Context: I'm a US citizen who worked in Canada for several years but have since returned to the States. I have a LIRA worth ~C$90k, which I duly report on my FBAR every year. My Canadian broker told me before I left that it would become difficult or impossible to make allocation or buy/sell changes to my LIRA portfolio from outside Canada, so I put it all in a "self managing portfolio" account that was supposed to do all that automatically. Turns out it's much better at generating fees ($150/month) than returns (1.5% IRR over the last 3 years). In retrospect, I have to wonder whether the advice was sound or if this was just a convenient excuse to push me into a high-fee situation indefinitely.
So the question: what options do I actually have for managing my LIRA while residing in the US? Given a choice, I'd sink it all into a handful of low-cost index funds and then basically ignore it for the next 25 years except to rebalance on occasion and adjust asset allocations as I age. I don't feel a particular need to bring it across the border, but if that's the only way to get a decent portfolio then I'm open to that idea. I still have Canadian permanent resident status for a couple more years if that helps.
(I was referred here from the Bogle forums)
LIRA portfolio management for non-resident US citizen
Moderator: Mark T Serbinski CA CPA
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Thanks for the links, Bubba Gums.
If I'm reading correctly, self-directed retirement plan holders who are "temporary" US residents are exempt from the usual SEC requirements that would require their broker to be registered in both US and Canada. I couldn't find a definition of "temporary" anywhere in your links or the official SEC rule, but I have no plans to move back to Canada and so probably cannot be classed as "temporary" by any reasonable definition.
So I guess that means I need to find a dual-registered broker who charges less than my current self-managed portfolio. That seems like a pretty low bar to meet, given the portfolio's dismal performance. Any recommendations?
If I'm reading correctly, self-directed retirement plan holders who are "temporary" US residents are exempt from the usual SEC requirements that would require their broker to be registered in both US and Canada. I couldn't find a definition of "temporary" anywhere in your links or the official SEC rule, but I have no plans to move back to Canada and so probably cannot be classed as "temporary" by any reasonable definition.
So I guess that means I need to find a dual-registered broker who charges less than my current self-managed portfolio. That seems like a pretty low bar to meet, given the portfolio's dismal performance. Any recommendations?
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