Cross Border Clients
Canadians Returning after living in the US
Whether you are a snowbird or Canadian working in the US returning home, moving back to Canada can bring with it the joy of being closer to family and to the place where you’re originally from. While the prospect of coming back home can be exciting, from a financial perspective things can be quite complicated quite quickly. The case study below illustrates how our group at Sartorial Wealth of Raymond James Ltd. can help.
Tony and Jill have been married for over 30 years. As Canadian citizens they have been enjoying the second half of their careers in Florida for the past 10 years. As their grandkids mature, Tony and Jill have been itching to come back to Canada to be closer to them. They believe they have missed enough birthdays and school plays for their liking.
Once Tony and Jill decide to move back to Canada, their US advisor can no longer manage their US assets as that advisor is not licensed in Canada. Tony and Jill will likely receive a letter from their current advisor stating they have approx. 30-60 days to move their account to a Canadian institution or their US advisor will be forced to liquidate their account causing a major taxable event.
An ounce of prevention can go a long way. Having to sell out their US retirement holdings isn’t ideal. Any gains would be taxed and would diminish their ability to compound that amount moving forward. By working with a cross border licensed advisor, Tony and Jill would be able to keep their US investments as is. They would simply move their IRA or 401(k) accounts onto our cross border platform. We would then be able to manage these funds from Canada as if Tony and Jill were still in the US, eliminating a taxable event altogether.
Feel free to schedule a call and we would be happy to give you a complimentary analysis of your financial situation.