Where do I start? -- It's so complicated.

[Gemini]

Admittedly, I've never been into finance much and as a result, I'm not the most financially savvy person around.

I'm 37 years old, Canadian non-resident, and over the last couple of years have finally managed to put a bit of money away. Unfortunately, it is all sitting in a zero-interest Japanese bank account, wasting away... So, I want to invest and build myself a nest egg so that I can retire comfortably someday. You know the Japanese pension isn't going to do it for me!

But where do I start? And what are the implications for a foreigner in Japan investing?

If I want to develop a portfolio, I need to diversify, right? So, I'm looking at investing in a mutual fund, a few stocks, and perhaps a bit of currency.

But where do I invest? First of all, as a Canadian non-resident, I don't have to pay taxes to the Canadian govt on my income. However, what if I sign up for Etrade Canada and buy stocks through them? How will that affect me? If my stock purchase's value rises by $30,000 in the first year, do I have to pay taxes to the CDN govt for that even if I leave it in stocks? Or do they only hit me with taxes after I've cashed in as a capital gain? Can I avoid this by going through Etrade Japan? How are taxes paid when you have stocks or mutual funds? I read somewhere that interest-bearing investments such as CDs, you have to pay tax yearly.

I can't pay into an RRSP because I'm a non-resident, but is there something similar where you can not only write off your contributions, but you can also keep your total amount, return included, until you decide to sell?

Does purchasing off-shore investments help in any of this?

And lastly, for now, what would be the best way to go about buying mutual funds? I've been getting emails from Magellan for a long time now, but I'm scared because I just don't know much about the game and I don't want to get screwed. They've got funds offered by Man Group that seem to do really, really well, but how much do they take from you for fees? Is it a rip-off or something worth investing to? What's the major difference between Banner, Magellan, etc.? Is there anything to fear that one of these companies just takes my money and runs with it or that the conditions I agree to because of my own ignorance means I'll have ____-poor performance in the end?

What is a good, reputable investment company in Japan to go with? Magellan? Banner? Expat Funds? What?

So confused... Please, can someone help steer me in the right direction before I waste any more time?

Thanks!

[sankokujin]

You are not alone with questions like these!

All gaijin in Japan need to think about building a long-term portfolio that will ease them into retirement because state benefits and pensions are not going to be anything like as generous as they are now in either Japan or any other G7 country.

I've started using E-trade to dabble in UK stocks (as I'm Irish I don't have to pay tax) and am thinking about getting into US stocks when I get a bit more experience and confidence. I've also opened up an investment/pension fund with Expat Funds, although I don't want to go into details publically. Send me a pm if you wanna chat!

[steeny]

Don't forget about property. Another good vehicle for investment, easy to understand and good peace of mind.

I don't know where you are, but here's a link:

http://www.geocities.com/y3tg

Of course you don't need to buy mine, but property is something to consider, especially if you believe prices are on the rise.

Originally Posted by Gemini

AWhat is a good, reputable investment company in Japan to go with? Magellan? Banner? Expat Funds? What?

So confused... Please, can someone help steer me in the right direction before I waste any more time?

Thanks!

Banner and Magellan are not investment companies. they are independent financial advisors that sell investment plans for offshore finance companies in Channel Islands, Guernsey etc., They are nothing more than glorified salesmen but work independently of these big companies. You tell them what you want and are looking for and they will suggest a range of options for you.

I have had funds invested with some offshore companies in the Channel islands since 1992 and Banner is my IFA. I did work with a guy in Magellan too but he got transferred to Hong Kong. I got stung on the lloyds cheap home loans as well.

Banner and Magellan can not run off with your money as you dont pay them directly. They get paid a 1% management fee by the offshore company. Its like a brokerage fee. They will also sell you offshore life insurance as well as health insurance.

What you have to be careful of with Banner and Magellan etc is who you are dealing with, their qualifications and expertise. I have been involved with some companies that will sell you a plan and they are gone in six months. i still have the managed funds that go up and down like a roller coaster but you really have to know what you are buying, what you are willing to invest. Im not a financial advisor and cant give you money advice but i have about $40,000-50,000 locked up in these offshore funds. Its still your money you can cash it in when ever you want but there are costs involved if you do that.

make sure that things are properly explained to you e.g. exit fees if you cash in within 5 years can eat up 50% of your surrender value. Costs for stopping payments but keeping fund in sleep mode. payments are withdrawn from your investment like a debit instead of paying cash.

[Gemini]

Originally Posted by paulh

Banner and Magellan are not investment companies. they are independent financial advisors that sell investment plans for offshore finance companies in Channel Islands, Guernsey etc., They are nothing more than glorified salesmen but work independently of these big companies. You tell them what you want and are looking for and they will suggest a range of options for you.

Thanks for the replies folks. So, Banner and Magellan are advisors. Got it. So, the investment company would be Man Group, right? But I can't buy directly from them, so I have to go through the advisor, is that correct?

And what they are pushing are indeed offshore investments, right? Does this mean I get to escape the taxman? And is it really 'legal' to do so?

About avoiding taxes, a friend of mine told me tonight that as long as my money is tied up in stocks, I don't pay taxes on it until I change them back to cash because you never know what it'll be worth next month. Sounds reasonable and it's what I suspected, which is good. However, you do pay tax on any dividends you may receive, right?

Originally Posted by paulh

I have had funds invested with some offshore companies in the Channel islands since 1992 and Banner is my IFA. I did work with a guy in Magellan too but he got transferred to Hong Kong. I got stung on the lloyds cheap home loans as well.

Two questions. What is an IFA? "Investment and Financial Advisor"? And how was your experience with these companies (Banner and Magellan)? I'm guessing not to bad, since it sounds like you've been dealing with them since 1992, correct? How does the guy you were dealing with taking off to Hong Kong affect you? I mean, wouldn't they just assign another advisor to your portfolio to manage your accounts?

Originally Posted by paulh

Banner and Magellan can not run off with your money as you dont pay them directly. They get paid a 1% management fee by the offshore company. Its like a brokerage fee.

So, there is no way to bypass them and get a plan cheaper somehow? Usually planners make a percentage of whatever your portfolio earns, don't they? If these guys get 1% of my investment, regardless of how it performs, then were is the incentive to make sure they sell me something good? Are they just trying to push worthless funds on me that aren't selling well?

