We are planning a lifestyle move to a new city in five years and would like to get your take.

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kadye
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We are planning a lifestyle move to a new city in five years and would like to get your take.

Post by kadye » Sun Jul 26, 2020 10:52 pm

We plan to fund our retirement account as much as we can in the next five years while we are in a relatively cheap Midwest and then move to a bigger city in the West for weather and culture. We plan to offset the high cost of living by reducing our retirement savings.
  • We are in our early (DW) and late (DH) 30s and have saved close to $1m in our retirement.
  • We can save additional $150k per year over the next five years, for a total of about $2m in five years (with some returns.)
  • We will then move to the West, say San Diego, and live off of nearly everything we make except up to company 401k match.
  • The math says, we will retire at 65 with approximately the same spending level as pre-retirement.
I know I did not give you enough details to fully judge whether this is a workable plan but what are some things we need to think about? As always, thank you the BH community. Y'all are awesome!!!

RocketShipTech
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Re: We are planning a lifestyle move to a new city in five years and would like to get your take.

Post by RocketShipTech » Sun Jul 26, 2020 11:11 pm

kadye wrote:
Sun Jul 26, 2020 10:52 pm
We plan to offset the high cost of living by reducing our retirement savings.
Not enough people do this, IMO.

Good luck!

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onthecusp
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Re: We are planning a lifestyle move to a new city in five years and would like to get your take.

Post by onthecusp » Sun Jul 26, 2020 11:21 pm

Going from saving a bunch to hardly at all can be stressful in and of itself. Sort of like actual retirement without the withdrawals. In five years you may be really questioning yourself even if the math continues to work out. Or not.

I would say your plan is probably OK if inflation or big economic hits do not change the math. Many would considering early retirement with 2 million in the bank, so financing a lifestyle without dipping into savings is already pretty much OK in my book. But that assessment depends on so many of the details not shared.

You might want to consider planning to save more than just the 401k match. Scale it back if the balances continue to grow dis-proportionally.

000
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Re: We are planning a lifestyle move to a new city in five years and would like to get your take.

Post by 000 » Mon Jul 27, 2020 12:03 am

kadye wrote:
Sun Jul 26, 2020 10:52 pm
what are some things we need to think about?
If the "West" is California, I would think about the tax and regulatory burden you will face there versus in the Midwest.

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Watty
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Re: We are planning a lifestyle move to a new city in five years and would like to get your take.

Post by Watty » Mon Jul 27, 2020 12:22 am

kadye wrote:
Sun Jul 26, 2020 10:52 pm
I know I did not give you enough details to fully judge whether this is a workable plan but what are some things we need to think about?
The big question is what type of lifestyle you want to live. I'm sure that lots of people live in San Diego on a lot less than you will have but that might not be how you would want to live.

It also sounds like you will still be working so you will need to live somewhere near where you work so that you don't have a terrible commute. If you end up living far from the beach or the cultural attractions that interest you because of your budget and work location then try to picture what that will look like.

I would suggest picking out several other possible locations to go to and check them out to see if you can find a place that you would like better.

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celia
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Re: We are planning a lifestyle move to a new city in five years and would like to get your take.

Post by celia » Mon Jul 27, 2020 2:29 am

kadye wrote:
Sun Jul 26, 2020 10:52 pm
  • We can save additional $150k per year over the next five years, for a total of about $2m in five years (with some returns.)
  • We will then move to the West, say San Diego, and live off of nearly everything we make except up to company 401k match.
I don’t understand the transistion between these two in 5 years. If you change employers or transfer within the same company, can’t you get paid more for working in a higher cost of living area than where you are now? Or do you not want to depend on that? Or if you are self-employed and work from home, then I can see the income might be the same while the cost of living is more.

What you need to think about is that many things cost more in California: housing, gas for vehicles, state income tax, sales tax about 10% (except on food and meds).

But some things cost less: winter (what’s that?) heating, air conditioning not needed if you lived near the ocean, property tax (once you’ve owned a house a long time), no winter clothing needed unless you want to go to the mountains.

Katietsu
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Re: We are planning a lifestyle move to a new city in five years and would like to get your take.

Post by Katietsu » Mon Jul 27, 2020 7:44 am

celia wrote:
Mon Jul 27, 2020 2:29 am
I don’t understand the transistion between these two in 5 years. If you change employers or transfer within the same company, can’t you get paid more for working in a higher cost of living area than where you are now?
Not true in all jobs. Sought after healthcare providers, for instance, actually get paid more in some parts of the MidWest than the coasts.

anonsdca
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Re: We are planning a lifestyle move to a new city in five years and would like to get your take.

