Yank in UK thinking of moving back to US w/family
Mar 5th 2013, 3:26 pm
#76
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Re: Yank in UK thinking of moving back to US w/family
We've been in the US six years, make pretty good money, and have never taken the whole family back to the UK at the same time.
We tend to go 1 adult + 1-2 children at a time. We use as many airmiles as possible, and we stay with family. Often we can borrow their car although recently they've been unable to get insurance for us so we've rented a car - again using airmiles if possible.
We tend to go 1 adult + 1-2 children at a time. We use as many airmiles as possible, and we stay with family. Often we can borrow their car although recently they've been unable to get insurance for us so we've rented a car - again using airmiles if possible.
Mar 5th 2013, 5:16 pm
#77
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Re: Yank in UK thinking of moving back to US w/family
Again, I have to disagree. Maybe it's the debt thing (it's just not something we've ever got in to other than the mortgage, never taken out a loan etc - if we can't afford something, we don't buy it!), but less than your £100k example gives us a bloody nice life even after tax.
Mar 5th 2013, 5:38 pm
#78
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Re: Yank in UK thinking of moving back to US w/family
Hiya, Dad of Eric - I though you might be interested in the article mentioned in this thread, and the subsequent discussion:
http://boards.fool.com/budget-exerci...sort=whole#top
the below link demonstrates in charts how median income families ($50K/yr.) - and certainly those with incomes below the median - simply do not have any discretionary income if they spend a typical amount on mandatory living expenses.
Scrolling down reveals a very realistic ordinary budget for a family in a no-income-tax state that doesn't have to purchase health insurance, revealing that there is precious little left over for discretionary spending. Without employer-provided insurance, the same family would have zero discretionary cash. Those whose states impose income tax would be running a deficit if they also had to buy insurance.
http://www.mybudget360.com/going-bro...0-the-story-of...
The same piece includes charts breaking out incomes from the top 25% to the top .1%, graphically displaying the GINI coefficient on related US maps.
I would like to see how the discretionary cash figures might change in the family has a couple of teenage boys with bottomless stomachs and/or a couple of gas-guzzling cars.
As an ex-California resident I can testify that the cost of living is high - even outside the obviously expensive places like Silicon Valley.
I'm obviously biased, but I'd vote with moving down South within the UK
http://boards.fool.com/budget-exerci...sort=whole#top
the below link demonstrates in charts how median income families ($50K/yr.) - and certainly those with incomes below the median - simply do not have any discretionary income if they spend a typical amount on mandatory living expenses.
Scrolling down reveals a very realistic ordinary budget for a family in a no-income-tax state that doesn't have to purchase health insurance, revealing that there is precious little left over for discretionary spending. Without employer-provided insurance, the same family would have zero discretionary cash. Those whose states impose income tax would be running a deficit if they also had to buy insurance.
http://www.mybudget360.com/going-bro...0-the-story-of...
The same piece includes charts breaking out incomes from the top 25% to the top .1%, graphically displaying the GINI coefficient on related US maps.
I would like to see how the discretionary cash figures might change in the family has a couple of teenage boys with bottomless stomachs and/or a couple of gas-guzzling cars.
As an ex-California resident I can testify that the cost of living is high - even outside the obviously expensive places like Silicon Valley.
I'm obviously biased, but I'd vote with moving down South within the UK
Mar 5th 2013, 5:42 pm
#79
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Re: Yank in UK thinking of moving back to US w/family
If you do have your sights on the US, but are more flexible and if you are able to work from home without meeting people, you do have more options.
COL, it is much lower if you were in Maine, the rather cold winters and humid summers are a bit extreme, so you'd have other issues to contend with, but you'd certainly be above the curve on your kind of money if you went to a average decent town, might be a struggle in Portland or further south, but the rest of the state shouldn't be a problem. If you like the coast, anywhere along Rt 1 from say Rockland, Rockport, Camden, Belfast, Searsport, Ellesworth and all the out to Bar Harbor would be worth a look in.
Rhode Island, also has a much lower COL. Not exactly my favourite place, but there's plenty of stuff to do in Providence and it has been getting nicer over the last few years. The gov is a complete fukwit and the state politics are especially dodgy though.
Mass, well if you're on the inside ring of I-495, it'll be more expensive and tougher the closer to Boston you get, but it's a lovely place out in western MA, plenty to do, great for families, so fairly affordable. Same weather issues to Maine though. Worth checking out Northampton and the area.
New Hampshire, it's a tax free state on salary/sales, but they hit you on property taxes, but it's not so bad a place and close enough to Boston and there are some lovely towns on the coast, Hampton, Portsmouth and the like, but also in a bit with Dover, Exeter etc.
