malcontent wrote: ↑Mon, 15 Apr 2024 4:01 pm
This makes me wonder, where is the best place for my kids to earn good money without high tax or high cost of living… especially when they are first starting out? Taxes are usually not as big of a factor for fresh grads earning starting salaries.
A fresh grad in the U.S. at my employer is getting around $70k right now, and depending on contributions to tax advantaged accounts, taxes can be quite reasonable, even in a high tax state.
A fresh grad in Singapore at my employer is getting around S$5k right now, which is >30% less than their U.S. counterparts at the moment. Tax savings isn’t going to help, and cost of living is only manageable if you tick the right boxes and accept a modest lifestyle.
I look at it differently vs. what you describe in the first paragraph. While starting salary (vs costs) is not irrelevant, I care more about the opportunity set and what things could look like 5-10 years out.
Big cities have a high cost of living. They also have a greater number of opportunities with more upside. Arguably, they also have more lifestyle amenities and culture (museums, theatre, restaurants, etc - Singapore not so much on all of these dimensions), although this is debatable and it depends what people like to do in their spare time. More importantly, their labour markets are a lot deeper (many firms offering comparable opportunities, more chances for lateral or upward movement, etc). Lastly, while also subjective, these areas tend to attract a different group of people vs. more regional cities.
For example, within the US I would take a job in some of the coastal hubs even if it’s not the “top” job vs. a very good job elsewhere with better net pay (after considering costs). Cash flow might be tight the first few years, and it can remain tight forever if the upside never comes. But you don’t know if you don’t try. Nevertheless, everyone is different, and some don’t like these cities; they would rather have more flexibility plus start building up savings right out of the box.
Singapore vs. the US is a more complicated discussion and will probably depend on a number of factors. There is more upside here than there is in many US cities, but the costs are higher (compared to costs in those cities). At the same time, you also have mobility within the US, even if you don’t start out in the main areas. Personally, I don’t think here is really any more expensive than the US coastal cities, but the breadth and magnitude of opportunities there is going to be greater.
