Attention
Snowbirds: Talk finances before you take flight
Author:
News Canada
(NC)—Getting
ready to leave the bitter cold of Canadian winters for the balmy beaches
of the sunny south? By getting your financial affairs in order before you
depart, you won't need to worry about a GIC renewal when you could be enjoying
an ocean breeze.
More
than 150,000 Canadians aged 55 plus spend three to six months in the southern
United States each year. A full third of these "snowbirds" take
flight from the Toronto area.
But
before you pack your bags for an extended stay south of the border, you'll
need to make sure you have a financial plan in place. Canadian snowbirds
should pay particular attention to the rules and regulations that apply to
Canadians during their stay in the States. Depending on how long you spend
in the U.S., for example, you could be considered a U.S. resident and subject
to U.S. tax. Remembering to review your investments with a financial adviser
before you leave is key. It is also advisable to meet with your tax advisor
to assess your tax residency status.
Some
key financial considerations for snowbird clients:
•
Set up online and telephone banking before you leave, allowing you to monitor
your finances and pay bills quickly and easily from anywhere.
•
Arrange pre-authorized payments for your regular bills to avoid the hassle
of writing cheques and mailing them on time. You'll avoid late fees and credit
problems from late payments. As an added bonus, you'll save time and stamps!
•
Most importantly, ensure your overall financial affairs are in order while
you are away and keep your money working hard while you take a break in the
sunny south.
This
article is not applicable in Quebec.
-
News Canada
