Steele Wealth Management Cross-Border Solutions

In the Kitchener Waterloo area, the most common reason why our Canadian clients move to the United States is to follow a new opportunity. When they do, they often find themselves in the unfortunate situation of trying to manage their wealth, stock options and deferred compensation plans across the border. Most Canadian investment advisory firms are not properly registered to do business with Canadians in the United States. The case study below illustrates how Steele Wealth Management is in the unique position to help.

The background

A senior-level technology executive has built his career in Waterloo, but seized a growth opportunity to take a position in the United States. He plans to relocate and spend at least 10 years across the border, leaving his RRSP and other investments in Canada, where he will eventually retire.

The issue

Though the move was good for his career, it fractured his financial picture. He would have to contact a US advisor to handle his IRA, 401k and non-registered savings, while keeping his Canadian advisor solely for his RRSP account. This would mean that his accounts would be managed separately, creating challenges with performance measurement, tax integration and synchronization of goals.

The solution

Being licensed in both countries, we have the ability to obtain full access to his investments and accounts in US and Canadian currencies. His financial responsibilities are much simpler, requiring a relationship with only one advisor during his time in the US and throughout his retirement in Canada. He did not need two advisors to accomplish his goals because the Steele Wealth Management team is licensed in the US and Canada, and can efficiently deal with cross-border clients. We created a disciplined investment strategy and comprehensive financial, tax and estate plan that considered his entire portfolio.

Many Americans living in Canada have found themselves in the unfortunate situation of being 'orphaned' by their existing US based advisors as most US broker dealer and investment advisory firms are not properly registered to do business in Canada. The case study below illustrates how Steele Wealth Management helped solve this issue.

The background

A professor from an American college who does research focused on formulating quantum mechanical theories moved to Waterloo to join her like-minded colleagues.

The issue

The professor had IRAs, 401Ks and other assets in the United States. Shortly after moving to Waterloo, she received a letter from her US investment advisor saying the rules had changed and that her investments could no longer be held there. She was told she had 30 days to find a new advisor or they would liquidate the IRA and 401k accounts, triggering taxes and penalties.

The solution

The Steele Wealth Management team was able to help because we are licensed in the US and Canada. Not only did she avoid the taxes and penalties with the IRA and 401k distribution, we were also able to create a managed investment strategy, comprehensive retirement income and estate plan that integrated her entire portfolio of US and Canadian investments.

This case study illustrates how Steele Wealth Management helped a client who was receiving an inheritance from Canada.

The background

Samantha moved to the United States to pursue her career in health care and continues to live there. Her father passed away in Canada. She received a sizeable inheritance. The accounts have settled and the estate is now ready to move her portion of the inheritance to the US where Samantha resides; however, given the weakness in the Canadian dollar and her goal of vacationing in Canada on an annual basis, she would like to maintain the proceeds in Canadian dollars.

The issue

Since Samantha lives in the US, it was difficult for her to achieve her goals of keeping the funds invested in Canadian dollars. The Canadian wealth management firms she approached were not able to set up an investment account for her, and the majority of US wealth management firms only have US dollar account types.

The solution

The Steele Wealth Management team was able to help because we are licensed both in the U.S. and Canada, and also has the ability to set up multi-currency investment accounts. Samantha kept her inheritance funds in Canadian dollars. We were able to create an integrated investment strategy in Canadian dollars, and when there is a better time or a need for US dollars, we can handle the foreign exchange conversion.