Texas has been mentioned by others, so there are plenty of other options to consider. They'll all have their own pro/cons to think about but if you're a bit more flexible, you'll find far more options, especially if you aren't rooted to a spot because of a job or family.
COL, it is much lower if you were in Maine, the rather cold winters and humid summers are a bit extreme, so you'd have other issues to contend with, but you'd certainly be above the curve on your kind of money if you went to a average decent town, might be a struggle in Portland or further south, but the rest of the state shouldn't be a problem. If you like the coast, anywhere along Rt 1 from say Rockland, Rockport, Camden, Belfast, Searsport, Ellesworth and all the out to Bar Harbor would be worth a look in.
Rhode Island, also has a much lower COL. Not exactly my favourite place, but there's plenty of stuff to do in Providence and it has been getting nicer over the last few years. The gov is a complete fukwit and the state politics are especially dodgy though.
Mass, well if you're on the inside ring of I-495, it'll be more expensive and tougher the closer to Boston you get, but it's a lovely place out in western MA, plenty to do, great for families, so fairly affordable. Same weather issues to Maine though. Worth checking out Northampton and the area.
New Hampshire, it's a tax free state on salary/sales, but they hit you on property taxes, but it's not so bad a place and close enough to Boston and there are some lovely towns on the coast, Hampton, Portsmouth and the like, but also in a bit with Dover, Exeter etc.
Texas has been mentioned by others, so there are plenty of other options to consider. They'll all have their own pro/cons to think about but if you're a bit more flexible, you'll find far more options, especially if you aren't rooted to a spot because of a job or family.
Mar 5th 2013, 5:45 pm
#80
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Re: Yank in UK thinking of moving back to US w/family
Its just my input and I don't know what your tolerance levels are for neighbourhoods but the COL here in So. CA is fairly high. Especially for a family with children who will have health care costs (think $$ for monthly premiums, copays and prescriptions) to think about and as a s/e person those can get fairly high quickly. Getting close to a beach outdoor lifestyle is very expensive. Of course there are other areas in CA inland but they tend to be very very hot and very very cold depending on the seasons. For example:
A decent two bed place is going to be $1600 - 2000 pm
Utilities $300pm
cable $100pm
food = family $400/500 pm.
Car ? 200/400pm
Gas 200/300pm if your lucky.
So as you see it adds up fairly quickly. Note I have not put entertainment or clothes, holidays etc on there. A once yearly trip back to the UK for a family of four is going to be $4000 just in airfare on average = +300pm to save for and that is without any other expenses car hire presents, food etc.
People I see surviving with their heads above the water and enjoying life here are either single/dual income in the 100 - 130K bracket. Everyone else is just barely treading water, racking up the credit cards or really cutting back. I know that puts a lot of people in the just existing bracket but I believe it is the reality
A decent two bed place is going to be $1600 - 2000 pm
Utilities $300pm
cable $100pm
food = family $400/500 pm.
Car ? 200/400pm
Gas 200/300pm if your lucky.
So as you see it adds up fairly quickly. Note I have not put entertainment or clothes, holidays etc on there. A once yearly trip back to the UK for a family of four is going to be $4000 just in airfare on average = +300pm to save for and that is without any other expenses car hire presents, food etc.
People I see surviving with their heads above the water and enjoying life here are either single/dual income in the 100 - 130K bracket. Everyone else is just barely treading water, racking up the credit cards or really cutting back. I know that puts a lot of people in the just existing bracket but I believe it is the reality
Yeah, single on $100k+ is probably a decent lifestyle but as a family, it seems like treading water. I know we're treading water here so I need to figure out how to improve my income. It won't be through jobs around here and thankfully I earn a living online so technically there's room to earn more...albeit it's easier said than done!
Mar 5th 2013, 5:54 pm
#81
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Re: Yank in UK thinking of moving back to US w/family
I think someone touched on this (Bob, perhaps) but I didn't see a response. You stated in your initial post that you were paid in USD, so does that mean that you are up to date on filing your annual US tax return? If not, that is something you will need to remedy if you plan to return to the US.
You also say that your wife has only ever lived in the area of the Lancashire coast -- in that case, perhaps a move within the UK might be in order before you uproot her across the Atlantic. I hear Torquay has a balmy climate! Good luck with whatever you choose.
You also say that your wife has only ever lived in the area of the Lancashire coast -- in that case, perhaps a move within the UK might be in order before you uproot her across the Atlantic. I hear Torquay has a balmy climate! Good luck with whatever you choose.
