Retiring in San Diego, CA: What You Need to Know
San Diego is the most expensive city on this list, and California's top 13.3% income tax rate makes accumulation painful. But there's a FIRE strategy: earn in California's high-salary tech and biotech market, save aggressively, then establish residency in a no-income-tax state for 1–2 years before doing major Roth conversions. If committed to retiring in San Diego, Prop 13 is your friend — property taxes lock at purchase price plus 2%/year, so buying early protects against future cost increases. A $65,000 expense budget means a $1.625M FIRE number.
What Does $1,625,000 Get You in San Diego, CA?
With a FIRE number of $1,625,000, you can safely withdraw $65,000 per year ($5,417/month) to cover living expenses in San Diego, CA. This follows the 4% rule — the widely-used benchmark that says a diversified portfolio can sustain a 4% annual withdrawal rate indefinitely.
How to Reach FIRE for San Diego, CA
- Know your real expenses. The $65,000 average may not match your lifestyle. Track every dollar for 3 months to get your true number.
- Optimize for local taxes. State income tax, property tax, and sales tax vary enormously and directly impact how much you need.
- Factor in healthcare. If retiring before 65, budget $400–$800/month for ACA marketplace insurance in San Diego, CA.
- Run your own numbers. Use the FIRE calculator to enter your actual income, spending, and investments for a personalized timeline.