KeatsConnelly Cross-Border Weekly Best of the Web 2015-5-8

web-search-greyEvery week we share news stories, blog articles and other interesting stuff from around the web that received the most views, shares, comments and overall interest on various KeatsConnelly social media outlets.

This week we begin with an article reviewing financial literacy (or lack thereof) around the world, then move to an article discussing issues with FBAR reporting requirements, next to a piece on concerns with leaving inheritances to children, and finish with a view on recent US economic news and potential implications for Canadians.

Most People in the World Have No Idea How to Manage Their Money (http://www.theatlantic.com/) – Do you understand money? Let’s see how well you do with the following questions. 1.  Suppose you had $100 in a savings account and the interest rate was 2 percent per year. After five years, how much do you think you would have in the account if you left the money to grow? A) more than $102; B) exactly $102; C) less than $102; D) do not know; refuse to answer. 2.  Imagine that the interest rate on your savings account is 1 percent per year and inflation is 2 percent per year. After one year, would you be able to buy A) more than, B) exactly the same as, or C) less than today with the money in this account?; D) do not know; refuse to answer…

The FBAR tax plight: The maddening implications of when Uncle Sam deems you have signing authority (www.financialpost.com)  – One million American citizens in Canada face double tax troubles. Max Reed explores these challenges in a spring series. The United States has two tools with which to collect information on accounts held by its citizens, FATCA and FBAR. Lots of attention has been paid to FATCA, less so to FBAR (Foreign Bank Account Reporting). FBAR targets accounts that U.S. citizens own as well as accounts over which U.S. citizens have signing authority. The ownership piece is pretty straightforward. U.S. citizens in Canada are obliged to file an FBAR form if they have an ownership interest in “foreign” bank accounts, those outside the United States, which have a cumulative value of US$10,000 or more…

Wealthy Parents Worry Kids Will Squander Inheritances (http://www.accountingtoday.com/) – Many high-income parents are concerned that by leaving a large inheritance, it can do more harm than good for their loved ones, according to a new survey. The report, “How Much Should I Give to My Family?” released Thursday by Merrill Lynch’s Private Banking and Investment Group, is based on a survey of 206 high net worth parents with $5 million or more in investable assets about their wealth management plans…

Canadians should cross their fingers for a U.S. resurgence (http://www.theglobeandmail.com/) – Canadians had better hope the U.S. economy isn’t really as bad as it looked in the first quarter of 2015. Because if it is, Canada’s dreams of economic salvation courtesy of its southern trading partner may soon face a rude awakening. Everyone expected U.S. gross domestic product figures to come in tepid for the first quarter, after another horrid winter and a series of weak indicators had signalled sluggish growth. But they hadn’t expected that the supposedly booming U.S. recovery had stalled almost entirely: Just 0.2-per-cent GDP growth on an annualized basis in the three months ended March 31, according to the Commerce Department’s first estimate for the quarter…

Come back next week for more interesting news and articles. Enjoy your weekend!

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Cross-Border Series
The Border Guide
Now available in its 11th edition, The Border Guide has sold over 80,000 copies and is considered the definitive cross-border financial tool for Canadians living, working and investing in the United States.
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This book will show you how to realize your dream of living a lifestyle in a climate that allows for year-round golfing and sandy beaches while lowering your taxes and cost of living.
Taxation of Canadians in America
This book addresses individual US taxation and estate planning issues you will face as a Canadian living in the US.
Taxation of Americans in Canada
US citizens and green card holders are subject to US tax regardless of where they reside in the world. Are YOU at risk?

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