Post by anonsdca » Mon Jul 27, 2020 7:55 am

kadye wrote:
Sun Jul 26, 2020 10:52 pm
We plan to fund our retirement account as much as we can in the next five years while we are in a relatively cheap Midwest and then move to a bigger city in the West for weather and culture. We plan to offset the high cost of living by reducing our retirement savings.
  • We are in our early (DW) and late (DH) 30s and have saved close to $1m in our retirement.
  • We can save additional $150k per year over the next five years, for a total of about $2m in five years (with some returns.)
  • We will then move to the West, say San Diego, and live off of nearly everything we make except up to company 401k match.
  • The math says, we will retire at 65 with approximately the same spending level as pre-retirement.
I know I did not give you enough details to fully judge whether this is a workable plan but what are some things we need to think about? As always, thank you the BH community. Y'all are awesome!!!
Culture in San Diego? Unless you are going to live in a very affluent city like LaJolla, Carmel Valley, etc.(and not much culture there anyway), the culture you are heading for is the Mexican culture. Take that great savings and head to a nice town in Mexico because in either place you will be speaking the language and eating the same great food. At least in Mexico you will not have to worry about housing or running out of money or just the crap you need to put up with in the US.

stan1
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Re: We are planning a lifestyle move to a new city in five years and would like to get your take.

Post by stan1 » Mon Jul 27, 2020 7:57 am

Sure, I think saving early and then spending more later is a reasonable plan. We did not take expensive vacations until we were in our 40s and 50s. I think the biggest challenge of moving to a higher cost of living area in 40s is real estate prices. You'd probably end up with a sizable mortgage after down payment since you wouldn't want to draw down investment accounts.

stan1
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Re: We are planning a lifestyle move to a new city in five years and would like to get your take.

Post by stan1 » Mon Jul 27, 2020 8:03 am

anonsdca wrote:
Mon Jul 27, 2020 7:55 am
Culture in San Diego? Unless you are going to live in a very affluent city like LaJolla, Carmel Valley, etc.(and not much culture there anyway), the culture you are heading for is the Mexican culture. Take that great savings and head to a nice town in Mexico because in either place you will be speaking the language and eating the same great food. At least in Mexico you will not have to worry about housing or running out of money or just the crap you need to put up with in the US.
Have to disagree with that, the "culture" in San Diego is not ethnic it is a year round outdoor lifestyle often near the ocean in a place that seldom has rain, snow, extreme heat, humidity, or bugs.

sailaway
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Re: We are planning a lifestyle move to a new city in five years and would like to get your take.

Post by sailaway » Mon Jul 27, 2020 8:17 am

anonsdca wrote:
Mon Jul 27, 2020 7:55 am
kadye wrote:
Sun Jul 26, 2020 10:52 pm
We plan to fund our retirement account as much as we can in the next five years while we are in a relatively cheap Midwest and then move to a bigger city in the West for weather and culture. We plan to offset the high cost of living by reducing our retirement savings.
  • We are in our early (DW) and late (DH) 30s and have saved close to $1m in our retirement.
  • We can save additional $150k per year over the next five years, for a total of about $2m in five years (with some returns.)
  • We will then move to the West, say San Diego, and live off of nearly everything we make except up to company 401k match.
  • The math says, we will retire at 65 with approximately the same spending level as pre-retirement.
I know I did not give you enough details to fully judge whether this is a workable plan but what are some things we need to think about? As always, thank you the BH community. Y'all are awesome!!!
Culture in San Diego? Unless you are going to live in a very affluent city like LaJolla, Carmel Valley, etc.(and not much culture there anyway), the culture you are heading for is the Mexican culture. Take that great savings and head to a nice town in Mexico because in either place you will be speaking the language and eating the same great food. At least in Mexico you will not have to worry about housing or running out of money or just the crap you need to put up with in the US.
You forgot the Filipino culture. And the Vietnamese culture. And the Italian culture. And the Portuguese culture. And the Persian culture. And...

However, you do have to go to Mexico to get the Chiles en nogada. Don't know why they never bring their national dish here! At least California has chilaquiles. Texas never did.

THY4373
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Re: We are planning a lifestyle move to a new city in five years and would like to get your take.

