In this episode of Financial Planning for Canadian Business Owners, Jason Pereira, award-winning financial planner, university lecturer, and writer, interviews Ashley Murphy, Founder of the Global Financial Planning Institute. Ashley is here to talk about the challenges of financial planning across borders!
Episode Highlights:
- 1:15 – Ashley Murphy introduces himself and the GFPI.
- 2:26 – How did Ashley get into this space?
- 7:04 – Jason and Ashley break down the concept of working with 2 different playbooks in international financial planning.
- 11:22 – Jason discusses the US’s citizen-based tax regulations.
- 12:44 – Where are the biggest areas that international citizens feel the most agony?
- 15:30 – Jason and Ashley contemplate the probability of global tax regulation.
- 17:50 – Ashley explains the low propensity for the average citizen to do their own financial planning.
- 21:40 – Jason and Ashley discuss how lax the financial planning community is about cross–border financial planning.
- 25:07 – What is Ashley’s advice for anyone researching multi-jurisdictional financial planning advice?
3 Key Points
- As a tri–citizen, born in Australia and raised in the UK by an American mother before moving to the US, Ashley understands more than most the difficulties of international financial planning.
- When US citizens are dealing with cross–border issues, regulations and laws are interpreted differently in other countries which forces them to operate under 2 playbooks.
- Unlike almost every other country in the world, the US taxes people based on citizenship rather than residency. So, even if you move to another country, you have to file with the IRS.
Tweetable Quotes:
- “This is not merely some small belt-mounted toolkit of practices or issues that one can simply apply when dealing with an international cross–border plan. It’s a whole different specialty altogether.” – Ashley Murphy
- “When you’re dealing with cross–border issues, especially when you’re a US citizen, you’re dealing with 2 different playbooks.” – Jason Pereira
- “As advisors, all we can do is recommend that our clients fully follow the law...then we come up against a culture of ignorance, naivety, and non–compliance.” – Ashley Murphy
- “The problem is the advisors have an economic incentive to work with whoever they can and fluff their way through it.” – Ashley Murphy
Resources Mentioned:
Transcript
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