Business Insider

[musicisgood]

So, they print this:
The yen, underpinned by Japan's low inflation and strong bond demand, has surged more than 9% versus the greenback.

Surely, the person who wrote that doesn't live in Japan. Have you seen the NEW prices of your chocolate candy bar. It is almost 200 with tax now. Crazy.

 

[mdchachi]

So, they print this:
The yen, underpinned by Japan's low inflation and strong bond demand, has surged more than 9% versus the greenback.

Surely, the person who wrote that doesn't live in Japan. Have you seen the NEW prices of your chocolate candy bar. It is almost 200 with tax now. Crazy.

If you want sticker shock, come stop by the U.S.

 

[Grandpa Frank]

Last night I got 2 small pizzas , a bag of chips and a candy bar.....$60. Used to be that would get you a fancy night out.

 

[salyavin]

US also has gone pretty crazy with tips. The more I think about it financially semiretirement on Japan with US dollars looks pretty good.

 

[mdchachi]

US also has gone pretty crazy with tips. The more I think about it financially semiretirement on Japan with US dollars looks pretty good.

They say there's some risk of Japan taxing retirement money that wouldn't be taxed in the U.S. (IRAs, 401Ks) so that would be the primary worry financially.

 

[salyavin]

They say there's some risk of Japan taxing retirement money that wouldn't be taxed in the U.S. (IRAs, 401Ks) so that would be the primary worry financially.

Yes. Japan will tax ROTH IRAs and 401ks. 401ks are taxed on distribution in US too. ROTH IRAs are not taxed on distribution in the US but are in Japan. There's some question on how they are taxed, some file it as pensions (a lower tax rate) and some say that is incorrect.
Your first five years in Japan or until you take permanent residency you are not taxed on global income only income coming into Japan so you have 5 years to figure it out (if you do not take permanent residency sooner). Social security is taxed as a pension. While one has to file US taxes typically Japanese taxes are higher so foreign tax credits normally eliminate US taxes except in some edge cases. There is some arguments on how retirement accounts like ROTH IRAs and 401ks would be correctly taxed on some forums I am on. So yes taxes are the biggest deal as you say. When I look at cost of housing in Japan especially in smaller cities, when I look at cost of health care in Japan vs US even my father on medicare (he is 80s) is terrified of the doctor due to medical experiences he had with pneumonia and appendicitis, when I look at the cost of eating out, the cost of many groceries (Japanese diet so lots of imported stuff here) with a big exception of fruits I still believe it is a win in Japan financially. Your mileage may vary.
To make sure you know 401ks are taxed in US on distribution as are IRAs but not ROTH IRAs in US (but yes in Japan).

One tax question is weather these should be taxed on distribution in Japan or with the holdings, people argue on it and often get away with distribution. In those 5 years one is not taxed on global income it may be necessary to make some moves, certainly more research is needed. The worst part is the confusion due to no clear answers but perhaps that gives many wiggle room and relief.

I also have a pension (something no company offers any more) from that first tech company.

Oh yea one other trick on US taxes to make sure they stay low is to not have your wife give up her green card at first so you file taxes jointly if needed. The green card will eventually be revoked if deemed not to be abandoned. Green card holders like US citizens must file taxes anywhere in the world until they fill out a form to revoke it the card being expired does not mean one does not have to file US taxes. Fun right? Just like taking permanent residency too soon can increase your taxes on global assets.

 

[Majestic]

I have recently become more nervous about healthcare costs in the US. The whole system is so arbitrary, so outrageously expensive, that it certainly feels very easy to become kneecapped by the cost of healthcare here in the US. At first I thought Medicare would eliminate a lot of the ambiguity, but lately I'm thinking that even Medicare can't be trusted, and seniors can easily become overwhelmed with medical costs.

With each story of some immigrant getting a deportation notice (like the Japanese researcher whose only crime was a fishing license infraction from 2019 that had been dismissed), my wife and I feel more and more uncertain about the times ahead. We're not talking about going back to Japan yet, but the possibility of such a move is creeping into the conversation.

