Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Junior Gold Miners: New Yearly Lows! Will We See a Further Drop? - 23rd Jul 21
Best Forex Strategy for Consistent Profits - 23rd Jul 21
Popular Forex Brokers That You Might Want to Check Out - 22nd Jul 21
Bitcoin Black Swan - Will Crypto Currencies Get Banned? - 22nd Jul 21
Bitcoin Price Enters Stage #4 Excess Phase Peak Breakdown – Where To Next? - 22nd Jul 21
Powell Gave Congress Dovish Signs. Will It Help Gold Price? - 22nd Jul 21
What’s Next For Gold Is Always About The US Dollar - 22nd Jul 21
URGENT! ALL Windows 10 Users Must Do this NOW! Windows Image Backup Before it is Too Late! - 22nd Jul 21
Bitcoin Price CRASH, How to SELL BTC at $40k! Real Analysis vs Shill Coin Pumper's and Clueless Newbs - 21st Jul 21
Emotional Stock Traders React To Recent Market Rotation – Are You Ready For What’s Next? - 21st Jul 21
Killing Driveway Weeds FAST with a Pressure Washer - 8 months Later - Did it work?- Block Paving Weeds - 21st Jul 21
Post-Covid Stimulus Payouts & The US Fed Push Global Investors Deeper Into US Value Bubble - 21st Jul 21
What is Social Trading - 21st Jul 21
Would Transparency Help Crypto? - 21st Jul 21
AI Predicts US Tech Stocks Price Valuations Three Years Ahead (ASVF) - 20th Jul 21
Gold Asks: Has Inflation Already Peaked? - 20th Jul 21
FREE PASS to Analysis and Trend forecasts of 50+ Global Markets by Elliott Wave International - 20th Jul 21
Nissan to Create 1000s of jobs with electric vehicle investment in UK - 20th Jul 21
Bitcoin Halvings Price Forecast and Stock to Flow Analysis - 18th Jul 21
Dell S3220DGF Unboxing and Stand Assembly - 32 Inch 165hz Curved Gaming Monitor Amazon Discount - 18th Jul 21
What Does The Fed Mean By “Transitory Inflation” And Why Is It Important To Understand? - 18th Jul 21
Will the US stock market’s worsening breadth matter? - 18th Jul 21
Bitcoin Halving's Price Projection Forecasts Trend Trajectory - 18th Jul 21
Dell S3220DGF Price CRASH to £305! 32 Inch 165hz Curved Gaming Monitor Amazon Bargain - 16th Jul 21
Google, Amazon and Netflix are Scrambling For This Rare Gas - 16th Jul 21
Sheffield Millhouses Park New Children's Play Area July 2021 Vs Old Play Area - Better or Worse? - 16th Jul 21
Inflation Soars, Powell Remains Unmoved. What about Gold? - 16th Jul 21
Goldrunner: Gold Could Jump To $1,900-$2,100 In Next 30 days – Here’s Why - 15th Jul 21
Tips For Finding The Right Influencers - 15th Jul 21
ECB Changed Monetary Strategy. Will It Alter Gold’s Course? - 15th Jul 21
NASA And Big Tech Are Facing Off Over This Rare Gas - 15th Jul 21
Will the U.S. Dollar Lose Momentum In the Second Half of 2021? - 15th Jul 21
Bitcoin Stock to Flow Model Forecasts Infinity and Beyond! - 14th Jul 21
Proteomics: The Next Truly Massive Investing Opportunity - 14th Jul 21
Massive Solar Storm to Hit Earth 2025, Coronal Mass Ejection (CME) Danger and Protection Solutions - 14th Jul 21
Is This The Best Way To Play The Coming Helium Boom? - 14th Jul 21
Meet SuperMania and its Ever-Present Sidekick, SuperMeltdown - 14th Jul 21
How NFTs Are Shaking Up Arts Trading - 14th Jul 21
Gold: High Time to Move Out of the Penthouse - 13th Jul 21
Climb Aboard! Silver Should Run Up To $38 In Next 30 Days - 13th Jul 21
How Will Remote Work Impact the U.K. economy? - 13th Jul 21
Why Helium Stocks Are Set To Soar in 2021 - 13th Jul 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

For Some Remote Workers, It Pays to Stay Home… If Home Stays Local

Personal_Finance / Employment Oct 12, 2020 - 04:15 PM GMT

By: John_Mauldin

Personal_Finance

By Dawn Pennington : None of us are medically invincible. We saw that last week when the president and first lady announced they had tested positive for COVID-19.

