oftwominds.com Readers Journal-Leaving the USA: A Brief Guide to Emigrating

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	Leaving the USA: A Brief Guide to Emigrating (Michael Reps, February 2010) I thought I should write an article on the various aspects involved in leaving a country. I emigrated from the US to New Zealand in 2001 so I will speak of my experiences and those involving people I have helped along the way. Most of the people I help are usually seeking to establish businesses here in New Zealand, but the overriding principles are similar whether you are moving to New Zealand, Australia, Canada, Panama, Costa Rica or other such places on the radar screen of Americans who emigrate. Some good advice I received was that you never are completely ready for your first child or your first mortgage. I’d like to add to that your first emigration. What these things have in common is the entering of the unknown. No amount of reading can prepare you for every contingency involved in parenting, home ownership and for that matter, a new country. The idea of leaving the US is becoming more commonplace these days. We live in a global economy, there will be close to 3 billion people online in the next few years, and a Big Mac taste like a Big Mac where ever you go. Recently, I have noticed an increase in inquiries where peoples motivations are becoming a bit more oriented more toward a “Get me outa here” approach versus a “Why should I move there” approach, when it comes to the subject of emigrating. Decisions to emigrate are increasingly centering more on the “push” of the US versus the “pull” of another country. Having said that, I will speak in general terms about the phases involved in leaving the US, and what things you may want to consider. While I caution the reader to consider that I am limited in my knowledge of the many options people have available to them, I believe that the overall phases I am discussing can provide a general tool for use. They say that shifting a house is one of the more stressful events in your life. Well, shifting countries is no different. The key here is to be able to quantify the enormity of this action and put it in the proper perspective. The short answer to quantifying an emigration is as follows; it takes at least 6 months, and requires planning and mental preparation. That’s it, that’s all you really need to know; 6 months of testing your patience. And the more resources (money) you dedicate to your emigration, the less your patience is tested. People chose different countries for many reasons, some are for lifestyle, and others are purely economic. The majority of people I speak to seem to consider a mixture of both. A simple question to ask yourself is this, “How do you plan to live somewhere where the customs and conventions are different?” Where do you start? How do you know your on the right track? I call this the analysis by paralysis phase where you can get caught into an inertia that prevents you from even making the simplest of plans. The enormity of the idea is so vast that not knowing where to start becomes your first great challenge. If you find yourself frozen, the first thing I encourage you to do is get a passport. I believe only about 20% of Americans have one and retaining one gives you the first piece of tangible evidence that an emigration is possible. After that, I have found it helpful to quantify every phase of your emigration in the form of a general outline. From here the pieces slowly seem to fall into place. There are 3 phases to consider. Each phase represents a percentage of the entire emigration. These phases may overlap at differing times and keep in mind, this is a back of the envelope calculation and differs based on each person. The 3 phases are as follows: Phase 1. 1/3rd Planning Phase Phase 2. 1/3rd Mental Exit Phase 3. 1/3rd Mental Arrival Phase 1. The Planning Phase You might have thought that the mental exit should be first. It’s not and for good reason. Emigrating is a calculated and clinical process that should be done with a continual weighing of the benefits along the way. To say to yourself, “OK, I ‘m outa here, now who will take me?” limits your options. You may find that the grass is not greener and that you burned a few bridges along the way. A successful emigration requires a lot of planning and research because its one thing to leave a country and entirely another to enter one. I want to avoid articulating too much regarding the immigration and visa issues. Every country is different. Do keep in mind that having the right to work is different from a permanent residency which is also different to the rights of a citizen. Work visas or “Green cards” are temporary in nature, the others are more permanent. The planning phase is where all of the hard work you put in now will help to mitigate problems further down the road. Most obstacles you may face in an emigration are those that you haven’t even considered. The challenges require an outside of the box thinking. Relying on your old strengths may just be a weakness in a new country. For example, imagine a European at a local TGIF’s Restaurant complaining out loud that the food sucks. Now imagine a long haul trucker from Texas doing the same. Do you get my point? The public may forgive the trucker but they would be more inclined to tell the European that if he doesn’t like it, he should leave. Your planning should start with the question of “why” you want to live in this new country. From this answer you can then build up an understanding of whether or not an emigration will provide you with satisfaction or merely a distraction from your current living situation. Is it economic? Is it for lifestyle? Is it a combination of both? You will be asking yourself these questions several years down the road, so be honest with yourself and everything will work out. I had my reasons to emigrate and they haven’t changed the slightest. From the “why” then ask yourself “where” in that country suits you best. This is where most people make mistakes. Get the wrong location and your planning will start to resemble reacting. “We’ve moved this far, lets just find somewhere else in this country that doesn’t have bug infestations every summer.” Your