John McCord discusses the importance of defining financial goals and responsibilities in his piece discussing Investment Policy Statements (IPS). While not a financial plan, an IPS is a critical component of a holistic financial plan that takes into consideration insurance, estate, and retirement planning. Critical in any client-financial advisor relationship is a mutual understanding that reflects the client’s financial planning situation. An IPS assists in this mission and details and defines a client’s needs, goals, investment knowledge, net worth, time horizon, and risk tolerance. With an IPS document, clients have a more clear understanding of a financial advisor’s investment philosophy and reference point to adjust when a change in personal financial situation occurs. Cardinal Point wealth Management works with clients to ensure a customized cross-border financial planning strategy and to develop Investment Policy Statements that reflect the unique situation of each client.
Articles and News
Why Is It Important For Canadian Expats To Disclose Foreign Based Accounts to the IRS?
John McCord’s article focuses on the IRS (US Internal Revenue Service) policy that taxes the worldwide income of US residents. Many US residents are unaware of this policy and the law that requires the disclosure of the majority of foreign accounts, as they are subject to US taxation. Disclosure rules also apply to Registered Retirement Savings Plans, pensions and bank accounts. In order to enforce these policies the IRS is aggressively pursuing civil and criminal penalties for noncompliance and maintains close communication with the CRA (Canadian Revenue Agency), references the FBAR (Report of Foreign Bank and Bank Accounts) and, beginning in 2013, will enforce the FATCA (Foreign Account Tax Compliance Act) in order to do so. FATCA will focus on the compliance of foreign-based accounts and increase communication with foreign financial institutions in order to identify US residents who do not report their foreign-based accounts. For both Canadian Expats and US residents with foreign accounts, McCord stresses it is critical to consult with a cross-border financial advisor in order to ensure compliance and identify the right solution that may include tax, legal and investment professionals depending on your personal situation.
How Does Canada’s Public Pension Program Compensate Expats Living in the US?
In this article, John McCord discusses Canada’s two-part public pension program and how pension benefits are applied to Canadian expats living in the US. Eligibility for the first part, Old Age Security (OAS), is determined by age, time spent as a Canadian resident and legal status, but not retirement status or employment history. The second part, the Canadian Pension Plan (CPP), is directly tied in to salaries. The specific CPP benefit is determined by the amount and duration of CPP contributions (from prior employment). The highlight of both benefit programs is that, due to the Canada-US Tax Treaty, expats are not subject to Canada Revenue Agency tax rates or foreign withholding taxes. With lower US tax rates, this provides a clear benefit for Canadian expats living in the US. As each program mentioned has strict qualifying criteria, McCord details some of the specific regulations and emphasizes that it is important to partner with a qualified team of tax, legal and investment professionals who have specific experience in cross-border financial planning strategy.
Interviews and Press Releases
Canadian Wealth Management Firm Creates Partnership with Non-profit Business Council in California to Foster Growth Opportunities within the U.S. and Canada
Cross-border opportunities between the U.S. and Canada have been given a boost by the Canada California Business Council and Cardinal Point Wealth Management, who today announced a strategic partnership.
Cardinal Point Announced as Charter Partner of the Canada Nevada Business Council
The Canada Nevada Business Council, has announced that Cardinal Point Wealth Management, LLC has become a Charter Partner. ‘Their long-standing commitment to providing personalized investment, wealth planning, and cross-border solutions to families, individuals, and related institutions is a perfect fit for [us]” said Frank Spady, Founder and CEO of the Canada Nevada Business Council, a non-profit dedicated to providing a voice for businesses committed to furthering bi-lateral trade between Nevada and Canada. As a Charter Partner, Cardinal Point Wealth will be provided with the opportunity to publicize key corporate announcements via the CNBC network and be given priority in the development of policy papers and related topics at CNBC events. This, in addition to invitations to CNBC VIP briefings and special meetings, will allow the Cardinal Point Wealth Management Firm the ability to further communicate with individuals in need of a disciplined approach to wealth management and share news of the best methods for this audience to building lasting wealth – a mission supported by the CNBC and the cross border businesses it supports.
Happy Hour Cross-Border Business Networking Mixer
Please join Cardinal Point Wealth Management and Canadians Abroad at The Happy Hour Cross-Border Business Networking Mixer. The featured financial advisors will discuss the benefits of partnering with a fiduciary cross-border investment advisor and implementing appropriate financial planning concepts for Canadians living in California. Click here for more information.