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    Visual Capitalist


    Visual Capitalist
    https://www.visualcapitalist.com
    Data-driven visuals that help explain a complex world
    Wed, 20 Oct 2021 18:26:05 +0000
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    Is $1 Million Enough for Retirement in America? https://www.visualcapitalist.com/is-1-million-enough-for-retirement-in-america/?utm_source=rss&utm_medium=rss&utm_campaign=is-1-million-enough-for-retirement-in-america
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    Wed, 20 Oct 2021 17:48:54 +0000










    https://www.visualcapitalist.com/?p=142399

    The average American needs their retirement savings to last them over a decade. In which cities is $1 million enough to retire comfortably?

    The post Is $1 Million Enough for Retirement in America? appeared first on Visual Capitalist.

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    Retirement Savings in America

    Can I share this graphic?
    Yes. Visualizations are free to share and post in their original form across the web—even for publishers. Please link back to this page and attribute Visual Capitalist.
    When do I need a license?
    Licenses are required for some commercial uses, translations, or layout modifications. You can even whitelabel our visualizations. Explore your options.
    Interested in this piece?
    Click here to license this visualization.

    Is $1 Million Enough for Retirement in America?

    The average American needs their retirement savings to last them 14 to 17 years. With this in mind, is $1 million in savings enough for the average retiree?

    Ultimately, it depends on where you live, since the average cost of living varies across the country. This graphic, using data compiled by GOBankingRates.com shows how many years $1 million in retirement savings lasts in the top 50 most populated U.S. cities.

    Editor’s note: As one user rightly pointed out, this analysis doesn’t take into account interest earned on the $1 million. With that in consideration, the above calculations could be seen as very conservative figures.

    How Long $1 Million Would Last in 50 Cities

    To compile this data, GOBankingRates calculated the average expenditures of people aged 65 or older in each city, using data from the Bureau of Labor Statistics and cost-of-living indices from Sperling’s Best Places.

    That figure was then reduced to account for average Social Security income. Then, GOBankingRates divided the one million by each city’s final figure to calculate how many years $1 million would last in each place.

    Perhaps unsurprisingly, San Francisco, California came in as the most expensive city on the list. $1 million in retirement savings lasts approximately eight years in San Francisco, which is about half the time that the typical American needs their retirement funds to last.

    City How long $1 would last (years) Cost-of-living Index Annual expenditures
    (after using annual Social Security)
    Memphis, TN 45.3 76 $22,043
    El Paso, TX 40.3 81.4 $24,789
    Wichita, KS 39.7 82.1 $25,145
    Tulsa, OK 38.8 83.2 $25,705
    Indianapolis, IN 38.6 83.5 $25,857
    Milwaukee, WI 37.6 84.9 $26,569
    Oklahoma City, OK 37.3 85.4 $26,824
    Columbus, OH 37.2 85.5 $26,875
    Kansas City, MO 36.7 86.2 $27,231
    Detroit, MI 35.8 87.6 $27,943
    Baltimore, MD 35.3 88.2 $28,248
    Louisville, KY 35.3 88.4 $28,349
    San Antonio, TX 34.4 89.7 $29,011
    Omaha, NE 34.3 89.8 $29,062
    Albuquerque, NM 33.6 91.1 $29,723
    Tucson, AZ 33.3 91.6 $29,977
    Jacksonville, FL 32.3 93.5 $30,943
    New Orleans, LA 30.8 96.3 $32,367
    Houston, TX 30.8 96.5 $32,469
    Charlotte, NC 29.6 98.9 $33,690
    Forth Worth, TX 29.3 99.8 $34,148
    Arlington, TX 28.8 100.6 $34,554
    Philadelphia, PA 28.6 101.2 $34,860
    Nashville, TN 28.5 101.4 $34,961
    Dallas, TX 28.4 101.6 $35,063
    Raleigh, NC 28.2 102.3 $35,419
    Fresno, CA 28.1 102.6 $35,572
    Phoenix, AZ 27.6 103.7 $36,131
    Mesa, AZ 27.4 104.2 $36,385
    Colorado Springs, CO 27.3 104.5 $36,538
    Virginia Beach, VA 26.9 105.6 $37,097
    Minneapolis, MN 26.6 106.5 $37,555
    Chicago, IL 26.4 106.9 $37,759
    Atlanta, GA 26.3 107.5 $38,064
    Las Vegas, NV 24.8 111.6 $40,149
    Sacramento, CA 22.9 118.2 $43,506
    Austin, TX 22.7 119.3 $44,065
    Miami, FL 21.7 123.1 $45,998
    Denver, CO 20.4 128.7 $48,846
    Portland, OR 20.0 130.8 $49,914
    Washington, D.C. 16.4 152.1 $60,747
    San Diego, CA 15.4 160.1 $64,816
    Long Beach, CA 15.3 160.4 $64,969
    Boston, MA 15.1 162.4 $65,986
    Seattle. WA 14.0 172.3 $71,021
    Los Angeles, CA 13.9 173.3 $71,530
    Oakland, CA 13.8 174.4 $72,089
    New York, NY 12.7 187.2 $78,599
    San Jose, CA 10.8 214.5 $92,484
    San Francisco, CA 8.3 269.3 $120,355

    A big factor in San Francisco’s high cost of living is its housing costs. According to Sperlings Best Places, housing in San Francisco is almost 6x more expensive than the national average and 3.6x more expensive than in the overall state of California.

    Four of the top five most expensive cities on the list are in California, with New York City being the only outlier. NYC is the third most expensive city on the ranking, with $1 million expected to last a retiree about 12.7 years.

