Have you thought about where you’ll enjoy your retirement? Hundreds of thousands of Canadian retirees believe the best place to spend winter is in the U.S. Sun Belt and other warm destinations. Many purchase vacation properties in Canada where they stay for long stretches throughout the year. Some are quite happy to stay put and others move to be closer to their children and grandchildren. Travelling the world is the dream of many retirees, and then there are those who move abroad permanently.
YOUR INVESTMENT OBJECTIVE
At first, planning where you’ll spend retirement is all about a lifestyle choice. But it’s also a key factor in determining your retirement savings goal. A retiree who plans to downsize and move closer to their grandchildren may have very different financial needs than someone who wishes to travel the world. So it’s important to keep us informed, even if you’re just at the idea stage. The “where” factor may affect your investment objective, retirement income needs and the date you plan to retire.
TAX MATTERS IF LIVING ABROAD
If you plan to move permanently to another country or live several months a year abroad, you should consult with a tax expert who can provide specific advice on your situation. Take the example of a Canadian retiree who spends winters in Florida. They may be advised to file the Internal Revenue Service (IRS) form 8840 each year to claim their closer connection to Canada so they’re not classified as a U.S. resident for tax purposes. If this retiree decides to purchase a Florida condo and rents it out a couple of months a year, they must file a U.S. tax return to report rental income – or face penalties and interest charges. Seeking tax advice up front can make all the difference between enjoying your retirement and dealing with unpleasant surprises
This material was prepared for and published on behalf of your financial advisor and is intended only for clients resident in the jurisdiction(s) where their representative is registered. This material is provided solely for informational and educational purposes and is not to be construed as an offer or solicitation for the sale or purchase of any securities or as providing individual investment, tax or legal advice. Consult your professional advisor(s) prior to acting on the basis of this material. Insurance products are available through advisors registered with applicable insurance regulators. Individual equities are available only through representatives of Assante Capital Management Ltd. In considering any particular investment, please remember that past performance is no guarantee of future performance. Although this material has been compiled from sources believed to be reliable, we cannot guarantee its accuracy or completeness. All opinions expressed and data provided herein are subject to change without notice. Neither CI Assante Wealth Management or its dealer subsidiaries Assante Capital Management Ltd. and Assante Financial Management Ltd., nor their affiliates or their respective officers, directors, employees or advisors are responsible in any way for any damages or losses of any kind whatsoever in respect of the use of this material. CI Assante Wealth Management is a registered business name of Assante Wealth Management (Canada) Ltd. Assante Capital Management Ltd. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. Assante Financial Management Ltd. is a member of the Mutual Fund Dealers Association of Canada and the MFDA Investor Protection Corporation (excluding Quebec). © 2022 CI Assante Wealth Management. All rights reserved.