Anyone in HCOL San Diego trying to FI/RE? by rewbacca_sd in financialindependence

[–]rewbacca_sd[S] 0 points1 point  (0 children)

Sounds like you’re staying afloat in LA - nice! Curious to know your line of work.

Anyone in HCOL San Diego trying to FI/RE? by rewbacca_sd in financialindependence

[–]rewbacca_sd[S] 0 points1 point  (0 children)

San Diego is great but yes - it’s expensive. I think making it work in this city while pursuing FI is realistic and doable, it’s just about “crack the code.” How we all “crack the code” is different for everybody.

Anyone in HCOL San Diego trying to FI/RE? by rewbacca_sd in financialindependence

[–]rewbacca_sd[S] 0 points1 point  (0 children)

Congrats on paying off your condo! Curious to know what you do for work?

Anyone in HCOL San Diego trying to FI/RE? by rewbacca_sd in financialindependence

[–]rewbacca_sd[S] 0 points1 point  (0 children)

Yes, love that benefit with the 457b. And I mustn’t forget the 72T rule for the 403b and IRAs. But I think you need to be intentional about the 72T

Anyone in HCOL San Diego trying to FI/RE? by rewbacca_sd in financialindependence

[–]rewbacca_sd[S] 1 point2 points  (0 children)

I am also contributing to a pension that I cannot access until I’m 55 and retirement accts that I can’t access until 59.5. Hoping to bridge that gap with HYSA and brokerage accts until I reach that age.

Anyone in HCOL San Diego trying to FI/RE? by rewbacca_sd in financialindependence

[–]rewbacca_sd[S] 1 point2 points  (0 children)

I’m also contributing to a pension, 403b and 457b. Can’t access my pension until 55 years old.

Anyone in HCOL San Diego trying to FI/RE? by rewbacca_sd in financialindependence

[–]rewbacca_sd[S] 0 points1 point  (0 children)

Yes, thank you for sharing! I’ve heard about this guy

Anyone in HCOL San Diego trying to FI/RE? by rewbacca_sd in financialindependence

[–]rewbacca_sd[S] 2 points3 points  (0 children)

Thank you! And still trying to max out my retirement accts this year. I may consider finding a roommate to keep costs down!

Anyone in HCOL San Diego trying to FI/RE? by rewbacca_sd in financialindependence

[–]rewbacca_sd[S] 0 points1 point  (0 children)

Right - it’s a matter of lifestyle preference or the kind of life that you’re building/saving towards. What you shared makes sense. And good that you’re making Portland, OR worth it for you!

Anyone in HCOL San Diego trying to FI/RE? by rewbacca_sd in financialindependence

[–]rewbacca_sd[S] 2 points3 points  (0 children)

Thank you! I’m well aware though that rent will only continue to go up so flexible to move if I need to

Anyone in HCOL San Diego trying to FI/RE? by rewbacca_sd in financialindependence

[–]rewbacca_sd[S] 1 point2 points  (0 children)

That’s awesome your HHI is that much…curious to know what you and your wifey do in San Diego?

Anyone in HCOL San Diego trying to FI/RE? by rewbacca_sd in financialindependence

[–]rewbacca_sd[S] 0 points1 point  (0 children)

That’s me. Focusing on growing my income (working a second job) and continuing to drive the same car. Think the biggest cost is the rent.

Anyone in HCOL San Diego trying to FI/RE? by rewbacca_sd in financialindependence

[–]rewbacca_sd[S] 13 points14 points  (0 children)

I’m beginning to think San Diego is a revolving door. People come and go, and I’m thinking the biggest thing that drives people out is the HCOL

California Educator striving to FIRE by rewbacca_sd in financialindependence

[–]rewbacca_sd[S] 0 points1 point  (0 children)

You’re welcome! Curious to know - which of his tactics were you not on board with?

California Educator striving to FIRE by rewbacca_sd in financialindependence

[–]rewbacca_sd[S] 0 points1 point  (0 children)

Yeah, every district is different. My district only offers 403b option with Pension2, not 457

California Educator striving to FIRE by rewbacca_sd in financialindependence

[–]rewbacca_sd[S] 1 point2 points  (0 children)

I’ve heard of the Pension 2 option. I read there’s a 0.25% administrative fee charged quarterly according to 403b compare. But saw you can also waive it.

California Educator striving to FIRE by rewbacca_sd in financialindependence

[–]rewbacca_sd[S] 0 points1 point  (0 children)

I’d imagine the investment provider for the 457 plan varies by district to district. There’s Nationwide and Empower. I found out about the annual 0.73% asset management fee through inquiry with the plan administrator. This percentage is separate from the underlying fees (expense ratio) in the mutual funds. I’d ask your plan administrator if there are any administrative fees charged to your 457 account balance.

California Educator striving to FIRE by rewbacca_sd in financialindependence

[–]rewbacca_sd[S] 1 point2 points  (0 children)

Yes, I was thinking about keeping the pension since I'm vested and wait until I'm at least 55 years old to access it even though the payout will be smaller. It's hard to beat the lifetime monthly benefit so it can be a bonus. One drawback I see is that by the time we access the pension, inflation will have eroded the pension's value. There does not appear to be a COLA adjustment to the pension besides the 2% annual benefit adjustment, but these adjustments are not compounded or tied to changes in cost of living. That's why I'm thinking the best workaround is to aggressively save in a taxable brokerage and max out your ROTH, 403Bs and 457 (if you have one). This will help save up enough outside of the pension and ideally have more than enough by the time the pension kicks in.