theukguy

Hello,

I anticipate losing my job soon and was wondering how I need to plan for it.

1. Should I transfer my money from US bank to UK bank?
2. Should i sell off my car and go with a rental car? Or is it better to wait until the last minute?
3. Can I keep my 401K as it is for now and get it back in the future? I dont need that money right now.

Is there anything else I need to plan?

Any experiences which you can share will be helpful.

Thanks

scrubbedexpat099

1. Only takes a click, exchange rate is good now.
2. Guess that depends on how quickly you could sell it.
3. Maybe a question for your CPA?

yellowroom

Sorry about the job situation. I returned to the UK after being on an L1 visa, but it was a planned move. My thoughts, for what they are worth:

1. You can do this any time you want, now or after you move back. There are no immigration or tax concerns in either country about moving money you already own between accounts, even in different countries. I gradually moved mine over a year, spreading risk on exchange rates and to help with removal costs.
2. I sold my car the day before I left the country, back to the dealership. It was owned outright, no monies due. It was a toss-up between them and Carmax; the dealership offered more money. Check how the payment will be made to you, and that you have time to bank the check before getting to the airport.
3. I left my 401k where it is only because I had so much other stuff going on in my life at that time it was low on my priorities. It may not have been the best thing to do, so hopefully others more experienced will offer good advice (and I will listen in).

Regarding anything else, if you are renting a house/apartment, check you have enough time to do any required actions before leaving. Eg I moved into a hotel for my last couple of days as I had to have all the carpets cleaned before the final inspection. Actually, co-ordinating the movers, the cleaners, the agents, my employers, selling furniture too big for UK houses & electricals, donating/giving away stuff I couldn't sell, returning the tv set-top box to Verizon etc was quite a task. How are your project management skills? Start sorting stuff NOW otherwise it will get frantic later on.

nun

Sorry about that

That really depends on where and when you need to spend it. You can access your US accounts at any UK cashpoint and move it at any time. Do what seems most practical to you.

I would not leave a major sale to the last minute

Yes you can. It will continue to grow free of both US and UK tax. Then when you take it out you can have it paid to you in the UK and only UK tax will be due on the income.....I assume you are not a US citizen.

However, my advice would be to roll it over into an IRA with Vanguard. This give you a lot of flexibility and access to very inexpensive mutual funds.

Bob

Just a thought, but if you are laid off, you can apply for a "Change of Status", to B1/2 and you'll be in status while that is being processed and give you another 6 months.

Winding up your affairs is usually a valid reason for it to be granted, especially if you've got kids in schools or a house to sell, but it'll only work if you can show you can survive without working.

Either way, good luck, terrible situation to be in!

kodokan

This is a good suggestion - Vanguard are very reputable and very cheap, and other expats have reported they're happy for non-US people to hold accounts there and manage them online from overseas.

I have heard, though, that it's not possible to set up an account with them once you've moved, only manage an existing one. So might be worth opening a 'just in case' brokerage account there, so you're an existing customer before you leave.

theukguy

Thanks. This information is very valuable.

theukguy

1. I was worried whether my money would get stuck in a bank if online banking doesnt work
2. My car is on a loan. Will it be better to pay whatever is due and then sell it off or is it better to sell it as it is?

I have heard that for H1B visa the company is liable to pay for the flight tickets back. Anybody knows if that is the same for L1 visa?

Thanks for your feedback. It is very helpful.

Bob

H1B, they are liable for the primary, to get a flight home but nothing else.

L1 does not have that stipulation. It would be whatever you negotiated into your contract, so if you didn't get it offered in writing, you're SoL if they don't want to help.

scrubbedexpat099

What does you contract say?

If on line banking gives up the ghost going to be a pain for many people.

Pulaski

What Yellowroom said.

Get prices from your dealer, Carmax, and any other similar business in the last week, then drop it off on the day you leave, and take a cab to the airport. A private sale ahead of time would likely leave you needing to rent a car, so even if you got a higher price you'd likely end up in the same place financially.

Many banks now allow you to deposit checks on-line using a photo, so if your bank does, set that up and test it so you can deposit the check you get for your car.

yellowroom

you do need to check the limit though - I got caught out as I could only pay in $3k max by phone app, and being with hsbc I was several hundred miles from my nearest branch. I ended up fedexing it to New York for deposit on the day of my departure.

Pulaski

Ugh. Good point!

yellowroom

1. My online banking worked fine on my return to the uk, you should be ok. The internet is global.
2. Don't know, any clue from your loan paperwork on early redemption or selling the car with balance outstanding?

Flight costs - There is no legal requirement to do so. What does your contract say? My L1 contract specified that if the company terminated my contract for any reason other than gross misconduct, they would pay my repatriation costs. In the event, I came back at my own request so I paid for removal etc and used my annual paid "keep in touch" flight to get home.