location can be narrowed down to particular neighborhoods or suburbs. It is no different then preferring Manhattan to Upstate New York, or Los Angeles to Bakersfield. Each country has differing regions and densities. Keep in mind also that your idea of a crowd will be tested in a new country. Sometimes a small town can be a bit too small for a new foreigner. And a big city may not contain the same urban issues you worried about back in the US. I chose my neighborhood due to schooling concerns. As a result, I was very happy but would have done a few things differently, like consider the direction of where the house faced due to dampness from shade during the winter months. It’s important to get a solid understanding of the laws of the country you are considering. Usually those founded under British Rule have laws that originated from British Common Law and are similar to those of the US. “When” you move is also important. Schools, work, holidays, and most importantly taxation, all come into play here. Providing a smooth transition from one career, job or school to another can really ease your stress level. Sometimes it’s best to transition slowly to another country, where you initially set up shop but don’t make your final move until the most opportune time. Seek the help of a local accountant who is familiar with the two countries treatment of taxes and the flows of income you expect to receive from both countries. Pension taxes, capital gains taxes just to name a few can hide little surprises. I left the US in 2001 and while winding up my business I had thought my tax issues where completely resolved but found later that I was subject to an Alternative Minimum Tax from income I had not accounted for. Also, I moved during the Northern Hemisphere’s summer to the Southern Hemisphere’s winter. An entire year of cold weather and short days really made me appreciate how pale I could become “How” you move is more of a logistical question that can be answered stateside. You can do it yourself or hire someone. Keep in mind customs rules for declaring household goods. Some countries exempt items from customs when they are deemed a part of a migration. Other countries may not. A good friend of mine moved from New Zealand to Australia and soon realized that even though both countries are close trading partners and the traffic flow between the two is heavy, the cost to send his vehicle was prohibitive due to the tariffs at the other end coupled with shipping expenses. It was more cost effective to sell his car here and buy another there. What about money? I could write a book on this topic but suffice it to say, your accountant is your best friend here. I believe the initial goal for new migrants is to first limit risk and avoid unnecessary taxation, then seek to capitalize on your new economy. Spending and consumption patterns are different in every country. I’m still waiting for 3 chili dogs for 99cents at the gas stations here, but no luck. You don’t tip Wait staff here either, and portions are smaller. But a very good bottle of Marlborough Sauvignon can be had for less that a Big Mac Meal. Be prepared for your purchasing power to be different, some items will be less expensive and some more expensive. Exchange rates should be monitored, and fluctuations can be hedged. You can lock in your US Dollar assets to an overseas currency by seeking the services of a foreign exchange broker. These can be found at banks, brokerages, online, or as independent operators. Shop around and compare their prices, you’d be surprised at the differences. If possible, open a bank account in your new country the next time you visit. It can act as a secure location for your assets and starts a credit history. Your Social Security Number will likely not be what financial institutions require. Instead, you may need to apply for a local tax number. Again, speak to your accountant on this activity since each country has differing treatments of incoming assets. I was able to deposit funds here in New Zealand and actually get a home loan within a month when I first moved here. The bank simply wanted assets on hold to secure against a loan and I was in business. Education, healthcare, food and clothing; they are all different in either subtle or drastic ways. Get a good understanding how they work and what may be missing in your new country. I have yet to have good Mexican Food since I’ve been here but the Indian food more than makes up for it. In the yellow pages there are 138 listings in Auckland for Indian food markets and only about 14 for Mexican. Also, if you go to your new country with your Wranglers, 8 gallon Stetson Hat and soup dish belt buckle, you may draw attention to yourself, but to each his own. All in all, imagine yourself in that country and write an outline of every possible challenge life can throw your way. With those answers in place, you will be better prepared. Phase 2. The Mental Exit This brings me to the second phase of an emigration, the Mental Exit. Leaving a country is not the same as leaving one suburb for another or perhaps shifting from Mobile, Alabama to Philadelphia, Pennsylvania. If you didn’t grow up around frequent travel or globalized business practices, moving to another country can seem akin to switching faiths. In truth though, people are people where ever you go. What differentiates us from each other is much smaller than the commonality we share. Irritating people are irritating people wherever they seem to find themselves. When you speak to people from other countries keep this in mind. The mental exit is a very thin line between deciding to venture into the unknown or deciding to not decide. The mental enormity behind an emigration becomes lessoned the more you pre plan. The more you quantify and make contingencies for, the easier it is to pull the plug. That which you do not know seems infinite at first. Once you discover, through your planning, that the new country you are entering has a finite set of rules, a sense of confidence starts to emerge and a willingness to take chances becomes easier. An emigration does not have to be forever, the people you will miss can still be reached via Skype and inexpensive air travel. The US Government is not going