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Relocation - UK to Connecticut (Fairfield County)

Relocation - UK to Connecticut (Fairfield County)

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Old Jan 21st 2018, 9:43 pm
  #31  
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Default Re: Relocation - UK to Connecticut (Fairfield County)

Originally Posted by Hiro11
- Retirement planning 401k - $1541 )not got a clue about this) - is this the only retirement saving you'll be doing?
401k contribution is deducted pre-tax ( $18,500 max/yr, hence the $1541/month is a12th of that) so deduct 18500 from the 300k, and then recalculate expected paycheck. Net is it will smaller paycheck, but not 1541 less.

Last edited by Mercury39; Jan 21st 2018 at 9:46 pm.
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Old Jan 21st 2018, 10:29 pm
  #32  
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Default Re: Relocation - UK to Connecticut (Fairfield County)

Please don't be put off, you have a very generous income and despite what is being said you will be more then fine here on 300k!! Regrettably this forum has put off others who were offered very generous salaries and would hate for that to happen again. The advise is very good and sound on here however l believe budget advise is often overly cautious.
The truth is, things are eye wateringly expensive in the US however you can cut you cloth to what is important to and your family.
It has been suggested you reduce your rental budget and l think that is good advise personally.
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Old Jan 22nd 2018, 10:17 am
  #33  
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Default Re: Relocation - UK to Connecticut (Fairfield County)

[QUOTE=sadiigo;12422591]
Originally Posted by Kevthered

Your wife should check with her employer about her state domicile for the tax calculation. In our company, people who pay their state income taxes based on their residence have to work from home full time and not have an official desk in the office.

Ok thanks, I've asked my wife to check with her company.


Local taxes are irrelevant for you now. They usually include property taxes that you pay to the state, if you own a house.
OK, I've re-entered the figures based on NY, no local tax, and the pension contributions 6% and 6k HC. Looks a bit better.

Originally Posted by fbf2006
To be fair though, $300K would be enough to live a comfortable life. You are the one choosing very expensive locations and a 5 bedroom house in CT (or did I read that wrong)? Maybe look at smaller homes or other locations in Westchester County or NJ or even Stamford, CT? Also if your wife would be working from home and commuting via train some days, maybe look at having one car? At least until you have a better idea how everything is working out.

I'm fully aware we are in a very expensive area We looked at Stamford but didn't like it. Also looked at NJ initially but then focused on CT. My wife has seen a 3 bed she likes, but it is still €6800. Suppose we could negotiate on this. Good thing is that it's only 1x month deposit and not through a realtor. We should be ok with x1 car.

The renter's insurance also seems extremely high. The preschool fees should also be gone next year if you're using public school.
We asked the landlord of the above about renters ins. She reckons about €350 PA which is better.

Originally Posted by Pulaski
This is perhaps my favourite sort of question!

I have been criticized by some BE members in the past for overstating the cost of living in the US, but on this occasion I think your numbers are "off" and that you should be able to live more than comfortably on $300k.

For starters you are making the rookie mistake of spending waaaay too much on rent. The general rule of thumb in the US is to spend one third of your income on rent, and if anything that proportion should be lower as your income rises, giving you the money to spend on all the things that you will want to enjoy when you have a relatively high income. Just because you have the income to live in a five bedroom house in an expensive area doesn't mean that you need to! With two children you could be very comfortable in a four bedroom house and as they are both boys many people would survive quite happily in a three bedroom house. You could also look in slightly cheaper areas, after all there aren't many bad areas in western Connecticut! .... In short, your budget figure for renting needs to be no more than $5k/mth.

As others have said, with only one worker, your second car needs to be something sufficient to make it to the railway carpark reliably, so something around say $7-8k, paid in cash. Your petrol figure may be too low - most people find themselves driving much more, and further, in the US, even in relatively urban areas like the greater NYC area. We lived in Westchester, and know the western CT area fairly well, and on a weekend would often drive into NJ, or CT or up to Brewster, round trips of 40-100 miles just for shopping, a meal, or trip to a cinema.

