Packing up your life and moving to a different province is not an easy conclusion to come to. There are many reasons why Canadians decide to switch provinces, whether it be for a new job, closer to family, or for a better quality of life. Regardless of their rationale, there are many common mistakes that Canadians fall victim to when shifting to another province. All of which can be avoided with professional advice from a financial advisor.
The income tax rate is one mistake that clients often overlook. Moving from a province with a lower rate to one that has a considerably higher tax rate is often an unwelcome surprise for many clients. Ensuring clients have a clear understanding of what to expect come tax season can guide them in the decision-making process. The cost of living is another essential conversation. Elements such as housing, transportation, and property tax will all have an impact on financial planning.
As health care is a provincial matter, coverage and benefits differ in each province. Understanding the healthcare needs of clients will provide a better picture of what they can expect, and whether or not they should plan to switch over to private insurance. Credit is another matter to account for. Advisors should ensure that all expenses, such as bills from the province the clients are leaving are accounted for, so as to not damage their credit history.
When moving to a new province, Canadians may be surprised that their current advisor may not be able to assist them once the move is finalized. Each province has its own regulations and licensing requirements, meaning the client may have to look for a new advisor. If an advisor has a large network that spans nationwide, connecting clients with a trusted planner in a new province is very beneficial. The final piece that clients and advisors need to address is how the move will impact their long-term financial plan. Will the move have a positive or negative impact on retirement? Understanding the stability and security of their financial plan will play a key factor in the move.
For more information on helping clients move provinces, follow the link below
https://www.theglobeandmail.com/investing/globe-advisor/advisor-news/article-six-mistakes-people-make-when-moving-between-provinces/