I’ve been offered a transfer from London to NYC, and have been offered a salary of $220k. My wife is going to take a year out of work to care for our infant daughter, so this money will be our full income as a family.
The American system confuses me hugely. Following most calculators, it sounds like we will have roughly $11k a month. If we assume $4k a month on rent somewhere roughly 45-60 mins from Broadway, is $6-7k enough for a family to live on, including stuff like healthcare for the entire family through work?
This might be a silly question, but will we have a comfortable/good time in NYC or NJ on this salary? Will my wife be able to afford to take my daughter out for stuff like swimming lessons and baby classes, and will we have enough to afford stuff like flights home to see family in the UK? I’ve spoke to a few people at work, and we’ve had ranges from “wtf half a mil is lots!” to “wtf you’ll be limited to NJ and won’t be able to take vacations”, so it would be good to get more perspectives.
These other commenters are wiiild. The median household income in Manhattan is $100k.
You will 100% be in the top income earners in the city.
Also, the 33% for housing rule doesn’t make a lot of sense at your income level. Unless you have a serious cocaine habit, you will have no problem living off $5k with your family after expenses. Prices for food are markedly lower than most of Europe and there’s not VAT on things like clothes or groceries.
Granted, housing is expensive, but when you subtract the average annual cost of car ownership (roughly $15k post tax, $22k pre tax, according to the IRS), it’s really not a terrible deal.
Throw in $35 balcony seats to the Metropolitan opera and a couple family museum memberships and you will have no shortage of world class cultural events to attend for cheap.
If you take taxis everywhere, eat takeout frequently, and send your kids to private school, you will quickly burn through that money, but I lived off $12k while working in restaurants as a single young person. I didn’t starve, I paid my rent, and I did alright.
Don’t be fooled by maps. Bridges and tunnels back up quickly, and trains are occasionally delayed. Expect your commute to be double whatever Waze is currently estimating, and some days you will be pleasantly surprised that it only takes that long.
Also, $4k a month for rent is not going to get you very much within that radius. You can find a 1 bedroom, maybe a small 2 bedroom flat, but I would budget for $5k if you definitely want a separate room for the baby.
$220k is a lot of money. Congratulations on your success. But if you work in NYC, it won’t feel like a lot of money. On the other hand, living there is an experience unlike anywhere else in the world. You might love it, you might hate it, but at least you’ll never have to wonder about it.
I’ve never been to NYC, but I live in a nearby state and ran a cost of living comparison report. My salary is close to yours in terms of comparison. It allows a middle class lifestyle - middle of the road housing, transportation, takeout once or twice a week, some hobbies, vacation once a year. I don’t have a family so you may need to be a bit more frugal.
It’s crucial to have a nest egg set aside in case you lose your job because social services are minimal. Also bear in mind that most US jobs don’t offer a pension, but instead your job likely offers a 401k or IRA. That’s usually not enough to retire on, especially if you plan on renting, so try to budget for investments if you ever plan on retiring.
The single biggest expense is going to be housing so if you’re smart with your choices and find something that both accommodates your family and your generous income, you should be fine. As with anything in life, you just have to manage the money and understand where to spend and we’re not to spend. Great thing about a place like New York City is that there a lot of things you can do for free with the little ones.
Totally get that, and from our side that’s at least somewhat clear - if somewhere costs $4k to rent we’ll be paying $4k a month with deposit, bills, etc (assume $5k). Where we’re a little lost is where the “hidden costs” might be. Will health insurance for three people be prohibitively expensive? How much should we budget for my wife and daughter to enjoy their time in NY?
Regarding health insurance, this will likely come from your employer and costs vary wildly. Ask to see the Healthcare plan costs (which you’ll pay per month just to have the insurance) and explanation of benefits. Most Healthcare plans have a deductible, and you’ll need to pay that entire amount out of pocket before the insurance pays anything. Then you’ll have a copay or coinsurance until you reach your maximum out of pocket. As a best practice, always assume that you’ll reach your maximum out of pocket amount each year when budgeting.
Health insurance largely goes through your employer, although you can self fund it. Be prepared for the Affordable Care Act to be eliminated sometime next year though and who knows what will happen then?
The affordable care act will absolutely not apply to a family with $220k of income.
No, but when it goes away, it’s going to turn the entire health care industry upside down.
By making it more expensive for people with pre existing conditions and people with chronic diseases. A healthy family would probably have their costs decrease comparatively since the risk pool wouldn’t include these high risk groups.
I’m not saying this a good thing. It’s just not a problem OP will have.
We’re on the verge of a fascist takeover. You probably shouldn’t come here.
