My wife (Canadian/US Dual citizen) & myself (Canadian Citizen) are retired, 66 yrs. old and want to reside permanently in the U.S.. We own homes (free & clear) in both countries.
Other than normal monthly debts, we have no liabilities. We require advice on U.S healthcare costs, tax implications and converting our Canadian investments to U.S. $$$, and an assessment on whether we can maintain our current lifestyle in US$$(modest). Can someone provide this information or advise us on where to look. Thank you.
looking for direction/advice on moving to the U.S.
Moderator: Mark T Serbinski CA CPA
As you are aware, healtcare costs are going out of control in US, so any estimates on what your healtcare options would be, are about as valid as yesterday's weather report.
You best advice is to do like most of your Cdn friends and merely winter in US, remaining in Canada sufficient time to remain on the Provincial health rolls (this is usually 5 or 6 months of the year).
Any minor tax savings you might acheive by moving to US, would most surely be eaten up by healthcare costs.
It is not an accident that many old folks are trying to get into canada at this point.
<i>nelsona non grata... and non pro</i>
You best advice is to do like most of your Cdn friends and merely winter in US, remaining in Canada sufficient time to remain on the Provincial health rolls (this is usually 5 or 6 months of the year).
Any minor tax savings you might acheive by moving to US, would most surely be eaten up by healthcare costs.
It is not an accident that many old folks are trying to get into canada at this point.
<i>nelsona non grata... and non pro</i>
I appreciate your advice, BUT, healthcare albeit free in Canada, the wait for service is ridiculous. Also, once medical problems arise, insurance to leave for the winter is unobtainable or far too expensive.
By my calculations, what I am paying in Canada to mainain a home would come close to paying for medical coverage in the U.S.
Ideally, what I would like, is to have one "home" with no hassles about the worry of healthcare and the 6 months moving. I am sure that the tax liability with the deductions incurred thru healthcare premiums and NAFTA would be a wash.
Am I wrong in my thinking.
By my calculations, what I am paying in Canada to mainain a home would come close to paying for medical coverage in the U.S.
Ideally, what I would like, is to have one "home" with no hassles about the worry of healthcare and the 6 months moving. I am sure that the tax liability with the deductions incurred thru healthcare premiums and NAFTA would be a wash.
Am I wrong in my thinking.
Indeed, getting rid of your Cdn home, and using the proceeds from this to finance your lifestyle in US would come out as a wash.
However, remember that the 'snow-bird' insurance, which you find expensive, factors in that you already have Provincial Healthcare coverage. Your US-only healthcare coverage will be more expensive than this, on the order of $1500 or more a month (conservatively).
You probably won't qualify for any Medicare benefits on your own (your wife might -- depending on how long she worked in US -- and thus you might have a higher-premium medicare allowance).
I don't know what 'NAFTA' has to do with this discussion, unless you are an import/exporter.
So, bottom line, your yearly healthcare and tax expenses will be higher in US than they are in Canada. The only saving you will have is the maintenance of one less house.
As to not having to worry about healthcare once you move to US, I know lots of folks in their late 60's who cannot quit their jobs, because the loss of their healthcare insurance would be catastrophic. Ironically, one is a 'healthy' Cdn woman still working in her 70s. She would be retired 15 years ago in Canada, she is paying about $600/mo for her meds/premuiums, and that is all subsidized by employer and Medicare, which you won't have.
I think you may be over-estimating the tax differences between US and Canada.
One advantage that you both would have is that when trouble starts, you could move back to Canada (as you are citizens), instead of having to sell everything you had to pay hospitals.
<i>nelsona non grata... and non pro</i>
However, remember that the 'snow-bird' insurance, which you find expensive, factors in that you already have Provincial Healthcare coverage. Your US-only healthcare coverage will be more expensive than this, on the order of $1500 or more a month (conservatively).
You probably won't qualify for any Medicare benefits on your own (your wife might -- depending on how long she worked in US -- and thus you might have a higher-premium medicare allowance).
I don't know what 'NAFTA' has to do with this discussion, unless you are an import/exporter.
So, bottom line, your yearly healthcare and tax expenses will be higher in US than they are in Canada. The only saving you will have is the maintenance of one less house.
As to not having to worry about healthcare once you move to US, I know lots of folks in their late 60's who cannot quit their jobs, because the loss of their healthcare insurance would be catastrophic. Ironically, one is a 'healthy' Cdn woman still working in her 70s. She would be retired 15 years ago in Canada, she is paying about $600/mo for her meds/premuiums, and that is all subsidized by employer and Medicare, which you won't have.
I think you may be over-estimating the tax differences between US and Canada.
One advantage that you both would have is that when trouble starts, you could move back to Canada (as you are citizens), instead of having to sell everything you had to pay hospitals.
<i>nelsona non grata... and non pro</i>