Retiring on $100 a Day

senior citizens riding bikes together

Can you really retire in America and only spend $100 a day?  Turns out it’s a lot more possible than you might think.

When I started this recent study with AARP, I’d expected only about 20 or 30 U.S. cities would be this affordable.  But I was surprised to discover that most U.S. metro areas have a low enough combination of housing prices and property taxes to meet this criteria.

So what are the best cities for a $100/day retirement?

Based on things like arts and culture, rich community and great restaurants, here’s the Top 10:

City State Population
1 Spokane WA 471,221
2 Las Cruces NM 209,233
3 Eau Claire WI 161,151
4 Roanoke VA 308,707
5 Morgantown WV 129,709
6 Pittsburgh PA 2,356,285
7 San Antonio TX 2,142,508
8 Omaha-Council Bluffs NE-IA 865,350
9 Grand Junction CO 146,723
10 Gainesville FL 264,275

I’m assuming a 25% tax rate, which will reduce your yearly income of $36,500 to $27,375 spendable income.  That’s $2,281 per month.

The Bureau of Labor Statistics uses a percentage of 31.5% for the housing component of the Consumer Price Index.  That means that we have $719 per month for mortgage payments and property taxes.

I’m assuming a 20% down payment, which means that with current low interest rates, we can afford a house priced at $192,000.  Of course, putting up the nearly $40,000 (20% of $192,000) for the down payment may be challenging.

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Military Retirement – Second Careers

Coinciding with Veteran’s Day, we just completed an interesting study about the best places in the U.S. for military retirees to start a second career.  Since most veterans retire from service in their 30’s or 40’s, they have plenty of time to start a new professional chapter in their lives.

source: allamericanpatriots.com

So what are the best places to enter the civilian job sector?  To help us find out, we partnered with USAA (a financial services provider) and Military.com (the largest military and veteran membership organization).  We looked at factors such as affordability, unemployment rate, prevalence of military skill related jobs, and number of veteran-owned businesses.  But we didn’t stop there.

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