Offering cross-border wealth management solutions
The Steele Wealth Management office is located in Kitchener-Waterloo, Ontario. KW is the home of world-renowned technology businesses, technology start-ups and academics from our post-secondary institutions. Because of our unique location, our clients include professors and people associated with our universities (University of Waterloo and Wilfrid Laurier University), as well as executives and entrepreneurs from the technology sector. These clients move between the United States and Canada. This means that they have unique investment management and planning challenges where expert advice is difficult to obtain. Simultaneously managing wealth in both countries is complicated.
Our team is uniquely positioned to overcome the limitations that other wealth managers have concerning cross-border clients. We are different because we can integrate Canadian and American wealth. Steele Wealth Management is part of the Raymond James Financial family of companies, Raymond James (USA) Ltd., or RJLU, is a Canadian based US registered investment firm offering integrated cross-border wealth management solutions to Americans living in Canada and Canadians living in the US. As RJLU advisors, we are licensed and regulated in both Canada and the US, and work closely with clients to translate their personal needs into a strategy for their cross-border accounts. We also advise clients on cross-border issues, such as Passive Foreign Investment Company (PFIC) rules and IRA Rollovers, and maintain professional networks to assist with planning, taxation and legal services, as required.
RJLU enables US resident clients to hold both Canadian and US currency accounts. This allows Canadian equities and Canadian dollar denominated fixed income to be added to client portfolios without having to settle in US currency, thus avoiding foreign exchange spreads. US clients can gain expert access to quality Canadian investment grade instruments with our assistance.
How does Raymond James (USA) Ltd. help?
First, Raymond James (USA) Ltd., unlike most investment firms registered with FINRA and the SEC, operates in and across Canada. Our firm is a subsidiary of Raymond James Financial (NYSE:RJF) and has completed an exemption from registration application in Canada to be able to help American citizens living across Canada.
Second, at Steele Wealth Management, we are experienced advisors who are registered in both Canada and the United States. We understand the challenges that the cross-border American citizen faces, and have strong connections with other cross-border professionals in areas like tax, trust and estate planning, insurance and immigration.
We are registered in both countries, and are well connected to cross border lawyers, tax accountants, immigration consultants, and global mobility specialists. Therefore, we can offer you more than just a Canadian wealth management solution. We can offer you a holistic wealth management solution and coordinate your entire portfolio of assets to keep you on track to achieving your financial goals.
Some of the accounts we manage for clients include:
- RRSPs and RRIFs for Canadians living in the US.
- IRAs for Americans living in Canada.
- Investments for Americans wanting Canadian securities.
- Investment accounts for US-resident children of Canadian-resident parents.
- Discretionary and non-discretionary portfolio services in both currencies.
Wealth Management Solutions for Cross-Border Clients
Cross Border Newsletter - Wealth without Borders
CanAmerican Cautionary Tale: Investing Pitfalls Facing Americans Living in Canada
CanAmerican Cautionary Tale: Cross-Border Investing for Americans in Canada
Technology Entrepreneur moving to the United States
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.
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.
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.
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.
American Professor moving to Canada
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.
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 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 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.
US Resident inheriting Canadian dollars
This case study illustrates how Steele Wealth Management helped a client who was receiving an inheritance from Canada.
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.
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 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.