Seems like it’s a well known fact that being poor or even middle class (if that will even exist anymore) in the US disposes one to a very low quality of life (e.g., living in areas with higher crime rates, bad healthcare, the most obvious being cost of living, …etc)
On the flip side, what are some reasons why the top 1-5% percentile would also want to leave the US? (e.g., taxes/financial benefits, no longer aligning with the culture? I would assume mainly the former)
If you are in the top 1-5%, is living in the US still the best place to live? (as many people would like to suggest)
Once you already have money it can be wise to move to another country (one that does not heavily tax retirement income, for instance). The US has no double-taxation treaties with many countries, meaning that if you are paying taxes in another country, you will not have to pay US taxes (up to a point, last I checked it was around $105k you could make before needing to pay US taxes).
Now imagine that you have also moved to a wonderful country that also has a lower cost of living in general. So you find yourself in a position where you are paying far less in taxes, are still able to collect social security, and everything (except possibly housing) costs less. It’s a way to give yourself a lifestyle that you wouldn’t be able to afford in the US. If you add to that, if you move to the EU, you will probably end up somewhere walkable that also has cheap and easy access to a bunch of other countries.
Why wouldn’t you? I know there are people that can’t imagine living outside of the US, which is something I have trouble understanding.
Because there are downsides to other countries as well that many people who fantasize about moving abroad either ignore or aren’t aware of, and upside to living in USA that are difficult to duplicate in many other countries especially low cost ones.
Which downsides and upsides are you referring to?
USA has far more space. It is far easier to go camping on public land or hiking and hot see anyone. It is easier to shop with a car where you can park in front of the store. It is easier to park in general. You can go on long road trips. There is a wider variety of international food available. Salaries are often much higher. Big houses with private garages. Bigger kitchens. I could go on and on.
FEIE is 120k but that’s earned income meaning it’s working income. Retirement income is unearned and fully taxable unless it’s tax advantaged.