When the time comes, you can avoid foreign exchange fees using Norbert's Gambit - finiki, the Canadian financial Wiki. IIn case the OP didn't know, Vanguard now has a Canadian presence, but at this point is only offering ETFs.MyLittlePony wrote: All of my currency would be in US dollars, when I move back to Canada wont I have to pay a hefty fee to convert this currency to Canadian money once I cash in my investments for retirement? (I plan to retired in 25 - 35 years) Also the Canadian dollar is worth more than the U.S. dollar right now, although it seems many on here say the Canadian dollar is more susceptible to fluctuations.
The Canadian market represents a small portion of the global market, around 4%, so common wisdom for Canadian investors is to have 25% of their equity allocation in the US market and 25% in global (non-US) markets. I would suggest that there is no reason one cannot continue to use the Boglehead's philosophy north of the border. Another consideration for most Canadians is where will retirement spending occur. If most of your spending will be in Canadian dollars, then it does make sense to consider reducing your non-Canadian investment income to avoid currency fluctuations. Many retired Canadians spend their winters in the southern US, so keep US dollar investments to fund their US dollar expenses.MyLittlePony wrote:What is the most sound advice for Canadians, to have investments in both countries, or only one?
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