RRSP for US resident - keep it or cash it in. Who to

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RE: Paying client - RESEND - RSP questionsYou are correct.
However, this particular writer is not in the USA temporarily.
He is a full time resident.
-----Original Message-----
Sent: Tuesday, June 22, 2004 2:28 PM
To: [email protected]
Subject: RE:  RRSP for US resident - keep it or cash
it in. Who to use when living in the USA - Shaun Rickerby TD
Waterhouse -
It is my understanding that a Canadian Registered Rep can manage
an RRSP for a U.S. Resident if a previous relationship existed
(in Canada) + the U.S. Resident lives in a "Self-Executing
Exemption" State + the resident is in the US temporarily (i.e. a
TN visa or snowbird).  Is this correct?
-----Original Message-----
From: [email protected]
[mailto:[email protected]]On Behalf Of
[email protected]
Sent: Tuesday, June 22, 2004 10:08 AM
Subject:  RRSP for US resident - keep it or cash it
in. Who to use when living in the USA - Shaun Rickerby TD
Waterhouse -
      Hi David,
      Good talking to you the other day.  The questions I had
sent on a couple of previous occasions follow:
      I have two RSPs, one w/ RBC and one w/ CIBC. Both currently
have my 'Canadian' (i.e. my mom's) address.  I want to change
them to my U.S. address, and RBC told me that offshore RSP
holders can't transact in their RSPs other than to sell holdings.
I'm fine with that.
      This is not true if you have it with the right broker.
Shaun Rickerby is the manager of a TD Waterhouse branch in
Kerrisdale in Vancouver.  His phone number is (604) 482-5188 and
his email is
       [email protected] or [email protected]
      The CIBC RSP, however, is worth less than $5,000, and I was
thinking of closing it and transferring the holdings in kind, or
the cash equivalent, to my RBC RSP.  Presumably I should do that
prior to putting through my address change.  Given my being down
here in the U.S., with my RSP reporting requirements, what do you
      1] Is it "better" to just leave it as is; i.e. will a
closure and transfer make for unnecessarily convoluted 2004 tax
      move both accounts to Shaun and deal with someone who
"wants" to deal with US residents and has licenced himself to do
so. The problem is that no one at the CIBC that I know of (there
may be someone and they should contact me if there is) has
licenced themselves to deal in the USA as Shaun has.
      2] Would your fee thus be higher for me next year?
       Whether you close it or move it, the paperwork has to be
done. Likely slightly higher unless it all fits into two hours
      3] If I closed it and didn't transfer it to my other RSP
and simply pulled the cash out and paid tax on it, would that
also make for a convoluted (and expensive) 2004 tax season, i.e.
would that be "worth" it?
      same as (2) above. We have your old names in the system.
Therefore, we have less to do than last year.  If you change it,
we have to put more in.  However, you cannot or should not leave
them where they are under the circumstances.
      4] In one (or more) of your emails to those of us on your
distribution list, did you mention that you can make a case for
U.S. residents to simply dissolve their RRSPs?  Can further info
be found @ centa.com?
      I can make an argument for anyone to cash in their RRSP's
but it is an individual decision that involves deciding whether
you want the government or a bank as your partner.
      For instance, in any ten year period I know of, you would
be better off today, borrowing $100,000 for an investment that
increases in value whether it is Real Estate or a good mutual
fund and then withdrawing enough out of an existing RRSP to pay
the expenses.
      This gets the money "out" of the RRSP and into your own
      Manulife has a fantastic Seg Fund system where they will
loan you $50,000 to invest, guarantee the principal at 10 years
and at a 4 % return, it is equal to an RRSP with thge same
investment.  At 8%, return which is less than the last ten years,
the leveraged investment should double the return of an RRSP with
the same amount of money going in.
      Thanks as always,
      Answers to this and other similar  questions can be
obtained free on Air every Sunday morning.
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      Res (604) 980-3578 Cell (604) 657-8451
      (604) 980-0321
      New email to [email protected]
      www.centa.com www.david-ingram.com
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