live in canada work in US

[rg1495]

Hi,
As the subject says, I live in canada and work in US. I have been investing in RRSP's for the past 3 years but have found that the MER's for mutual funds in canada are too high (3.0) . I want to buy US mutual funds as their MER's are much low. Also, to invest in RRSP, I have to convert all my money to CDN dollars which I do not want. I would like to build a retirement account in US dollars to prevent taxation on earnings. Does it make sense for me to open a Roth IRA? That way I can still hold my investment in USD, pay less MER's on US mutual funds and at the same time avoid paying taxes on the growth (which I would if I put my money in a fixed term CD) or should I open a traditional IRA and defer my taxes and still let my money grow?

I am very confused and at the same time have lost the opportunit of growing my money in this US-CDN quagmire over the last few years. I do not know at this point where I will retire. However, be it canada or usa, I still want to keep growing my money at 8-9% every year in both currencies......will really appreciate your help in this matter.

[nelsona]

ince you live in Canada, a Roth makes no sense for you. Nor does an palin IRA, nor a 401(K). Your RRSP is still the way to go (or Cdn real estate).

Move to US and IRA 401(K) becomes more attractive.

You cannot put US mutual funds in your RRSP. In fact, you cannot buy US mutual funds unless you live in US. You can of course buy US$-based mutual funds from Cdn broker/dealers licensed in your province. You can also buy ETFs and put these in your RRSP (although why you would whiule the war goes on would be my question, since the US$ will continue to drop.)

The Cdn$ is a better risk right now.

There is no way of avoiding Cdn taxation unless and until you leave Canada.

You should be protecting yourself from the US$ at this time, especially since you are already being paid in that falling currency.