Originally Posted by Pulaski (Post 11211348)

Sounds low to me, unless there are bonuses and/ or commission payments, or there is scope for steady income growth.

Originally Posted by Englishmum (Post 11211386)

As you are only 28 (not sure how old your wife is) then I assume that you may be planning to have children in the not-too-distant future?

If so, it is essential that good maternity coverage is included in your health insurance plan - some policies don't cover maternity until after 10 months of signing up to the plan. Btw - contraception is not free in the USA.... ;)

Your wife might even want to have a baby sooner than you think when she finds out how awful the annual leave and maternity leave is in the USA....it is quite possible/likely that she may only get up to 10 days annual leave (inc. sick days) in her first years of employment... :ohmy:


http://www.babycenter.com/0_maternit...-basics_449.bc

Originally Posted by delbitter (Post 11211311)

Hi Expats and sorry for the long post!

I work for an elearning company here in the UK and will be moving to Chicago in less than month on an L1 (L2 for my wife) visa.

We are a small company and so I have been offered what I think is a reasonable package for the time being but want to get views on this.

I am 28 years old, renting with my wife in Oxford and earn £25k currently. We have around £18k savings ready for a house and my company suggested a move to USA as we do a decent amount of business out there. I have worked for them for 2 years.

I have a degree and was a web developer/elearning developer but have transcended into a kind of sales role. Small company means I do a lot of different things!

They have basically offered me:

- $40k basic salary [seems quite low
- $5k for business costs (laptop phone etc). includes money towards our sister companies office where I will be working from. What happens if that isn't enough? Will you have to dip into your own pocket?
- $5k health insuranceMay not cover your expenses, especially if you have children. Be aware that health insurance does not cover all of your health are costs, it only covers a portion of it. I would ask them to identify the company and policy that they will fund (what happens if the premiums go up in year 2?), and read the associated documentation very carefully.
- $5k housing contribution What exactly does this mean/ $5k cash to spend as you wish, e.g., on rent or a deposit on a home?
- $5k travel costs Again, what does this mean? Relocation costs/ Or work-related travel costs? If the latter, what if your work-related travel costs go above $5k?
- extra commission based on revenue

My wife will be working too but has no job confirmed just yet.

So after looking at another thread on this site that seems low although they were discussing California which I know is pricey.

When I did my research before we could get a nice apartment for $1,500 per month which is only slightly more than we pay for a 1 bed in Oxford. The health insurance looked like roughly $400 for basic cover so maybe I am missing a reason we need to be earning more?

We plan to view how the business is going after a year which is when I can ask for more money.

My thoughts are that we are sacrificing time (through hard work!) and money for a future in a country we both love. Short term sacrifice for long term gain?!

Originally Posted by dunroving (Post 11211397)

I have added some questions and comments below, as it depends ...

Originally Posted by delbitter (Post 11211428)

Thanks for that, I should have gone into a bit more detail probably. So these figures are based on the 1st year alone and will increase if they decide to keep me out in the US and providing we want to. As long as the business produces at least a small profit and we like it we will try and stay as long as possible and apply for green cards at this stage.

The housing contribution is towards our rent.

The travel costs don't include travel back to the UK so that should not be an issue with the quite low amount of travelling I forsee.

The basic health plan is something I wanted us to have for just a year and then increase if we stay.

$40k basic salary [seems quite low
- $5k for business costs (laptop phone etc). includes money towards our sister companies office where I will be working from. What happens if that isn't enough? Will you have to dip into your own pocket?
- $5k health insuranceMay not cover your expenses, especially if you have children. Be aware that health insurance does not cover all of your health are costs, it only covers a portion of it. I would ask them to identify the company and policy that they will fund (what happens if the premiums go up in year 2?), and read the associated documentation very carefully.
- $5k housing contribution What exactly does this mean/ $5k cash to spend as you wish, e.g., on rent or a deposit on a home?
- $5k travel costs Again, what does this mean? Relocation costs/ Or work-related travel costs? If the latter, what if your work-related travel costs go above $5k?
- extra commission based on revenue

Originally Posted by Duncan Roberts (Post 11211456)

Depending on how it's classed some of those extras may be taxed at around 40%. I would also figure around 25% of the salary going to various taxes. Decent food for two and the odd alright meal out could run you $150 a week depending on what you get. General bills, including everything, could be around $500 a month. There are a lot of hidden expenses and taxes here, $40k salary in Chicago sounds very low but with a dual income and the extras you will probably be able to survive and do some stuff. I doubt you'll be living the high life but you wont be on the poverty line. You may struggle until you have a dual income though.