And then, yes, we would have to figure out our finances and taxation.

For now, we wait and see.

 

[musicisgood]

Yes. Japan will tax ROTH IRAs and 401ks. 401ks are taxed on distribution in US too. ROTH IRAs are not taxed on distribution in the US but are in Japan. There's some question on how they are taxed, some file it as pensions (a lower tax rate) and some say that is incorrect.
Your first five years in Japan or until you take permanent residency you are not taxed on global income only income coming into Japan so you have 5 years to figure it out (if you do not take permanent residency sooner). Social security is taxed as a pension. While one has to file US taxes typically Japanese taxes are higher so foreign tax credits normally eliminate US taxes except in some edge cases. There is some arguments on how retirement accounts like ROTH IRAs and 401ks would be correctly taxed on some forums I am on. So yes taxes are the biggest deal as you say. When I look at cost of housing in Japan especially in smaller cities, when I look at cost of health care in Japan vs US even my father on medicare (he is 80s) is terrified of the doctor due to medical experiences he had with pneumonia and appendicitis, when I look at the cost of eating out, the cost of many groceries (Japanese diet so lots of imported stuff here) with a big exception of fruits I still believe it is a win in Japan financially. Your mileage may vary.
To make sure you know 401ks are taxed in US on distribution as are IRAs but not ROTH IRAs in US (but yes in Japan).

One tax question is weather these should be taxed on distribution in Japan or with the holdings, people argue on it and often get away with distribution. In those 5 years one is not taxed on global income it may be necessary to make some moves, certainly more research is needed. The worst part is the confusion due to no clear answers but perhaps that gives many wiggle room and relief.

I also have a pension (something no company offers any more) from that first tech company.

Oh yea one other trick on US taxes to make sure they stay low is to not have your wife give up her green card at first so you file taxes jointly if needed. The green card will eventually be revoked if deemed not to be abandoned. Green card holders like US citizens must file taxes anywhere in the world until they fill out a form to revoke it the card being expired does not mean one does not have to file US taxes. Fun right? Just like taking permanent residency too soon can increase your taxes on global assets.

My Social Security is not taxed here in Japan.

 

[mdchachi]

I also have a pension (something no company offers any more) from that first tech company.

How are traditional pensions taxed? I have one too. A small one.

my wife and I feel more and more uncertain about the times ahead.

We should know better in the next year or two how bad things are and if it's recoverable. After the mid-terms.

I have recently become more nervous about healthcare costs in the US. The whole system is so arbitrary, so outrageously expensive, that it certainly feels very easy to become kneecapped by the cost of healthcare here in the US. At first I thought Medicare would eliminate a lot of the ambiguity, but lately I'm thinking that even Medicare can't be trusted, and seniors can easily become overwhelmed with medical costs.

Yes that's the big question mark. And it's not just health care. I had to put my Mom in a memory-care assisted living this year. It's a great place that I am absolutely confident in but it's $7500/month. She's 93 so I'm confident she won't outlive her money but many people aren't that fortunate.

My Social Security is not taxed here in Japan.

Most likely it's because your income is below some threshold.

 

[musicisgood]

How are traditional pensions taxed? I have one too. A small one.


We should know better in the next year or two how bad things are and if it's recoverable. After the mid-terms.


Yes that's the big question mark. And it's not just health care. I had to put my Mom in a memory-care assisted living this year. It's a great place that I am absolutely confident in but it's $7500/month. She's 93 so I'm confident she won't outlive her money but many people aren't that fortunate.


Most likely it's because your income is below some threshold.

Yes it is below poverty level.

 

[salyavin]

How are traditional pensions taxed? I have one too. A small one.

If I understood correctly traditional US pensions (and mine is small too) are taxed at a low rate similar to Japanese pensions as is social security. This seem fairly clear. It's those investment accounts like 401k and IRA that make the big tax mess where there is a lot of disagreement and no clear answers.