Originally Posted by paulh

What you have to be careful of with Banner and Magellan etc is who you are dealing with, their qualifications and expertise.

How would I verify their qualifications, and how could I ever know how to evaluate their expertise when I barely know anything about this myself? Is there a way for me to confidently do this myself? The person that has been trying to sell me has been there at least two or three years. Does that mean anything? Is there anyone you'd recommend I ask for?

Originally Posted by paulh

I have been involved with some companies that will sell you a plan and they are gone in six months.

This is a problem because it's better to have the same person manage your funds, right?

Originally Posted by paulh

i still have the managed funds that go up and down like a roller coaster but you really have to know what you are buying, what you are willing to invest. Im not a financial advisor and cant give you money advice but i have about $40,000-50,000 locked up in these offshore funds. Its still your money you can cash it in when ever you want but there are costs involved if you do that.

make sure that things are properly explained to you e.g. exit fees if you cash in within 5 years can eat up 50% of your surrender value. Costs for stopping payments but keeping fund in sleep mode. payments are withdrawn from your investment like a debit instead of paying cash.

Yeah, the brochure she sent me last says I'd get dinged for 4% if I cash out before 2008 or something like that, but 0% if I stay with it till 2012.

This means that if the fund hasn't appreciated at all, I'd lose 4% on my investment, if it had appreciated by 4%, I'd get roughly what I invested, and if it had appreciated by 10%, I'd net 6% out of the deal, right?

This is what scares me, that there might be other hidden fees and such that I had no idea to look for in the first place.

I was looking at the Man Group stock listing on the FTSE 100 and it seems that it grew by leaps and bounds greater than their best performing fund! The stock is up 1200% in 10 years, compared to 300% for the fund. Considering the fund costs $50,000 to enter and I could get the stock for as low as however many shares I want to buy, wouldn't the stock be a better option?

Originally Posted by steeny

Of course you don't need to buy mine, but property is something to consider, especially if you believe prices are on the rise.

Had a look. Does that price include the land? Wouldn't the land, (pretty much any plot in Japan), be worth more than that? Shows you how much I know about RE. LOL. And an obvious question would be, if the return is so good, why would you sell it?

And finally, to open an Etrade Japan account, I need an inkan, right? I've got a hanko I use at work, unoffical, not registered. Can I use that? Embarrassed to admit, I don't even know the difference between a hanko and an inkan as I've never needed to use one.

Originally Posted by steeny

Don't forget about property. Another good vehicle for investment, easy to understand and good peace of mind.

I don't know where you are, but here's a link:

http://www.geocities.com/y3tg

Of course you don't need to buy mine, but property is something to consider, especially if you believe prices are on the rise.

Don't touch property! Especially not in this country! When the bubble burst I couldn't liquidate fast enough and lost 50% of my net worth in a matter of weeks.

Be careful of stocks as they are very voliatile. I'd invest the money in the Channel Islands as the safest route and use the interest which is quite healthy to play the markets and funds.

Would not recommend investing in a company or partnership unless you know the people managing the company and trust them. I put a lot of money into Roger's company−GOL at the start. Long story and most oldtimers know it.

[dipchick]

My advice is this - find out who your friends/relatives with money are using. Generally speaking, it is better to invest your money with an expert (you use a surgeon to do surgery, you don't do it yourself...), but that expert should be a real expert, not some guy who decided to do this as a second, third or fourth career.

Stay away from investment "franchises" and go with a firm that is long-standing and is used by people who have real money - although some of these will have a minimum initial investment of 250 - 500 thousand.

It is better to pay taxes on capital gains than to lose it all (or not have any capital gains at all) through doing it yourself or hiring a used-car salesman (no offence!) to manage your money.

And while it is possible to manage your investments yourself, it requires a huge amount of knowledge and time to do so.

Originally Posted by Gemini

Thanks for the replies folks. So, Banner and Magellan are advisors. Got it. So, the investment company would be Man Group, right? But I can't buy directly from them, so I have to go through the advisor, is that correct?

Normally you can not approach the finance companies offshore directly but you go through Banner and Magellan etc. Once you have invested your funds its possible to change advisors or even advisory companies. Some of these companies come and go in Japan on a regular basis. Banner has been around since the 80's.

And what they are pushing are indeed offshore investments, right? Does this mean I get to escape the taxman? And is it really 'legal' to do so?

These are invested in tax shelters which means you dont pay tax on it as long as its invested. take it out and cash it in then it becomes income. The US IRS doesnt recognise many of these offshore funds and you may pay taxes if you are a US citizen. Check with Banner or Magellan on your tax exposure before investing. If you have a pension fund you may have funds tied up for 10-15 years. its not a pension if you cash it in after 5 years or the stocks take a dip. My funds lost about 20-30% of their face value during the 90's. You only lose if you turn a paper loss intoa real one by panicking and cashing in your fund. Stocks are cyclical and you have to ride out the troughs. there have been about 5 or 6 market crashes since 1930. and the market has always rebounded.

About avoiding taxes, a friend of mine told me tonight that as long as my money is tied up in stocks, I don't pay taxes on it until I change them back to cash because you never know what it'll be worth next month. Sounds reasonable and it's what I suspected, which is good. However, you do pay tax on any dividends you may receive, right?

You wont get cash dividends but its re-invested into boosting your stock portfolio, You end up with more shares etc which is not taxable. I dont include my overseas shares on my tax return in Japan.

I have managed funds in New Zealand and declare dividends for tax purposes but they are negligible. (I own real estate there and file a return for my rental income and dividends are added to that, I make a book loss on the apartment while its appreciating in value. Share dividends dont make that much difference unless you have about a million dollars invested and dividends are 50 grand a year.

Two questions. What is an IFA? "Investment and Financial Advisor"? And how was your experience with these companies (Banner and Magellan)? I'm guessing not to bad, since it sounds like you've been dealing with them since 1992, correct? How does the guy you were dealing with taking off to Hong Kong affect you? I mean, wouldn't they just assign another advisor to your portfolio to manage your accounts?

Independent Financial advisor. Banner makes money by having satisfied customers and if your fund makes money he makes money. the finance company and banner are a symbiotic relationship. Banner brings them clients with money to invest. Your fund does well, stocks go up and you are one happy camper, Banner will let you know about other funds as well. All they do is give advice. Ultimately its your money and you choose how to invest it. It depends on your personal goals and your comfort levels with RISK,. Its risky if you dont know what you are doing, who your adviser is and you dont know where you are putting your money. Its risky if you dont ask how long the minimum term is, you pull it out after three years and you attract exit fees.

