I know many folks who have retired from Chevron live in the Bay Area. I also know Real Estate is very expensive, but if you have a paid off house and no debt, will 50k per year be enough to live comfortably , no kids, just husband and wife ?
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@8xti - Actually, there are several good fishing spots in the Bay Area. I'm not a fisherman myself, but my daughter has a friend who grew up in Maryland and goes fishing several times a week. He is constantly posting his catches on Facebook. He thinks the fishing in the Bay Area is excellent, even when compared to Maryland. There's more cultural diversity in most places than people realize. For example, a lot of people in the Bay Area think that there is no arts, theater, or music in Houston when in reality the city does have a thriving cultural community. Maybe not world-class, but not the cultural backwater that people tend to think. Don't take stereotypes too seriously.
Considering how many people using this site are in downstream, ops, and drilling, it is hard to imagine them in California sipping Pinot Grigio and nibbling artisanal goat cheese. Give them a pickup and a bass boat down on blue bayou.
If you are a fruitcake, California is definitely the place to be.
I think that California is a wonderful place to visit but I wouldn't consider retiring there unless I had a fully paid off house, no debt, and had no other place to reasonable relocate to within reason and was totally settled in to the point that it would cost more to move. I love the place, but everything is more expensive there. food, gas, services, you name it. And I mean normal, conveniently located supermarket's grocery stores and gas stations, etc. Not going all over creation looking for deals, clipping coupons like a poverty-stricken or anal-retentive moron, etc. Just shopping nearby with relaxation and convenience like a normal retired couple wants to do in their own neighborhood/community. Cal is expensive. That's an established fact. Don't even argue it. You're wrong. I love the place, it's beautiful. And Expensive. VERY expensive. Google it. Research it. Every piece of data and research already done on that says just that is not wrong.
I think that California is a wonderful place to visit but I wouldn't consider retiring there unless I had a fully paid off house, no debt, and had no other place to reasonable relocate to within reason and was totally settled in to the point that it would cost more to move. I love the place, but everything is more expensive there. food, gas, services, you name it. And I mean normal, conveniently located supermarket's grocery stores and gas stations, etc. Not going all over creation looking for deals, clipping coupons like a poverty-stricken or anal-retentive moron, etc. Just shopping nearby with relaxation and convenience like a normal retired couple wants to do in their own neighborhood/community. Cal is expensive. That's an established fact. Don't even argue it. You're wrong. I love the place, it's beautiful. And Expensive. VERY expensive. Google it. Research it. Every piece of data and research already done on that says just that is not wrong.
California is a great state to visit, but I would not recommend retiring there unless I have a fully paid off home and no debt and was very settle in and had no desire or means to relocate. Most things are more expensive than many states. Like food, in general, and gas. And I don't mean shopping miles away at the coop and busting your butt to get the greatest deal. I mean on and average where people can conveniently shop at local supermarkets. Sure, I can clip coupons and drive around for specials, but who wants to spend their time fussing with all that?
I totally agree with you, 3euz. Even though the politics talk and opinion is often hard to avoid, it's best to it elsewhere. As far as the Left Coast is concerned, I love the state for the weather and most of the people. It's a very nice place to live if you're already settle in. Otherwise, it's an expensive state to retire in.
How could a simple question about the cost of living in California morph into a tirade of political crap. We really don't need that here. Go create your own thread. California is one of the highest COL states in the US. I would not recommended it unless you already are settled in and cannot live anywhere else due to family , etc. I personally love the weather and the people, but I have stayed there for months at a time for work and it's simply an expensive place to live, all around, no question about it.
@2leq - Unprepared food and prescription medicine are also not taxed in California. http://www.taxes.ca.gov/sales_and_use_tax/whatstaxable.shtml. I've lived both places, the difference in grocery prices was not that significant if you know where to shop. Real estate and income taxes are the big difference, but if you don't have a mortgage and your income is $50,000 the difference is not that bad. What you pay extra for gasoline and other things is offset by lower utilities (barely any need for air conditioning or heat).
@2nhk - Like most states, California exempts food and prescription medicine from sales tax, so your reasoning is nonsense. Please make a minimal effort to check your facts before you post. http://www.taxes.ca.gov/sales_and_use_tax/whatstaxable.shtml
It's inevitable, 2fqx, but there's a remedy for that. Just ignore and post your comment to continue the topic forward. That's what I do.
Another thread degenerates to the lowest common characteristic of Chevron employees. Love it. The real Chevron Way on display for everyone to see.
I think -2stj has a point, as proven by the thin-skinned trolls that only want to have the last word. Get lost losers since you don't post opinions, only immature lash out posts.
California is about the worst place up retire, unless you are a CEO of Chevron, Tesla or Wells Fargo
Grocery prices in Houston and the Bay Area of California may be similar, depending where you shop. But, there is no sales tax imposed on food and medicine. Only prepared food (in restarurants for example) is taxed, but not if purchased in a supermarket. So, overall, food and OTC medicine in Houston is likely 8 or 9% cheaper than the Bay Area.
Gas is definitely much more in the Bay Area, but groceries aren't that different from other places, depending on where you shop. However, compared to places like Houston, you'll save a lot of money on your electric bill, and compared to cold places you'll save a lot on your heating bill.
Many states exempt the first $35,000 or more of retirement income from state income taxes. Look into whether California is one of them.
