Moving to US

last SG · 2008-08-04T00:50:02+00:00

Re: MoneyEven though your plans are to pay in cash for major purchases and not take out loans, you still have to prove your creditworthiness. You need to lea...

lostintransition SG

hey folks,

so glad to have found this forum with its wealth of practical info and insights to living abroad!

my spouse and i will be moving to massachusetts in July next year...our visas are being processed right now.

i've lived in singapore all my life so the move is definitely a HUGE change. i'm nervous, yet full of anticipation.

there seems to be so much things to be settled...even though i've a year ahead of me to do stuffs. well what can i say...i'm a kiasu/kiasi singaporean at heart!

really need to hear from those who've "been there, done that" to advice me on the things that i'll need to settle before we leave...

some stuffs like:

- sell off property/rent?

- CPF - to withdraw or leave as it is?

- transferring of assets (i.e. cash, investments) from SG to USA? how? costs involved?

- should we start converting our SGD to USD now (over a regular period) and to deposit into a USD savings/FD account?

- my spouse is SPR while i'm citizen. does my spouse have to give up his SPR? should he convert to SG citizen in case we might decide to return to SG in future?

- health insurance? should we buy health insurance (international coverage) in singapore or in US?

- tax matters? we are currently tax payers. but what happens when we leave the country? do we have to inform IRAS? do we still need to declare SG earned income (e.g retainer commissions, rental income, dividends) eventhough we'll no longer be SG tax residents

any advice on the above issues or any other issues that i haven't thought of?

although subsidised housing will be provided for by our US employer for the initial 2 years when we are there...we are looking into buying a property in US. any advice on that?

ceecookie SG

It may not be a good time to change your entire cash asset into USD. America is having an economic recession now and the USD-SGD exchange rate has been falling year by year(weakest past 80s).If it fall even further after you change at this moment, you may stand to lose some money.

lostintransition SG

yah..that's why i was thinking of changing bit by bit over the next 11-12months period? but quite a hassle...

ceecookie SG

Perhaps to be safe, you can change what you need at the moment, and perhaps an additional few hundreds or so for everyday usage? Then, change more as you need as time pass.

Even though its a hassle, im sure this beats losing significant amounts from the rates right(assuming it fall further)?

maurizio13 SG

-- Leaving Singapore as in temporary working overseas or giving up citizenship?

-- USD could depreciate further against the SGD

-- Even if you are non resident in Singapore for tax purposes, but you derive Singapore sourced income, you will be liable to be taxed for it. There is difference between Singapore and US tax system, US adopts a worldwide system of taxation, whereas Singapore is territorial, so even if you don't remit the money to US, you might need to pay tax for it. Suggest you consult a tax accountant to clarify things. There will also be double taxation relief if you paid tax in Singapore and is subsequently taxed again in the US.

Not that easy, I haven't been updated for a very long time.

^tamago^ SG

draw out CPF, keep in euros or SGD.

Jeanwoo SG

Hi,

Just my two cents worth.

- sell off property/rent?

Depends on how badly you need the cash from selling. And for renting, depends if you have anyone reliable in Singapore to manage your property for you.

- CPF - to withdraw or leave as it is?

There's nothing much you can do unless you give up citizenship. But what is your status in the US ? Permanent resident ? Or work permit holder ?

You will need to also update your address to the relevant authorities, NRIC, banks etc. They will mail you statements or updates to your new address in USA.

Don't forget your singpass. Although I hardly use it.

- transferring of assets (i.e. cash, investments) from SG to USA? how? costs involved?

Yes there's wiring fees involve.. and different banks charge different rates. It's rather costly if you are only transfering small amounts. You need to check with your banks on the details. They will also need to know which bank and the location to transfer the money into.

You will be charged on both ends. 2 banks will be earning from your transaction.

- should we start converting our SGD to USD now (over a regular period) and to deposit into a USD savings/FD account?

It depends on your cash needs. And you also need to shop around for the best interest rates in the USA. I suggest you keep a smaller amount in your SG account if you have any need to make SG payment. You can simply mail in your SG bank cheque from USA.

There's online banking to make life more convenient while you are overseas. Although it has it's limitations.

For the banks in USA.. make sure it's FDIC insured, and keep your amounts below the insure amount.

Consider the credit unions, some can be pretty good.

You can do online search for the best interest rates.

