Mike and Sandy have lived and worked in the U.S. and Canada for 20 years. They were shocked to learn just how much they would receive from U.S. Social Security, the Canada Pension Plan (CPP), and Old Age Security (OAS).…
Read More How Much Will I Collect in Social Security, CPP, and OAS in Retirement?
Bryan discussed the complexities of Social Security benefits for cross-border retirees, particularly focusing on spousal benefits. He explained that while delaying Social Security can increase benefits for some, it may not be beneficial for those relying on spousal benefits, which do not increase past full retirement age. Bryan provided examples to illustrate this point, highlighting that for couples where one spouse qualifies for a high benefit and the other for a spousal benefit, delaying could result in a significant loss of income with no benefit. He advised caution for those considering early collection due to potential clawback of benefits and emphasized that every situation is unique, recommending personalized planning.
I was reviewing a cross-border retirement income plan recently when a couple told me that they didn't believe they qualified for Canadian Old Age Security (OAS). After crunching the numbers, we determined they would receive over $700 a month from the Canadian OAS. This made a massive difference to their retirement plan. In this video, we discuss how to qualify for Canadian OAS and how much you may receive. Last, we discuss when you may want to turn on your Canadian OAS benefit.
The discussion covered tax implications for U.S. residents receiving Canadian inheritances, including the need to file specific forms and understand distribution processes between initial and final distributions. Bryan explained various tax considerations for different types of assets, including RIF withdrawals, stock accounts, and family cottages, noting that while some assets may be tax-exempt, others could result in significant tax bills for heirs. The conversation ended with guidance on receiving Canadian inheritances, emphasizing the importance of prompt conversion to U.S. currency for better investment options and tax considerations, with recommendations to consult financial advisors for cross-border planning.
Bryan, a certified financial planner, discussed strategies for U.S. residents with retirement accounts in both the U.S. and Canada. He emphasized starting withdrawals from Canadian accounts first to avoid complications and high taxes upon death, as Canadian accounts are subject to significant tax bills upon the account holder's passing. Bryan also highlighted the importance of estate planning for Canadian accounts, noting that most U.S. estate plans do not account for Canadian assets.
Bryan explains how cross-border retirees can access their Social Security benefits, emphasizing that these benefits are often the largest monthly pension in retirement. He guides viewers through the process of creating an account on the Social Security website (ssa.gov) to obtain estimates, noting that while paper applications are no longer available, paper statements can be requested online. Bryan also discusses the importance of accurate benefit estimates and provides a sample statement for reference.
If you plan to move back to Canada, you may want to consider Roth conversions early and often before the move. Not only are there potential huge tax savings, but there are also other benefits. In this video, we discuss…
Read More The 4 Biggest Benefits of Roth Conversions Before Moving Back to Canada
In today's video, we debunk some of the biggest myths regarding Canadian OAS.
For most cross-border retirees, your Canada Pension Plan (CPP) is a big part of your overall retirement plan. However, turning on your CPP can also be confusing and complicated. Today we discuss: - Qualifying for CPP as a U.S. resident…
Many of our clients are fantastic savers. However, they feel anxious about taking withdrawals from their accounts in retirement. We discuss how to create a steady cash flow in retirement to help maximize your spending and alleviate concerns about your…
