dunroving

I didn't say it did - I suggested doing a search for the appropriate models:

dunroving

Unless like me you have an epiphany and realize that if you take them out of the boxes and put them in a CD wallet, they don't take up much space at all.

Can definitely recommend Netflix too, though.

deng890

Tax rate for that level of income in NYC, roughly 34% - 35%. If you live in NJ, expect to get screwed by property taxes (if you own) and if you live in one of the 5 boroughs, expect to get screwed with Federal, State AND a NYC specific income tax (my rough approx. of the tax includes the NYC income tax.)

My guesstimate is that you'll take home a little under $1000 per week, assuming you don't have private deductions for medical, dental, etc.

Sally

How are your plans coming on?

Errol

I live in New York, I am a Financial Accountant by profession and haven't practiced taxes for a while but this is what I found based on the IRS site and the State of New York

I based Single $72,000.00. FICA (Social Security similar to NI contributions which are payable after I think 10 years, but take a look at the relatively new treaty between the US and UK where contributions are transferable) is $5,508.00 (0,0765 of Gross Income) NY State and City Taxes I came to $6,256 and Federal $12,386.25 making an annual take home about $47,850.00

I am not sure how they treat half year residents anymore. A resident taxpayer for one year can reduce from income State Income taxes which I did not do here. Assuming there is no mortgage interest, (your first half year I'm not sure) but all single taxpayers have the first $5,150.00 tax free and one personal exemption of $3,000.00 for yourself. Once you have taxable income the rates are:

Federal $0 -$7,825.00 10%
From $7,825.00 - $31,850.00 $782.50 + 15%
$31,851.00- $77,100.00 $4,386.25 + 25%
$77,100.00 - $160,850.00 $15,698.00 + 28%
$160,850.00 - $349,700.00 $39,148.75 plus 33% of the amount over $160,850.00
$349,700.00 - to no limit $101,469.25 plus 35% of the amount over $349,700

I did the calculations using Microsoft Excel spreadsheet. If you would like it, <<email address removed>>. Please send a Private Message to the poster I will hold the file for a few days.



Errol

dunroving

Essentially, I don't have any plans. I've spent a fair bit of time looking logically at my current financial situation in the UK compared to the US, and my potential financial (esp. retirement) situation if I stay in the UK compared to heading back to the US to spend the rest (15 more years) of my professional life and (probably) retirement. [I'm not sure I could retire to the UK if I spent the rest of my working life in the US, though who knows how I'd feel in 15 years]

I could spell it out over several pages but essentially:

(a) My cost of living and associated quality of life in the UK is much, much lower than it was in the States. I've gone from being almost mortgage-free and having over 50% of my monthly income left over after paying basic bills and mortgage (would have been 75% within a year or two, after the mortgage was paid off) to having a 25-year mortgage round my neck and bills that I can hardly cover each month (and bear in mind I retire in 15 years, so at some point I need to strategize how to make extra payments on the mortgage). I don't live in a posh house so downsizing or moving to another area wouldn't really help much.

(b) Retirement-wise, my UK pension is probably a better deal than my US one (because it is defined-benefit rather than defined-contribution), but having the lion's share of my salary left over in the US would allow me plenty of spare cash to make extra plans for retirement (heck, if I was living in the States, I'd have enough left over to invest in buy-to-let in the UK).

Right now I just need to let it all sink in. Being in academia, even if I decided today that I want to move back to the US, jobs for 2008-2009 won't start showing up until December so there's another reason to stop planning and just "be" for a while. Even setting aside the financial part of the equation, there's the whole personal side of the decision (which has been doing my head in), so I need a rest from that for a while too. In a nutshell, if I could go back in time and change my mind about returning to the UK, I'd do it. But thinking like that isn't particularly healthy.

