When Bankrate came out last October with their best and worst cities to build wealth, while Houston residents felt proud, San Diego was hit hard. Local news outlets followed up with their own analysis and seemed to agree that while San Diego may attract the wealthy, wealth does not get built here. Bankrate used the following criteria to rank the nation’s largest cities: after-tax savable income, job market, human capital, access to financial services, and local housing market. So why did our beloved city come in dead last out of the 18 metropolitan cities that were ranked? The hefty cost of living–specifically the cost of housing–paired with the then unemployment rate of 8.7% (averaging through 2010-2014). These are the top challenges San Diegans face when trying to stay San Diegans (Read more from the U-T). Interestingly though, these don’t change the fact that many wealthy individuals relocate to San Diego and call it home. Some of the richest of Southern California’s neighborhoods are located in San Diego County (BusinessInsider.com). And with San Diego attracting nearly 34 million visitors every year, its beautiful beaches, sunny climate, and laid-back lifestyle undoubtedly converts quite a few tourists to residents.
So let’s take a closer look. The San Diego unemployment rate in 2015 had a drop to 4.7% by December. The cost of housing, whether considering home purchases or rental costs, is hard to deny. However, not only have the home values in San Diego increased in the past year, so have the number of pending sales throughout the county according to the San Diego Association of REALTORS®. Indications like these point to out that San Diego is not getting any less desirable. With that, the question becomes what a San Diego resident can do to increase his or her wealth.
Here at WorthPointe, we can tackle at least one area of Bankrate’s criteria for building wealth–access to financial services. Specific life goals may vary from individual to individual but everyone wants to save for something, to increase their wealth, and protect themselves and their loved ones. Commission-based financial planners can eat at an individual’s profit which is why a fee-only financial planner becomes much more affordable for a broad range of income levels. On top of that, a CERTIFIED FINANCIAL PLANNER™ professional holds a fiduciary duty to their client so that whether they have an after-tax savable income of a $100 or $10,000+, the client’s best interest is at the forefront of every investment strategy employed. Understanding that savable income is precious, WorthPointe CFP® professionals can help you put your income to work for you and your family and prove that wealth can be built in sunny San Diego. If you would like to increase your financial health, call 800-620-4232 to schedule a complimentary consultation session with a WorthPointe CERTIFIED FINANCIAL PLANNER™ professional.
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