Some advisers may not tell you you have a minimum initial period (usually 18 months) where you cant take your money out or cash in your investment. My personal advice is to only invest money is you dont mind not touching for at least five years. The worst that can happen is you get back what you put in or a small loss. You lose your shirt if you pull it out early or keep switching funds or finance companies. You have exit fees and set up fees but transfers between funds in the same investment e.g. the America Fund to the Global opportunities or the UK fund) are usually free of transfer fees.

So, there is no way to bypass them and get a plan cheaper somehow? Usually planners make a percentage of whatever your portfolio earns, don't they? If these guys get 1% of my investment, regardless of how it performs, then were is the incentive to make sure they sell me something good? Are they just trying to push worthless funds on me that aren't selling well?

Yes you can bypass them and invest it at the local dog track or a casino. See how long your money lasts. You get what you pay for and if you dont want to pay for advice you deserve to lose it. If you want to cut corners and skimp then you wont get very far. You sound like you want to get the best returns, dont pay tax on it but are not willing to pay for it. thats your privilege. If your fund makes money, so do you and so does Banner and Magellan. a win-win situation. If you cannot handle risk you shouldnt be investing. Over the long term stocks and property have also done well. Day trading is like legalised gambling and highly addictive.


You get what you pay for, IMO. Pay peanuts and you get monkeys and its YOUR money you are talking about.


[quote]How would I verify their qualifications, and how could I ever know how to evaluate their expertise when I barely know anything about this myself? Is there a way for me to confidently do this myself? The person that has been trying to sell me has been there at least two or three years. Does that mean anything? Is there anyone you'd recommend I ask for?[quote]

Simply ask them. Ask them what their experience is, their professional qualifications are. I think there are actual professional university qualifications for licenced investment advisors.

Best bet is to ask to get some referrals from their clients to see how their clients funds have done. Finally, ask them where they have invested their own money. A good advisor will put his money where his mouth is and have his own money invested in funds real estate. Stay away from people who only invest other peoples moeny, not their own. Find out where they worked before their present company and perhaps even contact the company. some advisors in japan have been former office workers and salemen without formal financial expertise, If they get you to sign up for a financial package they get a brokerage fee or a commission.

Some you can ask to pay a one-off fee for their advice rather than a percentage brokerage fee. Free advice is worth just that: NOTHING.

This is a problem because it's better to have the same person manage your funds, right?

If the guy you are talking to was a former barman or a bouncer and is now a financial advisor then you may as well go and ask you mates at the pub. Do a Google search on choosing an Independent Financial advisor. Shop around. remember he doesnt have your money, the finance company does. My one has investments in the billlions of pounds and my shares are spread over about 15 different funds in the US, Asia, Europe, tech stocks, India and china. so you wont lose all your money

Yeah, the brochure she sent me last says I'd get dinged for 4% if I cash out before 2008 or something like that, but 0% if I stay with it till 2012.

Most of the money you put in in the first year will be taken up with setting up the fund. If you take it out aftre 3 years you will lose half your investment. The money you make over 10 years will outweigh any initial costs. Be prepared to keep in in for the long term and dont bail out. If you want cash on hand then spend it at the races. Your odds are just as good.

This means that if the fund hasn't appreciated at all, I'd lose 4% on my investment, if it had appreciated by 4%, I'd get roughly what I invested, and if it had appreciated by 10%, I'd net 6% out of the deal, right?

Over the long term and keeping in mind the dips in the market at any one time, shares will fall and rise in price. Look at what happended with Live door and the latest scandal. people panic and cash out and sell shares and lose money. Over the long term (5-10 years) the market ALWAYS appreciates.

My funds average between 8-15% though some years they dont make anything.

This is what scares me, that there might be other hidden fees and such that I had no idea to look for in the first place.

I asked about hidden fees and emailed the finance company and they told me what the costs were of exiting a fund. Traditionally brokers such as Banner make about a 1% brokerage fee on your funds. I have some funds that Im not funding every year, they are still invested but i pay a management fee of about 2,000 yen a month for putting them on 'hold' mode until i make further payments. You are also given a prospectus which outlines the past performance of the fund (some funds have 10-15 year histories). A new fund will have no history whatsover. Read the prospectus and ask the IFA if you dont understand something.

The IFA is not your enemy, the relationship has to be based on trust and is there to help you. If you have the attitude you are going to lose money and the IFA is just there to rip you off then you have no business investing money with them. Do your homework, learn what questions to ask and shop around.
A lot of rich people surround themselves with experts such as accountants, lawyers, stockbrokers, bankers. They pay for professional advice, if you want to skimp and cut corners and get something for nothing thats fine. If you want to get professional advice you have to pay for it.





First you must set some goals for yourself and know what you are looking for.


How much do i have to invest?
what time period do i want to invest?
Are there any initial investment periods?
How much do I pay each month.year?
what are the costs for withdrawing?
what is the history of the funds I plan to invest in?
How risky is it and how comfortable am I with risk? (putting it in the bank or post office is not risky but you lose money through inflation)
High risk also means high rewards but you have to be able to absorb any short term losses and ride out the troughs in the market.
what is the experience and qualifications of the advisor? Does he know what hes talking about?
wahts more important to him- his commission or helping you make money? (which helps him make money, indirectly through brokerage fees)
Does the fund attract taxes in my home country?
Can i take the fund back home or invest in it from my own country.? (Many Channel Island funds are exposed to IRS taxes in the US)



what can I afford to not see for the next 5 to ten years?
what are my financial goals? e.g how old am I now and what do I think i need for a pension/to live on when Im 60? (IFAs can calculate what you will make if you invest each year over the next 20 years if you say you need to make a million dollars to net you a 5-10% dividend income of $50-100,000 a year in future dollars.

work out what you need to live on in 20 years time based on todays dollars and work backwards to what you need to invest to get there. If you dont knwo what you want long term the IFA doesnt know either.

Do you want a short term quickie investment? e.g. a 1-3 year fund?

what is my comfort level with RISK.

Putting your money in a post office and watching inflation eat it away is more risky IMO.

