'Financial suicide': A New York man wants to leave his 20-year manufacturing job for a boat mechanic gig in the Bahamas (and an $87K pay cut)

But while John’s $48,000 offer is below the U.S. median, the Bahamas is its own market.

According to the Economic Research Institute’s 2026 Bahamas compensation data, the average boat mechanic salary in the Bahamas is approximately 31,578 Bahamian dollars. So, with the Bahamian dollar pegged 1:1 to the US dollar, John’s $48,000 offer sits well above the local average, suggesting the company is paying a premium to attract skilled workers.

The detail that changed everything

Cohosts Rachel Cruze and George Kamel were running cautious math. John estimated his living costs in the Bahamas at around $3,000 a month, and Kamel estimated his net take-home from the $48,000 salary at roughly $3,000 a month after the Bahamas’ 3.5% insurance bond deduction that John noted — leaving almost nothing to spare.

Then John revealed something he’d held back: “I’m a disabled veteran. And I do have substantial income from that as well. That would be equal to — that’s $4,500 a month.”

“Well, you buried the lead there,” Kamel said. “That really helps us out with the expenses. We were scared you were running it up to the line.”

That $4,500 is all-inclusive. Veterans Affairs provides tax-free, monthly disability compensation for veterans who were injured or became ill during military service. So, combined with Kamel’s estimated $3,000 net monthly salary, John’s total monthly income would be around $7,500. After the $3,000 in estimated living expenses, that leaves roughly $4,500 in monthly margin.

The US tax question

On U.S. taxes for working abroad, Cruze was uncertain. The reality is that U.S. citizens owe taxes on worldwide income regardless of where they live, according to the IRS. However, the Foreign Earned Income Exclusion allows qualifying Americans abroad to exclude up to $132,900 in earned income for 2026.