You’ve worked hard for your entire life, and now it’s time to kick back and enjoy your golden years in Los Angeles. Great call—we love it here, too!
Los Angeles is an awesome city, full of many things to do.If sports are your thing, you can catch the Dodgers, Kings, Chargers, Lakers, and Clippers in action—not to mention all of the collegiate teams in the vicinity (hello, UCLA and USC!). If you’re looking for some good old-fashioned entertainment, bring the grandkids over to Universal Studios or Disneyland, tour the famous locations in Hollywood, or catch some live music or arts performances at the Hollywood Bowl.
Maybe you want to explore nature. There is plenty of that close by, too, including several national parks—such as Joshua Tree, Death Valley, Channel Islands, and Sequoia/Kings Canyon.
What’s more, living in Los Angeles puts you within striking distance of other major cities—including San Francisco, San Diego, and Las Vegas.
With some of the best weather in the country, Los Angeles can be a fantastic place to retire. All you need is a retirement plan that works well for your unique situation so you can live comfortably.
There’s no other way to say it: Although Los Angeles is a fantastic city in an amazing location, it’s pretty expensive to live here.
According to Zillow, the median home value in the area hovers near $700,000. Further, one study found that you need to make nearly $100,000 in income each year to rent the average house in Los Angeles. The cost of living can be pretty high, too. For example, food in Los Angeles is “significantly more expensive than the national average,” according to Investopedia. Of course, there are lots of high-income careers in the Los Angeles area. And for many, the area’s real estate appreciation is a benefit.
But back to the location—and the weather.
More specifically, Los Angeles has some of the best weather in the country. In fact, one study found that it actually has the most “pleasant” weather in the United States.
Although retiring in the Los Angeles area may be expensive, it’s not impossible.
Do you see yourself retiring in Los Angeles in the future? If so, you may want to start saving for retirement today.
Keep in mind that it’s not enough to simply save money. You need a comprehensive approach to retirement planning—one that includes cash flow analysis, tax planning, and investments aligned with your goals. .
After all, people in Los Angeles may earn more than the national average and their property may appreciate fast, but that benefit also makes Los Angeles one of the more expensive places in the country to retire. As such, a financial planning approach might work in Los Angeles just as it would in other places, but the savings needed and expenses will likely be higher than other parts of the country.
That being the case, the earlier you start planning for retirement, the more lead time you have to develop a financial plan that supports your retirement lifestyle and makes it possible to afford living in Los Angeles.
Everyone has unique financial circumstances. That being the case, there’s no right or wrong answer about how, specifically, you should begin saving for retirement.
But if you want to enjoy a comfortable retirement lifestyle, you need to create a retirement plan, as well as an investment strategy, that works well for you—and you need to stick to it.
Beyond these considerations, you also have to figure out how you’re going to approach insurance during your retirement, as well as what your strategy for Social Security looks like. Should you draw your funds as soon as you’re able to? Or do you want to maximize your benefit by putting it off as long as you possibly can?
These are questions only you can answer.
The good news is that, by partnering with a financial advisor, you can work together to create a plan personalized to you.
EP Wealth is a fee-only fiduciary financial advisory firm that helps people like you work toward securing their financial future by collaborating to create a retirement plan that aims to meet their unique needs.
This might be your first time retiring. But over the years, we’ve helped countless individuals just like you build a retirement plan that works for them.
There’s no sense in taking on a massive responsibility all by yourself when you don’t have to. Contact us today to see how we can work together to help you create a plan that supports your long-term financial goals. We look forward to hearing from you!
The EP Wealth Advisors financial planning process starts with the relationship between you and your financial advisor. How do you value a financial coach? Developing a partnership that ensures we understand your goals lets us help you prioritize and organize your financial decisions—so you can achieve peace of mind and live your life.
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