a lot cheaper just about everywhere else!
I'm not sure if the health care outside the US is as good.

I know someone in the UK who had a really bad toothache and had to wait a year to see a dentist.
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by frugalecon »

yosemite_mountain wrote: Tue Jan 11, 2022 7:55 pm
02nz wrote: Tue Jan 11, 2022 7:43 pm

LOL the gov't should probably encourage everyone to use health care outside the U.S. It's a lot cheaper just about everywhere else!
I'm not sure if the health care outside the US is as good.

I know someone in the UK who had a really bad toothache and had to wait a year to see a dentist.
This is a little confusing. Are you suggesting that you will continue to receive health care in the U.S., despite living abroad? (Not totally crazy; I know early retirees who spend most of their time ex-U.S. who pass through their most recent home base to see doctors and dentists at regular intervals.) That could work for some stuff, but at your age I would think that emergency medical care is what you would be most likely to require (burst appendix, car wreck, weird infection that comes on abruptly), and you would need to get that treated in country, I would think.
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yosemite_mountain
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by yosemite_mountain »

boogiehead wrote: Tue Jan 11, 2022 7:22 pm Also... not sure what your $3 million split is between retirement and non-retirement.
The split is 1/3 Roth IRA and 401k; 2/3 taxable

but I'm assuming you will be moving to a country where the cost of living will be significantly less than SF
Yes, with $75k annual expenses I'll be living in luxury
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yosemite_mountain
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by yosemite_mountain »

frugalecon wrote: Tue Jan 11, 2022 8:05 pm
This is a little confusing. Are you suggesting that you will continue to receive health care in the U.S., despite living abroad? (Not totally crazy; I know early retirees who spend most of their time ex-U.S. who pass through their most recent home base to see doctors and dentists at regular intervals.) .
Do you know what kind of insurance your friends are using ?
My plan is to see US doctors at regular intervals and then rely on the local hospitals for issues that cant wait.
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Watty
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by Watty »

yosemite_mountain wrote: Tue Jan 11, 2022 7:02 pm -Anything else I should plan for? I'm I missing anything?
A couple of things to add to your checklist;

1) You did not say if you were from that country or if you even spoke the local language. Even if you speak it OK for things like business the idioms and slang for everyday social interaction can be difficult. Even if you already speak the language it would be good to study it a lot for the next five years to make sure that you are really fluent in it since that will make a huge difference in how well you fit in. If you left that country as a child or teenager then your language skills may still be at that level. Be sure to have a "plan B" in case living there does not work out for you.

2) Be sure to look at what it will take to officially cut your ties with California. People have posted that California can be agressive in trying to get people who have moved out of the country to still pay California taxes.

3) If you are not a US citizen then be sure to research how that impacts your taxes and especially your estate taxes if you are living overseas when you die. The non resident alien estate taxes can be ridiculous. Other people inheriting your retirement accounts will be problematic. Be sure to look into what will happen with your Social Security if you are not a US citizen and living outside the US.

4) Make sure that you know all the details about what it will take to get a permanent visa to live and work there. Even if you will be working remotely for some company in a different country you likely will still need a work visa. If you get a visa that expires in five years then it may not be renewed. I would not buy property there until you have a permanent visa.
frugalecon
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by frugalecon »

yosemite_mountain wrote: Tue Jan 11, 2022 8:12 pm
frugalecon wrote: Tue Jan 11, 2022 8:05 pm
This is a little confusing. Are you suggesting that you will continue to receive health care in the U.S., despite living abroad? (Not totally crazy; I know early retirees who spend most of their time ex-U.S. who pass through their most recent home base to see doctors and dentists at regular intervals.) .
Do you know what kind of insurance your friends are using ?
My plan is to see US doctors at regular intervals and then rely on the local hospitals for issues that cant wait.
I’m not entirely sure what they are using for insurance, but they are doing something a little different from you. Rather than setting up a new life outside the U.S., they are doing successive AirBnB stints of 4-8-12 weeks in various locales, and they cycle through the U.S. in the breaks. They may have maintained some sort of legal domicile in the U.S.
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anon_investor
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by anon_investor »

AnnetteLouisan wrote: Tue Jan 11, 2022 7:13 pm Can people who have “lower paying, stress free” jobs chime in here? What jobs are those and what are they like?

(Crickets)
Higher paying stress free jobs are probably easier to find!
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HomerJ
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by HomerJ »

LongTermHorizon wrote: Tue Jan 11, 2022 7:09 pm What if you find a partner and want to get married, or have a family, or what if your spouse/children/or your parents have a medical condition?

