Money Matters Associated with International Move

I wanted to write down some moving logistics for people who might find themselves in similar shoes as us later. Moving after having lived somewhere for two years is entirely different from moving abroad the first time, because...

* Now you have a bank account that you get your salary directly deposited into, that you have to close before you leave the country (without butchering any direct deposits).

* If you want to wire any money to your Stateside accounts, you have to allot about a week to do that BEFORE you close your foreign accounts.

* You have presumably been contributing to a foreign social security system, presumably with matched contribution from your school and presumably it's some significant amount of money that you wish to get back at some point. It's not totally straight forward how this is done, because if you want the full amount back (including your school's full contribution up to your length of contract), I believe the standard operation is to start the refund process AFTER you leave the country, which means someone else than you will have to pick up that refund for you...

* In order to take care of some of these things smoothly, you may have to transfer your power of attorney onto someone else who will remain in the residence country after you leave. Obviously, you should choose someone that you can trust, but also the paperwork process can be a bit of a hassle and take up to a week.

* If, like me, you are moving to another foreign country afterwards, you should contact the school well in advance to figure out if there are temporary places to store your stuff. In my case, I've had to wire over some advance payment to my relocation agency in order to get a storage unit started for me (which, again, takes time and some follow-up energy).

* Did I mention that you cannot assume that you will be able to afford the moving costs?? Good thing Geoff and I don't have much stuff, because the estimates we got from two different moving companies for our ridiculously few items were both around $2000. I guess that depends on where you're shipping from and to, but the point is that you want to look into this stuff early so that you will have options. In our case, the only things we're shipping are my teaching supplies, in small boxes. Everything else we're going to squeeze into our two suitcases per person as when we arrived here.

...Anyway, all things considered, I'd say that our moving process is going swimmingly. My only regret is that I am an idiot and didn't go in time to a Salvadoran doctor to get my wisdom teeth removed while it's still dirt cheap. (The doc refused to do it since I'm flying out in under 2 weeks.) But, I am hopeful that perhaps it won't be too bad under the German insurance to take care of this little weisheitszahn problem. (My first German word!)

Erratum on Taxing and Social Security

The school gave us new international hires a talk on money today, amongst other things. Some of the info I had previously gathered about the social security system wasn't entirely correct, so here is the updated version (Sorry!):

In El Salvador, there is really a three-tiered health care system. The top tier is private healthcare, which only the wealthy locals and the international residents can afford. The middle tier is what is called the Social Security, in which all workers who pay taxes take part. The bottom tier of health care applies to those who make little to no money, ie. the kids who come around to sell you necklaces at the beach. Those "workers" are not covered by the Social Security, because they do not report taxes on their cash income. Maids, who make anywhere between $8 and $12 a day, also fall into this third category, since they typically do not report their earnings.

Deducted from our monthly salary are three things: Salvadorean income tax, Salvadorean Social Security tax, and the Salvadorean pension. The only part that you get back at the end of your service is the pension -- and there is no guarantee on that money, since the newly elected government could opt to pass laws to forbid foreigners from taking that money back. The rest goes to the communal fund, whether for healthcare or otherwise.

Just thought I'd clear that up, in case anyone was curious. I am sure I will continue to learn many things about the tax process as we move along... :)

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Also good information to know, speaking of money: Even though El Salvador has a dollarized currency...

1. Regular checks written from local banks are not redeemable in the States.
2. You have to purchase a "draft" check in order to redeem it in the States.
3. Checks written from U.S. banks are redeemable here, but they do take about a month to clear.

Just the way it is. Doing everything takes some time down here, even though most things can be done...

Dinero, Manejo, y Otras Cosas

Everyone here rocks the Hamiltons, or $10. In fact, that is the largest denomination dispursed by the ATM. :)

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In El Salvador, since the late 90s there has existed a privatized Social Security system. Anyone who works in El Salvador would see an automatic payroll deduction (for me, I believe it will be roughly 6.5%), but it is money that they can reclaim either at retirement, as pension, or at the time when they permanently leave the country, as a lump sum. Employers also contribute to this Social Security. The same Social Security system also provides a form of socialized health care in this country. Although foreigners like us are also eligible for the ubiquitous health care, they typically go to private doctors to avoid the long lines (and to ensure "better care", whatever that means) -- hence the private health insurance that we pay for. But, it's good to know that the poor is somewhat provided for in this country, at least in theory.

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Thus far, Geoff and I have had a fantastic experience in El Salvador! People have been super friendly and helpful -- not to mention extremely patient with our Spanish. Things are definitely much slower here, except when we are driving. As in many developing countries, speed limits and traffic signs/signals work more as recommendations than as hard-and-fast rules here. Even lane divisions aren't so clear-cut; people habitually cross over to the opposite lane (in face of on-coming traffic) in order to pass a slower car. Maybe surprisingly, the craziest drivers appear to be those of busses. On our first day with a car rental, Geoff and I had a few close encounters with busses coming at us at full speeds while we are stopped, or witnessing bus drivers making 3-point turns in the middle of a busy street! Holy mother of God. They are CRAZY! Also crazy is the fact that pedestrians are literally everywhere. In the busier parts of town, at every traffic light there would be teenagers coming up to wash your windshield. They don't take "no" for an answer, even though most cars do not pay them for the unsolicited service. The same goes for street vendors who weave in and out of traffic to sell all kinds of stuff. We even saw a juggler in front of a taxi cab that was stopped at a light. On the way to the beach last weekend, we also saw cows and horses walking unsupervised alongside the cars on the highway. One kid crossed the highway in front of us on a skinny horse, which he was spurring along with a random tree branch. Geoff and I could not stop exclaiming how crazy people are down here, but it seems to be just a way of life for them, no hay drama.

I really like how things are different here. As it turns out, getting an apartment wasn't so hard; obtaining a permanent visa also seems to be fairly straight forward, albeit a matter of time. What Geoff and I have spent the last few days agonizing over, ironically enough, is setting up our phone and internet services. To get those set up, not only do we need a passport and a NIT card, but we also need apartment contracts and formal letters from my school, vouching for my employment contract and salary. And, as you can imagine, pulling those details together is not just a matter of hours, especially down here. It is a bit frustrating, because even though we are gaining basic Spanish proficiency pretty fast, it isn't helping to hurry along the settling-in process, and Geoff is losing time daily for work as long as he does not have reliable internet access at home...

I am holding my breath that everything will be OK by the end of today. The 85-degree ocean is, too, holding its breath...