Managing Wealth Across Borders: A Complex Journey
Mark, a Canadian executive, made the leap to the U.S., but his finances faced hurdles.
With a shared border, language, and cultural similarities, Mark didn't hesitate to start a new chapter south of the Canadian border. However, as he settled into life in the U.S., he quickly realized that managing his wealth across two countries was more complex than he had anticipated.
The challenge arose because, unlike specialized cross-border financial advisors, many Canadian firms aren't authorized to serve Canadians living in the U.S.
Here’s an overview of how Mark’s relocation to the U.S. created financial complications and how our cross-border financial experts can help him tackle both the challenges and opportunities that arise when managing wealth across borders.
After a successful career in Vancouver, Mark was offered an exciting senior role with a major company in San Francisco. He envisioned spending several years in the U.S., building his career, and eventually retiring back in Canada.
Before his move, Mark had been fully contributing to his RRSP and TFSA. With excess savings he started investing a non-registered account. But upon becoming a U.S. resident, Mark was no longer able to contribute to his RRSP, as his income was now U.S.-sourced. As a result, he began working with a U.S.-based advisor who took charge of his 401(K), Roth IRA, and other savings in the States.
The Complications of Cross-Border Wealth Management
Mark faced challenges managing his wealth across two financial advisors in two different countries. His Canadian non-registered investment accounts had to be transferred to a U.S. brokerage, which was a complex process. Additionally, converting his Canadian assets into U.S. dollars resulted in financial losses due to unfavorable exchange rates at the time.
While his RRSP remained with his Canadian advisor, this created a fragmented investment strategy with no unified approach. On top of that, Mark had to schedule separate review meetings with both advisors, which took valuable time away from his work and family.
This is where a cross-border financial advisor can make a significant difference.
At Cadence Financial Group of Raymond James Ltd., our cross-border financial specialists are licensed to work in both the U.S. and Canada. We assist professionals like Mark in managing their financial portfolios seamlessly across borders, eliminating the need for multiple advisors. We understand the unique challenges that Canadians face when moving to the U.S. for work, and we craft personalized financial plans that align with their long-term goals.
Our team can help Mark develop a unified investment strategy and retirement plan that accounts for his assets in both countries. With our multi-currency platform, Mark can keep his Canadian investments in Canadian dollars and wait for a more favorable exchange rate to convert them into U.S. currency.
Thinking of Moving from Canada to the U.S.?
Reach out to us today to create a tailored financial strategy that supports your lifestyle and retirement aspirations, no matter where you live.