Your eating out and entertainment budget is waaaay off. As I posted recently on other cost of living threads, a meal for four in a mid-market chain restaurant, such as Applebee's or Chili's will easily run $100, so your $500/mth will only get you one meal out per week, and not a very good meal at that! A family trip to a cinema, with drinks and popcorn will probably cost around $60. If your income is $300k, you will probably end up spending around $1,500/mth on meals and entertainment.

Your renters insurance is substantially overstated, unless you have a substantial amount of jewelry, artwork, or electronics. All you are really insuring for is theft of small, easily carried items, and fire damage, and fires are pretty rare, usually confined to the homes of smokers and homes that are old with iffy wiring. ... And burglary is rare in the US, because of the very real risk of the burglar getting shot and killed - with the consequence to the homeowner/tenant, being that the police come along, arrange for the removal of the body and thank the homeowner for removing a piece of trash from society. No, I am not joking! I would guess that renters insurance will be about $100/mth for you. If you have small valuables such as jewelry, you can get a good quality, fairly heavy fire safe, say around 150kg (making it tough to carry away) for around $800-$1000.

Your retirement planning figure is probably overstated - employers usually chip-in to 401k contributions, more so for executives and senior management, so I would guess that $1,000/mth may be a better budget figure as a slice of your $300k salary.
I know the rent is very high. My wife has high standards when it comes to places to stay and this is no different. And I must admit, nearly all places I have seen for circa 5k don't look very nice which is surprising for that money. I've upped the entertainment budget. Yes, her company doers contribute to the pension.

Originally Posted by Hiro11
-House Rent - $7500 (based on 3,4 or 5 bed house - expensive) - as others have said, this is an extravagant amount of money to spend on rent. There's lots available for far less, even in places like Greenwich
-Car Leasing x2 cars -$1000- this is two luxury cars, I assume? Seems like a lot.
-Car Insurance x2- $334 - ok
-Health Insurance/dental/vision -$875 (based on company scheme, family basic with $4800 max out of pocket) - ok
-renters house/contents Insurance- $500 - way, way too much
-Mobile phone - $100 - ok
-Pre-school fees/education - $1,833- ok
-Internet - $100 - maybe a little less
-TV Satellite - $170- ok
- Utilities (gas, water, elect) - $500- ok
- Sewage, trash, snow - $50- ok
- Car fuel - $100- ok
- Clothing - $500- ok
- Food/Groceries -$1,000- ok
- Kids Activities - $400- ok
- Train/Commute - $200 (10 trip ticket to NYC)- ok
- Retirement planning 401k - $1541 )not got a clue about this) - is this the only retirement saving you'll be doing?
- College savings - $416 - weirdly precise number but ok
- Entertainment, restaurants etc - $500 - way too low. I'd at least double this.

Two questions:
I assume you won't be working?
No bonus involved with this job?

Overall, you should be able to live comfortably on a family income of $300k+, even in super pricey west CT or Westchester, NY. You will not, however, be able to live like a King or Queen.
I think I can work after 3 months, it depends on our situation. Yes there is a good bonus involved but not guaranteed and not paid until Q1 the following year so would rather not include. Good to hear that we should be able to manage.

Originally Posted by Mercury39
401k contribution is deducted pre-tax ( $18,500 max/yr, hence the $1541/month is a12th of that) so deduct 18500 from the 300k, and then recalculate expected paycheck. Net is it will smaller paycheck, but not 1541 less.
Yep, I've recalculated the figures again based on this, thanks.

