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Retire In San Francisco? Here’s The Minimum Portfolio A Client Would Need
So much depends on housing there. If you've owned your home for many years, you've got no mortgage and likely a tax bill of just a few $K/year courtesy of Prop 13, so you're likely well able to afford that $5 gallon of milk. (If you've got the $4M portfolio mentioned in the article, you could even afford milk baths.)
Under the old tax laws, you could have even downsized, say moving from Palo Alto to SF "for free". That is, back when you could transfer your basis rather than paying cap gains on appreciation over $250K/$500K, swapping homes in general wasn't a problem. And California still gives a one-in-a-lifetime opportunity to retirees to transfer their low tax base to their new home when downsizing.
There's even a new ballot proposition that would extend this tax break to older homeowners who want to trade up rather than down.
The article actually said "a married couple would require a net worth of $4 million" rather than "the $4M portfolio". I read that as including their home equity, which could be a big number, especially if, as msf notes, "you've owned your home for many years, you've got no mortgage and likely a tax bill of just a few $K/year courtesy of Prop 13".
On balance, the information in the article, tempered by msf's observations, is really pretty accurate.
Even if the cost is acceptable San Francisco is not the jewel it used to be.we visit the city by boat and walk for miles,,, all over the place..we visit less often these days.many problems.
Comments
Under the old tax laws, you could have even downsized, say moving from Palo Alto to SF "for free". That is, back when you could transfer your basis rather than paying cap gains on appreciation over $250K/$500K, swapping homes in general wasn't a problem. And California still gives a one-in-a-lifetime opportunity to retirees to transfer their low tax base to their new home when downsizing.
There's even a new ballot proposition that would extend this tax break to older homeowners who want to trade up rather than down.
NYMag: California Ballot Initiative to Expand Property Tax Breaks for Wealthy Seniors Could Be Another Boon to GOP
http://nymag.com/daily/intelligencer/2018/05/ca-property-tax-initiative-could-be-another-boon-to-gop.html
On balance, the information in the article, tempered by msf's observations, is really pretty accurate.