Page 30 - INSIGHT MAGAZINE_July2024

ADVERTORIAL
DOLLARS & SENSE

Consider expanding your exposure with a U.S. Dollar Registered Plan

Global diversification is one of the golden rules of investing As before, you can contribute Canadian dollars, then convert
– it helps you reduce risk and enhance return potential. In the to U.S. dollars when you’re ready to purchase U.S. securities.
past, diversifying globally within a Registered Retirement In addition, you can now contribute in U.S. dollars and receive
Savings Plan (RRSP) or Registered Retirement Income Fund a contribution receipt in Canadian dollars for filing your
(RRIF) often meant incurring currency conversion costs. income tax return – without actually converting to Canadian
Not with the U.S. Dollar Registered Plan, you can diversify dollars.
globally with U.S.-based investments, while avoiding U.S./
Canadian dollar currency conversion costs and reducing the Available for new and existing plans
impact of unfavourable exchange rates. For those spending Usually at any investment firm or discount firm you are able
their retirement south of the border it is a great way to provide a to hold two sides to the account-one US and on Canadian.
consistent income and diversify in sectors where the Canadian There are no additional fees, and currency conversion costs
markets don’t have a strong representation. only apply when you specifically request a foreign exchange.
Key highlights:
Worth considering for globally minded Canadians.
With the U.S. Dollar Registered Plan, you can buy, • Flexibility: Contribute, buy, hold and settle in
sell and settle U.S. dollar-denominated securities U.S. or Canadian dollars.
such as stocks, ETF’s and bonds in U.S. dollars. • Cost efficient: When trading U.S. securities,
This makes purchasing U.S. securities much more you can choose to settle in U.S. dollars to avoid
cost-efficient within your RRSP, RRIF, Tax-Free currency conversion costs.
Savings Account (TFSA) or other registered plan. • Reduced risk: Diversify globally with U.S.
Previously, you had to pay currency conversion investments to reduce risk.
changes twice: once when you converted Canadian
dollars to U.S. dollars to purchase U.S. dollar- Erica Tennenbaum, CFP, FCSI • Greater opportunity: Access a greater range of
denominated securities, then once again when you Senior Portfolio Manager & opportunities in different sectors of the global
Wealth Advisor
converted U.S. dollars to Canadian dollars to settle economy through the U.S. marketplace.
a sale. • Most of our RRSPs, RRIFs, LIFs, LRIFs,
PRIFs, LIRAs and TFSAs now feature dual
Dual currency capabilities currency capability.
You can still convert between U.S. and Canadian dollars
within the U.S. Dollar Registered Plan, but now the choice • No need to switch: Most existing registered
is yours completely, giving you much greater control over plans automatically have dual currency
any currency conversion costs. For example, in the past, if capability.
you sold an investment denominated in U.S. dollars, the sale • Consider the income tax paid on large registered
would automatically settle in Canadian dollars at the prevailing investment portfolios – might be a better
foreign exchange rate. location for currency conversion.
Considering the U.S. Dollar Registered Plan, you can settle
in either U.S. dollars (without currency conversion costs) or It is important to work alongside your professional advisors to ensure you
Canadian dollars (with currency conversion costs), depending are considering the best strategies for you and your family. If you have
on your needs. any questions or would like more information please send us an email at;
erica.tennenbaum@rbc.com or give us a call at 519-621-6297

This information is not investment advice and should be used only in conjunction with a discussion with your RBC Dominion Securities Inc. Investment Advisor. This will ensure that your own circumstances have been considered properly and that action is taken on the latest
available information. The information contained herein has been obtained from sources believed to be reliable at the time obtained but neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers can guarantee its accuracy or completeness.
This report is not and under no circumstances is to be construed as an offer to sell or the solicitation of an offer to buy any securities. This report is furnished on the basis and understanding that neither RBC Dominion Securities Inc. nor its employees, agents, or information
suppliers is to be under any responsibility or liability whatsoever in respect thereof. The inventories of RBC Dominion Securities Inc. may from time to time include securities mentioned herein. RBC Dominion Securities Inc.* and Royal Bank of Canada are separate corporate
entities which are affiliated. *Member-Canadian Investor Protection Fund. RBC Dominion Securities Inc. is a member company of RBC Wealth Management, a business segment of Royal Bank of Canada. ® / TM Trademark(s) of Royal Bank of Canada. Used under licence.
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