Choosing an Independent Financial Advisor

Arranging and prioritising your personal finances can be complicated and time-consuming. An independent financial advisor (IFA) will be able to make your life easier by helping you choose your investments and then watching them for you.

You could get financial advice from your bank, but it won’t be impartial because each institution only offers its own products, and these may not necessarily fit your needs.

Similarly, stockbrokers, solicitors and accountants can all help you with your financial inquiries, but they will concentrate on their own areas of expertise. IFAs are the only type of financial advisers able to select from all the products available in the marketplace.

Finding an IFA

An Internet search or a website such as IFA Promotion (www.ifap.org.uk) will help you find an advisor in your area. Arrange meetings with a few IFAs for initial discussions that will be free of charge. Always visit the firm’s offices for a better idea of how it operates. Ask how long the business has been operating − you may feel more comfortable with a firm that has a long track record.

Ensure that the advisor is fully qualified. They must have at least all three components of the Financial Planning Certificate (financial services and their regulation, protection, savings and investment products, and identifying and satisfying client needs) or an equivalent. Something better is preferable − like the Advanced Financial Planning Certificate is preferable.

Even if an IFA boasts a wealth of qualifications, he or she is unlikely to be an expert in all fields. Don’t be afraid to ask if another of the firm’s advisors may be able to help in some matters. In a larger organisation you may end up dealing with more than one advisor as a matter of course. You may find a smaller firm more suitable if you prefer to deal with the same person all the time.

A large company is likely to have a well-staffed research department with an array of analytical tools at their disposal, but a good advisor who works from home should also be adept at researching facts with the help of just the internet and a few software programs.

Importantly, make sure that the IFA is regulated by the Financial Services Authority (FSA) or a similar regulatory body. The FSA’s website (www.fsa.gov.uk) enables you to check the validity of advisors and firms.

Be prepared for open and honest discussion with the adviser about your finances. They need accurate information from you in good time to make your money work effectively. Discuss your financial goals and how they can be achieved.

An advisor who simply hands you a sheaf of papers once a year is no good. Remember, he or she is working for you, not vice versa, and should be willing to meet with you regularly. They should also be happy for you to talk directly with providers of products in which you are investing.

Paying an IFA

There are two methods of payment − commission and fees. With the former, your investment pays your advisor a small percentage of whatever you earn. Amounts vary from product to product. On average, advisors earn 0.5% commission on the value of your investments each year.

The prospect of commission shouldn’t influence the IFA’s advice, but it does mean that some advisors are more independent than others (because some won’t recommend investing in financial companies and products that don’t pay commission). Good advisors will recommend products, such as tax-free ISAs, that earn no commission.

An hourly fee − which can be anything between £50 and £250 − removes any influence of a commission for your IFA, but may prove more costly. Setting up a personal pension, for instance, can take several hours. And you have to pay every time you take advice, even if you don’t buy the product.

To get you started, what someone like Banner or magellan will tell you about managed funds is that there is 'risk' but this can be minimised by what is called 'dollar cost averaging' Its explained in the following link but what it means is that if you paying say 50,000 yen a month into a fund, if the price of the share goes down in the meantime, you can buy more shares at a cheaper price. its like buying things at half price at a bargain sale. What goes down must come up and if you average out the total number of shares you own over the 12 months at 50,000 yen a month, on average its cheaper than buying just at the high price. The average price you pay for them is lower, and they are worth more when they go up in value.


http://beginnersinvest.about.com/cs/.../a/041901a.htm

Lower prices mean more expensive shares are worth less than you paid for them, but you also pick up extra shares chepaly when the price is low. The averages will iron out the kinks but you have to stay in the market to collect.

IMO TIME is your best friend, not necessarily your IFA.

Thanks Paul for your insight on this topic Paul.

My investment strategy is based on three separate tools at the moment.

Firstly, although this won't apply to most of you in Japan, I put as much into the company superannuation scheme as I can.

Secondly, compounding interest is something I love to take advantage of. I have money on TD, and each time it matures I add a bit more to it, and then reinvest it at whatever the best rate is.

Thirdly, I have a managed fund set up as well. When I get back to Japan in 2008, I won't be able to continue the company super obviously, so I'll use this as an ongoing investment. I am making regular contributions, but by the time I get to Japan, there will be enough in there so that I can just make lump sum contributions when there's money left over.

As Paul says, I'm treating time as my friend in this regard.

I dont want to get too technical on the OP but there is something esle called the rule of 72. what this is is the length of time for your money to double in value. this is 72 divided by the rate of inflation, so say iinflation is 9%. 72 divided by 9 is 8 so it means if you have $1000 it will take 8 years to have the buying power of $2000. 16 years it becomes $4000. 32 years it becomes $8000. Imagine what happens if you are putting $500 a month away or $6000 a year. $12,000 in 8 years, $24,000 in 16 years.

that is why time is so important and you simply have to keep money there., If you keep shifting around and changing advisors and buying and selling (which is speculation, not investment) you wont make the same returns over the long term.

There are some best selling books in Australia called Making Money Made Simple by Noel Whitaker and "More Money" by the same author. Explains stocks, shares, real estate, cash investment, choosing an advisor in simple language. You have to educate yourself, read a lot and start of small and build up. Dont put all your money on one horse or in on company. Even rock solid companies fail and go bankrupt. Managed funds spread the load and help you buy into funds you couldn't buy into by yourself.

PS Not for everyone but I also recommend some of the books by Robert Kiyosaki to teach you about money management.

[Plats]

I suggest you:

1. Buy a good book on investing published in Canada.
2. Put your money in an established mutual fund company in Canada, unless you are planning to stay in Japan forever.
3. Diversify within the fund family according to your age.
4. Avoid investment schemes (or advisers) designed for expatriates in Japan.

As for your initial question, if Canada is similar to the USA you won’t pay any tax on a stock that goes up in value till you sell it. You will pay tax on dividends or interest when your income goes over a certain threshold, which will take years to reach since your overseas income is tax-exempt.

[thinktank]

Dont get sucked into anything over a 10 year plan. You need flexibility as you dont know where you will be in the future. The penalties for early withdrawal are quite big. Send me a PM if want to discuss more. Thanks

[Gemini]

Thanks again, everybody, for the wealth of info. Paulh, damn, that musta taken you a while! Much appreciated. I'll get a handle on this sooner or later.

