American in Canada (eBook)

So, you've decided to move to Canada. It may be because of a great job offer, a spouse, or to return to your roots, but you have decided to leave the United States and move to Canada. How do you prepare for such a major transition? You have entered our world . . . the world of Canada-U.S. transition planning.With the laws and regulations of two countries such as Canada and the United States, such planning quickly becomes complex. This unique niche has been termed 'cross-border' planning by some, but we prefer to call it Canada-U.S. transition planning.We caution you now that you shouldn't proceed with your move to Canada without allowing yourself enough time to understand all the nuances of your unique situation and then take the necessary actions before leaving the United States. If you are reading this book, you are off to a good start. What Is Transition Planning? You have your stuff packed and the moving company selected, but suddenly you think, 'How do I move my financial affairs to Canada?' Financial planning is the core of transition planning, but we clearly define which border we are talking about and, in particular, how to smoothly transition your finances from the United States to Canada while saving time, aggravation, professionalfees, and every tax dollar you possibly can. According to the College of Financial Planning, comprehensive financial planning is 'the process in which coordinated, comprehensive strategies are developed and implemented for the achievement of the client's financial goals and objectives.' According to the Financial Planners Standards Council (the licensing organization for the Certified Financial Planner! designation in Canada), financial planning consists of the following six distinct steps. 1. Establish the client-planner relationship. 2. Gather client data and determine the client's goals and objectives. 3. Clarify the client's current financial situation and identify any problem areas or opportunities. 4. Develop and document the financial plan and present it to the client. 5. Assist the client with implementing the plan. 6. Monitor and update the financial plan. You will notice that financial planning is a process, not a transaction or an end in itself. The same applies to transition planning. Since the financial planning industry is only about 25 years old, a brief history might help. The industry started as a transaction-based business with life insurance agents selling policies over the kitchen table or mutual fund salespeople coming to your door. It has since evolved into a technically based business where people manage an investment portfolio or provide tax advice. Today the industry has realized that you can't make decisions with a person's money and ignore the person-the two are integrated. As a result, the industry is rapidly moving toward a relationship-based model where 'Money is a means to an end, not an end in itself.' Comprehensive financial planning begins by understanding what you are trying to achieve in terms of lifestyle now and in the future. This is driven by your values and beliefs about money and what you have observed during your lifetime. It is akin to taking off in an airplane with a flight plan in hand. Once our firm knows where you are trying to go (documented goals and objectives), we can develop a specific plan to test the feasibility of your goals and figure out how to get you to your destination. Other factors..."