While I fully empathize, how is this helpful to the question I asked? It’s arguably the same rhetoric that you’d see from those on the right that probably don’t want a foreigner taking a domestic job…
That’s not at all what I’m saying. You don’t seem to understand this situation and I’m trying to save you some grief.
Okay, let me rephrase. How does the orange baby affect whether I can afford to live in NY?
Hopefully someone with experience can help. Apologies for asking you to consider the bigger picture.
At your income level, Trump’s policies are likely to benefit you overall. $220k it’s more than twice the median income in Manhattan. America has been and will remain a great place to be rich.
If you’re poor, you’re fucked though.
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$220K is probably tight in NYC proper, but commuting in from a suburb is do-able.
Rule of thumb is no more than 1/3rd of your income on housing. So… 220K/12 = 18,333.33 per month, /3 = $6,111.11 rent or mortgage.
3+ bedrooms… woof…
https://www.realtor.com/apartments/New-York_NY/beds-3
Flushing, NY looks do-able, but you’d need to check the crime stats, livability, commute times, etc. etc. Just in raw terms of commute, looks like 30 minutes by train from Flushing to Manhattan. Your mileage may vary. :)
https://www.rome2rio.com/s/Flushing/Manhattan
OTOH:
https://www.areavibes.com/new+york-ny/flushing/crime/
Flushing crime rates are 75% higher than the national average
Violent crimes in Flushing are 117% higher than the national average
In Flushing you have a 1 in 25 chance of becoming a victim of crime
Flushing is safer than 39% of the cities in New York
Year over year crime in New York has increased by 35%
The bulk of those crimes are petty theft-- like losing a bike or an Amazon package that was left outside.
Don’t do that in NYC. Or London. Or Berlin.
In 2009 I lived in Manhattan on 80k/yr and it sucked. 5years later I was at 165k and as a single guy I was finalyl able to live somewhere “nice” in brooklyn 3 stops from wall street and it was great. Only problem was that there was no way I was ever going to be able to afford to buy anything.
So I’ll say if you are ok renting your whole life, 220k is plenty and there are a lot of good options for now. If you want to eventually buy a place, you may have to compromise.Yes, it’s plenty. Things like private school will be the biggest financial strain after housing. Since your daughter isn’t school age yet it won’t be an issue.
Regarding housing - yes you will be able to find something in that price range. If you live in Manhattan the commute to work won’t be bad.
Comments are wild. $220k is a sizable salary in the US, entry level working professionals usually start pushing 80k nationally, ~$140k in larger cities like NY and San fran. Realistically you need to ask some questions:
Are you paying double income tax? It’s safe to assume 25-40% of your income will be going towards taxes for EACH government if you retain citizenship.
Do you need to live in New York for your visa? You mentioned new jersey, but Connecticut ect, also has reasonable public transportation to the city.
Are you expecting major expenses like a car, medical, credit card bills or student loans? Are you paying relocation fees? US typically requires first and last month payment. And new york real estate is brutal. Do you have a nest egg if something falls through? Do you need to pay for a lawyer to process your travel visas?
That is not how international taxes work. If he doesn’t maintain two addresses and treat the UK one as his “domicile”, he will only owe taxes in the US. There are also bilateral treaties that cover this and, for example, retirement accounts.
What is a travel visa? Presumably OP has a UK passport and would have a US work visa, which is attached to an employer. He also doesn’t need any visa to enter with a UK passport-- just needs to fill out the ESTA application.
Do you mean a work visa? Generally companies that pay you a quarter million dollars per year will cover the $10k of relocation fees and the filing fee is trivial compared to the mood. However, OP, any relocation cash you get from the company is considered taxable income (thanks, Trump). He also doesn’t need a lawyer unless something goes terribly wrong.
Either way, I would definitely get a tax accountant, OP. In general, the US system is incredibly complicated and the accountant will almost certainly know of deductions that I do not know of and more than pay for his or her fee.
This commenter has no idea what they’re talking about, OP-- literally everything statement they made was false.
And the answer to this commenter’s question about needing to live in NY is a solid “no”, but I suspect someone who makes $220k doesn’t want to spend 3 hours commuting every day when they could very easily afford to live wherever the fuck they want.
Lol you recommend not budgeting for a lawyer and call me clueless. I’ve actually worked internationally, and brought up cost blockers. Stop spreading ignorance.
Same here, homey. Currently working in Europe as an American.
Lived and worked in multiple countries without needing a lawyer or paying double taxes. Your lawyer must have been a moron though, clearly.
Source re: double taxation
I’ve blocked you and merely left this up for OP’s benefit.
https://www.irs.gov/forms-pubs/about-publication-54.
Tax guide for abroad citizens, blocking me doesnt make you right, it means you did some research and walked away
