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If you made a $100,000 annual salary, you’d probably be pretty happy, right? Well, that might not be the case if you’re living in California.
A registered nurse named Winter posted a TikTok video in which she expressed her frustration with how little her $100,000+ income gets her in the Golden State. In fact, she’s found it so difficult to afford her bills right now that she is moving back in with her dad.
“Having a decent job doesn’t get you anywhere,” she lamented.
But is that true — or does she just need to get out of California?
Winter isn’t the only person frustrated with California living. There’s been a huge migration out of blue states like California and New York, and toward red states like Florida and Texas.
Personal finance celebrity Grant Cardone said that this is because blue states’ tax rates are too high — particularly for those making good money.
Winter herself complained about the taxes in her video. Her more than $100,000/year income means she needs to pay 9.3% in taxes, according to the 2023 State of California Franchise Tax Board.
Millionaires are required to pay even more money to the state. Those who earn more than $1.3 million need to pay 12.3% in taxes.
Regardless of the typical expenses of the place you live, it is possible to seek out the best possible deals on essential costs like insurance and save money to counteract high taxes. For example, by using OfficialCarInsurance.com, you can easily compare quotes from multiple insurers, such as Progressive, Allstate and GEICO, to ensure you’re getting the best deal.
In just two minutes, you could find rates as low as $29 per month.
Similarly, OfficialHomeInsurance lets you compare the best home insurance rates in your area. All you need to do is answer a few basic questions and they’ll instantly sort through leading insurers in your area to find you the best deals available.
Because Texas and Florida do not charge state income taxes, many people are attracted to moving there. With the rising cost of living, saving money on taxes is tempting many people to consider uprooting to another state.
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With more and more people priced out of the housing market, moving to a new city or state might be out of reach right now.
Thankfully, you can still take advantage of real estate as an investment with platforms like Arrived.
Backed by world-class investors like Jeff Bezos, Arrived allows investors to buy shares of rental homes and vacation rentals without taking on the similar responsibilities of direct homeownership and property management.
Start by browsing a curated selection of homes, vetted for their appreciation and income potential. Once you find a property you like, choose the number of shares you want to buy.
You can start investing in real estate with just $100 — a price tag that might look more appealing than the one associated with owning and managing a property yourself in the current residential market.
And if you are looking to add real estate to your portfolio, you aren’t limited to residential properties.
Read more: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)’
Perhaps the least popular asset class out there, but the one with some of the best longer-term returns, commercial real estate is starting to generate buzz among certain investors.
Why? Commercial real estate (particularly office and other light commercial assets) are down big. For value investors, that’s the kind of buying opportunity worth perking up over. There are certainly many options for investors looking for exposure to this asset class.
If you’re looking to make a larger investment, one option is First National Realty Partners (FNRP), an investment firm that provides accredited investors the ability to benefit from grocery-anchored, multifamily and industrial commercial real estate assets.
FNRP gives you access to necessity-based real estate. This means the properties are essential to the local community, often leased by national brands like Krogers, Walmart, or CVS, and are more likely to stand the test of time amid economic change.
Once a deal is closed, FNRP’s team of experts manages every aspect of the deal, so you can enjoy the potential quarterly distributions and focus on finding your next big real-estate opportunity.
Taxes aside, Winter also complained that she can’t afford housing.
Lots of young people feel this way. They’re looking to the South and the Midwest for homes, which are significantly more affordable than the ones in California.
For many, the prospect of moving back in with your parents or ditching your dream city because of its cost can be pretty sad. This is where a financial advisor can help out.
Research from Vanguard shows that working with a financial advisor can add about 3% to net returns over time. That difference can become substantial. For example, if you started with a $50,000 portfolio, professional guidance could mean more than $1.3 million in additional growth over 30 years, depending on market conditions and your investment strategy.
Finding the right advisor is simple with Advisor.com. Their platform connects you with licensed financial professionals in your area who can provide personalized guidance.
A professional advisor can also help you determine how many years you have left to invest before retirement and assess your comfort level with market fluctuations—two key factors in building the right asset mix for your portfolio.
Through Advisor.com, you can schedule a free, no-obligation consultation to discuss your retirement goals and long-term financial plan.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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