5 Things Retirees Shouldn’t Do With Their Money in San Francisco and 5 Other California Cities

Cost of Living in San Francisco - San Francisco has a significantly higher cost of living compared to other U.S. cities, with costs running 42.3% higher than Kansas City, Missouri, excluding rent [1] - Restaurant prices in San Francisco are 34.6% higher, groceries are 35.4% higher, and rent is 159% higher than in Kansas City [1] Comparison with Other California Cities - Other California cities such as San Diego, Santa Barbara, Los Angeles, Palo Alto, and San Jose also exhibit high living costs, making them similarly expensive retirement locations [2] Real Estate and Taxes - The average home price in San Francisco is $1,240,382, which can lead to substantial capital gains tax liabilities for sellers, even after the homeowners exclusion of the first $250,000 [4] Downsizing Considerations - Downsizing to a condo may seem affordable, but rising condo fees can impact retirees on fixed incomes [5] Renting Before Buying - It is advisable for long-time homeowners to rent for a few months to understand local neighborhoods and living costs before committing to a purchase [6] Aging in Place - Retirees should consider their long-term living arrangements, as current health does not guarantee the ability to live independently in the future [6] - The average cost of assisted living in San Jose is $8,750, significantly higher than $5,900 in Kansas City [7] Insurance Challenges - Homeowners insurance premiums in California have increased dramatically due to many major carriers exiting the market, leading to underinsurance among homeowners [8]