With a sluggish economy at home and the hollowing out of the middle-class, many people are looking overseas for opportunities. According to Troy Peden, the co-founder of an overseas internships companies, people are rethinking how they’re living their lives in light of the fact that there seem to be fewer opportunities in wealthier countries. He says that there are plenty of opportunities for work and volunteering overseas which offer a richer and more fulfilling life.
But before you hop on a plane and move overseas, there are some things that you need to take care of, Peden says. Failing to do so could have devastating consequences. Here’s what he says families should do.
Build Up A Nest Egg
According to Megan Fitzgerald, the founder of a career site, families often underestimate the amount of money they need to get set up in a new country, as well as how long it takes to find a job. They might be particularly skilled in their industry, but often industries vary from country to country and there might not be the opportunities they expect if they move abroad.
Fitzgerald recommends that families put at least nine months’ savings in the bank, just to be on the safe side. She suggests investing money in a “low-risk savings vehicle,” meaning a standard 1-year savings account, 5-year account or government bonds. The absolute amount you’ll need to save, she says, depends on your unique situation, how many kids you’ve got, and what kind of lifestyle you want to have when you reach the host country. It’s also worth thinking about economic factors, such as the exchange rate. Your savings in your own currency might be able to tide you over for nine months, but if your currency is weak against the currency in the place you’re moving to, you’ll have less cash in reserve when you get there.
Investigate Banking Options In Advance
Before moving to another country, it’s essential that families thoroughly vet domestic banks. According to Michael Cavendish, a lawyer at a law firm in Florida, it’s important to find out whether a bank has well-developed international clearing networks. For instance, does the bank accept payments using Visa and Mastercard? And does it participate in third party schemes that allow the use of ATMs or clearing payments internationally? Cavendish says that if a bank is involved with third party schemes, it shows that it has been vetted.
He also has advice for families thinking about taking out a mortgage. It’s best, he says, to find specialists, like Enness International, who are experts in the foreign property market and who can help homebuyers find the best deals. Navigating an unfamiliar house market can be complicated, given all the paperwork and mortgage options available.
Find Out What Tax You Have To Pay
If you’re moving from America to another country, you still have to file your taxes in the US, even if you’ve been taxed already in the host country. According to Steven Elliot, a tax director at an accounting firm in New York, this doesn’t necessarily mean that you’ll have to pay twice. It just means that you need to declare.