Just to be specific, the CA state income tax for a married couple making $50,000 is $775. I don't know of any CA jurisdictions which have a local income tax, though there are some special local property taxes and the city of San Francisco has a 1.5% payroll tax on businesses with payrolls larger than $250,000.
If you eliminate the housing expense, cost of living should be similar to most other places in the US. Don't forget about state and local income taxes in CA though.
Hey -1ber, I already made my honest living. So, are you now joining the jerk who thinks I'm sponging off the government dole? Get real. I'm taking what I earned, by having put my share into the system for 40 years.
OK, this was an Ok thread to come for good info. no need to muck it up, trolls. That includes all of you. Usually the first person to call "troll" is the biggest troll of all. We don't care about all of your tax-milkers and entitled people. Just stick to the topic and making an honest living that you worked for, please.
@1trb, You looked up the wrong definition of the word "entitlement". The one you quoted was only one definition. The poster was talking about entitlements you have "earned" as a citizen and qualify for from the government. Those entitlements are not special treatments or perceived benefits, like the definition you surfaced. Social Security is an entitlement by virtue that you paid into it, so you are entitled to it. Obamacare is the law of the land, so if you qualify for it, you are entitled to it. I'm sure, as well as anyone else would be, if Social Security or Obamacare or any other government entitlement is something you have earned and can need, you would take it as a benefit. Of course you would. Otherwise, you'd be a Dunce. Now where did I use any words out of context, jerk.
-1bii, Google the meaning of "Dunce", dear. Then update your picture next to the definition.
en·ti·tle·ment
inˈtīdlmənt,enˈtīdlmənt/
the belief that one is inherently deserving of privileges or special treatment.
"no wonder your kids have a sense of entitlement"
@1djf, learn the meaning of "entitlement" if you're going to use it in a sentence. You are entitled to something by virtue of having earned it. Emphasis on "Earned". No different than Social Security is an entitlement if you earned it. You would be a dunce to have anyone take away an entitlement you earned and need.
Great thread for us Bay Area types. Thanks for detailed responses. I expect $50k is plenty after housing, even with a kid or two. House repairs can be a surprise, however. Major systems like hvac, roof, etc can cost a lot. No cheap services in area.
I know a guy who reitried in about 1992 in Danville after years working in Malongo. He was frugal but somehow managed to spend nearly $200k per year for a decade. Put his kids through college, etc. But in 2002 he had more than he started with in 1992! He accountant kept complaining he would never live long enough to spend it all.
We may retire there but must weigh cost/benefit vs much less expensive places in terms of COL especially taxes. The pollution and traffic are not ideal either.
@vxr, You sound like an ignorant child. I'm having a hard time thinking that Chevron would hire or keep a terd-minded person like you on the payroll. Most likely you're just a troll. I'm enjoying my retirement and taking advantage of everything I'm lawfully entitled to. I clip coupons also, you know. I keep a running total in my smartphone app. I've saved $442.25 year to date. Everything helps.
Perhaps @iuc wouldn't mind taking advantage of lawful deductions afforded him in the tax code, if he was entitled to take them. Tell you what, @iuc, when you file your IRS 1040 tax return for 2016, simply don't take your entitled exemptions or your standard (or itemized) deduction. Just go ahead and pay higher taxes because, after all, you are not a mooch. Same thing goes for Obamacare, pal. It's the LAW, like it or not. As long as it's lawful and I can take advantage of low medical premiums through the ACA, I will. We all know you would too, if you could. We're not naive or stupid. Now get back to work, jerk.
The last comment cracked me up. Americans are paying 40 to 50 times what the developed world pays for health services because a crooked industry is in the pockets of crooked politicians. It's a no-brainer to take advantage of the limited government support that is available if your circumstances make it possible.
It's very possible that $50k in annual income will keep you afloat for living expenses in the Bay Area. You already excluded the highest cost items (no mortgage, no kids). I base my answer on my own cost of living situation in the Houston suburbs. My annual budget of $27,450 keeps me afloat to much the same frugal standard I lived when I was employed at Chevron. It covers $450 a month for groceries, annual property taxes of $4300, annual HOA fee of $1100, annual home and car insurance premiums and my gasoline cost and modest budget of $150 for new clothing and international airfare for two every second year. In my case, my health insurance is only $80 monthly from Obamacare. If your medical premiums are higher, you'll need more income to support a frugal lifestyle. If your property taxes are higher, add that in too. My gut feel is your $50k annual income should get you by comfortably. I recommend for you to put together a spreadsheet and list every expense item that comes to mind. Include your fixed weekly, monthly and annual obligations. Start with averaging your last 12 months of expenses like your electric, gas and water utilities, land line phone, cellular, television and internet costs. For other things such as groceries and department store purchases, especially if you use a credit card, pull out at least 6 statements for every credit card you have. Categorize every expense item as either Restaurant, Supermarket, Dept Store, Gasoline, etc. After doing this for each credit card, subtotal each category, then figure a reasonable monthly average to use in your budget. Always have a line item for contingencies like automobile maintainable and repair, lawn care, home repair. Having as detailed of a budget as possible will help you more and assure you of few surprises in planning your retirement. Good luck.
Not likely, but you may be extremely frugal. Do you have health, home and car insurance premiums you are paying?