Originally Posted by dunroving (Post 11211444)

Well although it doesn't answer the exact question you asked, at your age I would have jumped at a chance like this. The money seems do-able, though not fantastic. (I am a bit out of date with cost of living in the US these days, as I left in 2006.

Because it is a company move, if things don't work out you have a job back in the UK so there's your escape route. Some people emigrate with no support, no job lined up, etc. and take on huge risks.

So in the big scheme of things this looks like a huge adventure with many guarantees and the support of your employer. And how many people get to have a huge adventure these days???

Originally Posted by delbitter (Post 11211462)

Yeah we live quite a "frugal" lifestyle at the moment so I think we can live off of quite low amounts of money. Because my wife doesn't not have a job they have paid for an apartment for the first two months up front which is handy!



This is exactly what we have been thinking!

It is an amazing chance for us and we don't have much going for us here in the UK. The house prices actually made us question whether buying a home here was worth it or not and then this came along. £200k first home would get us a crap terraced house in a poor area!

They are great people I work for so often offer help for the move and have said if it doesn't work out we can come back.

Originally Posted by dunroving (Post 11211481)

I should have added - in fact I did something like this, way back when I was 25 years old (a rather long time ago, before the internet and information accessibility so it seemed even more of a leap into the dark than maybe this is for you). That decision ultimately change my life completely, in many ways.

The only slight regret I have in retrospect was not saving/investing into a pension back then (the power of compound interest!!!) - I presume your company will continue to pay into some sort of pension scheme for you?

It might be worth asking whether this will be in the US or the UK ... this has potential implications for complications later on!!

Originally Posted by delbitter (Post 11211493)

They will match my pension contribution, in fact we have been talking about it recently. I wanted to wait a year until we decide which country we will be staying in before commiting to a pension. I do have a small one already which I started when I was 18! So I will carry that on in the future although I HATE pensions because of the bad experience my dad had. I have been looking at SIPP options instead so I at least have more control over my pension but again I think I want to get my head down for a year and see what happens.
If the business makes no money or we hate it we will be coming back but I cannot see that happening! :unsure:

Originally Posted by delbitter (Post 11211311)

I have a degree and was a web developer/elearning developer but have transcended into a kind of sales role. Small company means I do a lot of different things!

They have basically offered me:

- $40k basic salary

Originally Posted by brit_usa2014 (Post 11211520)

You do realize that being on a L1 visa you'll be stuck with the company? Meaning if you find a better opportunity with better pay in the US you won't be able to switch?

Originally Posted by delbitter (Post 11211565)

Yeah I realise.

I work for the best company I ever had though so feel my loyalty will be well rewarded in the long run. I like the feeling of being a cog in a small (for now) business rather than a microbe within a huge one. There are nice things about both though I guess!

Originally Posted by hungryhorace (Post 11211568)

Make sure you have something written in your T&C's of relocation that they will petition for a GC for you (and your wife) after a certain period of time, as well as covering your reasonable costs for relocation back to the UK if you are required to come back.

Good luck!

Originally Posted by dunroving (Post 11211587)

It sounds like the OP may be in a situation somewhat similar to the OP in this thread, albeit he seems to have a greater deal of support from his employer.

In my replies to that thread I reflected on the fact that typical expats fall somewhere between the following two ends of the continuum:

Wing and a prayer - completely self-financed, no job lined up, following the dream with fingers crossed. Could end horribly.

Free ride - employer is paying for anything and everything, clued up about visas, very high salary, lots of contingencies like GC, plus a huge welcome package. Usually ends up being financially much more advantageous than staying in the UK.

The OP from this thread and the other may have to compromise in order to live the dream, so although your advice is absolutely spot-on, it may not be feasible (in which case he will have to decide if that is a deal-breaker).

I was somewhere in between, being in academia I wasn't affected by the whole H1B cap crap, got an "OK" relocation package, had a half-decent health plan and retirement package. However, I paid for an attorney for my first H1B (because otherwise I was worried my inept employer would mess it up) and often paid $2,000-$4,000 p.a. out-of-pocket travel expenses (though the latter is a bizarre aspect of most universities, not just an issue for the expats there).

