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  #61  
Old 08-07-2011, 01:33 AM
paultoti paultoti is offline
 
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I don't know what most people do after 3 years - I suppose it depends on how happy you are with your company, how flexible the company is, and what other job prospects you have.

As for what you want your new salary to be, here is what I did. First you either have to have some kind of budget or some idea of your monthly expenses. Then do the following:

1. Figure out how much you are saving every month. Don't forget to include 401k (plus the company match) and also include the amount of your monthly mortgage payment that goes towards principal (that's like investing in your house).

2. Figure out how much you will be able to save in Bermuda. Take your new monthly salary plus housing allowance plus other allowances (there may be travel or car allowances) and subtract $5,000 - $6,000 a month for rent. Then assume your expenses will be twice whatever they are now (if you live in a high CoL area). Include utilities, groceries, gas, eating out, entertainment, etc. Now tack on a little extra for good measure. Don't forget to ask your new company about its pension plan. Many companies have a 401k-like plan (except it's not a 401k because there are no income taxes) that works like a rabbi trust. The defined contribution plan may have significant employer contributions.

Basically, once you know how much you need to make in Bermuda to save the same amount you were saving in the US, every extra dollar of monthly income is approximately extra dollar of monthly savings (negligible income tax, remember?). Then you just need to decide how much more you want to be saving every month.

For $75k per year in the US, don't be surprised if your base salary in Bermuda isn't much higher. Take a look at your paycheck and imagine NO TAXES. That's a lot extra in your pocket every month. Imagine your base salary in Bermuda is the same $75k per year and assume housing costs you $1,000 net per month (after housing allowance). You have $63k left over (or $5k per month). Double all your current monthly expenses (then add a bit) and subtract from $5k to get your new monthly savings. Don't forget any pension. You will be renting your house so that's money down the toilet and don't forget you will need to buy a car - they cost about twice as much here. I have a POS that cost $25,000 although there is a pretty big used car market so you should be able to get something for less. But the cars are really small (size limit for the country - the roads are small) and expensive.

More?

Would $150k plus free housing (say allowance of $7k a month) a good deal? I am American and still have to pay Fed and State tax in the US. What worries me are the utilities, costs of flying back to US 3-4 times a year to keep mind in shape. Thanks
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  #62  
Old 08-07-2011, 09:50 AM
FCAZ FCAZ is offline
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Hi,
Would you think $150k base salary + free housing a good offer in Bermuda? Would I be able to save money? Based on what I found

Cost of living: based on this website (http://www.bermuda-online.org/costoflivingguide.htm), the estimated cost of living not including rent is about $7-8k per month. Is that true? It just seems unbelievably high to me.

Utilities: could you share how much it costs typically in the Summer and not Summer months? I heard in the Summer it can go up to $1000 a month. It probably depends on the size of the house a well.

Water tank: How often do we need to clean it? How much would it cost to clean?

Ants and cockroaches: I read that they are everywhere. Is it true that they would invade your house? Did you have difficulties dealing or keeping them away from the house? Any chance to keep them away from the house?

I am considering moving there and would like to make sure that I will be happy and save money there. I would really appreciate your responses.
Give us a little more info on your situation. Are you single, married, kids? Do you mind having a roommate, what size/type house/apartment is ideal for you (1 BR, 2 BR, pool, view of ocean...)?

Answers to those questions significantly drive the answer to your first 2 questions. As for the water tank, you only need it cleaned if salt water gets in the tank and then it is typically the landlord who pays for it.

Yes there are tons of ants and cockroaches but a good pest control company can keep them away. It costs around $250 per 6 mos. to have them treat our house (3 BR/BA).
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  #63  
Old 08-07-2011, 06:19 PM
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cyc cyc is offline
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Originally Posted by FCAZ View Post
Give us a little more info on your situation. Are you single, married, kids? Do you mind having a roommate, what size/type house/apartment is ideal for you (1 BR, 2 BR, pool, view of ocean...)?

Answers to those questions significantly drive the answer to your first 2 questions. As for the water tank, you only need it cleaned if salt water gets in the tank and then it is typically the landlord who pays for it.

Yes there are tons of ants and cockroaches but a good pest control company can keep them away. It costs around $250 per 6 mos. to have them treat our house (3 BR/BA).
If you don't mind me asking. How much are utilities per month for your house?
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  #64  
Old 08-07-2011, 11:58 PM
paultoti paultoti is offline
 
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Originally Posted by FCAZ View Post
Give us a little more info on your situation. Are you single, married, kids? Do you mind having a roommate, what size/type house/apartment is ideal for you (1 BR, 2 BR, pool, view of ocean...)?

Answers to those questions significantly drive the answer to your first 2 questions. As for the water tank, you only need it cleaned if salt water gets in the tank and then it is typically the landlord who pays for it.

Yes there are tons of ants and cockroaches but a good pest control company can keep them away. It costs around $250 per 6 mos. to have them treat our house (3 BR/BA).
My company will pay for the housing (2BD/2BA), so it's not an issue. I am married with 1 kid. I checked the diaper costs twice the NYC price!! How much does it cost to live a decent life style there for a family of three? $8k?
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  #65  
Old 08-08-2011, 08:52 AM
FCAZ FCAZ is offline
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If you don't mind me asking. How much are utilities per month for your house?
Avg of about $700 per month.
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  #66  
Old 08-08-2011, 09:01 AM
FCAZ FCAZ is offline
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My company will pay for the housing (2BD/2BA), so it's not an issue. I am married with 1 kid. I checked the diaper costs twice the NYC price!! How much does it cost to live a decent life style there for a family of three? $8k?
After the 1st year, $8k might be ok but don't expect to be saving a ton if you're getting $150k per yr. The first year is full of upfront costs/downpayments.
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  #67  
Old 08-08-2011, 09:29 AM
sama sama is offline
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After the 1st year, $8k might be ok but don't expect to be saving a ton if you're getting $150k per yr. The first year is full of upfront costs/downpayments.
For how long do people generally stay in Bermuda?
If I'm not mistaken, the contract terms are generally 3 years and then the visa can be extended. Do people tend to stay after 3 years or they'd leave?
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  #68  
Old 08-08-2011, 09:43 AM
FCAZ FCAZ is offline
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For how long do people generally stay in Bermuda?
If I'm not mistaken, the contract terms are generally 3 years and then the visa can be extended. Do people tend to stay after 3 years or they'd leave?
I would venture to say 3-5 yrs on average. The 1st visa is typically for a 3 year term but the 2nd and subsequent can be for 5 or 10 yr terms.

Bermuda is a very transient society for expats. Once the honeymoon period wears off (about the end of year 2), many decide that they can stick it out for a few more years and then want to move back to the US/UK/Canada.
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  #69  
Old 08-08-2011, 10:05 PM
paultoti paultoti is offline
 
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After the 1st year, $8k might be ok but don't expect to be saving a ton if you're getting $150k per yr. The first year is full of upfront costs/downpayments.
Wow: Just to confirm, this $8k is only for the expenses not including the housing right? Really expensive to live there ...

Thank you very much for your input.
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  #70  
Old 08-09-2011, 09:46 AM
FCAZ FCAZ is offline
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Wow: Just to confirm, this $8k is only for the expenses not including the housing right? Really expensive to live there ...

Thank you very much for your input.
Yes.

Btw, just curious, how many exams have you passed?
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