I had a little fun recently and decided to turn it into one of my regular passive income metrics. During the month of September the Census Bureau published their latest household income metrics and I decided to take a look and see how my current passive income measures up.
The data set I chose was to use the average household median income by state. In my opinion, since I will be retiring with my wife, I thought the this data best represented typical income in each state and was a better measure than using average income which can be skewed from higher income earners.
The data unfortunately is only representative thru 2018. To adjust for something a little closer to today’s dollars I inflated the incomes using 2019’s average inflation rate of 1.8%.
The results came in the currently I have enough passive income to retire in only 2 states (Mississippi and New Mexico). Mississippi I just squeaked into the 90th percentile by just 0.8%. New Mexico I just squeaked into the 80% range by 0.6%.
My choices are pretty slim right now but as my passive income grows it will be fun to color off the states as my income grows.
If this is something you would like to do here are the data links to get you there:
1. Census Bureau Spreadsheet can be downloaded from this link https://www2.census.gov/programs-surveys/cps/tables/time-series/historical-income-households/h08.xlshttps://www2.census.gov/programs-surveys/cps/tables/time-series/historical-income-households/h08.xls
2. You can create your own map here https://mapchart.net/usa.html
I’m toying around with including the entire world map to see which countries I can retire to but for now I am good with just the U.S.A. states.