- my spouse is SPR while i'm citizen. does my spouse have to give up his SPR? should he convert to SG citizen in case we might decide to return to SG in future?

No, your spouse can keep his SPR.

- health insurance? should we buy health insurance (international coverage) in singapore or in US?

Depends. Does either of yours/spouse employer's contract covers health benefits ? If not, I suggest for long term stay.. you get yourself a health insurance in the USA as it can be very costly to have to pay cash. From my personal experience.. some clinics don't accept patient with no insurance. They will indicate what kind of plans they accept.

Depends.. do you have income from investments after you leave ? If you have no income to generate in Singapore.. you will likely get a letter stating that you no longer need to fill the IRAS form. But as usual do update your address to the relevant authorities.

any advice on the above issues or any other issues that i haven't thought of?

although subsidised housing will be provided for by our US employer for the initial 2 years when we are there...we are looking into buying a property in US. any advice on that?

Take your time browsing around for your dream home. There's much to consider. Do you have kids ? If you do.. make sure you check out the school ratings in your district.

Consider the commute time to and from work, as traffic can be rather nasty in certain cities.

Does the US employer assign any relocation professional to help you ? They will usually provide you some read up and perhaps bring you around the area and explain the different choices available that's within your budget range.

Hope the above helps some.

Meia Gisborn SG

any advice on the above issues or any other issues that i haven't thought of?

Hello, and welcome to the SO forum.

I am assuming that your spouse and you will be coming to the US under a work visa. However, what are your long-term plans? Do the two of you intend to work for a while then return to Singapore, or stay on and obtain permanent residency then citizenship? From what you've written here:

"- my spouse is SPR while i'm citizen. does my spouse have to give up his SPR? should he convert to SG citizen in case we might decide to return to SG in future?"

I assume that both of you intend to stay in the US permanently while holding out the option of returning to Singapore at some point in the future.

While you are in the US on a work visa, you can apply for permanent residency (i.e., "green card") status under the auspices of your employer. The PR application can take up to a year to process. You will need to maintain your Singapore citizenship and passport while you are a PR. However, the Singapore government does not have to know that you have obtained PR status in the US.

You become eligible and can apply for naturalization (citizenship) after five years as a PR. If you wish to withdraw your CPF from Singapore, you will have to show that you have renounced your Singapore citizenship, and the renunciation process requires proof of citizenship in another country.

Arapahoe SG

buying property in the US needs to do homework - so I suggest you rent for the 2 yrs and learn 1 - property market, 2 - neighbourhood environment. 3 considered the financial implication since there are annual property tax to consider. (i see people stay in the US for 10 yrs and still make mistake on property)

health insurance would be better off purchase in the US. Those in SG you can keep as supplement.

Tax - since you are moving in July of 2009 so you will still need to submit your Tax to IRAS in SG from Jan to July when u submit your IRAS in 2010. Thereafter there would be no CPF so IRAS can cross reference. From July 2010 - Dec 2010 you need to submit state and federal income tax return. On a yearly basis you still need to submit a zero rated iras in Sg if you have no income this is to maintain assuming you have zero income in sg.

Other than that you should enjoy your experience.

lostintransition SG

well..i've definitely come to the RIGHT place...you folks are FANTASTIC!!! =)

my spouse will be under the H1B visa while i'll be under H4. i plan to do my graduate studies and hopefully find a job. my spouse's position is supposed to be a permanent one...so i guess we might eventually apply for PR if we do decide to settle down for good....but i heard that (not sure if true??) with PR comes implications such as taxes on capital gains, estate duty which we'd preferrably like to avoid if there's any way?? i've been told that some people would stay/work in US for a very long period of time (10+years) without the green card? is that possible?

however, we can't be absolutely sure that the work/life in US will work out....so we want the flexibility to return to singapore hence my question regarding my spouse's SG SPR status. we are adopting a "let's see how it goes" attitude on the move...if it's good, we'll stay put in MA...if not, we might move to other parts of US, return to singapore or move to another country altogether i.e. australia/new zealand etc. we do not have kids so we are highly mobile.

how soon can one who's on H1B apply for PR? so it'd be an employment based green card? and how long before one get awarded PR status? my spouse should qualify for the EB1 category, if not EB2.

