New Canadians should not lose sight of goals
Adjusting to a different country is a challenge that all new Canadians face. The transition is even harder if a person’s finances are not in order. With that said, how a new Canadian handles their finances has a lot to do with their situation before the move.
“New Canadians come to Canada with all sorts of different financial situations,” says Tina Tehranchian, a certified financial planner in Toronto.
It is those differences that inform Tehranchian’s recommendations when she is working with a new Canadian.
She says the biggest challenge for new Canadians who operate with modest budgets is finding a job and establishing a steady cash flow. “Until that happens, it is very important that new Canadians monitor their cash flow very closely.”
According to Tehranchian, who is also a branch manager for Assante Capital Management, anyone considering a move to Canada should have enough funds to live on for at least a year.
And though the first year can be daunting, she says new Canadians should not lose sight of their long-term goals.
“It is difficult for new Canadians to look at long-term goals because they are so focused on the short term,” she says. But, she adds, a certified financial planner can help new Canadians by discussing their life goals and coming up with an overall financial plan.
As for new Canadians who are coming to Canada with an already sizable income, Tehranchian says they should contact a financial planner shortly after establishing residence.
“The more assets the more you have to look into investment opportunities, the more important it is to talk to a certified financial planner.”
She also recommends new Canadians set up an Immigration Trust, which would protect any income that is brought to Canada from taxation for up to five years.
In order to maximize the benefits of the Immigration Trust, Tehranchian says new Canadians should look into setting it up before moving.
Whether you are rich or of a more modest income, there is one piece of financial advice Tehranchian says applies to all new Canadians: “More than anything, I think they should start educating themselves.”