Canadian working in U.S. starting to invest, thoughts?

[divertiti]

I知 turning 30 this year and finally decided to actively get my finances in order. Unfortunately I知 in a cross-border situation which introduces some complexities into the equation. I have done the basic readings and searched the forums without much clarity. I would really appreciate some directional help and feedback.

I知 a Canadian citizen (ON) working in the U.S. on a work permit. I知 starting my 2nd year of a 3 year permit which has the option to be extended another 2 years. I don稚 quite know how long I will stay in the U.S., I could go back in 2 years, or at the end of my visa term or I could apply for a green card and stay longer. Provided the right opportunities present themselves, I plan to keep working in the States for the foreseeable future.

I知 a single filer and I believe I am now deemed a non-resident for Canada. I believe for 2013 I only have to file U.S. taxes.

Salary: $80K at the moment, will be getting bumped up about $90k sometime this year
Assets: $50K in cash, $15k in RRSP back in Canada and no contribution to TFSA, currently $19.5k unused contribution room in TFSA (I regret not using the room before I left), some company stock through employee purchasing program
Debt: None

Additional considerations:
- I know I am behind the curve financially for my age, that being said, I do have dreams of retiring early, perhaps in 15 years, I know it痴 not going to be easy given my situation but I知 dedicated to making it happen
-I have plans of perhaps starting my own business venture at some point and I might need to tap into my savings for capital before my retirement age
- I知 currently paying rent $800/mth, other expenses maybe another $1200/mth (never tracked my spending, going to start using Mint to track and follow a budget)
- My rough calculations tells me I can afford to contribute $17.5k to 401K, $5.5k to Roth IRA and another $20k to taxable per year

Questions:
1. My company has a pretty good 401k, they match 4% on the first 5% I contribute, and I can access the Fidelity Spartan Total Market Advantage Fund with 0.06% net expense ratio. Given the uncertainty of my stay in the states and potential need to access the money earlier, will it be worth the illiquidity of locking up my money until 60 to max out my 401K and Roth IRA or should I just contribute the minimum to get the max match and invest the rest in simple taxable account?

2. I understand if I invest in a taxable account and avoid interest/dividend paying investments and stick to funds with low turnover ratios, I can get similar results as tax advantaged accounts when taxation is all said and done at the end without having to deal with the inflexibility of having the money locked up for 30 years. Is my understanding flawed?

3. I知 also considering purchasing a condo, which can be had for about $60k in the town I知 in. I plan to put down $20k and borrow the rest if I do. Even if I do stay in the states, I may move to another city in about a year or so. Either way, I plan to rent it out if I leave town. Is this a good idea or should I just keep renting and invest the condo money in the market?

Sorry about the long post and I would really like to hear your thoughts. Thanks in advance for any feedback.

[J]

Salary: $80K at the moment, will be getting bumped up about $90k sometime this year
Assets: $50K in cash, $15k in RRSP back in Canada and no contribution to TFSA, currently $19.5k unused contribution room in TFSA (I regret not using the room before I left), some company stock through employee purchasing program
Debt: None

Additional considerations:
- I know I am behind the curve financially for my age, that being said, I do have dreams of retiring early, perhaps in 15 years, I know it痴 not going to be easy given my situation but I知 dedicated to making it happen
-I have plans of perhaps starting my own business venture at some point and I might need to tap into my savings for capital before my retirement age
- I知 currently paying rent $800/mth, other expenses maybe another $1200/mth (never tracked my spending, going to start using Mint to track and follow a budget)
- My rough calculations tells me I can afford to contribute $17.5k to 401K, $5.5k to Roth IRA and another $20k to taxable per year

Just to respond to this point in particular with some encouragement: I don't think you're at all behind the curve.  You're doing very well even by the high standards of this site, and by the general standards of the US you're doing exceptionally well.  You're spending less than you make, you're able to save well over half of your income already (especially since I'm assuming that $80k is before taxes), your savings rate is about to go up significantly with a $10k bump in income, and if all goes well you're roughly on track to retire at at most 42-45 years old, probably much sooner.

[divertiti]

Thanks very much for the kind words and encouragement. My desire for early retirement is partially the reason why I have this max 401k vs. minimum 401k dilemma.

[JFC]

I'm back in Canada now, but I worked in California for 8 years. Regarding this:

I知 a single filer and I believe I am now deemed a non-resident for Canada. I believe for 2013 I only have to file U.S. taxes.

Based on the information you provided, it sounds like you don't have sufficient ties to be deemed a resident of Canada, but you should file Form NR-73 Determination of Residency (Leaving Canada) with CRA to confirm. I did this when I left and received the letter confirming that I no longer had to pay taxes. It was good for peace of mind.

Income earned in a TFSA is taxable in the US so maybe it's a good thing that you didn't contribute before you left. You can always contribute the 19.5K when you return. I'm guessing from the fact you can buy a condo for 60K you are not in California, but just in case you are, be aware that California does not recognize the federal RRSP tax treaty so you will have to pay tax on the income earned in your RRSP on your state taxes IF you are in California (or one of the other states that doesn't recognize the tax treaty). Federally, you don't have to pay but you do have to elect every year to defer the income earned.

If my employer did matching, then I always contributed to 401Ks up to the match. I maxed the Roth and then the rest went into taxable accounts. This worked well for me but I also had no plans that potentially required me to access that money early.