Offering Cross-Border Wealth Management Solutions
Offering cross-border wealth management solutions
Part of the Raymond James Financial family of companies, Raymond James (USA) Ltd., or RJLU, is a Canada-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., "RJLU", unlike most investment firms registered with FINRA and the SEC, operates in and across Canada. RLJU 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 Raymond James (USA) Ltd., you'll find an experienced advisor who is 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, and insurance and immigration.
By being registered in both countries and well connected to other cross-border centers of influence, 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.
Case studies of the types of cross border situations we can assist with:
Canadian resident moving to the United States
The two most common reasons why Canadians move to the United States are to try to escape the cold or to follow a new employment opportunity. When they do, they can find themselves in the unfortunate situation of being 'orphaned' by their existing Canadian based Investment Advisors as most Canadian investment advisory firms are not properly registered to do business with Canadians in the United States. The case study below illustrates how the Private Client Division of Raymond James (USA) Ltd. can help.
Frank is a senior-level bank executive who built his career in Canada, but seized a growth opportunity to take a position in the United States. He planned to relocate and spend at least 10 years across the border, leaving his RRSP and other investments in Canada, where he would eventually retire.
Though the move was good for his career, it complicated his financial picture. He would have to enlist a U.S. advisor to handle his IRA, 401(K), Roth IRA and non-registered savings, while keeping his Canadian advisor solely for his RRSP account.
With advisors registered across Canada who are licensed both in the U.S. and Canada, Raymond James (USA) Ltd. can help. Frank would no longer need two advisors to accomplish his goals. His Raymond James (USA) Ltd. advisor can create a disciplined investment strategy and comprehensive retirement income plan that can take his entire portfolio into consideration, regardless of where Frank ultimately ends up.
U.S. resident inheriting Canadian dollars
With the weakness in the Canadian dollar versus the U.S. dollar, you could be in the unfortunate situation of receiving a Canadian dollar inheritance that is 15–25% less than you thought it would be. The case study below illustrates how the Private Client Division of Raymond James (USA) Ltd. can help.
Samantha’s mom passed away in Canada. She inherited an IRA, a 401(k) and a Roth IRA account. The accounts have settled and the estate is now ready to move her portion of the inheritance to the U.S. 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 U.S., a Canadian wealth management firm is not able to set up an investment account for her, and the majority of U.S. wealth management firms only have a U.S. dollar account type, so Samantha is not able to achieve her goals of keeping the funds invested in Canadian dollars.
With advisors registered across Canada who are licensed both in the U.S. and Canada and who also have the ability to set up multi-currency investment accounts, Raymond James (USA) Ltd. can help. Samantha would not have to make the decision to move her inheritance funds to U.S. dollars. Her Raymond James (USA) Ltd. advisor would be able to create a disciplined investment strategy in Canadian dollars, and when there is a better time or a need for U.S. dollars, Samantha’s Raymond James (USA) Ltd. advisor could handle the foreign exchange conversion.
U.S. Citizen, Canadian Resident inheriting IRA
When Canadian residents inherit IRAs from US persons, the US brokerage firm holding the account cannot hold or manage the account for the Canadian beneficiary. The beneficiary must make alternate arrangements with a brokerage firm that can hold IRAs for Canadian residents.
Kelly’s father deceased earlier this year and Kelly was one of the beneficiaries of her father’s IRA along with her brother’s resident in the U.S. She was told by her father’s broker that they would not be able to hold the inherited IRA for her. Kelly and her husband were at a loss for what to do.
Licensed both in the U.S. and Canada and also having the ability to hold and manage inherited IRAs through Raymond James (USA) Ltd., we can help.
Kelly and her husband found us through an internet search. They came and met with us and were pleased to learn that we could help them not only with the Inherited IRA, but we could help them manage other inheritance assets and set up RRSPs and design an insurance program for their young family.
Americans living in Canada
Many Americans living in Canada have found themselves in the unfortunate situation of being 'orphaned' by their existing U.S. based Advisors as most U.S. Broker Dealer and Investment Advisory firms are not properly registered to do business in Canada. The case study below illustrates how the Private Client Division of Raymond James (USA) Ltd. has helped solve the issue Canadian residents with U.S. retirement accounts have faced.
Jim and Janis had lived in the U.S. their entire lives until they relocated to BC when they were in their 30's. Jim was a corporate executive and Janis was a homemaker. They had four children and built their lives in Canada for the next 25 years.
Jim and Janis have done a good job focusing on RRSP contributions and Jim was also fortunate while working to accumulate a significant concentrated position in a blue chip dividend paying stock in his IRA and 401(k).
For the past 25 years, they were investing with two different investment advisors, one for their Canadian portfolio, and another in the U.S. for Jim's IRA and 401(k). Then one day out of the blue Jim received a call from his U.S. investment advisor saying the rules had changed and he would no longer be able to service Jim's IRA and 401(k). He told Jim he had 30 days to find a new advisor or they would liquidate the IRA and 401(k) accounts and mail him the net proceeds.
With advisors registered across Canada who are licensed both in the U.S. and Canada, Raymond James (USA) Ltd. can help. Not only would you avoid this taxable (and potentially penalized) IRA and 401(k) distribution, we would also be able to create a disciplined investment strategy and comprehensive retirement income plan that would take your entire portfolio into consideration.
See How We Can Help