Travel: Snowbirds - Are You Testing the Winds?

As the leaves fall and the days get shorter, snowbirds begin testing the winds for their annual flight south. It may be a bit early to be hitting the road (or the skies) for your extended vacation in sunnier and warmer latitudes, but it isn't too early to start making preparations so your time in the sun will be enjoyable and worry-free. To keep you on the right road to carefree rest and relaxation, here are ten tips you should take before you take flight.

Purchase health insurance - Provincial health insurance plans vary in their coverage outside Canada , but it is usually never enough to cover US health-care costs. To avoid potential financial devastation, it is vital that you purchase adequate out-of-country medical insurance. Examine the coverage carefully and make sure your policy is adequate. For instance, some insurers will try to get you to return to Canada for treatment.
Make your RRSP contributions - If you have contribution room, it's always a good idea to make the contribution as soon as possible to get maximum tax deferral. It's even more important if you are going to be out of the country on the deadline day.
Review your power of attorney and will - Be sure your Power of Attorney and will are up-to-date before you leave – and that is even more important if you own real estate in the US. A Power of Attorney for your province may not be acceptable to deal with all your assets in the US, and the laws vary by state.
Have your mail forwarded by Canada Post - Do not change your address with your financial institutions to your temporary one out of the country. If you do, they will be forced to withhold non-resident withholding tax.
Make arrangements for income tax preparation - You may not be back before the April 30 th deadline or you may just want to get everything to the accountant in plenty of time.
Make arrangements to obtain cash while you are away - A US money market account with a Canadian financial institution may provide checking privileges.
Set up automatic debit for your bills - With your bills paid automatically every month, you can be sure you won't fall behind on any household obligations.
Check your cards - Make sure the magnetic stripes on your debit and credit cards are in good shape -- and your credit limits are sufficient. It may also be a good idea to contact the credit card company to let them know you are going to be out of the country as they could ‘cut-off' access to your card for security (theft protection) purposes if use outside your normal spending patterns is detected.
Plan for the number of days you will be away - Most countries restrict the number of days you can stay without formal immigration status. Being away more than 6 months will jeopardize provincial medical coverage.
Protect Your Nest Egg - Be sure your money doesn't go on vacation, too. From investments and taxes to bank accounts and credit card payments, every aspect of your financial life needs to be monitored even when you're far from home.

And remember – whether you're at home or away, it always pays to get help from a professional advisor.

(Submitted by Damon Smith, Investors Group Financial Services Inc.) For more information call 1.888.335.1362.

This column, written and published by Investors Group Financial Services Inc.(in Quebec – a Financial Services Firm), is presented as a general source of information only and is not intended as a solicitation to buy or sell investments, nor is it intended to provide professional advice including, without limitation, investment, financial, legal, accounting or tax advice. For more information on this topic or on any other investment or financial matters, please contact your Investors Group Consultant.

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