I’m relatively wealthy and I live on a 50 foot Leopard catamaran for 8 months of the year sailing between various Caribbean islands. I change up my resort town every few weeks. It’s a great lifestyle as long as you are handy and can learn about weather. I see lots of cultures, do some great diving right from my boat, etc. I usually have the cat in Curacao during Hurricane season since the ABC islands rarely get hit by canes.

Anonymous wrote:OP here. It's not worth focusing on the "flyover country". The point is that these retirees are able to live the high life because of their ample investments. Well done, but so many young people are not and will not be able to accumulate and invest as much. Just look at the mortgage interest they are paying, if they are lucky enough to become homeowners.

Read Ramit Sethi - I will teach you to be rich.

Anonymous wrote:OP here. It's not worth focusing on the "flyover country". The point is that these retirees are able to live the high life because of their ample investments. Well done, but so many young people are not and will not be able to accumulate and invest as much. Just look at the mortgage interest they are paying, if they are lucky enough to become homeowners.

I knew that's what this thread was going to be about. These threads are getting so old.

I hear you - I’ve been in similar places and have been a bit surprised. I do the same when looking at huge luxury skyscrapers - so many rich people! However, you need to consider perspective - that these beautiful towns actually represent only a tiny percentage of population.

Wealthy people in Newport Beach are people that have likely lived there for 30+ years, purchased R/E much cheaper, have very little property tax (because CA dramatically limits increases in property tax if a property doesn't change hands) and likely had high paying careers (either working in Orange County or even LA).

I mean, most people retire from cold weather to warm weather...but if you already live somewhere that is 78 and sunny and no humidity, and you are wealthy...well, you probably aren't moving

It’s a resort town - maybe they have a timeshare or come down for a month in the winter and live at an air B&B.

I think you are making a lot of assumptions.

Anonymous wrote:I am from Flyover Country (Napa Valley). Born and raised. I find the innuendo here offensive in the extreme!

Honey, Napa Valley is not flyover country. It's the pinnacle of the coastal elite.

I'm 62 and since 1980 I was too busy working paycheck to paycheck to notice the amazing, historic explosion in stock prices and real estate during that time.

Oh well, maybe I can get a job in a resort town so I can see my more clever classmates.

Anonymous wrote:I recently visited a resort town in Southern California. I noticed that the majority of the lunch crowd in high-end restaurants were happy, relaxed retirees.

I kept thinking, these are the people who have saved up or sold businesses in the flyover country, and are now living the high life. The employees serving them are those without investments.

I am 45, and I really hope to be one of those retirees one day.

Are you on track? What's your net worth, how much are you saving annually, and when will you retire? I plan to retire earlier, even if it means I live in a smaller house in retirement. I'd love to spend my 50s traveling and pursuing my hobbies. I am more jealous of the people who retired young enough to enjoy it.

OP doesn’t know shit.

I’m 62. We paid nearly 10 percent interest on our first home. My 401k dropped 40 percent in 2008. Etc.

Also depends a lot of they had job security, dual income and company match.

For instance let’s say you are a dual income 50 year old you can put 60k in 401k and if company does a good match maybe be another 40k. Even blah blah target date funds or 60/40 stock bond would be huge by 72 when RMDs happen

Sounds like OP in unfamiliar with the real estate market in the area they were visiting. Wealth can be built through investments, savings, inheritance and real estate. The real estate market in So Cal has been explosive in the past 20 years. If the retirees have lived in their same house or bought long enough ago, their equity could be worth 4-6 times more than what they bought the home. DMV has wealthy retirees.

I would not move to high tax CA from a low tax area that seems dumb

I am from Flyover Country (Napa Valley). Born and raised. I find the innuendo here offensive in the extreme!

It’s March. Rich people are not on Martha’s Vineyard right now, OP.

Retirees now lived through some extraordinary interest rates and recessions. They also lived through an extraordinary run up in both the stock market and housing prices, after they locked in.

So yes, they are fortunate. But interest rates aren’t the reason why.