to be angry with you and make you public enemy #1. And don’t worry, you wont lose yourself in another country and its culture. Your biggest obstacle will be inertia. You may feel paralyzed and unable to move forward until it feels perfectly right, which it wont. A certain leap of faith and an adventurous spirit is required. Mix that with a little bit of savings and the whole world is open to you. Inertia is a push/pull equation. Emigration is easy if you are pushed out of your country. Ask any refugee about this. The problem is that when push comes to shove, the exits get cluttered and your options diminish. The pull of a country can also overcome inertia, but this is the classic “Grass is greener” scenario. What if you are wrong and there is something you miss about the US and cannot do without in the new country? In my case, I miss some of the foods but have learned how to prepare them myself. I also make a glutton of myself when I travel back to the States. There will be things you do miss. The question goes right back to the “why” behind your emigration. Some things you give up, other things you gain. Most importantly, keep a positive attitude and you will find that your mental exit is not as difficult as you imagined. Don’t burn any bridges , so that a return is possible and remember, people are people wherever you go. Phase 3. The Mental Arrival If there is one thing to remember it’s the term “Situational Awareness” This was a term I learned back when I was training to fly military aircraft. The premise behind it is to always be aware of the fluidity and change around you, where you are in relation to where everyone else is. Be mindful that you come from the worlds super power, a country that is being emulated around the globe. You should also be mindful of the notion that your view of the world is a bit more imperialistic in its thinking than those countries that are much smaller and chose not or can not afford to have global expansionary ambitions. Consider how the country you migrate to perceives you, the American, not you the individual. This is all people have to go by until they get to know you better. Remember that you are the guest. Initially give everything and everyone around you the benefit of the doubt. People will likely excuse your gaffes and write them off to the notion that “That must be how the Yanks do it”. Do the same for them until you get your footing. It usually takes about a year before you start to understand the subtleties of a country’s customs and conventions. Whatever you do, don’t be condescending. People are less forgiving of arrogance. I remember a situation where a new British migrant made the mistake of referring to New Zealand as one of the colonies and that back in the UK “We do things differently”. Needless to say, he wasn’t well liked and never really assimilated. He instead chose to spend most of his time with the newly arrived British until they’d had enough of him. Some people simply have a broken social antenna. Situational Awareness on the legal matters is vital. A basic knowledge of them will add to your comfort level when in a new place. Avoiding petty fines or reprimands will alleviate the perception that you are unwelcome or being picked on. Did you know there are 68 offenses you can commit in China that can earn you the death penalty? Don’t worry though; littering isn’t one of them, although in Singapore you can be fined several thousand dollars for spitting, dropping cigarette buts or littering. Know your rights as well as the laws of the country you are considering. I wound up getting a letter in the mail when I was spotted dumping a 6 pack of empty beer bottles into a public trash can. I had feared leaving them in my car due to my concern for open container laws and was simply disposing of them from my overflowing recycling bin. I loaded them in my car and when I stopped for food, dumped them into a trash can across the road. Someone must have written down my license plate and from there the polite reminder was sent. I also got a letter for aggressive driving in a round about. To this day, I still don’t know what I did wrong there. This brings me to the term “discrimination”. I’m your average 45 year old white male and I can now understand what others could only articulate to me about discrimination. I’m not speaking of racism but of being considered different because of where I come from and as a result, getting treated differently. If you move to a country with a weak currency, you will be considered rich, end of story. Prices may get padded, and sympathy will not be your ally. I discovered this when I first showed up in New Zealand in 2001 when the NZD was only worth 40% of a USD. Now it’s closer to 75%. I learned that a certain level of restraint and modesty was helpful. People are typically fair. Just more fair to those in need of more help. Think back to the 80’s and how we Americans viewed the Japanese as they were buying up Hawaii and California. Ultimately, an emigration is a challenging event. It requires planning and mental preparation. My Zimbabwean friends frequently remind me that the difference between an immigrant and a refugee is only timing. I believe it’s more. The immigrant has planned his destiny and the refugee is reacting to it. An emigration is an exciting time in ones life and there is quite a lot to grasp, but people are emigrating from the US every day. I hope that what little I have shared with you is helpful and if you consider yourself among the next to emigrate from the US, good luck to you and enjoy the ride. Michael Reps is Director of Yield Qwest Ltd www.yieldqwest.co.nz For more on a wide array of other topics, please visit the oftwominds.com weblog. All content, HTML coding, format design, design elements and images copyright © 2010 Charles Hugh Smith, copyright to text and all other content in the above work is held by the author of the essay as of the publication date listed above. All rights reserved in all media. The views of the contributor authors are their own, and do not reflect the views of Charles Hugh Smith. All errors and errors of omission in the above essay are the sole responsibility of the essay's author. 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