Expecting lower pay likely won't work as inflation will eat you alive so you'll have to dip into your reserves.

I would leave SFO sooner than 5 years, say in 12 months, and instead move to somewhere like Texas or Florida.

Now if you had $30 million or $300 million then it'd be a different story.
You think he needs $30 million or $300 million to retire on $75k a year?
"The best tools available to us are shovels, not scalpels. Don't get carried away." - vanBogle59
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yosemite_mountain
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by yosemite_mountain »

Watty wrote: Tue Jan 11, 2022 8:18 pm
yosemite_mountain wrote: Tue Jan 11, 2022 7:02 pm -Anything else I should plan for? I'm I missing anything?
A couple of things to add to your checklist;

1) You did not say if you were from that country or if you even spoke the local language. Even if you speak it OK for things like business the idioms and slang for everyday social interaction can be difficult. Even if you already speak the language it would be good to study it a lot for the next five years to make sure that you are really fluent in it since that will make a huge difference in how well you fit in. If you left that country as a child or teenager then your language skills may still be at that level. Be sure to have a "plan B" in case living there does not work out for you.
I left the country as a teenager

2) Be sure to look at what it will take to officially cut your ties with California. People have posted that California can be agressive in trying to get people who have moved out of the country to still pay California taxes.
Before I leave CA, I plan to
-Severe all ties with CA (cancel CA state driver's license, car registration, own no property, change IRS address to new state
-Establish residency in a state with no income tax prior to moving abroad.



3) If you are not a US citizen then be sure to research how that impacts your taxes and especially your estate taxes if you are living overseas when you die. The non resident alien estate taxes can be ridiculous. Other people inheriting your retirement accounts will be problematic. Be sure to look into what will happen with your Social Security if you are not a US citizen and living outside the US.
-I will be a US citizen. I can still collect social security while living outside the US, correct?

4) Make sure that you know all the details about what it will take to get a permanent visa to live and work there. Even if you will be working remotely for some company in a different country you likely will still need a work visa. If you get a visa that expires in five years then it may not be renewed. I would not buy property there until you have a permanent visa.
I plan to apply for dual citizenship
AnnetteLouisan
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by AnnetteLouisan »

anon_investor wrote: Tue Jan 11, 2022 8:25 pm
AnnetteLouisan wrote: Tue Jan 11, 2022 7:13 pm Can people who have “lower paying, stress free” jobs chime in here? What jobs are those and what are they like?

(Crickets)
Higher paying stress free jobs are probably easier to find!
I knew a construction employee once who thought any job where you “sit inside at a desk and push paper” rather than hauling concrete block in all weather was by definition an easy job. I think everyone thinks the grass is greener. But I’m not so sure lower paying and stress free coexist in the employment space.
quattro73
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by quattro73 »

Where is this magical place?
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by CletusCaddy »

I think low stress jobs are defined by the following:

1. Low stakes. If you screw up or miss a deadline, no one dies.
2. Autonomy. You control what you do and when you do it, to a point.
3. Expertise. You know what success looks like and how to get there.
4. Stability. Lack of change in the job itself as well as longevity of the role.

The only job that comes to mind fitting all four dimensions is teaching. Any others?
TallBoy29er
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by TallBoy29er »

quattro73 wrote: Tue Jan 11, 2022 8:46 pm Where is this magical place?
Not too magical. I would think that a single person could live many places in relative comfort for less than the proposed $75k/yr. And there are certainly countries where $75k USD goes much further than it does in the US.
Normchad
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by Normchad »

CletusCaddy wrote: Tue Jan 11, 2022 8:50 pm I think low stress jobs are defined by the following:

1. Low stakes. If you screw up or miss a deadline, no one dies.
2. Autonomy. You control what you do and when you do it, to a point.
3. Expertise. You know what success looks like and how to get there.
4. Stability. Lack of change in the job itself as well as longevity of the role.

The only job that comes to mind fitting all four dimensions is teaching. Any others?
Teachers everywhere are rolling on the floor in laughter……. Any teachers out there feel the same way?

