Many American citizens living in Canada have found themselves in the unfortunate situation of being 'orphaned' by their existing U.S. based Advisors as most U.S. Broker Dealer and Investment Advisory firms are not properly registered to do business in Canada. The case study below illustrates how Perreira Hurly Wealth Advisory of Raymond James (USA) Ltd. has helped solve the issue that Canadian residents with US retirement accounts have faced.
Carl, an investment professional originally from California, and Kim, originally from Canada, met and worked in NY then relocated to Toronto when Carl was offered a great career opportunity. They have one child and are happy with life in Toronto and are starting to put down roots.
Carl built up some savings, stock holdings and an IRA from his career in the US.
Having lived in Canada for only a short while and not certain whether or not they will eventually move back to the US, they left their assets at various brokerage firms in the US. Then one day out of the blue, Carl received a letter from his U.S. brokerage firm stating that since he was now a Canadian resident, they would no longer be able to service his IRA and that he had 30 days to find a new place to do business or they would liquidate the IRA account and mail him the net proceeds. Carl did not attend to matters in time and received a cheque in the mail for the proceeds, and then had 60 days to rollover into another IRA or face a tax bill for this transaction.
Licensed both in the U.S. and Canada, Perreira Hurly Wealth Advisory of Raymond James (USA) Ltd. were able to help. We opened an IRA for Carl within a couple of days and he was able to avoid this taxable (potentially penalized) IRA distribution. We also created a disciplined investment strategy for the couple, and worked with Carl and Kim on budgeting and financial planning so that they now have a firm footing on which to build their net worth.