Independence Planning

We use the term independence planning in place of the more common term "retirement planning" because of the negative connotations associated with the term retirement.  Retirement is often thought of stopping work and just lying around or golfing all day, which is not our view at all.  We all save so we can become financially independent but the question then becomes "Independent to do what?"  A big part of our process is aimed at determining when you might be independent from work and understanding what you want to do for the balance of your life.  This creates excitement for the future and enables you to sacrifice now in order to achieve the goals you have set for your future.  To gain these insights, we spend time understanding what your future lifestyle looks like and then determining the cost of that lifestyle on an inflation-adjusted basis to your age 100. We then incorporate the various sources of income you have, make a number of conservative assumptions and determine how your unique financial situation projects into the future if you resided in the US.

In Canada , the primary vehicle used in becoming financially independent is the RRSP.  Unfortunately, this is the last major savings vehicle left in Canada .  The question we most often receive is how do we save for our future in the US ?  Will we still qualify for some form of government or company pension? This question can be perplexing because you may have short earning histories in both Canada and the US because of your move, which may lead you to not meeting the minimum work history in either country to qualify for any government benefits at all.  Once again, proper transition planning can set you on a course that will maximize your benefits because you lived in both countries.  Following are some of the independence planning issues you should consider in making your move to the US.

Once you move to the US , you are still able to contribute to an RRSP up to your remaining RRSP limit.  However, because you are no longer filing tax returns in Canada , you do not create any more "room" in your RRSP. 

Interesting Links