Originally Posted by edinjapan

Be careful of stocks as they are very voliatile. I'd invest the money in the Channel Islands as the safest route and use the interest which is quite healthy to play the markets and funds.

Now this confuses me. There are a lot of different tax havens, but aren't they all generally the same? When you suggest the Channel Islands, is it the Channel Islands specifically, or offshore in general? Why would I necessarily worry about choosing one over the other? What do I need to watch out for?

As far as property goes, yeah, I'm not that interested in using it as an investment. Perhaps if I was going to buy a house to live in so that I don't give all my money to a landlord, but renting one out and taking care of all the bullshit just sounds like way too much trouble. It seems there is much more money to be made in sound investments.

Originally Posted by Plats

I suggest you:

2. Put your money in an established mutual fund company in Canada, unless you are planning to stay in Japan forever.

Why? Would it make a difference? I really don't know how long I'll be here. Could be forever. Could be five years. But that is not necessarily to say that I'll move back to Canada when I leave.

Correct me if I'm wrong, but I was thinking this: If I invest all in a Canadian plan, then when it comes to taking it out, I'm going to pay taxes on it whether I'm in the country or not. If, however, I invest in an offshore fund, I pay no/very low tax when I take it out.

Now, I really don't know how it all works, but I'm guessing that if I'm in Canada at the time, I'll pay exhorbitant taxes on my 'income'. If I'm in an other country, whether that be Japan, the US, or somewhere else, I'll pay income tax at that country's rate, which is almost certainly going to be better than Canada's.

As a non-resident of Canada, I don't pay any taxes on my earnings outside of the country. Say I live here long enough so that my savings accumulate to the point where I can live off the interst. Wouldn't it be better to cash in my savings as a non-resident and then go back to retire there?

Or how about this scenario... I invest offshore, but then decide to go to Canada in five years. I leave what I've got in that fund to grow and then, a couple years before I'm ready to take it out, I leave Canada, declare myself a non-resident, live wherever for a couple of years, go to the Caymans, get my money, then go back to Canada with a fist full of dollars. Is that possible? Sounds too good to be true...

Originally Posted by Plats

3. Diversify within the fund family according to your age.

I'm not sure what this means.

Originally Posted by Plats

4. Avoid investment schemes (or advisers) designed for expatriates in Japan.

You mean, avoid Magellan, Banner, et al? Any particular reason for this?


As for what my long term plans are, well, it's mainly to save up for retirement. However, my retirement plans are a bit up in the air. Meaning, I don't want to HAVE to work till 65 unless I absolutely have to! Right now, I'm having daydreams of retiring in ten years on $500,000 and living near a desolate beach in Mexico enjoying the Pina Coladas and sunshine as I laze on my back patio translating five or six pages a day with my laptop... Nice dream, I know. Seriously though, that appeals so much more to me than working like a dog for the next thirty years just so that I can scape by on a average pension in frozen Toronto... Realistically, it's the affordability of my future kids that are gonna make or break that deal.

Anyway, point is, I would love to get lucky and hit 17% a year returns for the next 10 years and retire with a cool mil, but I know that's very very unlikely to happen and realistically I'll be working double or triple that. But even so, I want to reach a point where I can retire and live a decent lifestyle in as short a time possible without taking crazy risks, whatever that works out to be.

I'd rather live on $50,000 a year in interest starting at 50 than on $300,000 a year starting at 65.

Originally Posted by Gemini

T
Now this confuses me. There are a lot of different tax havens, but aren't they all generally the same? When you suggest the Channel Islands, is it the Channel Islands specifically, or offshore in general? Why would I necessarily worry about choosing one over the other? What do I need to watch out for?

Its not something you need to worry about. My funds are ain the Isle of Man which is between Wales and Ireland and is an offshore tax-haven. It is financially independent from the UK and many large commercial banks are based there because of tax structures. Your money and those banks will not disappear. For a look at scottish Provident (my one) go to http://www.spila.com

As far as property goes, yeah, I'm not that interested in using it as an investment. Perhaps if I was going to buy a house to live in so that I don't give all my money to a landlord, but renting one out and taking care of all the bullshit just sounds like way too much trouble. It seems there is much more money to be made in sound investments.

Each to his own and again some people are more comfortable with bricks and mortar than pieces of paper in a bank vault. With a house you can park your car in front and say its mine.

FWIW I live in japan and own rental property in NZ which is rented out. My brother looks after it and tenants. If you live offshore its better to hire a real estate agent to find tenants, collect rents and look after it. Body corporate takes care of maintenance, painting, outside repairs etc. Property is very good over the long term and for 10% down you can own an asset worth 10 times more. You can also play monopoly with real houses and use your equity to buy more property.

You mean, avoid Magellan, Banner, et al? Any particular reason for this?

Know who you are dealing with and what you are buying. If you are not sure get a second opinion. Know the right questions to ask. Remember they dont have your money but he may be gone in 6 months.

Nice dream, I know. Seriously though, that appeals so much more to me than working like a dog for the next thirty years just so that I can scape by on a average pension in frozen Toronto... Realistically, it's the affordability of my future kids that are gonna make or break that deal.

I have 2 kids and started a college education fund for them when they were born. Put $3000 away a year for your kids and it adds up over twenty years. Much harder to do when you are paying off a mortgage and sending two kids to college.

If you go to a compound interest website you can calculate how much you need to have half a million dolllars by 65.

type in how much you can afford, over which number of years, Interest rate and it will tell you what you end up with.

[Plats]

Gemini, I realize you haven’t had the chance to buy an investment book yet, and I’m not going to write one here like Paulh, but as you could guess my book would read much differently than his.

2. Anyway, I’m not talking about a Canadian “plan.” I’m talking about investing the money yourself, with stock, bond, real estate funds, and maybe individual stocks if you feel lucky.

Just to clear up one point though, assuming that Canada is similar to the USA, your earned income from work overseas is tax exempt, not investment income. Tax shelters are for billionaires.

3. Generally you balance stocks and bonds according to your age. A rule of thumb is 100 minus your age = the percent of your portfolio in stocks, the rest in bonds. I have never followed this formula strictly, but I would be in much better shape now if I had.

4. It just takes a few mouse clicks to see the enormous fees these firms charge for funds with sub-par returns.

[Gemini]

Originally Posted by paulh

Remember they dont have your money but he may be gone in 6 months.

I'm sorry. I still don't really understand what this means to me. But you've repeated it a couple of times now, so thought I should ask.