Originally Posted by delbitter (Post 11211311)

- $5k for business costs (laptop phone etc). includes money towards our sister companies office where I will be working from.
- $5k health insurance
- $5k housing contribution
- $5k travel costs
- extra commission based on revenue

Originally Posted by mmhendrie (Post 11211784)

I think you should do it!

On that money, you're not going to be living like a king - but it's enough for most people to live ok on if you manage your lifestyle, esp. once your wife gets a job.

For me, at your age and without kids - so long as you have enough to live on, why not?! Give it a try - you could absolutely love it and it could lead to much bigger things. And if you absolutely hate it, you go home - that's the worst that can happen here.

-Matt

Originally Posted by jeepster (Post 11211787)

On the plus side Chicago is probably the nicest of the major cities in North America. It has a beautiful downtown and lakefront, cheaper living expenses than either New York or Cali.

Originally Posted by Sally Redux (Post 11211796)

Are these one-off payments? Sounds a bit odd for health insurance.

Originally Posted by Pulaski (Post 11211797)

Agreed. If I was 28 and in the situation described, I would certainly do it. ..... Most of us here are a good bit older, and see things from the perspective of higher income and more responsibilities, like a mortgage, an SUV, and school age children. I think the offer is completely survivable, as long as it allows the OP to develop his career it is likely a good deal. His wife getting a job would/will certainly help considerably.

Originally Posted by mmhendrie (Post 11211784)

I think you should do it!

On that money, you're not going to be living like a king - but it's enough for most people to live ok on if you manage your lifestyle, esp. once your wife gets a job.

For me, at your age and without kids - so long as you have enough to live on, why not?! Give it a try - you could absolutely love it and it could lead to much bigger things. And if you absolutely hate it, you go home - that's the worst that can happen here.

-Matt

Originally Posted by Bob (Post 11211993)

Tax hit could be potentially very painful on the extras.

Originally Posted by hungryhorace (Post 11212009)

OP could (read: should) submit the claims as expenses rather than take a cash lump sum. That way he avoids any issues relating to taxation of the money.

Originally Posted by Bob (Post 11211993)

Salary sounds a bit shit, for a company move.

Tax hit could be potentially very painful on the extras.

Lack of credit/driving history will also be a factor in a lot of things being more expensive.

Parking, in Chicago isn't exactly cheap either, so that's another cost factor if you plan to live in the city and not the burbs.

You don't say what the OH does for work, she may or may not struggle to find work here, it can be very difficult.

Get greencard offer in writing.

Originally Posted by Pulaski (Post 11212019)

He's going to be taxed on the "housing allowance" no matter what though.

Originally Posted by hungryhorace (Post 11212053)

Even if he submits a claim for that through expenses?

Originally Posted by Pulaski (Post 11212063)

If it's his home, where he lives with his wife on an extended/ open-ended basis, I don't believe it is going to meet the definition of a "business expense". ..... If he was here temporarily, and maintained his "usual home" in the UK, then short term rented accommodation would be a legitimate travel expense. At least that is my understanding. :unsure:

Originally Posted by Orangepants (Post 11211821)

I'd say go for it too. I was offered a job overseas at 24, packed 2 suitcases and it went on from there. :)

Originally Posted by Jerseygirl (Post 11212206)

My husband was 19 when he got a job in Germany....couldn't speak a word of German. I don't think he even had 2 suitcases...knowing him he probably took everything in a carrier bag. :D

Originally Posted by Jsmth321 (Post 11212220)

Granted I had a place to live when I moved to Canada due to my spouse at the time, but I left California with a carry on bag with 5 days of clothing, and a pair of shoes. I was 24 at the time, looking back I can't believe I did it, but it worked out more beneficial for me, so I say go for it, and take the risk, no risk no reward as they say.

2 people can live on 40k if careful with money, my girlfriend and I live on far less, so its doable, all depends on how you view things.

Originally Posted by delbitter (Post 11211395)

She 24 and we both wants kids one day (she would have them right now!)

The health plans we have seen put basic insurance at around £260pm without maternity and £410 with it so I thought we would stick to basic cover for a few years until we are ready to try for a baby then go onto the better plan.

The pill isn't free in the US?! Don't know why I didn't think about that before. Hopefully not too expensive lol