Cardinal Point’s Vice President Terry Ritchie was recently featured on the MDRT website in an article about common cross-border financial planning mistakes advisors tend to make. The piece emphasized the importance of targeted financial planning for clients moving to another country.
A few highlights:
- Citizens who live or work abroad are plentiful, representing a large potential market for financial planners. However, the process is intricate and must consider different immigration income and estate tax rules, currency fluctuations, and a variety of other regulatory hurdles. If not adequately addressed, these factors could expose advisors to potential liability and clients to unexpected financial losses.
- Advisors should consult with immigration or estate planning counsel or attorneys when working with clients planning cross border moves.
- Depending on the types of accounts a client has, there may be restrictions on management and administration of which advisors need to be aware. There may also be regulatory hurdles imposed by federal, state, or provincial authorities. Failure to avoid errors in this area can have dire consequences.
- Wholesale foreign exchange providers are often a better choice than traditional retail banks for currency exchange. The savings for clients can be significant, as most of these firms will beat the retail rate.
Get all the details when you read the entire article here.