Do you stress this because it means you'll end up with some Joe Blow who doesn't know what they're talking about afterwards? What is the danger of someone being gone six months later if you've already made a commitment to a certain fund anyway?

[Gemini]

Originally Posted by Plats

2. Anyway, I’m not talking about a Canadian “plan.” I’m talking about investing the money yourself, with stock, bond, real estate funds, and maybe individual stocks if you feel lucky.

Just to clear up one point though, assuming that Canada is similar to the USA, your earned income from work overseas is tax exempt, not investment income. Tax shelters are for billionaires.

OK, I think I see what you mean. However, as a Canadian non-resident, I only have to pay taxes on income from sources in Canada. That means regardless of type of income, work, investment, etc., I'm exempt if it doesn't come from Canada. At least that's all I could find when I searched for non-residents' tax obligations.

Originally Posted by Plats

4. It just takes a few mouse clicks to see the enormous fees these firms charge for funds with sub-par returns.

Really? The plans that get offered to me are often in the high 10's percent range that have been performing well for the last several years. To me, that looks good, but hey, I'm here asking questions precisely because I don't know anything.

Out of curiosity, could you point out the enormous fees? I looked but couldn'd find what you meant by that. What should I compare them to? Can you recommend where I should be looking then, if not at these? Thanks!

[arginjapan]

Originally Posted by Gemini

If I'm in an other country, whether that be Japan, the US, or somewhere else, I'll pay income tax at that country's rate, which is almost certainly going to be better than Canada's.

That all depends on whether Canada has a tax treaty with said country or not.

Originally Posted by Gemini

As a non-resident of Canada, I don't pay any taxes on my earnings outside of the country. Say I live here long enough so that my savings accumulate to the point where I can live off the interst. Wouldn't it be better to cash in my savings as a non-resident and then go back to retire there?

Not sure about this, but if you moved all of your off-shore savings to somewhere in Canada wouldn't you have to start paying tax on them? The government won't just let you live off of them for free I suspect.

Originally Posted by Gemini

I'm sorry. I still don't really understand what this means to me. But you've repeated it a couple of times now, so thought I should ask.

Do you stress this because it means you'll end up with some Joe Blow who doesn't know what they're talking about afterwards? What is the danger of someone being gone six months later if you've already made a commitment to a certain fund anyway?

The reps at Magellan and Banner are essentially sales agents. They tend to have stalls at major conferences and look sharp in their tailored suits and look like bankers. Some of them are very knowledgeable and I know Trevor at Banner who runs the show there i think is licenced. They have a base salary but I think they probably work on a commission (which they get when you sign up in a fund)

In my case I said I could afford x amount a year over 15 years. They show you several plans and work out the best mix for you. If you are in your 20s you can afford to be a little more aggressive in your investing but if you are 40 or 50 you want to be more conservative with what your money is invested in.

Some times you might want to put it in for only 5 years but they lock you into a 15 year plan without you realising it. Take out your money after 5 years and half is taken out in commissions. The finance companies offshore themselves arent bad and they wont go out of business, Your funds are spread over half a dozen different funds in one plan.

I have changed advisors several times already. One group they simply up and left Japan without telling anyone and wasnt getting phone calls returned. Transferred agent to magellan. Got stung on a loan deal that went awry and lost about $1000. IFA at Magellan moved to Hong Kong. Moved IFA again to Banner. Once the fund is set up it runs on autopilot and they send you statements every six months. Banner or Magellan will keep in touch and let you know about the latest investment fad and ask if you have 20 grand to invest in the latest hedge fund. Banner makes a 1% management fee if you sign up. If you dont sign up he gets nothing. All documentation and paperwork is in English sent from the offshore company. Companies write prospectuses for a reason, so that you read them.

They dont have a chrystal ball and nothing is guaranteed in life. What they go in is the funds record over 3-6 months, 1 year, 5 years etc. You can keep track of your funds on the Internet.

Most have an initial period where you can not take it out early. Magellan signed me up in one of these things i wanted to cancel it and the finance company kept two months worth of payments, about $US530.

Make sure you know what you are buying, any conditions, penalty clauses, term limits, costs of transferring funds etc. Long term or short term etc. where is money invested etc.


Joe Blow disappears but you still keep paying into the fund. an advisor is just that. he may be paid to recommend certain plans to sell to you based on what you tell him. Some others sell those to you which pay the highest commissions. In Japan there tend to be some rather flakey and unscrupulous people. i did hear of another one called Towry law that lost their licence to sell products as they were doing illegal stuff and they folded in Japan. If that happens you just change advisors. You choose an advisor like you would your lawyer, your dentist or your accountant.

：Mulan：04/06/29 19:35 ID:dbV6g3nb
This story is about UAE investors and a financial advisor Towry Law, which has caused an enormous investment loss up to US $400 million.

The company is closing its Tokyo office, Bahrain, and Dubai on July 31 and moving to Hong Kong in the search of safer place where less people know about the fraud.

Angry investors now want to gather other victims of Towry Law in Asia by sending this information that the only hope of recovery is through ‘class-action’ lawsuit in the UK.

They sincerely request you to publicize this story for people.


Full Story:
http://www.japantoday.com/e/?content...at=8&id=303387


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[Gemini]

Originally Posted by arginjapan

That all depends on whether Canada has a tax treaty with said country or not.

Uh oh. I'm getting confused again. haha.

I'm in Japan. If I send my money 'offshore', then as long as I don't live in Canada, whether or not they have a tax treaty with the country I live in shouldn't matter, should it? How would it?

Originally Posted by arginjapan

Not sure about this, but if you moved all of your off-shore savings to somewhere in Canada wouldn't you have to start paying tax on them? The government won't just let you live off of them for free I suspect.

I suppose I'd be paying on whatever I take out of them while I live in Canada. So, if my investments are worth $2 mil and I'm pulling out $100,000, I'll pay taxes on my income of $100,000 for that fiscal year, no? I don't think I'd transfer the entire amount to a bank account in Canada at once, since I'd get whacked pretty hard with taxes.

[arginjapan]

Originally Posted by Gemini

I'm in Japan. If I send my money 'offshore', then as long as I don't live in Canada, whether or not they have a tax treaty with the country I live in shouldn't matter, should it? How would it?

