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Old 12-28-2018, 06:23 PM
 
Location: Niceville, FL
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Quote:
Originally Posted by jghorton View Post

Destin, where we've lived for the last 8-years, is more of a higher-priced tourist area where many (including retirees) have 2nd/3rd homes in the $million range. There aren't as many lower-priced homes as in Satellite. Even though there are more millionaires here, I don't find that much difference in the people, but, the price of homes is a pretty good indicator of who is a 'millionaire'.
My inclination is to say maybe not as much as you think. A decent number of those second homes are pretty leveraged and rely on a certain amount of rental income every year to meet debt obligations. And then there are the long time locals who like their (somewhat modest) house and like their neighborhood and don't feel the need to go for the home in the big gated community because they'd rather spend their money elsewhere.

But then I'm across the toll bridge in Defensecontractorland, and the culture up here is a little different than what you get in a lot of the beach towns in these parts, even though median household income is pretty similar (Destin 70K, Niceville/32578 75K) .
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Old 12-28-2018, 09:29 PM
 
5,609 posts, read 8,529,435 times
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Quote:
Originally Posted by eddiehaskell View Post
I seem to see a lot more millionaires in high cost of living areas, but how do they compare to millionaires in low cost areas? Someone with their primary residence paid off in say SF or NYC and no plans to move could potentially have a little savings and be considered a millionaire. Perhaps no big deal for the area. Someone in a low cost area could have a similar home worth 4x less money and live a very comfortable life as a millionaire...potentially not even working at all. Their net worth may be top 3-4% for the area and they are considered wealthy people.

Not sure what the point is here lol, but maybe we could discuss how being a millionaire can be a big deal or not so big deal based on oneís location.
You could just as easily drop the "millionare" bit.

I budget <$2k\month and live very well on it in my "podunk" piece of heaven. (Its MORE than 35 min to get a gal of milk).
You couldn't pay me enough to live in a urban hellhole, I'll take my 2 k sqft on 80 acres....

Now: If you want to consider how some people are "primary home millionaires" that would be worth considering.

My fixed expenses are ~$550, and I probably have more disposable income than many "millionaires"
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Old 12-28-2018, 10:10 PM
 
11,678 posts, read 7,020,013 times
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Kinda makes me wonder how many millionaires don’t have 50%+ of their net worth represented by their primary residence. As mentioned earlier, how many are millionaires totally excluding their primary residence? I’m guessing a millionaire (not that it’s something ultra rare nowadays) in a low COL area may be equivalent to someone worth ~1.5M in a higher COL area. Perhaps close to 90th percentile (maybe 95th if under 60 years old).
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Old 12-28-2018, 10:53 PM
 
Location: Formerly Pleasanton Ca, now in Marietta Ga
5,345 posts, read 4,042,396 times
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Quote:
Originally Posted by fluffythewondercat View Post
This is often discussed around Silicon Valley by forty-ish people who are thinking of cashing out and quitting the rat race. Then someone says, "But what if you want to come back? You can't."

And thus endeth the conversation because nobody wants to be stuck in Podunk.




Sure. Just ask people in other states how they feel about ex-Californians.
It's all about timing. If you had sold your bay area home in 2006 and moved elsewhere then moved back in 2012 or so, you could have bought back in for even less than you sold.
Of course cashing out and quitting the rat race doesn't mean you wind up in Podunk, unless you purposely moved to Podunk.
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Old 12-28-2018, 11:06 PM
 
Location: on the wind
6,927 posts, read 2,828,142 times
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Really, what's so magical about having a million? Two million? 800 thousand? More? If you live comfortably in some particular COL area, like it, plan to stay, and have some cushion behind you does it really matter? Not everyone covets the same things. Some people wouldn't be satisfied no matter how much they have, no matter where they live. In the end, it's just a number.
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Old 12-29-2018, 10:28 AM
 
Location: Formerly Pleasanton Ca, now in Marietta Ga
5,345 posts, read 4,042,396 times
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Quote:
Originally Posted by Parnassia View Post
Really, what's so magical about having a million? Two million? 800 thousand? More? If you live comfortably in some particular COL area, like it, plan to stay, and have some cushion behind you does it really matter? Not everyone covets the same things. Some people wouldn't be satisfied no matter how much they have, no matter where they live. In the end, it's just a number.
I think itís a number or benchmark that many aspired to. Growing up everyone wanted to be a millionaire. I still here people say that today even though being one is way different than say 20 or 30 years ago.
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Old 12-29-2018, 12:03 PM
 
Location: Vienna, VA
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If you want to work part time in your retirement the HCOL area will be more appealing. Most millionaires probably don't want to work at the local Sheetz or Walmart as a part time gig.
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Old 12-29-2018, 12:05 PM
 
Location: Central New Jersey
2,343 posts, read 890,958 times
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I'd try to find a medium between the snobs and the lower cost areas and blend in.
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Old 12-29-2018, 07:55 PM
 
Location: USA
952 posts, read 367,234 times
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Pheh, I’d rather be a big fish in a small pond (AZ and, good Lord willing, the Deep South in a few years) than a small fish in a big pond (either coast). We can, and do, always visit and in between, we enjoy our nice, stress-free, lower cost of living lives.
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Old 12-30-2018, 12:00 AM
 
1,937 posts, read 1,327,717 times
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Quote:
Originally Posted by eddiehaskell View Post
It does seem like a mostly home equity millionaire in a high cost area lives a completely different lifestyle.
Can you in your current situation be able to afford living say where mathjak lives on your current income and selling your residence? Would you be able to stay retired or would you have to work? This is assuming you just rent since you wouldn't be able to afford buying a place since it's probably out of your reach.
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