If you WANT to move, this is a good time in your life to consider moving (generally, doesn't have to be tomorrow).
That said, I would find it a very, very, very hard sell to move to the Bay Area for what is effectively a ~10% raise. I am currently in a LCOL metro (which is still probably MCOL if you consider areas outside major metros) and looked at positions in LA. I needed to earn nearly double what I was making just to break even and LA is meaningfully less expensive than SF. When I was out there, I met people 10-15 years older than me struggling to afford a home that sounded half as nice as the one I had at the time.
This isn't to deter you. The upside potential can be substantial and even relatively unbounded. We don't discuss it much on this board, but my take is that while savings percentage is a meaningful way to address relative retirement preparedness, absolute dollars are ultimately what matters for someone geographically flexible. So even saving relatively less as a percent of income in a VHCOL region CAN work out better than saving a higher percent in a LCOL region if you are willing to relocate (emphasis on CAN; obviously the 50% vs 1% isn't going to cut it). If you think the risk vs potential reward is worth it, I say go for it but I would do some serious research, have a clear path to a more meaningful jump in salary over x years and an exit strategy if it doesn't pan out (or you don't like it, or spouse doesn't like it, or you miss having family nearby, etc., etc.).
That said, I would find it a very, very, very hard sell to move to the Bay Area for what is effectively a ~10% raise. I am currently in a LCOL metro (which is still probably MCOL if you consider areas outside major metros) and looked at positions in LA. I needed to earn nearly double what I was making just to break even and LA is meaningfully less expensive than SF. When I was out there, I met people 10-15 years older than me struggling to afford a home that sounded half as nice as the one I had at the time.
This isn't to deter you. The upside potential can be substantial and even relatively unbounded. We don't discuss it much on this board, but my take is that while savings percentage is a meaningful way to address relative retirement preparedness, absolute dollars are ultimately what matters for someone geographically flexible. So even saving relatively less as a percent of income in a VHCOL region CAN work out better than saving a higher percent in a LCOL region if you are willing to relocate (emphasis on CAN; obviously the 50% vs 1% isn't going to cut it). If you think the risk vs potential reward is worth it, I say go for it but I would do some serious research, have a clear path to a more meaningful jump in salary over x years and an exit strategy if it doesn't pan out (or you don't like it, or spouse doesn't like it, or you miss having family nearby, etc., etc.).
Statistics: Posted by Ollie123 — Wed Mar 20, 2024 10:15 am — Replies 34 — Views 3351