Post by THY4373 » Mon Jul 27, 2020 8:42 am

celia wrote:
Mon Jul 27, 2020 2:29 am
I don’t understand the transistion between these two in 5 years. If you change employers or transfer within the same company, can’t you get paid more for working in a higher cost of living area than where you are now?
It is a bit more nuanced than that. I work in IT at a larger financial services org. We have offices all of the country. I work in a city that is literally per my org's math a MCOL location (literally within a couple % of the national average). Our highest salary bands are for NY and SF which are 25% more which in my calculations doesn't even come close to matching the cost of living changes vs where I currently live. Also if the employee chooses to move (i.e., they don't apply for a new position, or job in another location but take their existing position to a new location) then, in general they don't adjust your salary on transfer (either up or down). You made the choice so it is on you. Now over time your salary will adjust to the new location as you'll likely be above or below market and thus it will be adjusted each year until you are more aligned with your new locality. If the company decided to move you or you get management buy-in that the move is in the interest of the company then an adjustment will be made.
Last edited by THY4373 on Mon Jul 27, 2020 10:11 am, edited 1 time in total.

Valuethinker
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Re: We are planning a lifestyle move to a new city in five years and would like to get your take.

Post by Valuethinker » Mon Jul 27, 2020 9:35 am

anonsdca wrote:
Mon Jul 27, 2020 7:55 am
kadye wrote:
Sun Jul 26, 2020 10:52 pm
We plan to fund our retirement account as much as we can in the next five years while we are in a relatively cheap Midwest and then move to a bigger city in the West for weather and culture. We plan to offset the high cost of living by reducing our retirement savings.
  • We are in our early (DW) and late (DH) 30s and have saved close to $1m in our retirement.
  • We can save additional $150k per year over the next five years, for a total of about $2m in five years (with some returns.)
  • We will then move to the West, say San Diego, and live off of nearly everything we make except up to company 401k match.
  • The math says, we will retire at 65 with approximately the same spending level as pre-retirement.
I know I did not give you enough details to fully judge whether this is a workable plan but what are some things we need to think about? As always, thank you the BH community. Y'all are awesome!!!
Culture in San Diego? Unless you are going to live in a very affluent city like LaJolla, Carmel Valley, etc.(and not much culture there anyway), the culture you are heading for is the Mexican culture. Take that great savings and head to a nice town in Mexico because in either place you will be speaking the language and eating the same great food. At least in Mexico you will not have to worry about housing or running out of money or just the crap you need to put up with in the US.
Would that take into account the governance issues in northern Mexico?

The cartels own these states. Politics. Law enforcement. The works. People get caught in the cross fire. I don't know how easy it is to keep your nose totally clean of their business. I do know people have told me you don't go out at night.

Valuethinker
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Joined: Fri May 11, 2007 11:07 am

Re: We are planning a lifestyle move to a new city in five years and would like to get your take.

Post by Valuethinker » Mon Jul 27, 2020 9:39 am

kadye wrote:
Sun Jul 26, 2020 10:52 pm
We plan to fund our retirement account as much as we can in the next five years while we are in a relatively cheap Midwest and then move to a bigger city in the West for weather and culture. We plan to offset the high cost of living by reducing our retirement savings.
  • We are in our early (DW) and late (DH) 30s and have saved close to $1m in our retirement.
  • We can save additional $150k per year over the next five years, for a total of about $2m in five years (with some returns.)
  • We will then move to the West, say San Diego, and live off of nearly everything we make except up to company 401k match.
  • The math says, we will retire at 65 with approximately the same spending level as pre-retirement.
I know I did not give you enough details to fully judge whether this is a workable plan but what are some things we need to think about? As always, thank you the BH community. Y'all are awesome!!!
The cost of living in much of coastal California is extreme? Your money would not go far?

I am all for high savings rates and planning ahead. But would one of the mountain states work? You would have the sunshine, albeit cold winters and droughts, wildfires & bears. But those could be managed.

California has both high taxes *and* high housing costs (coastal). A tricky combination.

Valuethinker
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Joined: Fri May 11, 2007 11:07 am

Re: We are planning a lifestyle move to a new city in five years and would like to get your take.

Post by Valuethinker » Mon Jul 27, 2020 9:42 am

kadye wrote:
Sun Jul 26, 2020 10:52 pm
We plan to fund our retirement account as much as we can in the next five years while we are in a relatively cheap Midwest and then move to a bigger city in the West for weather and culture. We plan to offset the high cost of living by reducing our retirement savings.
  • We are in our early (DW) and late (DH) 30s and have saved close to $1m in our retirement.
  • We can save additional $150k per year over the next five years, for a total of about $2m in five years (with some returns.)
  • We will then move to the West, say San Diego, and live off of nearly everything we make except up to company 401k match.
  • The math says, we will retire at 65 with approximately the same spending level as pre-retirement.
I know I did not give you enough details to fully judge whether this is a workable plan but what are some things we need to think about? As always, thank you the BH community. Y'all are awesome!!!
There is sequence of return risk.