Originally Posted by Ecto17
Please don't be put off, you have a very generous income and despite what is being said you will be more then fine here on 300k!! Regrettably this forum has put off others who were offered very generous salaries and would hate for that to happen again. The advise is very good and sound on here however l believe budget advise is often overly cautious.
The truth is, things are eye wateringly expensive in the US however you can cut you cloth to what is important to and your family.
It has been suggested you reduce your rental budget and l think that is good advise personally.
Thanks for the words of wisdom. I did read another thread about a guy offered 200k for a relocation to NJ and after discussing it on here he turned it down. I don't want to do that, especially as the offer we have is more.
I've told my wife to ask for more money (340K) and apparently the initial 30k relocation package has been calculated wrong so we should get more than that. I've also told her the rent should be less but she's not having it. She is travelling to the states this week to see her new client and will pop to Westport to see the house she likes. Hopefully she can negotiate on the rent if we commit on a 1 year lease? Or, we can find something cheaper but up to her standards

I've put together a spreadsheet of the costs based on the info from here and elsewhere, which she can use to negotiate.
Although the money we are talking is amazing and nearly double what we are earning in the UK, I still can't believe how expensive it is to live in the US. But like everyone has said, it's mainly down to the area we are looking at and the rent amount.
I appreciate all the advice, feel free to add. Hopefully I'll see you in the US soon. I'll be the one outside McDonalds asking for any spare change
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Old Jan 22nd 2018, 12:19 pm
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Default Re: Relocation - UK to Connecticut (Fairfield County)

Originally Posted by Kevthered
..... I know the rent is very high. My wife has high standards when it comes to places to stay and this is no different. And I must admit, nearly all places I have seen for circa 5k don't look very nice which is surprising for that money. .....
I suspect that, at that price point, even in an area like western Connecticut, the landlord is mostly doing corporate lets and short leases, for 6-12 months, and make take 2-3 months between leases to find a new tenant, therefore I believe that your best shot at negotiating on the rent is if you are willing to sign a three year lease. This would mean that the landlord is guaranteed 36 months of rent, whereas they might otherwise expect 2-4 leases over that period, and only, say 30 months of rent, not to mention the cost of cleaning, repairs, painting etc.,, and the inconvenience of arranging the work, between leases. If my assumptions are correct then the landlord might be willing to knock $1,000/mth off the rent in exchange for a three year lease.
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Old Jan 22nd 2018, 1:57 pm
  #35  
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Default Re: Relocation - UK to Connecticut (Fairfield County)

[QUOTE=Kevthered;12424381]
Originally Posted by sadiigo


I know the rent is very high. My wife has high standards when it comes to places to stay and this is no different. And I must admit, nearly all places I have seen for circa 5k don't look very nice which is surprising for that money.
As I mentioned earlier, you have been looking at the "gold coast," the most expensive areas in Fairfield County. If you come a little further inland, to Wilton, Redding, and Ridgefield, you will find that they are very nice towns with lovely homes and excellent school systems -- but a little less expensive than the good areas of Greenwich, Darien, New Canaan and Southport.
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Old Jan 22nd 2018, 2:04 pm
  #36  
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Default Re: Relocation - UK to Connecticut (Fairfield County)

I'm in Connecticut. You'll be absolutely fine. No need to spend that kind of rent here. You can get a perfectly nice house to rent for way less than that.
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Old Jan 22nd 2018, 5:04 pm
  #37  
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Default Re: Relocation - UK to Connecticut (Fairfield County)

A longer lease is a good suggestion as it may well enable you to negotiate on the rent as mentioned but also gives you some stability in relation to schools as if have to keep moving rentals you may find each house is assigned different schools. We signed a 3 yr lease but included a diplomatic clause (think that was what it was called) which if we were to return to the U.K. for any reason or if hubbys office moves more then 35 miles then after 12 months, we can break the lease with 3 months notice.
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Old Apr 5th 2018, 10:33 am
  #38  
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Default Re: Relocation - UK to Connecticut (Fairfield County)

A few months late I know but I just saw this post. I am also moving to CT (currently in westchester). I have been in the US for 2years and went through all the stuff you are going through when we relocated. I can say from experience that overall your budget should be fine, although some of your numbers were off but the advice the other readers have given seems spot on. I also fell into the trap of renting something in your price range because we wanted a “nicer” home but it does become a real drag on finances as it such a large % of total spend. Having said that, rentals in this area are crazy so it’s not like you have lots of choices. I am amazed at how expensive living here is versus the UK by my American colleagues always moan about how expensive London is. The winter heating bills were a shock. I naively thought heating would be cheaper here given the lower cost of fuel - incorrect. I would say that the only things cheaper here are Cars and gas(petrol). Everything else is either a wash or more expensive here. Access to credit for things like mobile phones and cars leases will be tricky. I just ended up buying phones for cash and doing pay as you go as the finance charges in the phone we’re horrendous. Car leases are reasonable here but you should be able to sort it albeit at a slightly punitive interest rate. Anyway, any questions feel free to hit me up. Good luck
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Old Apr 5th 2018, 11:18 am
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Default Re: Relocation - UK to Connecticut (Fairfield County)

