Can you really retire in America and only spend $100 a day? Â Turns out it’s a lot more possible than you might think.
When I startedÂ this recent study with AARP, I’d expected only about 20 or 30 U.S. cities would be this affordable. Â 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:
I’m assuming a 25% tax rate, which will reduce your yearly income of $36,500 to $27,375 spendable income. Â 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. Â 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. Â Of course, putting up the nearly $40,000 (20% of $192,000) for the down payment may be challenging.
The description of the video interview with the reporter (Arden Dale) states â€œWhen states raise taxes millionaires move out.â€Â And the interviewer starts the piece by declaring, â€œMillionaires are fleeing from taxes!â€
Wow, that sounds serious, and certainly very definitive.Â Letâ€™s learn more.
Interviewer â€“ â€œSo tell us, where are the millionaires going?â€
Ms. Dale â€“ â€œPeople donâ€™t want to be taxedâ€¦ but when we looked the actual numbers, the actual studies of whether â€˜Millionaire Flightâ€™ occurs, what we found was that there is no really great statistical data that shows that it does.â€ (Note: while this is being said, a banner on the screen reads â€œMillionaires moving to avoid taxes.â€)
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.Â Since most veterans retire from service in their 30’s or 40’s, they have plenty of timeÂ to start a new professional chapter in their lives.
So what are the best places to enter the civilian job sector?Â To help us find out, we partnered with USAA (a financial services provider) and Military.com (the largest military and veteran membership organization).Â We looked at factors such as affordability, unemployment rate, prevalence of military skill related jobs, and number of veteran-owned businesses.Â But we didn’t stop there.
I was asked by the Post to explain why the DC metro has suddenly gained so many 25-34 year olds.Â According to the Census Bureau, DC is now right up there with hipster havens like Austin and Portland (Oregon).
Reporter Carol Morello asked me, “Does this mean Washington is now ‘cool’?”
My answer was, “Umm, sorry, no.”Â I explained, it’s a simple case of economics.Â The DC area has had one of the lowest unemployment rates in the U.S. along large metro areas.Â Young people are flocking to where the jobs are.
Bill Frey, of the Brookings Institution, also chimed in, agreeing that it’s the economy, but also stating that DC has a “certain vibe.”
My quote in the article spoke about each place has its own identity or brand, and Washington’s is one of government and power.Â “I donâ€™t know if you want your seat of government to be too cool and quirky.â€
Sort of like, you don’t want to find out your heart surgeon also does stand-up comedy.