The next 5 years could be bad for investing.

You would then have to flex your plan.

I am all for building up capital. Just remember that the time to make the move may be much sooner than, or much later than you had planned.

anonsdca
Posts: 383
Joined: Mon Jun 01, 2015 11:47 pm

Re: We are planning a lifestyle move to a new city in five years and would like to get your take.

Post by anonsdca » Mon Jul 27, 2020 5:28 pm

sailaway wrote:
Mon Jul 27, 2020 8:17 am
anonsdca wrote:
Mon Jul 27, 2020 7:55 am
kadye wrote:
Sun Jul 26, 2020 10:52 pm
We plan to fund our retirement account as much as we can in the next five years while we are in a relatively cheap Midwest and then move to a bigger city in the West for weather and culture. We plan to offset the high cost of living by reducing our retirement savings.
  • We are in our early (DW) and late (DH) 30s and have saved close to $1m in our retirement.
  • We can save additional $150k per year over the next five years, for a total of about $2m in five years (with some returns.)
  • We will then move to the West, say San Diego, and live off of nearly everything we make except up to company 401k match.
  • The math says, we will retire at 65 with approximately the same spending level as pre-retirement.
I know I did not give you enough details to fully judge whether this is a workable plan but what are some things we need to think about? As always, thank you the BH community. Y'all are awesome!!!
Culture in San Diego? Unless you are going to live in a very affluent city like LaJolla, Carmel Valley, etc.(and not much culture there anyway), the culture you are heading for is the Mexican culture. Take that great savings and head to a nice town in Mexico because in either place you will be speaking the language and eating the same great food. At least in Mexico you will not have to worry about housing or running out of money or just the crap you need to put up with in the US.
You forgot the Filipino culture. And the Vietnamese culture. And the Italian culture. And the Portuguese culture. And the Persian culture. And...

However, you do have to go to Mexico to get the Chiles en nogada. Don't know why they never bring their national dish here! At least California has chilaquiles. Texas never did.
Sorry, I lived there for over 20 years. The filipino culture and area for that culture is very small--I know my other is filipino. It is great, but small. So are the others you mentioned. Why does it sound like you are taking offense to the fact that the vast majority of culture in SD is Mexican? I didn't say it was a bad thing, but you need to know what you are getting. So, for that very high cost of living in SD these days, I would find a place in Mexico because the culture would be similar but more true.

anonsdca
Posts: 383
Joined: Mon Jun 01, 2015 11:47 pm

Re: We are planning a lifestyle move to a new city in five years and would like to get your take.

Post by anonsdca » Mon Jul 27, 2020 5:29 pm

Valuethinker wrote:
Mon Jul 27, 2020 9:35 am
anonsdca wrote:
Mon Jul 27, 2020 7:55 am
kadye wrote:
Sun Jul 26, 2020 10:52 pm
We plan to fund our retirement account as much as we can in the next five years while we are in a relatively cheap Midwest and then move to a bigger city in the West for weather and culture. We plan to offset the high cost of living by reducing our retirement savings.
  • We are in our early (DW) and late (DH) 30s and have saved close to $1m in our retirement.
  • We can save additional $150k per year over the next five years, for a total of about $2m in five years (with some returns.)
  • We will then move to the West, say San Diego, and live off of nearly everything we make except up to company 401k match.
  • The math says, we will retire at 65 with approximately the same spending level as pre-retirement.
I know I did not give you enough details to fully judge whether this is a workable plan but what are some things we need to think about? As always, thank you the BH community. Y'all are awesome!!!
Culture in San Diego? Unless you are going to live in a very affluent city like LaJolla, Carmel Valley, etc.(and not much culture there anyway), the culture you are heading for is the Mexican culture. Take that great savings and head to a nice town in Mexico because in either place you will be speaking the language and eating the same great food. At least in Mexico you will not have to worry about housing or running out of money or just the crap you need to put up with in the US.
Would that take into account the governance issues in northern Mexico?