Mar 5th 2013, 6:12 pm
#82
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Re: Yank in UK thinking of moving back to US w/family
Eric's Dad - I did not read through all the responses yet, but another thing to consider are University costs over here for your son. I know that he is still young, but we had to start saving for our son as a newborn to guarantee that we will be able to afford to send him to a university over here.
I know it is no longer free in England, but it is a hell of a lot cheaper than over here.
I know it is no longer free in England, but it is a hell of a lot cheaper than over here.
Mar 5th 2013, 6:16 pm
#83
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Re: Yank in UK thinking of moving back to US w/family
We've been in the US six years, make pretty good money, and have never taken the whole family back to the UK at the same time.
We tend to go 1 adult + 1-2 children at a time. We use as many airmiles as possible, and we stay with family. Often we can borrow their car although recently they've been unable to get insurance for us so we've rented a car - again using airmiles if possible.
We tend to go 1 adult + 1-2 children at a time. We use as many airmiles as possible, and we stay with family. Often we can borrow their car although recently they've been unable to get insurance for us so we've rented a car - again using airmiles if possible.
Maybe I'm thinking of after taxes?? Even if it is £12,875 that's BEFORE taxes and whilst we get a pretty big tax break (?) or personal tax exemption, whatever it's called, that's still not very much money to live off.
I moved here in 2004, have 2 bachelor's degrees, and the best paying job I could get was....well, 2...1) I was offered £14k and 2) the other offered £12k. I took the £12k job because of the experience it offered. Btw, these were graphic/web design jobs.
If I were to get a job as a web designer in Morecambe (or Lancaster, a bigger town/city with 100k+ population) I'd probably start at around £12k/yr. Or, £12,875 or whatever.
I don't know about the rest of the country but I promise that jobs around here pay very little compared to COL and even when I moved here.
Sorry about the whole £100k thing I brought up. However, I didn't just make that number up. My second year living here (2006) I filed my taxes with a £93,000+ taxable income. So, I did make pretty darn near £100k.
I didn't have a mortgage, a kid, a car payment, etc. Yes, I had £50k in the bank at one point but I also knew I had a £25,000+ tax bill on its way so I never spent too much. I was lucky enough to earn that amount for 2 years and haven't earned nearly that since (best since was £34k or so taxable) but I can say, my wife and I weren't "living the life" on my £93k income.
Yes, we took "holidays" to Paris, Devon, etc. staying a week here, a week there, and didn't have to worry about hotel/entertainment costs but I'm telling you, I mainly stuck to £2,500/mo dividends based on my accountant's advice and had a lot of taxes to pay, despite being a Limited Co. (I was the only employee)
I have to admit, I probably didn't spend/save wisely. I'd never earned £93k/$180k in the US but we did at least get on the property ladder (which I thought was smart at the time) putting a down payment in 2006, almost the peak of property bubble. A bit of bad timing I guess but who could have predicted the "credit crisis" here?
Again, I have to disagree. Maybe it's the debt thing (it's just not something we've ever got in to other than the mortgage, never taken out a loan etc - if we can't afford something, we don't buy it!), but less than your £100k example gives us a bloody nice life even after tax.
£100k is not £100k. Set aside 25% (+/-) for taxes...assuming Limited Co, set aside another 25% for NEXT years taxes that HMRC wants UP FRONT...figure in mortgage, COL, debts (which you obviously don't have) and £100k suddenly isn't £100k....but, I guess it depends on who one is, what their bills are, COL, etc.
Mar 5th 2013, 6:24 pm
#84
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Re: Yank in UK thinking of moving back to US w/family
I think someone touched on this (Bob, perhaps) but I didn't see a response. You stated in your initial post that you were paid in USD, so does that mean that you are up to date on filing your annual US tax return? If not, that is something you will need to remedy if you plan to return to the US.
You also say that your wife has only ever lived in the area of the Lancashire coast -- in that case, perhaps a move within the UK might be in order before you uproot her across the Atlantic. I hear Torquay has a balmy climate! Good luck with whatever you choose.
You also say that your wife has only ever lived in the area of the Lancashire coast -- in that case, perhaps a move within the UK might be in order before you uproot her across the Atlantic. I hear Torquay has a balmy climate! Good luck with whatever you choose.
