Top Five Investment Management Tips for Canadians Living in the U.S.

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Top Five Investment Management Tips for Canadians Living in the US

A move across the Canada/US border can have significant financial implications.  Many executives and professionals who make this move receive tax and legal guidance but are often left to navigate investment and financial matters for themselves.  Below are some helpful tips and advice to make sure you are aware of some very important factors. 

Canadian Currency – May take currency hits when moving investment assets across the border.  Canadian dollar assets
when moved to most US brokers will often result in currency conversion to US dollars.  Work with a cross-border investment specialist who offers portfolio services in Canadian and US dollars.

Consolidate Assets – Having assets at multiple institutions often results in investment portfolios that lack a cohesive investment management strategy, resulting in portfolios that are out of balance.  Working with a dually-licensed financial advisor to manage investments on both sides of the Canada/US border can help to ensure investments are properly diversified and balanced to reach your investment objectives.

Get a Financial Plan – With scattered assets there often is a gap in planning and people don’t know where they are at with their financial goals.  Engaging a cross-border specialist to develop a plan encompassing all your financial assets is a solid start.  As part of this process engaging cross-border legal advisors to ensure wills and power of attorney documents are in place and are valid in both jurisdictions.  People with cross-border realities have situations that are complicated and need expert advice to get on track.

Canadian and US Retirement Accounts – With special exemptions, Canadian advisors can manage RRSP’s for Canadian clients residing in the US – tax filings are required by the IRS for RRSPs.  Some US states, including California, do not recognize the Canada/US retirement account tax treaty and the RRSPs are subject to tax on realized gains and income earned.  Take advantage of contributing to IRAs and 401k plans.  Work with an advisor who is dual licensed and understands retirement plans and their tax treatment on both sides of the border.

Canadian non-registered investment accounts – Due to US securities legislation these accounts cannot be held by Canadians residing in the US unless held with a US registered brokerage firm.  These accounts must be managed by a US licensed advisor like Raymond James (USA) Ltd.  Investment structure is important for Canadians living and working in the US.  If there is the desire to move back to Canada “someday” it would be wise to hold investments that are portable over the Canada/US border. 

For more information visit
Bernardine Perreira Financial Advisor
Perreira Hurly Wealth Advisory

Financial Advisor, Raymond James (USA) Ltd.
Raymond James (USA) Ltd. (RJLU) advisors may only conduct business with residents of the states and/or jurisdictions for which they are properly registered. Therefore, a response to a request for information may be delayed. Please note that not all of the investments and services mentioned are available in every state. Investors outside of the United States are subject to securities and tax regulations within their applicable jurisdictions. Contact your local Raymond James office for information and availability. Investing in foreign securities involves risks, such as currency fluctuation, political risk, economic changes, and market risks. Raymond James (USA) Ltd., member FINRA and SIPC.