So watch this space in a few months' time for further developments!

penguinsix

http://www.payroll-taxes.com/calculators.htm

$70,000 or £70,000? Anyway, something like this:

Paycheck Calculator
Your Pay Check Results
Monthly Gross Pay $5,833.33
Federal Withholding $1,114.75
Social Security $361.67
Medicare $84.58
New York $326.68
NY SDI $2.60
City Tax $191.75

Net Pay

$3,751.30
Calculation Based On
Tax Year

2007
Gross Pay

$70,000.00
Pay Frequency Monthly

Sally

Sympathise with you Dunroving. It sounds like you do need some time to 'be' and let things work through your brain a bit.

Don't know if it applies to your area, but the War has been a complicating factor for us, with government grants tightened enormously.

All the best.

AdobePinon

Wow. I seem to remember you being pretty excited at going back. Hope it all works out for you.

The retirement thing is always a tricky question. We, as a government-owned institution recently went through a contract change. We were each given the choice of keeping our defined benefit (pension), or switching to defined contribution (401k). Almost everyone went with the pension - I went 401k. Simple reasons - they already had their benefits cut in the change of contract, and I don't see the benefit surviving until I retire.* The 401k comes with 100% vested at day zero, and a 100% employer match up to 10% of salary. They might cut the benefit in the future, but the money is mine. Now I get to ride the stockmarket rollercoaster until I retire.

* Not least because new and future employees are not allowed to take the pension plan, making it a closed system.

dunroving

Yes, I was looking forward to being back, and nothing has really changed about the UK since then - except house prices. I was stumped by three things, namely (a) the insane rate at which prices went up during the 12 months I was planning to return and the 12 months until I bought a house ater returning, (b) the precipitous drop in the dollar, and (c) the bizarre Scottish system in which o/o 150k really means 200k (so I was seriously underestimating house prices from Web sites like RightMove).

I anticipated it being more of a financial challenge in the UK, but the combination of these three things has taken me from an expected situation of "can afford a 15-year mortgage and have around 30% salary left over each month" to "have to take out a 25-year mortgage and have nothing left over each month". It's quite a difference.

Yes, in TN I had a choice of a 401k or the TN retirement system (defined benefit). Chose the former because the TN system had a 5 year vesting period and I was unsure how flexible it would be if I retired in the UK (plus the fact that TN seemed to have a budget crisis every year and I wasn't too confident of how this might affect their retirement scheme in years to come). So I went with TIAA-CREF (the 401k) and like you have been enjoying the bumpy ride that is investing in the US stock market.

Jerseygirl

As I've said before the biggest factor for us would be healthcare. The US is great if you've got $$$'s and good health. Can't be fun growing old here once your health starts to fail...especially if you can't afford the meds and doctor's bills.

dunroving

Aye, that's a major factor I need to look into. I believe state university employees in TN (and maybe other states, too) can continue with the employee health insurance into retirement (and it's a pretty good plan). Even with health insurance, of course, you can rack up some pretty high expenses - though again, I think state employees' health insurance often has a ceiling (e.g., the insured will not pay beyond £3,000 of costs per year).

I suppose that's one reason why UK taxes seem so high - to fund a national health care system among other things.

Right now, though, the major concern I have is being broke (or at least teading water financially) for the next 15 years as opposed to being relatively well-off.

Jerseygirl

For many retired people it's the cost of meds that's the 'killer'. It's not unusual for elderley people to pay in the high hundreds...if not more...for meds each month. I have to smile when my relatives in the UK complain about prescription costs...even when they're retired and get them for free.

For example my doctor gave me a prescription for a new type of laxative...a month's supply cost almost $300.

lansbury

I am interested in why they would pay that amount for their drugs.

My wife is diabetic and takes about 6 drugs for that and ancillary problems. All but one of those drugs is available for $10 per month in the generic version. Wal-Marts I believe has a program where generic drugs are as little as $4 a month.

I understand that drugs just on the market are covered by patent and there isn't a generic version but that wouldn't be many cases.

We moved from the UK to the US when I retired. My UK government pension is increased by the exchange rate and my wife gets her Oregon PERS pension. We are much better off in Oregon, even with the US medical system, than we would be in the UK.

another bloody yank

Please God....