Your point is exceptionally good though. I just can’t think of any lower pay, low stress, high autonomy job. Maybe park ranger? Maybe being a really bad financial advisor would fit the bill.
MadAsgardian
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by MadAsgardian »

yosemite_mountain wrote: Tue Jan 11, 2022 8:28 pm I will be a US citizen. I can still collect social security while living outside the US, correct?
I'm not sure you can assume that Social Security is a given. You need to generate a certain amount of work credits to be eligible, and you're assuming that requirement won't go up in the next 20 years. Will you be generating Social Security work credits with your planned reduced-pay job?
MadAsgardian
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by MadAsgardian »

Normchad wrote: Tue Jan 11, 2022 8:55 pm Teachers everywhere are rolling on the floor in laughter……. Any teachers out there feel the same way?
Heck, anyone who has worked retail during the holidays. :)

Not to mention potentially trading one set of stressors for another, depending on the country in question (less political stability, less law and order, less infrastructure, fewer freedoms, issues assimilating back into the culture, etc.).
Last edited by MadAsgardian on Tue Jan 11, 2022 9:18 pm, edited 1 time in total.
fortunefavored
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by fortunefavored »

Your math is fine. If you can actually do the things you say.

The bigger issue is I am dubious you've really thought this through if you were unaware you cannot use ACA overseas.

$3M buys a lot of screwing up though, so either way you're probably fine.
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by HomerJ »

AnnetteLouisan wrote: Tue Jan 11, 2022 8:33 pm I knew a construction employee once who thought any job where you “sit inside at a desk and push paper” rather than hauling concrete block in all weather was by definition an easy job. I
He was right.

A friend of mine's Dad was a construction worker... My friend had an office job. He wanted a stand-up desk, but the company wouldn't pay for it.

He complained about it to his Dad...

His Dad said, and I quote, "You're complaining because you don't like sitting in a chair?"
"The best tools available to us are shovels, not scalpels. Don't get carried away." - vanBogle59
vtsnowdin
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by vtsnowdin »

yosemite_mountain wrote: Tue Jan 11, 2022 7:24 pm

I do not plan on withdrawing from this $3m until full retirement at age 60.
Well if it is invested wisely and gains on average 9% per year it will be about 12 million at your age 60.
vtsnowdin
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by vtsnowdin »

Normchad wrote: Tue Jan 11, 2022 8:55 pm

Your point is exceptionally good though. I just can’t think of any lower pay, low stress, high autonomy job. ... Maybe being a really bad financial advisor would fit the bill.
:D :) :D
I could excel at that one.!!!
vtsnowdin
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by vtsnowdin »

All kidding aside a lot depends on the stability of the countries government. Are gangs and cartels running things? Are Ex-patriot Americans safe or targets for criminals? There are both good and bad conditions out there but I would be surprised if the cheapest country to live and work in was the safest.
AnnetteLouisan
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by AnnetteLouisan »

CletusCaddy wrote: Tue Jan 11, 2022 8:50 pm I think low stress jobs are defined by the following:

1. Low stakes. If you screw up or miss a deadline, no one dies.
2. Autonomy. You control what you do and when you do it, to a point.
3. Expertise. You know what success looks like and how to get there.
4. Stability. Lack of change in the job itself as well as longevity of the role.

The only job that comes to mind fitting all four dimensions is teaching. Any others?
Fishing using your own boat? I know someone who does that.

Painting at home and selling the prints online? I know someone who knows someone who does that.

Commission yacht salesman?
Last edited by AnnetteLouisan on Tue Jan 11, 2022 9:32 pm, edited 2 times in total.
ScroogeMcDuck
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by ScroogeMcDuck »

FireProof wrote: Tue Jan 11, 2022 7:38 pm With $3 million, I would just retire. At a SWR of even only 3%, that's $90K/year, which is a) a lot of money b) more than the $75/k you are planning to live on. Like others, I'm not sure how you plan to use the ACA while living abroad, but as long as you don't live in the US, cost of medical care is not a big issue anyway.
+1

You could even retire in the Bay Area on $3 million (maybe use the next 5 years to figure out a paid off housing situation)
Topic Author
yosemite_mountain
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by yosemite_mountain »

ScroogeMcDuck wrote: Tue Jan 11, 2022 9:30 pm
FireProof wrote: Tue Jan 11, 2022 7:38 pm With $3 million, I would just retire. At a SWR of even only 3%, that's $90K/year, which is a) a lot of money b) more than the $75/k you are planning to live on. Like others, I'm not sure how you plan to use the ACA while living abroad, but as long as you don't live in the US, cost of medical care is not a big issue anyway.
+1

