The H-1B. You may have dreamed of coming to America for many years. There was a lot of effort. You worked hard, got good grades, and went to the right universities. You got a great job in a hot industry at a cool company with lots of prestige. Then one day, out of nowhere, you lost your job, your dream, and your identity.
Tough Circumstances for H-1B
While you are a highly skilled and prized associate with an H-1B Visa, a slower economy affects everyone. To add pressure, laid off H-1B Visa holders only have 60 days to find a new job or else must leave the country. These are very grim circumstances. To stay in the United States, you must quickly find a company willing to hire you and pay the costs of renewing your H-1B Visa. This could be an extra $20,000 expense to a company when hiring an H-1B worker.
This extra cost makes you less attractive than workers who are U.S. citizens or green card holders who are searching for work. Moreover, in this challenging environment, finding a job is a lot harder because there are many layoffs and hiring freezes.
No job? You face a move back home. With all this stress, how well are you thinking through your options? How much time, effort, and energy do you want to put into figuring out the impact to your equity compensation versus looking for a new job?
Worst Case Scenario – Visa Expires
If your visa expires and you do have to leave the country, there is a short timeline before departure. There are many difficult decisions to make quickly. Financial decisions during this time are very important, but they could seem unimportant or forgotten altogether during this stressful period in your life.
So what should you do at minimum around your finances?
Financial Inventory
First, take account of all of your US-based assets and liabilities. How do they fit in with your personal circumstances? This is a very important process that is worth the time.
Here is a checklist that is by no means all inclusive, but will give you a start.
- Bank accounts
- 401(k) account
- Equity grants
- IRA accounts
- Taxable investment account
- Credit cards
- Health insurance
- Auto insurance
- Car ownership or lease
- Home ownership or lease
- Monthly subscriptions such as internet and mobile phone
What will you do with these assets, liabilities, and other items?
Deciding What to Do
There are many, many questions about what to do during this unsettling time. You want to find the best answers and act on them. When faced with an expiring H-1B visa, this is when a professional financial advisor with experience in equity compensation is critical to a good outcome.
I can help. If you have questions please set up a free consultation.