Under the terms of the Japan-Canada Tax Treaty, you are correct; you're safe, free and clear from paying any taxes whatsoever. Be aware though of minor nuisances like the GST centre mailing out erroneous rebates and then asking for them back-I've been putting up with that for two plus years now. My understanding is as long as the money stays offshore then you never have to worry about it. Of course you are aware that you have to declare how much interest you make on money held in savings accounts and the like in Canada every year.

Originally Posted by Gemini

So, if my investments are worth $2 mil and I'm pulling out $100,000, I'll pay taxes on my income of $100,000 for that fiscal year, no? I don't think I'd transfer the entire amount to a bank account in Canada at once, since I'd get whacked pretty hard with taxes.

My understanding of it (though I'm certainly no expert) is that sounds about right to me. Bear in mind that you are still required by Canadian law to file a tax return even though you are a non-resident; some f__ed up rule or other. I'm not sure what the penalty is or how severe it is if there is one, but I do know you still have to file. But you are right-you do not have to pay.

Originally Posted by Gemini

UI suppose I'd be paying on whatever I take out of them while I live in Canada. So, if my investments are worth $2 mil and I'm pulling out $100,000, I'll pay taxes on my income of $100,000 for that fiscal year, no? I don't think I'd transfer the entire amount to a bank account in Canada at once, since I'd get whacked pretty hard with taxes.

Gemini, you are thinking like an employee, not an investor. If you get a salary you pay taxes on it. If you have dividends, shares, real estate, you will find ways to shift money around so its not exposed to taxes You dont need to carry 100,000 dollars in a suitcase through customs and have to declare it. Put it into real estate and get tenants paying you rent. If your property is depreciating' in book value it will reduce your taxes. Save up your pennies in a life insurance fund and when you hit 60 they pay you an annuity till you die instead of cashing out when you die. They count on you living shorter than what they would have to pay you on a cash-out basis.

If you have 2 million to play around with there are equities for wealthy investors. You dont just stick it in the post office. stockbrokers and financial advisors will tell you how to minimise but not avoid taxes. You want to make your money work for you but you have to read up about it first.

Rich people in the US with investments of over a million dollars, the warren Buffets of this world pay corporate taxes but their personal taxes are about 2-3% as nothing is in their name, but in trusts, real estate, buisnesses etc.

[Gemini]

Originally Posted by arginjapan

Bear in mind that you are still required by Canadian law to file a tax return even though you are a non-resident; some f__ed up rule or other. I'm not sure what the penalty is or how severe it is if there is one, but I do know you still have to file. But you are right-you do not have to pay.

Actually, according to the General Income Tax and Benefit Guide for Non-Residents and Deemed Residents of Canada - 2005, (http://www.cra-arc.gc.ca/E/pub/tg/5013-g/5013g-05e.pdf), this is incorrect. Have a look at page 9, under "Before You Start".

[Plats]

Originally Posted by Gemini

I only have to pay taxes on income from sources in Canada.

Then there is a big difference between Canada and the USA in this regard.

Originally Posted by Gemini

The plans that get offered to me are often in the high 10's percent range that have been performing well for the last several years. To me, that looks good...

The world's markets have been soaring the past few years. Canada was up over 27% in 2005. If you had bought that in the form of an ETF or index mutual fund you would have all that gain with virtually no tax liability.

Originally Posted by Gemini

Out of curiosity, could you point out the enormous fees? I looked but couldn'd find what you meant by that. What should I compare them to? Can you recommend where I should be looking then, if not at these? Thanks!

The one I researched a year or so ago was not one of the ones you mentioned in a previous post. Personally, I am not interested in (1) Paying someone 1% (or any percent) of my assests anually to introduce funds. That comes to half my assets gone after 50 years. (2) Buy any fund with a load, i.e., a fund which has a sales or redemption charge. (3) Join any "plan" which would confiscate half my contributions if I cancelled my contract prematurely.

[arginjapan]

Originally Posted by Gemini

Actually, according to the General Income Tax and Benefit Guide for Non-Residents and Deemed Residents of Canada - 2005 this is incorrect.

Actually, on page 10 of the same manual, sections E and F, you do have to file.
http://www.cra-arc.gc.ca/E/pub/tg/5000-g/5000-g-05e.pdf

And it's exactly what I was told both verbally and in writing by the International Tax Services Office; and I quote from the CCRA residency determination letter sent to me after I completed and submitted my residency determination form:

"As a deemed non-resident, you are required to to report your world income for the full year, including the part of the year you were residing outside Canada."

I'd be sure to contact the International Tax Services Office and have them explain it to you more fully than I can.

[Gemini]

Originally Posted by arginjapan

Actually, on page 10 of the same manual, sections E and F, you do have to file.
http://www.cra-arc.gc.ca/E/pub/tg/5000-g/5000-g-05e.pdf

And it's exactly what I was told both verbally and in writing by the International Tax Services Office; and I quote from the CCRA residency determination letter sent to me after I completed and submitted my residency determination form:

"As a deemed non-resident, you are required to to report your world income for the full year, including the part of the year you were residing outside Canada."

I'd be sure to contact the International Tax Services Office and have them explain it to you more fully than I can.

You are referring to a different manual - not the one I linked to.

And anyway, the sections you refer to, E and F, of that manual refer specifically to people who spend more than 183 days a year in Canada, or are outside of Canada but part of the Armed Forces or work for the Canadian gov't, etc.

They speak of deemed residents, not deemed non-residents. Deemed non-residents do not have to file unless they have income from a Canadian source.

If you find something that contradicts my findings, please let me know. Thanks.

[manoman]

I have also used Banner but haven't been very satisfied with the products they've recommended to me. Basically I felt the funds that offered the best kickbacks for them were the ones that were being offered. 'My guy' was like a best buddy to me, often would call just for a chat and let me know how things were going investment wise, then all of a sudden the calls stopped. I tried calling 'my mate' but was told he no longer worked there and had returned to Australia. My investments were passed on to someone else. Anyway, I don't think the two are related but I got email a few months following 'my mate's' departure to inform me that a 'safe as houses' investment recommended to me was in receivership. I've just got back 1/3 of the initial investment (after 3 years) but don't know if I'll see any more of it. I won't disclose the amount on a public forum but I will say the remaining 2/3s could have bought a house in most countries. The link paulh offered http://www.crisscross.com/jp/news/303387 mentions about the CSA fund, the so called 'safe as houses' fund. I will say that the MAN investments have been progressing OK considering they are capital guaranteed.
Too tired to continue...will check back in later.

