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Comment by JumpCrisscross

7 months ago

> Keynes suggested that by 2030, we’d be working 15 hour workweeks

Most people with a modest retirement account could retire in their forties to working 15-hour workweeks somewhere in rural America.

The trade is you need to live in VHCOL city to earn enough and have a high savings rate. Avoid spending it all on VHCOL real estate.

And then after living at the center of everything for 15-20 years be mentally prepared to move to “nowhere”, possibly before your kids head off to college.

Most cannot meet all those conditions and end up on the hedonic treadmill.

  • > you need to live in VHCOL city to earn enough and have a high savings rate

    Yes to the latter, no to the former. The states with the highest savings rates are Connecticut, New Jersey, Minnesota, Massachussetts and Maryland [1]. Only Massachussetts is a top-five COL state [2].

    > then after living at the center of everything for 15-20 years be mentally prepared to move to “nowhere”

    This is the real hurdle. Ultimately, however, it's a choice. One chooses to work harder to access a scarce resource out of preference, not necessity.

    [1] https://en.wikipedia.org/wiki/List_of_U.S._states_by_savings...

    [2] https://en.wikipedia.org/wiki/List_of_U.S._states_by_savings...

    • CT & NJ being top of the list points to the great NYC metropolitan wage premium though doesn't it? MA at #4 picks up Boston, MD at #5 picks up DC, etc.

      CA probably nowhere on the list because its such a small state that any Silicon Valley premium gets diluted at the state level average.

      I am not finding a clear definition of this index but it appears to be $saved/$income (or $saved/$living expenses) right? So 114% in CT dollars is probably way more than 102% Kansas dollars..

      It's also worth noting the point I was making is - if you take a "one years NYC income in savings" amount of money and relocate to say, New Mexico.. the money goes a lot further than trying to do the opposite!