"Money gives you more mileage depending on where you live, and your location can shape your thoughts on how much money you need to retire. Sam Dogen, the man behind Financial Samurai, lives in San Francisco. That's one of the most expensive cities in the world, so it makes sense that Dogen has a higher net worth goal than most people."
"Someone who is living in a LCOL rural area doesn't need $10 million to retire. It's possible to retire on $1 million or $2 million if you live in the right area and are old enough. Operating on a shoestring budget will also reduce how much you need to retire, but it's better to set ambitious goals that inspire more action."
"While a $10 million net worth can result in most people retiring, some people continue to work after reaching this figure. It's important to consider how much you enjoy your work. If you don't enjoy work, you may want to pursue a career or business that you enjoy when you have enough financial flexibility to leave your full-time job. Some people pursue those types of opportunities while they are employed."
A $10 million net worth is a comfortable target for retirees in high-cost cities like San Francisco, where living expenses and housing affordability drive higher savings goals. Lower-cost rural areas can enable retirement on $1–2 million, especially with frugal budgets and older retirement ages. Some individuals with multimillion-dollar net worths continue working due to low-stress jobs, steady income, or personal enjoyment of work. Retirement decisions depend on lifestyle, location, spending patterns, home equity, portfolio composition, and willingness to pursue passion projects or part-time work. Consulting a financial advisor is advisable when planning retirement goals.
Read at 24/7 Wall St.
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