    On the other end of the spectrum, $1 million in retirement would last 45.3 years in Memphis, Tennessee. That’s about 37 years longer than it would last in San Francisco. In Memphis, housing costs are about 2.7x lower than the national average, with other expenses like groceries, health, and utilities well below the national average as well.

    Retirement, Who?

    Regardless of where you live, it’s helpful to start planning for retirement sooner rather than later. But according to a recent survey, only 41% of women and 58% of men are actively saving for retirement.

    However, for some, COVID-19 has been the financial wake-up call they needed to start planning for the future. In fact, in the same survey, 70% of respondents claimed the pandemic has “caused them to pay more attention to their long-term finances.”

    This is good news, considering that people are living longer than they used to, meaning their funds need to last longer in general (or people need to retire later in life). Although, as the data in this graphic suggests, where you live will greatly influence how much you actually need.

    The post Is $1 Million Enough for Retirement in America? appeared first on Visual Capitalist.

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    142399

    The World’s Biggest Real Estate Bubbles in 2021 https://www.visualcapitalist.com/worlds-biggest-real-estate-bubbles-in-2021/?utm_source=rss&utm_medium=rss&utm_campaign=worlds-biggest-real-estate-bubbles-in-2021
    https://www.visualcapitalist.com/worlds-biggest-real-estate-bubbles-in-2021/#respond

    Tue, 19 Oct 2021 19:19:12 +0000











    https://www.visualcapitalist.com/?p=142351

    According to UBS, there are nine real estate markets that are in bubble territory with prices rising to unsustainable levels.

    The post The World’s Biggest Real Estate Bubbles in 2021 appeared first on Visual Capitalist.

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    Ranked: The World’s Biggest Real Estate Bubbles in 2021

    Can I share this graphic?
    Yes. Visualizations are free to share and post in their original form across the web—even for publishers. Please link back to this page and attribute Visual Capitalist.
    When do I need a license?
    Licenses are required for some commercial uses, translations, or layout modifications. You can even whitelabel our visualizations. Explore your options.
    Interested in this piece?
    Click here to license this visualization.

    Ranked: The World’s Biggest Real Estate Bubbles in 2021

    Identifying real estate bubbles is a tricky business. After all, even though many of us “know a bubble when we see it”, we don’t have tangible proof of a bubble until it actually bursts.

    And by then, it’s too late.

    The map above, based on data from the Real Estate Bubble Index by UBS, serves as an early warning system, evaluating 25 global cities and scoring them based on their bubble risk.

    Reading the Signs

    Bubbles are hard to distinguish in real-time as investors must judge whether a market’s pricing accurately reflects what will happen in the future. Even so, there are some signs to watch out for.

    As one example, a decoupling of prices from local incomes and rents is a common red flag. As well, imbalances in the real economy, such as excessive construction activity and lending can signal a bubble in the making.

    With this in mind, which global markets are exhibiting the most bubble risk?

    The Geography of Real Estate Bubbles

    Europe is home to a number of cities that have extreme bubble risk, with Frankfurt topping the list this year. Germany’s financial hub has seen real home prices rise by 10% per year on average since 2016—the highest rate of all cities evaluated.

    housing bubble index 2021

    Two Canadian cities also find themselves in bubble territory: Toronto and Vancouver. In the former, nearly 30% of purchases in 2021 went to buyers with multiple properties, showing that real estate investment is alive and well. Despite efforts to cool down these hot urban markets, Canadian markets have rebounded and continued their march upward. In fact, over the past three decades, residential home prices in Canada grew at the fastest rates in the G7.

    Despite civil unrest and unease over new policies, Hong Kong still has the second highest score in this index. Meanwhile, Dubai is listed as “undervalued” and is the only city in the index with a negative score. Residential prices have trended down for the past six years and are now down nearly 40% from 2014 levels.

    Note: The Real Estate Bubble Index does not currently include cities in Mainland China.

    Trending Ever Upward

    Overheated markets are nothing new, though the COVID-19 pandemic has changed the dynamic of real estate markets.

    For years, house price appreciation in city centers was all but guaranteed as construction boomed and people were eager to live an urban lifestyle. Remote work options and office downsizing is changing the value equation for many, and as a result, housing prices in non-urban areas increased faster than in cities for the first time since the 1990s.

    Even so, these changing priorities haven’t deflated the real estate market in the world’s global cities. Below are growth rates for 2021 so far, and how that compares to the last five years.

    housing bubble price increases 2021

    Overall, prices have been trending upward almost everywhere. All but four of the cities above—Milan, Paris, New York, and San Francisco—have had positive growth year-on-year.

    Even as real estate bubbles continue to grow, there is an element of uncertainty. Debt-to-income ratios continue to rise, and lending standards, which were relaxed during the pandemic, are tightening once again. Add in the societal shifts occurring right now, and predicting the future of these markets becomes more difficult.

    In the short term, we may see what UBS calls “the era of urban outperformance” come to an end.

    The post The World’s Biggest Real Estate Bubbles in 2021 appeared first on Visual Capitalist.

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    142351

    Showcasing the Strength of Canadian Gold Mining https://www.visualcapitalist.com/showcasing-the-strength-of-canadian-gold-mining/?utm_source=rss&utm_medium=rss&utm_campaign=showcasing-the-strength-of-canadian-gold-mining
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    Tue, 19 Oct 2021 17:46:51 +0000














    https://www.visualcapitalist.com/?p=142288

    Canadian gold mining has grown to become a highly prolific industry, thanks to its geological riches and political stability.

    The post Showcasing the Strength of Canadian Gold Mining appeared first on Visual Capitalist.

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