XOM - How To Retire In An Expensive City Like Los Angeles

I was talking to a friend the other day who lives in Los Angeles. He loves it there and “can’t imagine living anywhere else,” but expressed concern about being able to live comfortably in retirement in such an expensive city. He doesn’t own property, doesn’t intend to and, in his mid-40s, has about $500,000 in retirement savings invested primarily in blue-chip, dividend-paying stocks.

Here’s the rest of his financial profile:

• Income: variable between $4,000 and $8,000; call it $6,000/month

• Rent: $1,350/month, will increase by roughly 3% annually under rent control

• Car lease: $450/month, lease expires