Yes, I love Torquay but I'd still like to check out more towns/cities between Torquay and Brighton (which I've never been to). Even Exeter has a certain appeal I live but my wife didn't seem so keen lol. My wife isn't like most Brits (no offence!) in that while she's very proud to be English/British, she's not averse to living abroad. She lived in Spain for 9 years, her brother lives in OZ, she's open to us moving to California, OZ, but certain parts of England she seems stubborn and resistant. Weird lol
Mar 5th 2013, 6:27 pm
#85
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Re: Yank in UK thinking of moving back to US w/family
Eric's Dad - I did not read through all the responses yet, but another thing to consider are University costs over here for your son. I know that he is still young, but we had to start saving for our son as a newborn to guarantee that we will be able to afford to send him to a university over here.
I know it is no longer free in England, but it is a hell of a lot cheaper than over here.
I know it is no longer free in England, but it is a hell of a lot cheaper than over here.
But, I don't think Uni is cheap here any more. I can't remember what the costs are but I want to say £15k+ per year...I could be wrong. But, it ain't cheap here either. Just think when he's 18!?
Also, it depends on which University (obviously). Are we talking Harvard, Princeton, Stanford...or (in CA) University of CA (LA, Santa Barbara) or Cal States...or even private schools?? Lots to consider but good point nonetheless
Mar 5th 2013, 6:30 pm
#86
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Re: Yank in UK thinking of moving back to US w/family
Erics Dad
If you want to petition for an immigrant visa for your wife you need to file the last 3 years of US tax returns. Don't panic. My USC husband lived for 20 years in the UK and had never filed a tax return in his life. But he had to do it and it was fine.
As for living, I agree that you should maybe think of moving somewhere in southern England. Or in the US maybe consider Florida. The weather is so lovely here right now! Like a european summer. California weather. But it is a bit hot and humid in the summer. There is no state tax. Much cheaper living than CA. And some good state schools too.
I was curious if you are thinking about having another child. Preschool costs have been killing us! Pretty much the same in UK-US though except in the UK they start school one year earlier.
If you want to petition for an immigrant visa for your wife you need to file the last 3 years of US tax returns. Don't panic. My USC husband lived for 20 years in the UK and had never filed a tax return in his life. But he had to do it and it was fine.
As for living, I agree that you should maybe think of moving somewhere in southern England. Or in the US maybe consider Florida. The weather is so lovely here right now! Like a european summer. California weather. But it is a bit hot and humid in the summer. There is no state tax. Much cheaper living than CA. And some good state schools too.
I was curious if you are thinking about having another child. Preschool costs have been killing us! Pretty much the same in UK-US though except in the UK they start school one year earlier.
Mar 5th 2013, 6:39 pm
#87
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Re: Yank in UK thinking of moving back to US w/family
Good point moi. That's something I'd not considered...I guess cause my son is 4. I was the only person in my immediate family to go do Uni. I did get student loans and federal aid which helped. But, I'm sure costs are a lot higher than when I was a student.
But, I don't think Uni is cheap here any more. I can't remember what the costs are but I want to say £15k+ per year...I could be wrong. But, it ain't cheap here either. Just think when he's 18!?
Also, it depends on which University (obviously). Are we talking Harvard, Princeton, Stanford...or (in CA) University of CA (LA, Santa Barbara) or Cal States...or even private schools?? Lots to consider but good point nonetheless
But, I don't think Uni is cheap here any more. I can't remember what the costs are but I want to say £15k+ per year...I could be wrong. But, it ain't cheap here either. Just think when he's 18!?
Also, it depends on which University (obviously). Are we talking Harvard, Princeton, Stanford...or (in CA) University of CA (LA, Santa Barbara) or Cal States...or even private schools?? Lots to consider but good point nonetheless
Still cheaper in the UK and a high standard.
Mar 5th 2013, 6:57 pm
#88
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Re: Yank in UK thinking of moving back to US w/family
Good question. I don't earn in the US, I just get paid in USD. For example, I create and sell digital products that I sell in certain online marketplaces. I have many British customers who buy my products in USD...all through paypal. So, I'm not 100% sure how that works but since 2010, that's how money has come in to my paypal account. My accountant has never mentioned anything about US taxes or IRS or anything. I think that's when you earn "physically" in the US, ie brick-n-mortar businesses or e-commerce "stores" where one is selling physical products delivered to Yanks in the US. At least I think that's when it becomes an IRS issue. I could be wrong. But, you bring up an interesting point.
As a US citizen you are required to file US tax returns and report your entire worldwide income to the IRS regardless of where you live or where you earn the money. Tax treaties between the UK and the US mean that you probably won't end up having to pay anything to the IRS but that does not mean that you don't have to file a return.
Presumably your accountant is in the UK so I would not expect that he/she would necessarily know anything about US tax requirements.
Mar 6th 2013, 6:33 am
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Mar 6th 2013, 9:15 am
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