1,308 karma · joined March 12, 2014
It's an interesting problem. It's simple in theory, but may not have a perfect solution.
In any discussion about housing prices in the Bay Area it's important to distinguish between condos and houses. The markets are very different because lots of new condos are being built while the supply of houses is (mostly) fixed.
Pre-tax investment: Invest $100k and it becomes $200k. You pay $60k in taxes and end up with $140k. Post-tax investment: You pay $30k in taxes and invest $70k. That $70k becomes $140k.
If you expect to be in a lower tax bracket when you take the money out, then invest pre-tax money. If you expect it to be in a higher tax bracket, invest money after you pay taxes on it. Obviously this is a very simple way of looking at it. But I think it's a good way to get a general understanding of the different options. Post-tax investments can be good if you need to pull out a big lump of money while retired.
It's used for estimating the stiffness of asphalt based on temperature and loading rate. There's a slightly higher resolution version on page 91 of this pdf: https://www.crow.nl/getattachment/Asfalt-Impuls/Projecten/Fu...
I would guess that the majority of people do not own their house outright. Just because you have a mortgage on a one million dollar house, doesn't mean you have one million dollars worth of wealth in your house.
It may mean not going out to eat all the time, not buying a fancy new car all the time, not having a fancy house in the most prestigious neighborhood, etc. I'm not saying it's bad to buy or want these things, but they are luxuries you pay for with hours in the office.
Early retirement is even easier if retire doesn't mean, "never work for money again", and instead means, "I don't have to take salary into consideration when deciding when/where to work". I'm an engineer living in the SF Bay area who doesn't make tech money and I'll still be able to retire after 15-20 years, easily, while still having waaaay more than my parents did when I was growing up.