for our SG property..we'll try our best to sell it before we leave...but if we don't...i'll just have to rent it out and seek help from my family members who are still in singapore to check on the place once in awhile.

as for CPF...given the current 2.5%pa and 4%pa risk-free returns...i suppose it's ok to leave the monies here till our age 55.

as we do plan to buy a property and cars in US...we'd have to bring over quite a substantial amount of cash...hence the reason why i'm thinking of spreading the currency conversion over a period of time to reduce the risk of bad market timing.

i've been told by some banks i.e. c*t*bank that i can open a USD savings account in singapore and can withdraw/transfer my money from the account even when i'm in US (at no transfer costs or whatsoever). we might still leave at least half of our assets in singapore till we are certain that we are permanently staying put in US. so we'll like an account in singapore which we can easily access from US

as for SG tax matters...if we do rent out our property...that'll still be SG sourced income right? i do have retainer income every month....and we do earn dividends from our SG investments too. so i supposed we'll still be required to file for taxes in singapore?

for health insurance....my spouse is going to be a state employee. any idea what kind of health benefit he'd receive? our main concern is that there have been pre-existing health conditions which our SG health insurance do cover (currently, we are coverd under Medisave-approved shield plan + private health plan + employee health plan for both inpatient & outpatient) ....but once we are in US...we aren't sure if the health plans will also cover the pre-existing conditions.

we've already been checking out the US property market..in particular, properties within buzzards bay. prices seem to be on the downtrend and we figure we can easily get something pretty comfortable within our budget. but of course, we aren't sure if the properties there have good resale demand/value. so we'll definitely need to study the market more closely when we are there. so we'll accept the employer subsidised housing till we can find something that we really like.

unfortunately...the employer hasn't offered to provide any relocation professionals to assist us (is that a common provision by US employers?) . all we've gotten is a pittance amount for relocation purposes.

the outlook of the US economy also kinda worries us...not that my spouses' job is not stable or what....but a further depreciation of the USD will really compromise income and our saving/investment abilities. my spouse is already going to US on a lower pay package (esp after deducting the taxes). we are willing to make some sacrifices 'cos we are hoping for a better quality of life and to have more time for ourselves. but if the trade-off is too huge....then it just wouldn't work out, financially at least (eventhough house/cars are cheaper).

there just seem so much to consider....so any advice of any sort will mean a lot to us! =) we just wanna "go with the flow" and enjoy the opportunity being presented...yet the practical sides of us just kept having nagging thoughts. it's just scary....i suppose...and i really applaud all of you folks here who have been brave enough to take the first step and are now living well in US.

lostintransition SG

by the way...i know that i ain't supposed to work under H4 visa...but how about if i run my own online business or something? is that allowed?

Jeanwoo SG

by the way...i know that i ain't supposed to work under H4 visa...but how about if i run my own online business or something? is that allowed?

To find out more about PR through Employment, EB- ratings, eligibilities and processing times....

Click on this link to US Immigration

I found an article about H4 visa.. seems many had already thought about doing what you have in mind... article in this link....Starting a home base business(H4)- is it legal ?

But if I am not wrong.. you can change your H4 to H1 visa if you want to work.

If you are still unsure.. I suggest you check out the US embassy in Singapore or contact USCIS directly.

And no.. you don't want to mess around with the immigration laws...

lostintransition SG

thanks Jeanwoo...that link is absolutely useful. so i guess that option is out for me then... i was just thinking of doing something to pass time when i'm not working or still studying. i was told that i can apply for F1 visa if i'm studying and that could allow me to work?

well...i just need to find other things to do to occupy myself then..no biggie. i'm keeping my job in SG and i'll probably make at least a trip or 2 back to SG annually (also to avoid the cold winters in the east coast).

Jeanwoo SG

For F1 visa, you are not allowed to take off-campus job during the first year of study. But can do on-campus employment.

After one year of study you can request permission from USCIS for off-campus employment.

But if you can manage to secure a H1 yourself.. you can work and study at the same time.

Once you get accustomed to the cold weather.. I doubt you'll be looking forward to the hot and humid weather back in Singapore.

But don't worry.. you've plenty to do.. if you don't like cold winters.. you can always head South...

Arapahoe SG

ha ha ....

just remember something in the US there are plenty of Tom Dick and Harry. Characters that swing from one extreme to the other as compare to SG. only small percentage of the folks know what is going on. you will received plenty of advise but use your judgement So stay sharp.