The cartels own these states. Politics. Law enforcement. The works. People get caught in the cross fire. I don't know how easy it is to keep your nose totally clean of their business. I do know people have told me you don't go out at night.
There are places in Mexico where that is not a problem (anymore than the US) and safe. You are talking about the stereotypical board town of Mexico. That is NOT all Mexico.

anonsdca
Posts: 383
Joined: Mon Jun 01, 2015 11:47 pm

Re: We are planning a lifestyle move to a new city in five years and would like to get your take.

Post by anonsdca » Mon Jul 27, 2020 5:33 pm

stan1 wrote:
Mon Jul 27, 2020 8:03 am
anonsdca wrote:
Mon Jul 27, 2020 7:55 am
Culture in San Diego? Unless you are going to live in a very affluent city like LaJolla, Carmel Valley, etc.(and not much culture there anyway), the culture you are heading for is the Mexican culture. Take that great savings and head to a nice town in Mexico because in either place you will be speaking the language and eating the same great food. At least in Mexico you will not have to worry about housing or running out of money or just the crap you need to put up with in the US.
Have to disagree with that, the "culture" in San Diego is not ethnic it is a year round outdoor lifestyle often near the ocean in a place that seldom has rain, snow, extreme heat, humidity, or bugs.
It is true it has all that --and that was once a larger part of the culture, why it attracted folks, along with it being a military town. It is not anymore. It is just too expensive to move there for that outdoors anymore. If you are wealthy, you can enjoy that. The majority of culture there now is "ethic", with the predominate ethic culture being Mexican.

sailaway
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Re: We are planning a lifestyle move to a new city in five years and would like to get your take.

Post by sailaway » Mon Jul 27, 2020 5:55 pm

anonsdca wrote:
Mon Jul 27, 2020 5:28 pm
sailaway wrote:
Mon Jul 27, 2020 8:17 am
anonsdca wrote:
Mon Jul 27, 2020 7:55 am
kadye wrote:
Sun Jul 26, 2020 10:52 pm
We plan to fund our retirement account as much as we can in the next five years while we are in a relatively cheap Midwest and then move to a bigger city in the West for weather and culture. We plan to offset the high cost of living by reducing our retirement savings.
  • We are in our early (DW) and late (DH) 30s and have saved close to $1m in our retirement.
  • We can save additional $150k per year over the next five years, for a total of about $2m in five years (with some returns.)
  • We will then move to the West, say San Diego, and live off of nearly everything we make except up to company 401k match.
  • The math says, we will retire at 65 with approximately the same spending level as pre-retirement.
I know I did not give you enough details to fully judge whether this is a workable plan but what are some things we need to think about? As always, thank you the BH community. Y'all are awesome!!!
Culture in San Diego? Unless you are going to live in a very affluent city like LaJolla, Carmel Valley, etc.(and not much culture there anyway), the culture you are heading for is the Mexican culture. Take that great savings and head to a nice town in Mexico because in either place you will be speaking the language and eating the same great food. At least in Mexico you will not have to worry about housing or running out of money or just the crap you need to put up with in the US.
You forgot the Filipino culture. And the Vietnamese culture. And the Italian culture. And the Portuguese culture. And the Persian culture. And...

However, you do have to go to Mexico to get the Chiles en nogada. Don't know why they never bring their national dish here! At least California has chilaquiles. Texas never did.
Sorry, I lived there for over 20 years. The filipino culture and area for that culture is very small--I know my other is filipino. It is great, but small. So are the others you mentioned. Why does it sound like you are taking offense to the fact that the vast majority of culture in SD is Mexican? I didn't say it was a bad thing, but you need to know what you are getting. So, for that very high cost of living in SD these days, I would find a place in Mexico because the culture would be similar but more true.
Hispanics account for less than 1/3 of the population and not all are Mexican, or even Mexican origin, so I am objecting to the fact that you are insisting on a falsehood. You may have been overwhelmed by the amount of Mexican culture you were exposed to, but it does not account for a majority by any stretch.

EddyB
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Re: We are planning a lifestyle move to a new city in five years and would like to get your take.

Post by EddyB » Mon Jul 27, 2020 6:04 pm

000 wrote:
Mon Jul 27, 2020 12:03 am
kadye wrote:
Sun Jul 26, 2020 10:52 pm
what are some things we need to think about?
If the "West" is California, I would think about the tax and regulatory burden you will face there versus in the Midwest.
Plus the need for more sunscreen. And the longer life expectancy.

playingwithfire
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Joined: Thu Jul 11, 2019 10:40 am

Re: We are planning a lifestyle move to a new city in five years and would like to get your take.

