Author Topic: Financial Plan - Moving from US to Canada Soon  (Read 448 times)

savage_detective_stache

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Financial Plan - Moving from US to Canada Soon
« on: May 25, 2018, 06:16:08 PM »
So it looks like we'll be moving to Canada in the next 12 months as permanent residents and eventual citizens hopefully.  Looking for community members to poke holes in my financial plan from a mustachian perspective.

=================

Current US Accounts with Substantial Balances:

VANGUARD
 -Roth IRA
 -IRA

HEALTH SAVINGS ADMINISTRATORS
 -HSA invested in stock market

CHASE
 -Checking account
 -Credit card

ALLY
 -Checking account
 -Saving account

HOUSE
 -Equity

============

Financial Plan Outline for Move to Canada

1. Rollover IRA and ROTH IRA from Vanguard to Interactive Brokers (due to Vanguard's harsh stance toward expat investors)

2. Invest proceeds of home sale in Interactive Brokers RRSP (Canada passive ETF allocation) and then overflow in taxable account (US REIT ETF probably for tax and diversification reasons, up to a point obviously)

3. All future savings in Canada to be funneled to Interactive RRSP first and then taxable passive investments.

4. Leave Chase US checking account and credit cards in place

5. Open Tangerine Canada checking account and credit card

6. Leave HSA alone to grow until I can withdraw penalty-free at age 65

7. Use Interactive Brokers currency trading platform to do currency exchanges very cheaply

8. I get to keep my current US job... planning to ask to keep getting paid in US dollars, but with low exchange rates and maybe iffy outlook for US dollar, maybe this would be a good time to lock in salary in CAD? Agnostic I guess.

9. Plan on renting until we ultimately find a city, lifestyle, and community that feels like home in Canada

=====================

Any major issues with the plan as outlined above???? Trying to keep it pretty simple and relatively low-cost and tax-efficient.  Thanks for any feedback!

Also, any suggestions for cheap mustachian-friendly cross border financial planners / tax specialists in the Ottawa area are welcome too. 

All the best-

Missy B

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Re: Financial Plan - Moving from US to Canada Soon
« Reply #1 on: May 26, 2018, 04:13:41 PM »
I would not lock in my salary in Cdn dollars unless there is a compelling reason to do so. We (Cdn$) could easily drop further.
I don't have a referral for you, but you absolutely need a cross-border pro to set things up so you don't get badly f***d, now or in the future. Particularly being paid in US $ may complicate things on the tax end.

You don't mention TFSA, and this is a powerful, flexible tax-free vehicle that you should consider using before taxable (unless, of course, there is a tax issue with the American side).

Welcome. You don't say where you're planning to land, but I'm sure there's plenty of people who'd be willing to give you info and pointers about their communities to help you choose.

plainjane

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Re: Financial Plan - Moving from US to Canada Soon
« Reply #2 on: May 26, 2018, 04:18:10 PM »
You don't mention TFSA, and this is a powerful, flexible tax-free vehicle that you should consider using before taxable (unless, of course, there is a tax issue with the American side).

There is a tax issue with the American side. Don't do this (TFSA) unless you get a green light from your tax person. Ditto RESP, RDSP. RRSP is good.

(Modified for clarify)
« Last Edit: May 26, 2018, 04:20:07 PM by plainjane »
Using procrastination to my advantage since 2001.

CM*TO Is a thing!! We have a few bunks left - join us in September.