# Retirement question

**URL:** <https://boards.straightdope.com/t/retirement-question/834175>\
**Category:** In My Humble Opinion\
**Created:** [May 19, 2019, 1:52am UTC](https://boards.straightdope.com/t/retirement-question/834175 "2019-05-19T01:52:02Z")\
**Posts on this page:** 2\
**Page:** 2

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**Author:** ![jasg](https://avatars.discourse-cdn.com/v4/letter/j/f0a364/32.png) [@jasg](https://boards.straightdope.com/u/jasg)\
**Post date:** [May 20, 2019, 10:50pm UTC](https://boards.straightdope.com/t/retirement-question/834175/21 "2019-05-20T22:50:51Z")

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> [@Mean\_Mr.Mustard](#):
>
> Sorry to sidetrack, but is 4% typically what is factored into the equation?
> 
> (I’m assuming this refers to withdrawing 4% of your retirement savings annually once you retire)
> 
> mmm

Actually, the [Bergen study](https://en.m.wikipedia.org/wiki/William_Bengen#CITEREFBengen1994) that came up with the “4% Rule” was based on :

- take 4% of your retirement fund at 65. Say, $40,000 from a $1M account.
- each year thereafter, increase the $40,000 by inflation for the previous year.

This is often debated, updated and argued. Search for “Bergen study” for examples.  
Determining a proper ‘drawdown’ of retirement funds is not for sissies…

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**Author:** ![Wesley\_Clark](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/wesley_clark/32/20581_2.png) [@Wesley\_Clark](https://boards.straightdope.com/u/Wesley_Clark)\
**Post date:** [May 20, 2019, 11:01pm UTC](https://boards.straightdope.com/t/retirement-question/834175/22 "2019-05-20T23:01:06Z")

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> [@Kent\_Clark](#):
>
> There are certainly many places where you can get a comfortable house that doesn’t need a gut rehab for $150k. Keep in mind that those house are mostly in small towns where you’ll have nowhere the convenience you have right now, and you will need a car to perform the functions necessary to live, your healthcare options may be limited to an urgent care facility (if you’re lucky) or a not-all-that-good doctor 50 miles away, and going into town for dinner and a show requires an overnight stay.
> 
> I think I could handle that type of culture change, but my wife put her foot down against it years ago.

Affordable housing doesn’t have to require you to move way out into the sticks. Large cities in the midwest and south are affordable, and in my experience living in Indiana the cost per sq ft isn’t much higher in the large cities than in the smaller cities. It hovers in the $100/sq ft range on average (obviously depends on neighborhood though, but that price will get you a decent neighborhood).

This excludes Chicago, which is much higher priced. But if you’re willing to live in a big city in the midwest or south then housing is fairly reasonable. Looking at median home prices in Indianapolis IN, Columbus OH, Cincinnatti OH, etc. all hover around 150k. Median home prices in Dallas or Houston TX are about 200k.

From what I can tell, the big factors in affordable housing are things like population density and whether the city is land locked or borders water. The higher the population density and the more the city borders water generally the higher the real estate prices. Large cities surrounded by farmland are pretty affordable and they have the same amenities as a large city on the coasts.

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