My parents just moved from California to Tennessee (Jackson: rent, mortgage)

[caliguy92832]

They sold there house for $500,000 and are now living near Jackson, TN renting a house for $600 a month. They say its alot better than Cali. People are alot more friendier(people wave at you), better traffic, cost of living WAY lower. You could buy a 5 bedroom mansion for $250,000. In Cali it would cost $1,000,000. But they say not much jobs or work, but that really doesn't matter when you have 500K in the bank.

[Eat]

Originally Posted by caliguy92832

They sold there house for $500,000 and are now living near Jackson, TN renting a house for $600 a month. They say its alot better than Cali. People are alot more friendier(people wave at you), better traffic, cost of living WAY lower. You could buy a 5 bedroom mansion for $250,000. In Cali it would cost $1,000,000. But they say not much jobs or work, but that really doesn't matter when you have 500K in the bank.

I think it does.

$500K in the bank, so to speak, will net you about $14K a year after taxes, if the money is invested in something averaging an 8% annual return (like the stock market over the long haul), and provisions are made to keep the nest egg inflation proof.

It's hard to have a good time on $14,000 a year, even in Tennessee.

If you literally keep the money in the bank, it'll be less than $10,000.

[Beretta]

caliguy, are you planning on moving here also?

[caliguy92832]

Originally Posted by SmokyMtnGal

caliguy, are you planning on moving here also?

i thinking of moving to the south somewhere so i could be close to my family. my parents live in TN now and both of my brothers live in kentucky. they moved from CA about 5 years ago. i'm looking for a place that has a real good job market so i could get a job right away. i heard georgia, north carolina, and texas are experiencing some good job growth right now.

[Wordy]

How does $500,000 getting a return of 8% end up at $14,000 a year? 500,000 x 8% = $40,000. Yes? Do you mean that you would leave 4% in and take out only 4%? 500,000 x 4% = $20,000? If so, would you even be taxed on that at all by the time you take out your standard deduction and exemptions?

Not arguing that living on $20K a year would be that much fun, though. Doable with no rent or mortgage and a frugal, nonmaterialistic mindset, but--not that much fun!

[Capt. Dan]

Plenty of of work in Jackson! I know. I do the hiring/firing!

[caliguy92832]

Originally Posted by Eat

I think it does.

$500K in the bank, so to speak, will net you about $14K a year after taxes, if the money is invested in something averaging an 8% annual return (like the stock market over the long haul), and provisions are made to keep the nest egg inflation proof.

It's hard to have a good time on $14,000 a year, even in Tennessee.

If you literally keep the money in the bank, it'll be less than $10,000.

What my parents are planning on doing is buying a house there in TN in 6 months. They already prepaid 6 months rent at the house there renting - $3200 total. They have 500K in the bank and are looking for house in the $150-$250K range. My mom is retired and my dad is looking for a job in the law enforcement industry. He has a childhood friend that lives near then in Jackson who is a deputy sheriff. If he gets a job with them they'll be set.