5 ms·

Bay area on $50k/yr? Is that some kind of joke or did you mean to type 2 years?

s1artibartfast 7y ago
Why not? If you have a partner, you would be able to cover half a mortgage, and if not you can get a roommate. I know tons of people who aren't in tech that make ~50K. It makes sense because 50K is pretty close to the median per capita income in SF [1] and a starting teachers salary [2]. [1] https://smartasset.com/retirement/average-salary-in-san-francisco https://smartasset.com/retirement/average-salary-in-san-fran... [2] https://www.salary.com/research/salary/benchmark/public-school-teacher-salary/san-francisco-ca https://www.salary.com/research/salary/benchmark/public-scho...
- boring_twenties 7y ago
  I mean, I don't live in SF so maybe I'm off base. But my impression is that even with a roommate you're looking at $1500-2000/mo. That's oppressive on $50k/yr.
  - s1artibartfast 7y ago
    How so? 3k a month is a lot of fun money.
    - boring_twenties 7y ago
      Even assuming 0 tax we're talking more likw 2200-2600 and there are gonna be some taxes, especially in CA. Assuming this is investment income of course, and not just spending down the principal, which obviously wouldn't work. So probably under 2k, and it's not fun money, it's everything but housing starting with food and transportation. Doable? I guess. Fun? Eye of the beholder, I'd say. And that's assuming kids don't enter the picture, say goodbye to every part of this plan if they do.
      - s1artibartfast 7y ago
        I wholeheartedly agree 50K is a miserable salary in the Bay, but the original premise was $1M in the bank: >I feel like it is hard for people to say what they truly love before they have at least $1M in their bank account. If you have FU money, your view on working at a FAANG vs building a startup can change. You will find it easier to know what you truly LOVE The question wasn't if you can retire, or live of the investment income, but one of perceived finical security. If someone is too afraid to try working at a startup with $1M cash in the bank, it is unlikely they ever will. Even if someone has kids and family, $1M provides a huge buffer to find a new job if the startup doesn't work out. Maybe 20 years is a stretch, but I am utterly baffled that other posters think this would only cover 2 years of spending...
- redis_mlc 7y ago
  > you would be able to cover half a mortgage Not in the Bay Area. Looking at an excel for a million-dollar+ home is truly frightening. So many zeroes!
  - s1artibartfast 7y ago
    A million dollar home mortgage is about 5k a month. Half is 2.5k/mo, or 30k a year.
AllegedAlec 7y ago
If you can live on 4% interest, you can live off of it indefinitely.
- boring_twenties 7y ago
  For sure. Not in SF though, or so I thought anyway
  - AllegedAlec 7y ago
    True, 1M in savings gives you ~40K per year to live off. This wouldn't be sufficient in SF, but given that you're basically retiring at that point, you might as well buy a home somewhere else and then you'd be able to live comfortable off of that.
    - boring_twenties 7y ago
      One has to assume they considered moving out of SF and decided not to.

Why not? If you have a partner, you would be able to cover half a mortgage, and if not you can get a roommate. I know tons of people who aren't in tech that make ~50K. It makes sense because 50K is pretty close to the median per capita income in SF [1] and a starting teachers salary [2]. [1] https://smartasset.com/retirement/average-salary-in-san-francisco https://smartasset.com/retirement/average-salary-in-san-fran... [2] https://www.salary.com/research/salary/benchmark/public-school-teacher-salary/san-francisco-ca https://www.salary.com/research/salary/benchmark/public-scho...

boring_twenties 7y ago
I mean, I don't live in SF so maybe I'm off base. But my impression is that even with a roommate you're looking at $1500-2000/mo. That's oppressive on $50k/yr.
- s1artibartfast 7y ago
  How so? 3k a month is a lot of fun money.
  - boring_twenties 7y ago
    Even assuming 0 tax we're talking more likw 2200-2600 and there are gonna be some taxes, especially in CA. Assuming this is investment income of course, and not just spending down the principal, which obviously wouldn't work. So probably under 2k, and it's not fun money, it's everything but housing starting with food and transportation. Doable? I guess. Fun? Eye of the beholder, I'd say. And that's assuming kids don't enter the picture, say goodbye to every part of this plan if they do.
    - s1artibartfast 7y ago
      I wholeheartedly agree 50K is a miserable salary in the Bay, but the original premise was $1M in the bank: >I feel like it is hard for people to say what they truly love before they have at least $1M in their bank account. If you have FU money, your view on working at a FAANG vs building a startup can change. You will find it easier to know what you truly LOVE The question wasn't if you can retire, or live of the investment income, but one of perceived finical security. If someone is too afraid to try working at a startup with $1M cash in the bank, it is unlikely they ever will. Even if someone has kids and family, $1M provides a huge buffer to find a new job if the startup doesn't work out. Maybe 20 years is a stretch, but I am utterly baffled that other posters think this would only cover 2 years of spending...
redis_mlc 7y ago
> you would be able to cover half a mortgage Not in the Bay Area. Looking at an excel for a million-dollar+ home is truly frightening. So many zeroes!
- s1artibartfast 7y ago
  A million dollar home mortgage is about 5k a month. Half is 2.5k/mo, or 30k a year.

AllegedAlec 7y ago

If you can live on 4% interest, you can live off of it indefinitely.

boring_twenties 7y ago
For sure. Not in SF though, or so I thought anyway
- AllegedAlec 7y ago
  True, 1M in savings gives you ~40K per year to live off. This wouldn't be sufficient in SF, but given that you're basically retiring at that point, you might as well buy a home somewhere else and then you'd be able to live comfortable off of that.
  - boring_twenties 7y ago
    One has to assume they considered moving out of SF and decided not to.