I'm 43 years old and have set myself up with a conservatively forecasted retirement income of 58K per year at 62 years old. As long as I continue to work at my current company until March 1st, 2019 when my company pension benefit will be mostly maxed out.
1) 401K @ 6% nominal, 2.91% real in year 2035 would be ~ 1 Million nominal, 600K real.
2) HSA with same returns as above but at 65 years old would be 25K nominal, 13K real.
3) Pension schedule If I work at my current place of employment until March 1st, 2019 tentatively as follows - start withdrawals at age:
a) 50 ~ $959.00
b) 55 ~ $1,316.00
c) 60 ~ $1,880.00
This would be a fixed index annuity, not inflation adjusted. I like the idea of using a deflating defined benefit pension annuity to match a deflating 30 year mortgage thereby creating a quasi "real estate backed inflation adjusted annuity." Roughly speaking, my mortgage payment would deflate (reducing my "rent payment") or if I rented it out the rent increases would inflate, keeping the previous numbers "real."
4) Social Security @ age 62, $1,760.
The above scenario does not include my taxable account of ~ 110K, which is about 15% stocks, 10% bonds, rest high yield savings cash.
1) Move back to Socal (Irvine area where I previously lived for 20 years, most recently Aliso Viejo where I bought a condo in 2011, 240K with VA loan, sold in 2014 for 295K), or San Diego, or Vegas, within 6 months to 2 years. From Wisconsin.
2) Possible career switch from aviation to pretty much any real estate related administrative job using my economics degree from Cal State Long Beach. Or, I could get a similar technical job in different industry - I'm just like to move on from aviation maintenance.
Until I pull the trigger I am making about 90K yearly in W2 income which could help me buy real estate before quitting since I do not need to, or plan to be making 90K in my next en-devour. I have no debt and am patient and disciplined with my assets...
So, I'm open to ideas and connections about how to mix and match real estate buying/investing in those areas with a possible career switch into some kind of real estate W2 income.
It seems there's more options in San Diego for lower priced real estate (mainly speaking about condos). I'm pretty much priced out of the Aliso Viejo area where I owned previously, but I like Rancho Santa Margarita which is a little bit cheaper.
Vegas seems interesting because of the LCOL and early retirement possibilities.
But I Like Socal better... :-)
I live in SoCal and agree that living in SoCal is great. However, investing in Southern California doesn't make sense to me and it is mostly appreciation plays. Also, I stay away from condos due to HOA and having to deal with HOA boards.
Thanks for the reply. I understand Socal does not have much opportunity for me now.
I'm getting ready for more attractive appreciation plays in the next few years.
If they don't materialize, I'll look closer at Vegas.
My initial notification didn't work... :)