Back in the U.S...
We were back in the U.S. for the past several weeks helping my parents move, which is the main reason I haven't sent a newsletter this month.
Plus, I've been building a new system we think you'll find useful and when I have my coder brain engaged, my communication brain shuts down (much to Amelia's chagrin).
Now that we're back on the road and the new tool is almost finished, I'll put my communication cap back on and let you know what we thought about the U.S. after nearly 18 months since our last visit.
Not including the $2,000 in airfare to get to Kansas from Ireland (yes, we had a Guinness), three weeks in the U.S. cost us right at $4,000!
And we stayed with my parents so we didn't have any lodging expenses!
The car rental was our biggest expense at $2,500. It's shocking how expensive car rentals are with all the insurance, taxes and fees.
We spent $1,300 on food, $100 on gas, and another $100 on miscellaneous stuff.
The cost of both restaurants and groceries was the most shocking. I've never put so many things back on the shelf because they were just too expensive.
Groceries cost more in the U.S. than any other country we've visited over the past 3 years. Even more than the U.K., where they're protesting over food prices.
And restaurants... Where do I begin?
In other countries, a $20 meal costs exactly $20.
When you ask for the check, they bring the card reader to your table so you can tap your card or phone, and the amount on the bill is the amount you pay. Tax is included in the menu price. A few countries expect a 10% tip or include a 10% service charge, but most don't.
In the U.S., paying the bill at a restaurant is a whole ordeal.
You ask for the check, they bring it to you, then they disappear with your credit card, then they come back with two receipts, and the math begins.
If you leave anything less than a 20% tip, you're a cheapskate loser.
But will you be considered a cheapskate loser if you subtract the taxes before calculating the tip?
The meal itself is already expensive, but once you tack on the roughly 10% tax and 20% tip, you're paying 30% more than the menu price so a $20 meal will cost more than $27!
And good luck eating out for $20 per person.
We wish we could spend more time in the U.S. now that my parents are in their 80s and Amelia's mom is nearing that age range, but we just can't afford it.
While the cost of living is cost-prohibitive, the biggest obstacle is the U.S. tax laws.
If we limit our time in the U.S. to fewer than 35 days per year, we qualify for the foreign earned income exclusion, which saves us enough in taxes to almost cover our lodging for an entire year!
We still pay the 15% self-employment tax, which covers our Medicare and Social Security contribution, but we pay no federal or state taxes because we don't earn enough to exceed the deduction amount.
Most countries don't tax you like a resident unless you spend more than 183 days per year in-country. That's 6 months.
Not the U.S. They want their pound of flesh if you spend a month in-country.
Unfortunately, we can't afford to take a $20-30K hit on our income at this stage of our lives.
Thanks to student loans, medical expenses, flat wages, no pensions, questionable social security, and 3 financial meltdowns since we started working, our savings is nowhere near what it needs to be for a comfortable retirement.
We're essentially economic refugees and the hidden cost is missing out on the final years of our parents' lives.
At least we have seamless communications. When our ancestors left Europe in the 1600s and 1800s, they never saw their families again.
I'm sure they sent letters that took weeks or months to arrive, but we have instant texts and video calling so it could be worse.
We talked about this at-length with my parents during this visit, but the reality doesn't make the tearful goodbyes any easier 😢
Worth Knowing
More Americans Are Seriously Thinking About Moving Abroad
A growing number of Americans are considering life overseas, driven by everything from cost of living and healthcare to lifestyle and retirement goals. But making the move still requires careful planning around visas, taxes, housing, and maintaining financial ties to the U.S. Source
Antigua’s “Golden Passport” Program Could Be Coming to an End
Antigua and Barbuda is under pressure from the European Union to phase out its citizenship-by-investment program, which allows foreigners to obtain citizenship by investing at least $200,000. The EU says these programs create security risks and has warned several Caribbean nations that they could lose visa-free access to Europe if they keep them. Antigua says it will likely agree to end the program by 2028, which could also have a major impact on the country’s economy because passport sales are a significant source of government revenue. Source
Could Your First Home Be in Another Country?
With U.S. housing costs still high, some Americans are looking overseas for more affordable property. Countries like Mexico, Portugal, Italy, and Panama can offer lower purchase prices, but buying a home abroad does not automatically give you the right to live there. Source
Why More Americans Are Retiring in Mexico
Mexico continues to attract American retirees with lower living costs, warmer weather, private healthcare, and relatively accessible residency options if you meet the financial requirements. Its proximity to the U.S. also makes it easier to stay connected to family and return home when needed. Source
Which Central American Country Has the Best Digital Nomad Visa?
Belize, Costa Rica, Guatemala, and Panama all offer options for remote workers who want to stay longer than a typical tourist visit. The programs vary quite a bit in income requirements, application costs, and length of stay, so the best choice depends on how much you earn and how long you want to stay. Source
Moving Abroad Doesn't Mean Leaving U.S. Taxes Behind
Americans generally remain subject to U.S. tax reporting even after moving overseas, including rules around foreign income, bank accounts, and investments. Understanding requirements like FATCA and FBAR before you move can help prevent expensive surprises later. Source
¡Chao!
JP (Amelia Says Hola)
AmeliaAndJP.com
P.S. Our Leaps are perfect for Exploratory Trips and vacations, alike. And they're a great way to make new lifelong friends.
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