Post by playingwithfire » Mon Jul 27, 2020 6:22 pm

anonsdca wrote:
Mon Jul 27, 2020 7:55 am
Culture in San Diego? Unless you are going to live in a very affluent city like LaJolla, Carmel Valley, etc.(and not much culture there anyway), the culture you are heading for is the Mexican culture. Take that great savings and head to a nice town in Mexico because in either place you will be speaking the language and eating the same great food. At least in Mexico you will not have to worry about housing or running out of money or just the crap you need to put up with in the US.
No idea what this person is talking about. San Diego is incredibly far from a single culture. I find San Diego to be more conservative than most of CA. Yes, the Mexican food is pretty good -- but there's a lot more chains now, unfortunately. Overall, San Diego has an incredibly outdoorsy, relaxed culture with a lot of diverse food, and very diverse demographics base. Maybe the person is referring to specific towns in San Diego, but San Diego is really really big land area wise, so you can't generalize too much.

San Diego cost of living is less expensive compared to LA or bay area, but the home-price to income ratio is pretty high. Like pretty much everywhere, you can spend as much money as you want on housing or good food, but there's plenty that falls within affordability range (and if you don't have kids or worry about commute, then it's even easier).

I'm not sure why people are concerned about CA taxes so much -- yes it's high if you have high incomes, but if your income is lower, especially during retirement, CA taxes is not much worse than elsewhere. If you buy a cheaper property, you're also paying significantly less property taxes as well. San Diego property tax is only about 1.3%, so this is a lot lower than many other states if you have a home of the same size. Your maintenance and insurance cost is also a lot less without much natural disasters (earthquakes and fires rarely damage, and are also localized). Lastly, I also think you'll end up with better health care options than most of the country.

anonsdca
Posts: 383
Joined: Mon Jun 01, 2015 11:47 pm

Re: We are planning a lifestyle move to a new city in five years and would like to get your take.

Post by anonsdca » Mon Jul 27, 2020 7:51 pm

playingwithfire wrote:
Mon Jul 27, 2020 6:22 pm
anonsdca wrote:
Mon Jul 27, 2020 7:55 am
Culture in San Diego? Unless you are going to live in a very affluent city like LaJolla, Carmel Valley, etc.(and not much culture there anyway), the culture you are heading for is the Mexican culture. Take that great savings and head to a nice town in Mexico because in either place you will be speaking the language and eating the same great food. At least in Mexico you will not have to worry about housing or running out of money or just the crap you need to put up with in the US.
No idea what this person is talking about. San Diego is incredibly far from a single culture. I find San Diego to be more conservative than most of CA. Yes, the Mexican food is pretty good -- but there's a lot more chains now, unfortunately. Overall, San Diego has an incredibly outdoorsy, relaxed culture with a lot of diverse food, and very diverse demographics base. Maybe the person is referring to specific towns in San Diego, but San Diego is really really big land area wise, so you can't generalize too much.

San Diego cost of living is less expensive compared to LA or bay area, but the home-price to income ratio is pretty high. Like pretty much everywhere, you can spend as much money as you want on housing or good food, but there's plenty that falls within affordability range (and if you don't have kids or worry about commute, then it's even easier).

I'm not sure why people are concerned about CA taxes so much -- yes it's high if you have high incomes, but if your income is lower, especially during retirement, CA taxes is not much worse than elsewhere. If you buy a cheaper property, you're also paying significantly less property taxes as well. San Diego property tax is only about 1.3%, so this is a lot lower than many other states if you have a home of the same size. Your maintenance and insurance cost is also a lot less without much natural disasters (earthquakes and fires rarely damage, and are also localized). Lastly, I also think you'll end up with better health care options than most of the country.
San Diego was/is a more relaxed culture for sure. It has always been that--and really that culture (relaxed) is what SD was really all about long ago. The "outdoorsy" culture is nice, yes, but very few in SD can afford it now.

Specific towns? No. I have lived in East County, North County and Metro. It is a Mexican culture. It is OK! Relax, it is OK--most of CA is Mexican culture. I grew up in LA. I know. It is what it is.

Yes, there are pockets of other cultures, but you cannot live in SD and not see the Mexican influence. If you are saying you can't, I dont believe you have lived there, or you live in LaJolla.

To me, SD just got too big. I think I read after I left in 2015 it was the 9th largest city in USA. That comes with traffic and other crap I can live without. Make ZERO mistake, I loved the diversity there, but it is predominately Mexican.