Remote work has helped to save many jobs and lives. And as coronavirus infection and death rates continue to tick higher, many people are settling into the idea of teleworking for the longer haul.

For some, that means social-distancing from expensive cities and seeking more space in the suburbs or across state lines.


Workers who flee to cheaper pastures, however, may soon find that the grass isn't always greener. Especially if they are thinking about leaving Silicon Valley—whose firms were among the first to champion open office spaces—and taking their jobs with them.

Palo Alto, Calif.-based VMware (VMW) said it will now allow its employees to work from home on a permanent basis.

That's great news for people who want to stretch their salaries. Silicon Valley is known for having some of the highest salaries in the nation.

It also has some of the highest housing costs. (Remember that 897-square-foot Palo Alto home that sold for $2.59 million two years ago?)

No wonder there's a talk about "Tech Exodus." But I'm not a buyer… of that theory, anyway. That's because, if a VMware worker decides to move out of Silicon Valley, he or she will have to take a pay adjustment.

These salary adjustments are based on the expected cost of labor in different areas. Moving to Denver would result in an 18% salary reduction, while moving to LA or San Diego would mean an 8% cut.

It's not just VMware…

Is the California Real Estate Gold Rush Already Back On?

Facebook (FB) has also told employees that the company will be making the transition to more permanent remote options. Employees are expected to work from home until July 2021, and the company expects half of the workforce to stay remote within the next 10 years.


Source: ZipRecruiter

No matter where you are, you can apply to become Facebook's first director of remote work. According to the job posting, this person will lead the push toward “remote-first ways of working.”

But like VMware, it might pay to think about securing your Silicon Valley residence sooner rather than later.

It will almost definitely pay to do that if you want to work, or continue working, for payments processor Stripe, which is among those who want to cut pay for those employees who move outside of Seattle, New York, or the San Francisco Bay area.

However, Stripe is also offering those employees $20,000 to relocate. And a Twitter (TWTR) spokesperson recently said that the company is also looking to localize compensation.

Tech firms are the ones that seem most logical to go fully remote. Being the first movers, they get to make up the rules.

You might see more industries take their cues from the Silicon Valley giants, and soon.

A Remote-Work Reckoning Is Coming

VMware has said that it expects employees to be honest about any relocations. But I think this will be a hard policy to police. Especially since it acknowledged that, if workers move temporarily to be with family or some other short-term reason, they will not have to take a pay adjustment.


Source: Pew Research Center

Some 22% of people who moved in the early part of this year did so because of the coronavirus.

Moon Salahie, owner of Elite Moving & Storing in Yonkers, NY, said, “People are fleeing the city in droves.” He has been working nonstop since the city began reopening and said that 90% of the moves are to the suburbs.

That includes out-of-state suburbs like Connecticut, where some 16,000 New Yorkers fled between March and July.

We can assume people wanted more space for their new indoor lifestyles. But many also likely relocated for financial and/or social reasons.

The Tax Man Will Keep You Company Wherever You Go

I’m reminded of my "permanent nomad" friend who’s a full-time RVer. She’s been parked in the same spot for a year, near our favorite coffee shop in West Palm Beach. But with her company's office closed indefinitely, she is reconsidering her permanent address.

One option means no state income tax, while the other does. But the second comes with much lower insurance premiums for all her vehicles.

If you've recently crossed state lines—virtually or otherwise—there's also a chance that your income might be eligible to be taxed in multiple places.

  • The state where your primary residence is located can tax your income no matter where in the world you make it.
  • But any state where you earn income also has the right to tax income earned there.

Only 13 states have agreed not to tax workers who have moved there temporarily because of the pandemic. So, accountants are advising taxpayers to keep track of how many days they spend working in each state.

As for my friend, my bet is that she finds a way to have it all. There's certainly never been a better time to ask for it…

A Bigger Perk Than Pay

Right before the US lockdowns started in earnest, Global Workplace Analytics reported that nearly 90% of workers it surveyed wished they had telework options.

Many employers were resistant despite that same survey's findings that they could save $11,000 per year per employee just by requiring them to be in the office half-time.

Given that, a pay cut doesn't seem to make much sense. On the other hand, if you're going someplace where the cost of living is cheaper and your quality of life is higher, is that really losing out?

Dawn Pennington is the Editorial Director at Mauldin Economics.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

John Mauldin Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in