Myth - Wait to Convert

Often, people struggle with deciding when to convert their Canadian loonies into US dollars and decide to wait for a better exchange rate before converting. The typical thinking is one can do better if they wait. When asked, "At what rate does the exchange rate have to get to in order for you to convert?" we typically get an off-the-cuff answer. Typically, when that exchange rate arrives, they decide to wait for even more and they ride the exchange rate back down again.

The decision to exchange should be determined by what you are trying to achieve (your personal goals and objectives). If the current exchange rate is sufficient now that the long-term projections of your financial situation in the US show a high probability of your assets lasting your lifetime, exchange now and avoid any currency speculation. Your financial plan provides the guidepost for your decision-making because without it, important decisions like exchanging your loonies are driven by emotions, not sound financial reasons.

If you are moving to the US permanently to retire, never to return to Canada , you will have an on-going need for US dollars and it may make sense to convert it all now because you know with certainty what the exchange rate is today and how much you will end up with. Alternatively, if you plan to return to Canada , permanently, or for the winter, it may make sense to leave some funds in Canada. Why not just do it now and avoid the other issues that come with leaving assets in Canada like the potential for double probate, double estate and income tax, etc. Exchanging your Canadian loonies for US dollars can be an emotional experience but we can certainly provide assistance in this area and help you make the decision that is right for you.