1 thing u might want to take note is to be "Patient"

bring your international driving license.

u can bring your sg bank atm card.

U can signed up for travel insurance they covered for first 3 months.

From your touch down to getting your driving license could be at least 1 -2 months. The bank might need to have social security # and ID to open account. You got no credit record. so renting apartment might take some disadvantage. financing car too might find it difficult so u r going to feel limbo for a start.

under H4 u r allow to study without converting to F-1 i personally don't recomend to convert.

U can seeked to apply for a job and if you get a job than u can apply locally thru a attorney to get a H1B. It is my understanding that this H1B is granted locally it has nothing to do with state department so in other words if you exit the country u still need to go to the embassy to apply for a visa which u might not get it.

Uncle sam tax policy are well quite liberal. The first year if you want to learn stay lean and simple fill up your own 1040ez file as joint. Once you get the hang of it and learn to climb the rope and if you decided to settle down with house i am sure by than u would know how to do it. I think it is instinctive ha ha ha.....

if your wife work for the fed or state than i recommend you check the guideline don;t think u want to do something to effect her status.

stay healthy its cheaper.

jetta SG

Hey there

I was going to suggest the Citibank route because that's what I used to do. Their Singapore office has a 24-hour a toll-free number manned by the most polite and efficient people. I can understand your anxieties, about wanting to jump the gun and getting things prepped as far out as possible but I think many of your questions will have to be handled when you get here and become familiar with the system. Things like health insurance are really important. Your employer will offer you one but by all means you don't have to accept it if you find a better one elsewhere. Also don't forget dental insurance because this doesn't fall under the health insurance umbrella. Again once you get here, you can shop around. It's easy to allot payments to these entities but not easy to get a refund so don't jump the gun on this. Dental work here is expensive so my advice is to get everything done in Singapore before you come over. Also ask your dentist and doctor in Singapore for a copy of your health records, if possible. Your health insurance company will ask for many many details. It will also make filling out forms here that much easier. Don't forget that you'll have to undergo checks for TB which involves getting a chest x-ray and a PPD test . If you pop positive, you'll have to undergo 6 months of INH treatment. (I had to endure that.)

As for buying a place, you'll have to establish a credit history first or you'll be paying high interest rates. So my advice is to sit back and let the market continue it's slide while you build your credit history. Speaking of which, before you buy a car here, please talk to us about car salesmen tactics and what to look for? Don't get taken in. Do your research online via www.kbb.com and www.edmunds.com. Get your hands on a copy of Consumer Reports too. Every purchase you make using credit requires a check on your credit history to determine your interest rate.

I'll write more as topics pop into my head. HTHs.

Arapahoe SG

oh by the way ......i know this is not a big secret but i try to be discrete about 2 topics in this forum

1) disguise dual citizen topics

2) how to hide your revenues

So lets not teach those folk in the PM office oversea unit or other agency they do snoop in and peep.

Jeanwoo SG

There's more information on F1 visa.

Click on this link to Bureau of Consular Affairs.

Seems F1 visa holders are not allowed to attend public funded schools.

For the health insurance part.

So your spouse works for the state.. both of you likely get pretty good and comprehensive health and medical coverage. Check with your spouse's HR department.. they will let you know which plan you're covered under... and what are the benefits.....

Minor pre-existing health conditions won't affect your coverage by the employer..If there's major pre-existing health conditions, your spouse probably won't get hired anyway...........

However.. if you are looking at life insurance.. then yes.. pre-existing may affect you.

The "pittance" relocation allowance..... don't go nuts with that yet.. if your spouse don't complete his probationary period and leave the employer ... this allowance may need to be returned back to the employer....study the employment contract carefully.

lostintransition SG

i'll only apply for my graduate studies in a MA state university 'cos i'd like to enjoy the resident rate for tuition fee which i can qualify only after staying for min of 1 year in MA. so i've 1 full year of doing nothing at home...that should give me sufficient time to settle in and work out all the matters with regards to insurance, housing, car, tax etc. you folks are right that perhaps i'm jumping the gun here =P

i've heard alot about car purchase/repair scams....what would the salesmen do actually? sell us lemons? such scams pertain to resale or new cars?

my spouse drives...but i don't, which is a big problem now that we are moving to US. i'm thinking of learning in SG and then do some refresher course in MA and to take my driving test in MA. not sure if that's a good idea?

