What net worth is sufficient to “retire” in Bay Area?
I’m thinking 5M + owning a home. What do you all think?
Using 4% rule this means a passive income of 200k forever (assuming this is valid)
By retire I don’t necessarily mean do nothing, but rather not have to work for money. Do something that pays zero or very little or just pursue hobbies perhaps.
TC: 400k (185 base, rest stocks, so highly variable)
Net worth: 1.4M
Age: 31
No properties, currently renting.
It may take me another 10years atleast to get to 5M assuming I’m able to keep this job and the market remains hot.
#personalfinance #investments #fire #fatfire
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comments
$5M + owning your own home is more than enough. Biggest expenses tend to be housing and you'd have that taken care of.
There's a thread on this every week.
Each time the first question that can and should be asked is - why the h*ll do you want to retire in the Bay Area?
There's a big coastline on either side and the south. Florida, Oregon, Washington, Hawaii, many retirement communities without the Bay Area price tag and more things to do
If you want to “not have to work”, you can start by lowering your cost of living to more easily retire when the time is right. But note it will never feel like the right time make the change, so if this is something you actually want to accomplish, you’ll need to push yourself.
The median income in SF is 120k. That's lower than your salary alone. You're making more on your investments than that. Your money doesn't feel like much to you only because of your mentality.
I'm not saying this is what you're doing, but I see people here change their lifestyle to seemingly try to spend as much money as possible and make it so their enormous wealth doesn't seem like enough. For example, 40k for private school that is not college sounds insane to me. That's much higher than average, even for the bay.