High value retirees are going to bail us out of our overpriced homes in California?
Oops, guess not now that we have budget problems, and taxes are only likely to get worse.
I thought there was only “Taxachussets”, but now it seems that California is probably the worst place to retire financially. I guess paradise costs, right?
The most expensive, and therefore worst, state for retirees is California. Seniors in the highest tax bracket not only pay a whopping 10.55 percent income tax rate, but they also pay an 8.25 percent sales tax each time they go shopping. For a few people, though, the draw of Napa Valley, Hollywood celebrity sightings, and Yosemite might be worth the cost.
True, just be rich if you come here.
Most of the retired State of Calif. employees will enjoy the income of a millionaire, or multi-millionaire, so why move? Many State employees retire with an income of over $100,000. a year, which would require a nest egg of around $3,000,000. with today’s interest rate. see
pensiontsunami.com
Who would move to CA to retire, anyway?
beebs,
According to local real estate expert Gary Watts, everyone.
Boomers are rich and there are tons of them, so it only follows that California housing prices will rise above what the local economy can support.
Chuck
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A good example would be San Diego. Not a lot of high paying jobs, but many military people retire there. With a retirement check from the feds, and getting a new job at age 40, many can live very comfortablly, in an “unaffordable” area.
Gene,
Can you define “many”. Would be interested to know how many are in that scenario.
I never met anyone in that scenario when I lived there, nor does it exist in Orange County as far as I can tell. Where are these people?
The thing is California is totally unaffordable and taxes, while far from low, are not the most unaffordable thing about the state. The most unaffordable thing about the state is housing and how this drives up the cost of everything else. So really it’s true, who would move to CA to retire anyway?
I am going to retire here, I own a small 2 bed 2 bath condo close to beautiful Laguna Beach. I just live with in my means. So I put a huge down payment on the condo so my mortage is very low. I will retire in about 10 years at age 64 and my place will be paid off at that time. I won’t be rich but I will be able to live off my 401k and social security payments. If I want to take a trip somewhere other then the beautiful place I live. I could get a job anywhere for the extra income. I am not worried and wouldn’t live anywhere else.
Why are people commenting on current Los Angeles bubble prices as if those are “normal”?
Bubbles are the norm. People here just have the memory of a Bass. Last time I went Bass fishing I caught the same one, three-times. It will be years until the next time. Sadly, I was born here so I can never be rich, just taxed to death and beyond…
3 years?
How are bass at math?
“Top” of last “bubble” in SoCal – 1990
“Bottom” of last “bubble” in SoCal – 1996
“Top” of this bubble in SoCal – 2006
“Bottom” of this “bubble” in SoCal – probably 2012-2013
Round trip peak to peak: 16 years
round trip bottom to bottom: probably 16 to 17 years.
I think the bubbles here run a little more than 3 years. But, what do I know?
California’s not the only state having problems. But, we do have our share of retirees moving to Bend Oregon.
You dont want to live in Bend Oregon (ssssshhhh Jim, dont blow it man, I want to move to Bend, it is so beautiful, quiet and affordable there) and on that note, Ashland Oregon is another place you dont want to move to. OK, seriously, those are my kind of places and I would rather live there than SoCal by far. Breathing room, clean air, great people, green, well kept and for what you buy a 2 bedroom condo Laguna for, you could get a palace there with money left over.
For those that are leaving, many of them are moving to Idaho.
Cour de Alane Idaho, a very picturesque place to live, and considering it for my next place to live.