> But that actually creates a deferred tax obligation. Let’s say the tax rate you pay that at is 20% (very optimistic
There are also ways to get at this money with almost no taxes paid later IF you are not working--look for "Roth IRA conversion ladder".
Also look into "Mega Backdoor Roth" for more tax sheltering.
> That seems challenging in Northern California
You don't have to retire to California. Just pay minimal costs while you're there. Many places in US are beautiful, have great infrastructure and health care, and don't cost as much.
And investment growth is a LOT; don't ignore it. And after just a few years of not working, unless you have a bad start you can probably live off of much more than the initial safe withdrawal rate.
There are also ways to get at this money with almost no taxes paid later IF you are not working--look for "Roth IRA conversion ladder".
Also look into "Mega Backdoor Roth" for more tax sheltering.
> That seems challenging in Northern California
You don't have to retire to California. Just pay minimal costs while you're there. Many places in US are beautiful, have great infrastructure and health care, and don't cost as much.
And investment growth is a LOT; don't ignore it. And after just a few years of not working, unless you have a bad start you can probably live off of much more than the initial safe withdrawal rate.