Originally Posted by Mro
A few months late I know but I just saw this post. I am also moving to CT (currently in westchester). I have been in the US for 2years and went through all the stuff you are going through when we relocated. I can say from experience that overall your budget should be fine, although some of your numbers were off but the advice the other readers have given seems spot on. I also fell into the trap of renting something in your price range because we wanted a “nicer” home but it does become a real drag on finances as it such a large % of total spend. Having said that, rentals in this area are crazy so it’s not like you have lots of choices. I am amazed at how expensive living here is versus the UK by my American colleagues always moan about how expensive London is. The winter heating bills were a shock. I naively thought heating would be cheaper here given the lower cost of fuel - incorrect. I would say that the only things cheaper here are Cars and gas(petrol). Everything else is either a wash or more expensive here. Access to credit for things like mobile phones and cars leases will be tricky. I just ended up buying phones for cash and doing pay as you go as the finance charges in the phone we’re horrendous. Car leases are reasonable here but you should be able to sort it albeit at a slightly punitive interest rate. Anyway, any questions feel free to hit me up. Good luck
Hi Mro
Thanks for the reply. I've been meaning to reply with an update for a while but have been busy with the relocation. It's all going ahead. We have the visa interview in London 5/5, sent all the paperwork off. Wife will be moving start of June, me and the kids soon after. We have signed the lease for the property, at a slightly reduced rate. Sums are all looking ok at the moment. In the end they offered 275k PA, but with a guaranteed bonus year 1 (55K) + relocation package (50k year 1, 20k year 2) - tax free. This can be spent on pretty much anything (rent, car lease, flights, insurance etc), so this is a massive help over the 2 years. We have been given the use of a relo company FOC who are helping us with everything, even down to offering us cultural lessons The landlord said we can just switch our names on the utilities and cable, so hopefully no deposits. We are also in touch with their insurance company to sort out the renters insurance. In the process of sourcing a car. International Autosource have been good, Expatride more expensive and service not as good. IAS say we don't need a US DL, Expatride say we do?? Still wondering whether we should go with IAS or look at the dealers when we arrive as the leasing seems cheaper.

Healthcare is heavily subsidised by the company. Monthly premiums are about $400 for family cover.

In the process of getting a US bank account remotely through HSBC as I bank for with them in the UK. Will get a CC as well.

We had a consultation with a Tax adviser to understand tax implications. To be honest, I'm still a bit confused with the dual status and resident alien bit. Also for the W4 and withholding, been advised to put down single (married single at the higher rate) in the first year. This is a safer bet to avoid not withholding enough and we would probably get a rebate at the end of the year. But looking at all the info, we are pretty much guaranteed to be in the country for more than 183 days, so would't we be classed as a tax resident? And therefore able to put down married joint on the W4 and therefore pay less tax monthly? I know it will only be for 6 months.

Any advice welcome as always.
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Old Apr 5th 2018, 12:10 pm
  #40  
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Default Re: Relocation - UK to Connecticut (Fairfield County)

Good, sounds like it is all coming along nicely. Where will you be living?

Tax: honestly it’s a minefield. I think if you move mid year then you need to file separately but can file joint thereafter. Mr trump has just given you some nice tax breaks!

Driving license: each state is different but in Ny state we had to get new licenses. A pain. But the test was very easy. Not sure about the rule for CT (I assume you living in CT).

Cars: definitely worth trying the dealers. Some can provide credit (at a cost) but some have said they can’t. It all depends on who they use for financing. While I personally like leasing, if you can buy for cash it will be easier. I find cars here to be cheaper than uk.

