Moving to the U.S. from Canada: how to manage your wealth across borders
Brian, a Canadian executive, smooth-sailed to New York, but his wealth didn’t. Two advisors, two firms and a costly currency conversion, until one cross-border plan replaced them.
This article was published on November 7, 2023, more than 2 years ago and is not continuously updated. Tax and securities rules may have changed since. Check the sources at the end of the article, and the date, before acting.
With Canada and the U.S. sharing a border, a language and a passion for sports, Brian didn’t think twice about starting a new life south of the border. Soon after he started living in the States, Brian learnt that managing his investment and retirement accounts on both sides of the border is anything but simple.
That’s because, unlike cross-border financial advisors, most Canadian investment advisory firms aren’t registered to do business with Canadians who live in the United States.
Brian’s move
After building a stellar career in Toronto, Brian landed an exciting new job as a senior executive with a big firm in New York. He had it all planned out: spend at least 15 years working in the U.S., then move back to retire in his native Canada.
Before leaving, Brian had contributed to his RRSP and other non-registered investment accounts managed by his financial advisor in Canada. But once he became a U.S. resident, he wasn’t allowed to contribute to his RRSP, as he only had U.S.-sourced income. As a result, Brian worked with a U.S.-based advisor who handled his 401(k), Roth IRA and non-registered savings in that country.
Cross-border wealth management made simple
Working with two advisors in different countries scattered Brian’s wealth between varying plans and firms. He had to move his non-registered investment accounts from a Canadian to a U.S. brokerage firm, partially cutting ties with his Canadian advisor of many years. Additionally, Brian suffered a financial loss because he had to convert Canadian assets held in Canadian currency to U.S. dollars at a time when the greenback was expensive.
That’s where a cross-border financial advisor comes in. Licensed in both the U.S. and Canada, a cross-border advisor helps professionals like Brian manage their financial assets across the border so they don’t have to work with two advisors: one disciplined investment strategy and one retirement plan for his North America-wide assets. On a multi-currency platform, Brian can keep his Canadian assets in Canadian currency and wait for a more favourable time to convert them to U.S. dollars.
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Chris is a cross-border financial advisor licensed in both Canada and the United States. He helps Americans moving to Canada and Canadians moving to the U.S. keep their retirement accounts intact and build one plan that covers both sides of the border. He writes for Cross Border Wealth in his personal capacity.
Disclosure: Chris writes in his personal capacity; his views do not represent any firm he is associated with. Cross Border Wealth does not provide advisory services. If you need advice, use the Get connected form and we will introduce you to a licensed professional.