Canadian Expat Here - Advice Needed for US EFTs :)

Asset allocation, risk, diversification and rebalancing. Pros/cons of hiring a financial advisor. Seeking advice on your portfolio?
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canadianworldexpat
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Canadian Expat Here - Advice Needed for US EFTs :)

Post by canadianworldexpat » 19 Aug 2017 14:57

Hello to All!

I am new to the world of ETFs (index funds) and would really appreciate some initial advice if possible based on my situation. I am a non-resident Canadian (expat) living in the Middle East. As such I have no taxes in my country and residence, and also no tax obligations to Canada as I have no effective ties with Canada from the last 14 years.

OK, so with that said, I am looking to invest using Interactive Brokers online trading platform for 3 index funds (ETFs) on a monthly contribution basis - as a retirement plan. I have some questions below, if anyone with similar experience can assist, would be great :)

1. If I invest in US domiciled ETAs, would I be paying 30% tax on interest income, or would it be reduced to 15% as I am a Canadian citizen (or is the reduction solely based on country of residence versus citizenship)

2. The main online platforms that accept applications from my country of residence are Internaxx and IB. Does Internaxx offer any advantages over IB?

3. Is it wise to invest all index funds in US currency? My country currency is pegged to US dollar, and I will probably not retire in Canada - not sure of where yet :)

Any advice and tips would be greatly appreciated! :D

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Peculiar_Investor
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Re: Canadian Expat Here - Advice Needed for US EFTs :)

Post by Peculiar_Investor » 20 Aug 2017 09:55

Welcome to FWF.

FWIW, the OP has a parallel topic on the Bogleheads forum, see Canadian Expat Here - Need advice on US ETFs - Bogleheads.org.

Perhaps some of our ex-pat FWF'ers might have some insights to share.
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