Banking: hsbc a good one especially if you bank there in UK. Make sure you get the CC as it’s importbant to get credit in your names to help with the credit score. I never even thought about my credit score in Uk but it’s a big deal here (assuming you need access to finance etc).

I use State Farm for renters ins. It’s a couple hundred a year plus we also have a jewellery policy to covers wife’s rings etc which costs about 200 aswell.

Any other questions give me a shout. As I said I my earlier post I’m in the process of moving from westchester to Westport and also have young kids so probably have dealt with a lot of the issues you are working through.

Good luck
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Old Apr 5th 2018, 12:41 pm
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Default Re: Relocation - UK to Connecticut (Fairfield County)

Originally Posted by Mro
Good, sounds like it is all coming along nicely. Where will you be living?

Tax: honestly it’s a minefield. I think if you move mid year then you need to file separately but can file joint thereafter. Mr trump has just given you some nice tax breaks!

Driving license: each state is different but in Ny state we had to get new licenses. A pain. But the test was very easy. Not sure about the rule for CT (I assume you living in CT).

Cars: definitely worth trying the dealers. Some can provide credit (at a cost) but some have said they can’t. It all depends on who they use for financing. While I personally like leasing, if you can buy for cash it will be easier. I find cars here to be cheaper than uk.

Banking: hsbc a good one especially if you bank there in UK. Make sure you get the CC as it’s importbant to get credit in your names to help with the credit score. I never even thought about my credit score in Uk but it’s a big deal here (assuming you need access to finance etc).

I use State Farm for renters ins. It’s a couple hundred a year plus we also have a jewellery policy to covers wife’s rings etc which costs about 200 aswell.

Any other questions give me a shout. As I said I my earlier post I’m in the process of moving from westchester to Westport and also have young kids so probably have dealt with a lot of the issues you are working through.

Good luck
We are also moving to Wetsport!
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Old Apr 5th 2018, 1:37 pm
  #42  
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Default Re: Relocation - UK to Connecticut (Fairfield County)

Originally Posted by Mro
Driving license: each state is different but in Ny state we had to get new licenses. A pain. But the test was very easy. Not sure about the rule for CT (I assume you living in CT).

You must transfer your out of state license within 30 days of moving to CT. Unfortunately, the OP will need to start from scratch to obtain a CT license, as a UK license can't be transferred, but it sounds as if his company is offering good relo support to guide him through the process.

Welcome to CT, both of you!
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Old Apr 5th 2018, 1:48 pm
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Default Re: Relocation - UK to Connecticut (Fairfield County)

Hi nutmegger.
Do you mean I need to take my test and get a CT driving licence within 30 days?
Cheers
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Old Apr 5th 2018, 1:58 pm
  #44  
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Default Re: Relocation - UK to Connecticut (Fairfield County)

Originally Posted by Kevthered
Hi nutmegger.
Do you mean I need to take my test and get a CT driving licence within 30 days?
Cheers

Yes, once you become resident (which you are going to do upon arrival), you are supposed to get it within 30 days, or at least get the process started. It is worth getting the license asap as it can also act as a form of ID and avoid any tussles with the insurance company in case of a claim. Here is the DMV website:

DMV: Driver's License - New Resident Requirements

Note that, as you have a UK license, you at least don't have to start off with a learner's permit and can get straight down to business with the safe driving practices course.
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Old Apr 5th 2018, 2:19 pm
  #45  
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Default Re: Relocation - UK to Connecticut (Fairfield County)

Originally Posted by Kevthered
Hi nutmegger.
Do you mean I need to take my test and get a CT driving licence within 30 days?
Cheers
I’m not sure what the CT process is but the NY test was very easy s test took maybe 6mins! The admin side is the worst part (going to dmv, taking 5hr classroom based lesson) but the actual test was very simple compared to UK. Unfortunately you are going to have lots of admin to sort when you arrive but hey the upside is a new home/life etc! And hopefully you will be here for the summer!

Also once you have a signed lease (I assume you do) you can start sorting schools etc.
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