Kompass
Posts: 179
Joined: Sat Oct 01, 2016 5:42 pm

Re: We are planning a lifestyle move to a new city in five years and would like to get your take.

Post by Kompass » Mon Jul 27, 2020 10:33 pm

I moved to the North County area of San Diego just over a year ago specifically for the lifestyle. I could not be happier and I’m so glad that I made the move. I have lived on the West Coast most of my life but not Southern California. I had for the previous five years lived in Idaho to take care of family. Since I moved mid 2019 I had the opportunity to do an interesting tax experiment. My income was split 50-50 between Idaho and California, Idaho is generally considered MCOL.

In 2019 my marginal tax rate in Idaho was 6.5%, the effective tax rate ended up being 6.5%
In 2019 my marginal tax rate in California was 9.3%, effective tax rate ended up being 4.2%
While I expect this to go up a bit when all of my income is in California it was a pleasant surprise.

When comparing state taxes it’s important to pay attention to the rate of progression, be sure to check someplace like tax-rates.org to investigate what the real differences would be. The property tax is pretty low compared to many other places, where I am it’s 1.25%. The purchase price of a home is significantly higher than many other places so the dollar amount of taxes paid will likely be higher also, but it’s capped so you don’t get big surprises.

Just don’t assume it will be worse without verifying.
The large print giveth and the fine print taketh away.

bikesandbeers
Posts: 182
Joined: Thu Jun 13, 2019 2:08 am

Re: We are planning a lifestyle move to a new city in five years and would like to get your take.

Post by bikesandbeers » Mon Jul 27, 2020 11:11 pm

I I like the general concept and I like San Diego. Obviously the closer you get to the coast, the more expensive it is, but tax rates aren't going to change much city to city.
Finding a neighborhood that you like is going to be a balance between what can of amenities you are looking for and what kind of budget you are working with.

For some of the "culture" you might want to be closer to Downtown or La Jolla, of course you can always take a drive an an Lyft to go to live theater or a museum. Lots of great food options everywhere. I don't know what the derail on Filipino vs Mexican was but it is a big city and ever culture is present. There is a large east African population and a large middle eastern community. Also Vietnamese, Korean, etc.

hale2
Posts: 251
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Re: We are planning a lifestyle move to a new city in five years and would like to get your take.

Post by hale2 » Tue Jul 28, 2020 9:03 am

kadye wrote:
Sun Jul 26, 2020 10:52 pm
We plan to fund our retirement account as much as we can in the next five years while we are in a relatively cheap Midwest and then move to a bigger city in the West for weather and culture. We plan to offset the high cost of living by reducing our retirement savings.
  • We are in our early (DW) and late (DH) 30s and have saved close to $1m in our retirement.
  • We can save additional $150k per year over the next five years, for a total of about $2m in five years (with some returns.)
  • We will then move to the West, say San Diego, and live off of nearly everything we make except up to company 401k match.
  • The math says, we will retire at 65 with approximately the same spending level as pre-retirement.
I know I did not give you enough details to fully judge whether this is a workable plan but what are some things we need to think about? As always, thank you the BH community. Y'all are awesome!!!
We did something similar but had to wait until our mid 40s to make the move. We are very happy we did. We save less now than we did but we still made our goals. Cost of living is very high but a lot of the things to do are low cost or free since it's an outdoor lifestyle so some parts of our budget are lower than before.

Annabel Lee
Posts: 53
Joined: Sat Nov 24, 2018 9:18 pm

Re: We are planning a lifestyle move to a new city in five years and would like to get your take.

Post by Annabel Lee » Tue Jul 28, 2020 9:10 am

Why not do this now?

You have $1MM in retirement accounts in your mid 30s which is outstanding. It sounds like you don’t have kids and aren’t planning on having them. It also sounds like your jobs are portable now (and might not be in the future).

Having lived in both CA and the Midwest, the tax burden really isn’t all that different at the end of the day. Not enough to base a lifestyle move on...

I guess it depends on the kind of place you want in SD but the cost of renting a luxury downtown apartment isn’t going to crush your retirement dreams.

Just do it.

Maybe I’m wired a bit differently but 5 years seems like a long time to wait when you have a goal and can afford to pull the trigger.

stoptothink
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Joined: Fri Dec 31, 2010 9:53 am

Re: We are planning a lifestyle move to a new city in five years and would like to get your take.

Post by stoptothink » Tue Jul 28, 2020 9:11 am

bikesandbeers wrote:
Mon Jul 27, 2020 11:11 pm
I I like the general concept and I like San Diego. Obviously the closer you get to the coast, the more expensive it is, but tax rates aren't going to change much city to city.
Finding a neighborhood that you like is going to be a balance between what can of amenities you are looking for and what kind of budget you are working with.

