Future affordability of California? (South Lake Tahoe: 2013, low crime, credit)

[West of Encino]

Originally Posted by daftshadow

Really depends where you live in California. SF is really bad. Rent is through the roof. LA is ok, there are pockets where living is really expensive but overall not so bad. California taxes is what really irks me. Which is why it doesn't surprise me one bit that so many companies are packing up and leaving to friendly-tax States such as Nevada or Texas.

Personally for myself, I live in LA and I would say my income is above average but I am still frugal as hell. California is a nice place to live, would be much better if it wasn't in so much financial trouble with inflated housing prices and its ridiculous tax rates.

I guess the state taxes are the root cause by the home prices and rents are so expensive.

[Ultrarunner]

Originally Posted by curiousgeorge5

What will they do for work? How will they survive? Anyone have any opinions?

Millions survive now not working...

The social net break even point was listed around 65k in wages a few years back for a family of 4 in the Bay Area.

Truth is two parents working full time at $15 and hour would gross 60k and not have the security of being on assistance plus they would be working and still under the comparable benefits of assistance.

I've known a few that have worked their way off of public assistance but I can count the families on one had over 30 years of managing property.

It takes a special kind of person to give up the security of a Section 8 Voucher, Healthcare, Discounted Utilities, Free Cell Phone, Discounted Internet, Food Assistance, etc...

Even after the Real Estate bust when folks were getting laid off... one of my tenants was able to stretch out his unemployment of $1800 per month for almost 2 years... it was enough time for him to get married and become mister Mom for the first year of his daughter's life... his wife did not lose her job working for the county.

I would imagine the underground economy would be another source...

Never hired any day laborers but understand the going rate is $15 and hour cash or a $120 for the day... $15 and hour cash is much different than $15 in wages.

[tikkasf]

Originally Posted by Finper

If they were able to retire at 50 with 90% pension and full benefits that's a lot of years that person will probably live fat on the hog. It doesn't make sense that we have the money to pay that. Thank God they redid it. Is San Bern able to pay their pensioners? I'm moving out of state so it doesn't effect me but I truly hope they don't raise taxes so the hard working workers don't have to pay for the pensioners to sit in their lounge chairs and drink pina coladas

Who gets that ?
From the retirement formula I was under, if someone retired when they turned 50, they received 1.426% x years of service. = pension. 25 years service would = 35.65% of salary


Age Exact Year ¼ Year ½ Year ¾ Year
50 1.426 1.450 1.474 1.498
51 1.522 1.550 1.576 1.602
52 1.628 1.656 1.686 1.714
53 1.742 1.772 1.804 1.834
54 1.866 1.900 1.932 1.966
55 2.000 2.014 2.026 2.040
56 2.052 2.066 2.078 2.092
57 2.104 2.118 2.130 2.144
58 2.156 2.170 2.182 2.196
59 2.210 2.222 2.236 2.248
60 2.262 2.274 2.288 2.300
61 2.314 2.326 2.340 2.352
62 2.366 2.378 2.392 2.404
63 or older 2.418 — — —

[Finper]

That's what 2sleepy said calpers was getting??? I'll be glad if it's not true I know their pensions are outrageous but that would be criminal to me and other hard working people trying to survive here

[tikkasf]

Originally Posted by Finper

That's what 2sleepy said calpers was getting??? I'll be glad if it's not true I know their pensions are outrageous but that would be criminal to me and other hard working people trying to survive here

Public Safety gets more. But, I don't know what the formula looks like. You really need to a chart type read out like I posted above to see what they actually get

[2sleepy]

Originally Posted by tikkasf

At age 65 you are required by CALPERS to apply for Medicare. Medicare becomes your primary health insurance and whatever insurance plan one has through CALPERS becomes secondary. Failure to appy for Medicare results in cancellation of your CALPERS insurance at age 65. I would assume this holds true for Public Safety too ?

No, in California Public Safety employees do not participate in Social Security, neither do teachers

[2sleepy]

Originally Posted by tikkasf

Who gets that ?
From the retirement formula I was under, if someone retired when they turned 50, they received 1.426% x years of service. = pension. 25 years service would = 35.65% of salary

30 years of service @ 3% per year with a minimum retirement age of 50 =90%

California has had a number of different formulas. The famous one that just about broke the budget was 3% @ 50. It applied to public safety (police and fire) and prison guards. A few local agencies never adopted it.

Some Cities and Counties were using a formula of 2.7% @ 55 for non public safety but I think most have now adopted 2% at 60. Non public safety employees do participate in Social Security.

[tikkasf]

Originally Posted by 2sleepy

No, in California Public Safety employees do not participate in Social Security, neither do teachers

Ok, then PS & teachers excluded. Others, such as myself in CALPERS are not

[tikkasf]

Originally Posted by 2sleepy

30 years of service @ 3% per year with a minimum retirement age of 50 =90%

California has had a number of different formulas. The famous one that just about broke the budget was 3% @ 50. It applied to public safety (police and fire) and prison guards. A few local agencies never adopted it.

Some Cities and Counties were using a formula of 2.7% @ 55 for non public safety but I think most have now adopted 2% at 60. Non public safety employees do participate in Social Security.

CSU and some others are under 2% @ 55. UC I think may have it's own retirement system.....not sure though

[2sleepy]

Originally Posted by tikkasf

Ok, then PS & teachers excluded. Others, such as myself in CALPERS are not

Right, those are the only ones I know of that do not participate in SS