Re: Senior teacher with a PhD and 2 kids - could I save 50K annually?
Posted: Wed Sep 15, 2021 7:40 pm
@PsyGuy
Apart from you apparently not realising my reply wasn't serious to begin with, it's also strange that all of sudden you think housing allowance should be spent on housing, while when in different thread you tried to argue that a teaching couple could save 100K in Germany on a (highly unlikely) combined salary 104,400 leaving them with 4,400 for housing and food. You said there that they should "mitigate housing costs somehow, something like boarding, etc. and you would have to eat lite".
So following your logic there that allowances don't have to be spent (and indeed very few ITs in China did spent their flight allowance this year):
Salary: $65,000 + housing allowance: $25,000 + annual flight allowance (2,092 x3) $6,276 = $96,276
That, plus the monetary value of the free tuition ($86,728) brings the total taxable amount to $183,004, which at 25% will result in a tax bill of $45,751
So in the end you’re left with (96,276 - 45,751) $50,525 (or $72,207 if you sent the kids to a local school like you suggest)
Goal achieved, following your logic.
But of course in the real world you will spend your housing allowance and -once Covid isn't as big an issue anymore- your flight allowance, and I wouldn't recommend sending the kids to a local school at that age.
I'm not trying to actually argue they can actually save 50K at Dulwich, just like the 100K for a teaching couple in Germany is very far from the actual sum they could save there. Just pointing out your inconsistencies, which will no doubt fall on deaf ears.
With kids' tuition now being taxed there, anyone with two kids can take China off their lists of countries to save substantially - a list that's getting shorter and shorter unfortunately.
A job in Saudi Arabia would be your best bet, but not many people will get excited about living there for any reason other than the savings potential.
Apart from you apparently not realising my reply wasn't serious to begin with, it's also strange that all of sudden you think housing allowance should be spent on housing, while when in different thread you tried to argue that a teaching couple could save 100K in Germany on a (highly unlikely) combined salary 104,400 leaving them with 4,400 for housing and food. You said there that they should "mitigate housing costs somehow, something like boarding, etc. and you would have to eat lite".
So following your logic there that allowances don't have to be spent (and indeed very few ITs in China did spent their flight allowance this year):
Salary: $65,000 + housing allowance: $25,000 + annual flight allowance (2,092 x3) $6,276 = $96,276
That, plus the monetary value of the free tuition ($86,728) brings the total taxable amount to $183,004, which at 25% will result in a tax bill of $45,751
So in the end you’re left with (96,276 - 45,751) $50,525 (or $72,207 if you sent the kids to a local school like you suggest)
Goal achieved, following your logic.
But of course in the real world you will spend your housing allowance and -once Covid isn't as big an issue anymore- your flight allowance, and I wouldn't recommend sending the kids to a local school at that age.
I'm not trying to actually argue they can actually save 50K at Dulwich, just like the 100K for a teaching couple in Germany is very far from the actual sum they could save there. Just pointing out your inconsistencies, which will no doubt fall on deaf ears.
With kids' tuition now being taxed there, anyone with two kids can take China off their lists of countries to save substantially - a list that's getting shorter and shorter unfortunately.
A job in Saudi Arabia would be your best bet, but not many people will get excited about living there for any reason other than the savings potential.