Arapahoe mentioned buying travel insurance for the first couple of months?? but for travel insurance...you'll need to inform of the start and return date from/to Singapore?

thanks for the warning regarding establishing credit worthiness. we are less worried about the financing of the cars and property 'cos we are unlikely to take loans....but we are more concern about where to put our money (i.e. savings, investments) in US where it's safe and not subject to bank liquidation, collapse of hedge funds, high taxation/estate duty etc. hence the reason why we might still leave the bulk of our assets in Singapore till we are more familiar with the US systems and also the savings/investment options available. any websites with very comprehensive details on such for the different states?

as for converting my H4 to H1B...due to my academic qualification (only a bachelor degree) and the lack of job opportunities in the area where we'll be residing...i've been told that it'd be quite hard to find a good job. hence also the reason why i'm planning to further my studies and to see if that gets me anywhere.

we'll be maintaining all our life insurance policies in singapore..so we are unlikely to buy any in US. the only coverage that we'll require will be the ones that you folks have mentioned - health & dental. is dental really very expensive in US? i've also been informed that property insurance can be very high if our property is near the sea or within the flood zones.

i'm curious too about the cost of living in US. say if we cook most of our meals and only eat out 1-2/week...roughly on average how much a month will we be looking at for food/utilities? would you say that the cost of living is lower or higher than in SG?

also, for you folks who've made the big move...what did you guys packed (or would have packed on the hindsight) to bring over? i love to cook/bake and i'd like to bring an entire store worth of asian spices/condiments/dried produces over if i could....but is there a need to go to such extremes? will i be able to find affordable asian food supplies in MA? also, any website that provides a list of what kinda food stuffs i can send over? how about electrical appliances e.g. washing machine/dryer/microwave etc. do you folks just buy them over there?

sorry for all these questions....i just have so much on my mind......you folks have been most kind and patient with me =)

Jeanwoo SG

Don't be so kan chiong ... 1 year will fly by so fast... once you are here.. you'll be too busy learning new things.. seeking information... exploring around... getting culture shock....

i've heard alot about car purchase/repair scams....what would the salesmen do actually? sell us lemons? such scams pertain to resale or new cars?

Probably used or lease car.. but there's the MASS.GOV website.. search "lemon law" , do read up if you are concern about it.

I'm not sure about getting licencse back East (MA) vs West (CA) .. but.. it's easier to get the license in the US compared to SG. While it took me 2 years to get my Sg driving license.. I got my California license within 2 weeks. Ofcourse it wouldn't hurt for you to learn driving in SG first... if the standard is higher in SG.. you'd definitely have no problem getting your license in USA. But this is your personal preference lah.

If you are worried about getting stuck at home..while your spouse is at work.. you may want to get a driving license first before you arrive.

You can rent a car ... and explore the area ... don't forget to get yourself a GPS.

Also to drive in USA.. you will need liability insurance and other collision insurance for your vehicle.. new drivers do get to pay a higher premium.

Arapahoe mentioned buying travel insurance for the first couple of months?? but for travel insurance...you'll need to inform of the start and return date from/to Singapore?

When you mention Estate Duty .. are you talking about Inheritance/death tax ?Because in the USA.. that's what the term means...

As for other tax related issues.. you can check out the IRS website IRS.gov

Or.. you can speak to a tax man... he/she will look at your financial portfolio and give you advise.

Or .. since you are interested in taking up some studies.. you can check out your nearest community college for courses on tax preparations.

Yes.. it's all true.

You will be saving more if you cook at home. When you eat out.. you have to pay tips and other taxes too.

How much you pack depends on how much shipping cost you don't mind incurring.

In USA.. you'll find everything you need here... for your cooking needs.. If you want to do a decent Wok dish.. you'd need to upgrade your stove to higher BTU . But if all else fail.. you can always search online, the online commerce is very well established here... I do most of my shopping via the internet.

There's a Chinatown in Boston.. you may want to check that out... also .. there's always pockets of Asian communities around.. you'd need to try to sniff those out... talk to the Asian's there in MA.. they'll know where to go.

sorry for all these questions....i just have so much on my mind......you folks have been most kind and patient with me =)

Don't worry.. we've all gone through the same you did...