rodiy2k
Recycles dryer sheets
I just read a thread on the ACA as it applies to potential expatriation as an option due to potential cost issues. Like almost all posts anywhere in America regarding this topic, the responses were overwhelmingly against the idea and made various comments that are simply incorrect and probably based on patriotism rather than research. In the interest of fairness since the thread is too old to reply to, I am offering an alternative reply.
In general, it sure appears that 90% of everyone on this forum appears to be very against expatriation. Since there are over eight million Americans living in over 150 nations arund the globe, many of which are by choice, I gather the following as reasons:
a) people are way too close minded to ever consider expatriation (a shame)
b) people have family in the USA and therefore would never consider expatriation (a better reason)
c) people believe everything we are told about the entire planet longing to live in the USA because we are the greatest nation on Earth (even though statistically speaking, we rank quite low somewhere in virtually everything considered relevant to quality of life like education, crime, healthcare costs, technology advances, etc).
If there is anyone willing to consider otherwise, let me chime in. First, don't pay much attention to Kathleen Peddicor or International Living; They are a for-profit organization aimed at taking your money for service you don't need should you actually wish to expatriate
Having said that, I can attest that all those claiming that nobody who has been laid off or fired has left America are sadly mistaken. There is an enormous influx of Americans into Ecuador, Panama and several other Latin American options by those that could not find work at age 40/50/60 and realize there is no human way possible to stay in America without depleting whatever savings they may have, never mind healthcare costs. I know this because I've met many of them and are one of those caught in the same situation. (Just found out my position in the financial services industry is being eliminated). Fortunately, unlike most, my wife and I have an emergency fund, an almost paid-off mortgage, 750K in tax sheltered retirement income and a plan for living comfortably outside the USA for 10 to 15 years until those funds are accessible and we can get SS or use the funds without penalty
As to the medical issue: My wife's employer sponsored plan with Kaiser which covers both of us costs $23,000 per year and we are relatively young and healthy; (ages 48 and 42. The employer pays 75% of this. (We are not leaving until 2015 and are going to Malaysia when I reach age 50). Since I have just been laid off, there is virtually no way I would get similar full time work at age 48 in the industry that caused the recession and is planning on laying off 40% of its workforce next year worldwide. So it's either deplete the savings that we have worked hard for or sell the house, use the proceeds and try the adventure of expatriation (my wife is Chinese so Asia appeals to us)
Onto the healthcare: If we stayed in California, the ACA now forces us to purchase something; With no chances of a subsidy, this would probably eat into 20% or more of all the money we planned on using during the early retirement. In Malaysia, the healthcare is very first world, provided by mostly European and American educated physicians, dentists and eye care specialists at about one twentieth the cost. Should you even choose an insurance policy, you can go to Axa, Allianz, AIG or a hand of other reputable companies and purchase a policy that will cover virtually the same thing as any policy that would more than comply with ACA minimum standards. The cost for a family plan runs between $225 and $500 USD PER YEAR. Or you can just pay as you go if you are relatively healthy.
These are the facts.
So expatriation is not only an interesting choice, it is so economically practical that simply writing it off like so many do seems foolish to me. Just my two cents. OK feel free to criticize me now
In general, it sure appears that 90% of everyone on this forum appears to be very against expatriation. Since there are over eight million Americans living in over 150 nations arund the globe, many of which are by choice, I gather the following as reasons:
a) people are way too close minded to ever consider expatriation (a shame)
b) people have family in the USA and therefore would never consider expatriation (a better reason)
c) people believe everything we are told about the entire planet longing to live in the USA because we are the greatest nation on Earth (even though statistically speaking, we rank quite low somewhere in virtually everything considered relevant to quality of life like education, crime, healthcare costs, technology advances, etc).
If there is anyone willing to consider otherwise, let me chime in. First, don't pay much attention to Kathleen Peddicor or International Living; They are a for-profit organization aimed at taking your money for service you don't need should you actually wish to expatriate
Having said that, I can attest that all those claiming that nobody who has been laid off or fired has left America are sadly mistaken. There is an enormous influx of Americans into Ecuador, Panama and several other Latin American options by those that could not find work at age 40/50/60 and realize there is no human way possible to stay in America without depleting whatever savings they may have, never mind healthcare costs. I know this because I've met many of them and are one of those caught in the same situation. (Just found out my position in the financial services industry is being eliminated). Fortunately, unlike most, my wife and I have an emergency fund, an almost paid-off mortgage, 750K in tax sheltered retirement income and a plan for living comfortably outside the USA for 10 to 15 years until those funds are accessible and we can get SS or use the funds without penalty
As to the medical issue: My wife's employer sponsored plan with Kaiser which covers both of us costs $23,000 per year and we are relatively young and healthy; (ages 48 and 42. The employer pays 75% of this. (We are not leaving until 2015 and are going to Malaysia when I reach age 50). Since I have just been laid off, there is virtually no way I would get similar full time work at age 48 in the industry that caused the recession and is planning on laying off 40% of its workforce next year worldwide. So it's either deplete the savings that we have worked hard for or sell the house, use the proceeds and try the adventure of expatriation (my wife is Chinese so Asia appeals to us)
Onto the healthcare: If we stayed in California, the ACA now forces us to purchase something; With no chances of a subsidy, this would probably eat into 20% or more of all the money we planned on using during the early retirement. In Malaysia, the healthcare is very first world, provided by mostly European and American educated physicians, dentists and eye care specialists at about one twentieth the cost. Should you even choose an insurance policy, you can go to Axa, Allianz, AIG or a hand of other reputable companies and purchase a policy that will cover virtually the same thing as any policy that would more than comply with ACA minimum standards. The cost for a family plan runs between $225 and $500 USD PER YEAR. Or you can just pay as you go if you are relatively healthy.
These are the facts.
So expatriation is not only an interesting choice, it is so economically practical that simply writing it off like so many do seems foolish to me. Just my two cents. OK feel free to criticize me now