You could even retire in the Bay Area on $3 million (maybe use the next 5 years to figure out a paid off housing situation)
$3m at 39 without ever working again to cover living expenses until retirement seems tight.
CletusCaddy
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by CletusCaddy »

yosemite_mountain wrote: Tue Jan 11, 2022 9:34 pm
ScroogeMcDuck wrote: Tue Jan 11, 2022 9:30 pm
FireProof wrote: Tue Jan 11, 2022 7:38 pm With $3 million, I would just retire. At a SWR of even only 3%, that's $90K/year, which is a) a lot of money b) more than the $75/k you are planning to live on. Like others, I'm not sure how you plan to use the ACA while living abroad, but as long as you don't live in the US, cost of medical care is not a big issue anyway.
+1

You could even retire in the Bay Area on $3 million (maybe use the next 5 years to figure out a paid off housing situation)
$3m at 39 without ever working again to cover living expenses until retirement seems tight.
Assuming you can get SS at age 70 it’s doable. RonRonnerson is famous for living in East Bay on less than $100k/yr. He uses ACA too.
Topic Author
yosemite_mountain
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by yosemite_mountain »

TallBoy29er wrote: Tue Jan 11, 2022 8:54 pm
quattro73 wrote: Tue Jan 11, 2022 8:46 pm Where is this magical place?
And there are certainly countries where $75k USD goes much further than it does in the US.
Yes, you can live like a king on $75k USD in several countries.
MJS
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by MJS »

yosemite_mountain wrote: Tue Jan 11, 2022 8:28 pm
Watty wrote: Tue Jan 11, 2022 8:18 pm
yosemite_mountain wrote: Tue Jan 11, 2022 7:02 pm -Anything else I should plan for? I'm I missing anything?
3) If you are not a US citizen then be sure to research how that impacts your taxes and especially your estate taxes if you are living overseas when you die. The non resident alien estate taxes can be ridiculous. Other people inheriting your retirement accounts will be problematic. Be sure to look into what will happen with your Social Security if you are not a US citizen and living outside the US.
-I will be a US citizen. I can still collect social security while living outside the US, correct?
Yes, you can collect social security while living outside the US. To collect, you need a minimum of 40 quarters of Social Security earnings - 10 years. The SS payout amount is calculated by adding the highest _35_ years of earnings then taking the average. If you didn't work for 35 years then you get $0.00 for each of the missing years. The Social Security website's estimate is a snare and a delusion: it assumes you will work to age 67 at the salary you earned last year. Take a look at the Wiki to calculate what your probable SS will be:
https://www.bogleheads.org/wiki/Social_Security

Also, search for Barista FIRE as a possible strategy. Have fun!
Topic Author
yosemite_mountain
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by yosemite_mountain »

MJS wrote: Tue Jan 11, 2022 10:32 pm

Yes, you can collect social security while living outside the US. To collect, you need a minimum of 40 quarters of Social Security earnings - 10 years. The SS payout amount is calculated by adding the highest _35_ years of earnings then taking the average. If you didn't work for 35 years then you get $0.00 for each of the missing years. The Social Security website's estimate is a snare and a delusion: it assumes you will work to age 67 at the salary you earned last year. Take a look at the Wiki to calculate what your probable SS will be:
https://www.bogleheads.org/wiki/Social_Security

Also, search for Barista FIRE as a possible strategy. Have fun!
This is good to know.

How about Medicare? Do I qualify for Medicare if I return to the US later in life after 65?
KlangFool
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Re: Leaving the Bay Area: Critique my Coast FIRE plan

Post by KlangFool »

yosemite_mountain wrote: Tue Jan 11, 2022 7:02 pm I’m looking to leave the US in 5 years time at age 39.

At age 39 I plan on having a $3m retirement portfolio of stocks/bonds invested in a three fund portfolio. I do not plan on withdrawing from, or contributing to this $3m from age 39 until full retirement at age 60.

After I leave the US, from age 39 to age 60 I will take up a lower paying job that will cover ~$75k annual expenses, but will not allow me to make further contributions to my retirement portfolio; I’ll spend all I earn.
yosemite_mountain,

<< I do not plan on withdrawing from, or contributing to this $3m from age 39 until full retirement at age 60. >>

Why? Why do you choose to work instead of withdrawing from this 3m portfolio? Is your goal to pay a lot of taxes at retirement? Or, passed the money to someone else to spend?

Please check out this url.

https://www.madfientist.com/how-to-acce ... nds-early/

KlangFool
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