For some of the "culture" you might want to be closer to Downtown or La Jolla, of course you can always take a drive an an Lyft to go to live theater or a museum. Lots of great food options everywhere. I don't know what the derail on Filipino vs Mexican was but it is a big city and ever culture is present. There is a large east African population and a large middle eastern community. Also Vietnamese, Korean, etc.
I was born and raised in LA (and I'm Mexican), and you almost could not pay wife (also California native) or I to move our family back to California in general, but San Diego and San Luis Obispo are two of my favorite places on the planet. We visit at least twice a year and at this point we barely even visit LA-area (where almost all family and friends are), we spend almost all the time in San Diego (have an aunt and one cousin in Encinitas). If you can afford it and don't have to deal with a commute, it's a wonderful (weather, diversity, "culture", outdoor activities) place to live.

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gr7070
Posts: 1300
Joined: Fri Oct 28, 2011 10:39 am

Re: We are planning a lifestyle move to a new city in five years and would like to get your take.

Post by gr7070 » Tue Jul 28, 2020 9:36 am

Sure. Sounds great. Save plenty now. See where you're at in five years. Many, many things will change in five years.

I wouldn't wait five years to live the life I want to live. I'd make a plan to live that life by three months from now. Life is way too short to put your preferred life off for five years.

Topic Author
kadye
Posts: 43
Joined: Mon Nov 11, 2019 4:41 pm

Re: We are planning a lifestyle move to a new city in five years and would like to get your take.

Post by kadye » Wed Jul 29, 2020 4:34 pm

Thank you for the discussion everyone!

Electrum
Posts: 72
Joined: Tue Nov 06, 2012 9:39 am

Re: We are planning a lifestyle move to a new city in five years and would like to get your take.

Post by Electrum » Fri Jul 31, 2020 6:34 pm

sailaway wrote:
Mon Jul 27, 2020 8:17 am
anonsdca wrote:
Mon Jul 27, 2020 7:55 am
kadye wrote:
Sun Jul 26, 2020 10:52 pm
We plan to fund our retirement account as much as we can in the next five years while we are in a relatively cheap Midwest and then move to a bigger city in the West for weather and culture. We plan to offset the high cost of living by reducing our retirement savings.
  • We are in our early (DW) and late (DH) 30s and have saved close to $1m in our retirement.
  • We can save additional $150k per year over the next five years, for a total of about $2m in five years (with some returns.)
  • We will then move to the West, say San Diego, and live off of nearly everything we make except up to company 401k match.
  • The math says, we will retire at 65 with approximately the same spending level as pre-retirement.
I know I did not give you enough details to fully judge whether this is a workable plan but what are some things we need to think about? As always, thank you the BH community. Y'all are awesome!!!
Culture in San Diego? Unless you are going to live in a very affluent city like LaJolla, Carmel Valley, etc.(and not much culture there anyway), the culture you are heading for is the Mexican culture. Take that great savings and head to a nice town in Mexico because in either place you will be speaking the language and eating the same great food. At least in Mexico you will not have to worry about housing or running out of money or just the crap you need to put up with in the US.
You forgot the Filipino culture. And the Vietnamese culture. And the Italian culture. And the Portuguese culture. And the Persian culture. And...

However, you do have to go to Mexico to get the Chiles en nogada. Don't know why they never bring their national dish here! At least California has chilaquiles. Texas never did.
Thank you for this. I found what appears to be an authentic recipe for Chiles en nogada, and am going to give it a try.

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gr7070
Posts: 1300
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Re: We are planning a lifestyle move to a new city in five years and would like to get your take.

Post by gr7070 » Fri Jul 31, 2020 11:40 pm

Electrum wrote:
Fri Jul 31, 2020 6:34 pm
sailaway wrote:
Mon Jul 27, 2020 8:17 am
However, you do have to go to Mexico to get the Chiles en nogada. Don't know why they never bring their national dish here! At least California has chilaquiles. Texas never did.
Thank you for this. I found what appears to be an authentic recipe for Chiles en nogada, and am going to give it a try.
Chiles en nogada Y chilaquiles are readily available in Austin.

Hell, they name entire restaurants after chilaquiles here! I can't fathom they're that hard to find throughout Texas.

Sure, Odessa, TX maybe not. Even Odessa I wouldn't bet against chilaquiles.

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