[Super Grover]

Banner is/was awful. Towry Law, too. How about Hansard Funds if you plan to stick it out for a while (declining fee structure). The RBC Offshore is reasonable. If you are Canadian, I know of other investments within Canada that are safe and profitable even after the 10% NR tax on interest income. There is a fellow in Osaka who could help you who I know personally. Honest and has been here for well over 20 years.

To the poster above, you don't have to file a tax return to CCRA annually if you are a NR. I've been one for a long time. I occasionally have to contact the Int'l Tax Office in Ottawa and have never met with such a request. Indeed, it's almost like they wish I would ignore taxation and let them get back to online surfing or something!

Still haven't gotten a clear answer on cap. gains tax in Japan, but I think it is 20% if sold in the 1st yr and 10% if held longer. The rules will change in 2008, right?

[Gemini]

Originally Posted by Seeking answers

If you are Canadian, I know of other investments within Canada that are safe and profitable even after the 10% NR tax on interest income. There is a fellow in Osaka who could help you who I know personally. Honest and has been here for well over 20 years.

Yes, I'm Canadian. Could you give me more info on those profitable investments? And are you sure it's only 10% tax? I could have sworn it was 25% taken at source...

The package that I'm presently considering is the Man IP220 Int'l Ltd. I'm still not sure how it works though, as the prospectus keeps talking about the IP220 Int'l series that started in '96 that has been returning 18% a year. Not clear on how that's related to this product offering or how that's supposed to give me an idea of how this one will perform. Can anyone explain it to me?

Also, still no one has explained to me why an IFA that leaves after having sold you your product is a bad thing. Once you've made the decision to go with product A, what difference does it make if a garage mechanic takes over? There's nothing left to be done with your investment at that point, is there? Aren't you dealing with the investment manager at that point anyway?

[Super Grover]

Hi,
First off, as the compamy itself will warn in BIG BOLD print, caveat emptor. That said, the company is Carevest (www.carevest.com). It is based in Calgary but has offices in Edmonton, Lethbridge, Victoria and Mississauga, if I remember correctly. They are basically a bridge-financing company for various builders/developers, etc. Note* it is not a REIT.

I THOROUGHLY researched before I even contacted these folks. They have no black marks. Research included going through the online court records in Alberta to find out if they had ever been sued or if there was any case before the courts. I did this with another one in Clgary and found that they were not who they claimed in spite of advertising and positive PR in the Calgary Herald and elsewhere.

They offer clients mortgage pools (1st, 2nd, blended and others). I have done the 1st mortgage and netted over 8%. Tax was deducted at source (10% -- and this is correct. 25% is the tax payable on profit on land sales -- NOT looking forward to that!). Have a smaller position in 2nd mortgages (riskier) and it has returned over 9% net.

You can do it in 2 ways:
1) No compounding and the return goes directly into your Cdn. bank acct each month -- sort of like an annuity.
2) Let the magic of compounding work and cash out at some later date. We are doing this. Conservative investors might go for (1). Basically we are getting $1500 a month in interest without the stress of watching the markets constantly.

It might not be for everyone, but their track record is impressive.

If you earn income outside Canada as a NR, it's yours, no tax to CCRA. It is my understanding, however, that in the not so distant future, Japanese tax authorities may tighten up on us. I have read that after 2008, tax on cap. gains will increase, but don't take that as an absolute; I'm no expert there (thus my online name!). Any income you earn in Canada is taxable, whether it is stocks, land sale, savings account interest, whatever. I guess the only thing we need to be concerned about is our "ties to Canada." Normally they do not go after little guys, but if one has a house, a bank account, a D/L, investments, land, loans, a Cdn. credit card, etc., CCRA might think the person is out of the country to avoid taxation!

Do you ever read Gordon Pape's online tax information?

[CFOC]

I was searching these boards for something else but cannot help myself here.

I nearly became an IFA in Tokyo last year but after conducting my own due diligence decided that I would be going backwards and decided instead to establish my own company in Australia.

After doing quite a bit of research I came to the conclusion that IFA's in Japan (and elsewhere I imagine) are no more than glorified salesmen. Kind of like the old AMP insurance salesmen that were the seeds of the financial planning industry in Australia (still not a profession unfortunately). They will sell you with the commission as their ultimate motivation. I know it is not fair to generalise but that was and still is my impression.

Basically there are 4 types of products that an expat can be sold. Personal portfolio bonds, collective insurance bonds, risk insurance and health insurance. The two insurances are self-explanatory. However I should add with respect to income protection insurance that you really need to read the product disclosure statement as a lot of policies that I have come across will cease payments if you repatriate or leave the jurisdiction that you are receiving benefits in. This defeats the purpose as most people would want to return to their country of origin if they were going to be permanently unable to work again. Many will also only continue paying you an income after 2 years if you basically cannot work. It pays to be careful.

Anyway, a personal portfolio bond is like a wrap account in that it wraps around all of your investments and you pay an administration fee to the provider for the reduced hassle. You can basically hold anything that lists on a stock exchange. A collective portfolio bond holds things such as managed/mutual funds but no direct shares, ETFs, hedge funds etc. You need more money to get into a PPB than a collective portfolio bond - usually upwards of US 100,000.

For their efforts in placing you the IFA will take a commission upfront and then a nice trailing commission every year. There are usually hefty fees for redeeming investments early too so it really pays to ask the hard questions with that in mind.

Personally I prefer a fee for service model and if you can find an IFA that does that then I think that they have reduced any possible conflicts of interest greatly.

I also think that many people living in Japan are unaware that their global income is taxable in Japan after 5 years of residence there. So many IFA's are either willfully ignoring this or simply ignorant.

When it comes to investments I think most people should look no further than a low-cost indexing approach. Index investing is all about risk minimisation as opposed to investment specialisation. The idea is to reduce the amount of risk that you are willing to tolerate for a given level of reward. It is possible that an investment specialist (Eurostoxx futures trader, US sector ETF trader and so on) can beat a risk minimiser with less risk just because they know what they are doing. But the fact is that most don't so risk mitigation is the way to go in order to smooth the long-term journey.

Anyway, I want to go and watch some tv with my wife. My website has a good article that I wrote on active versus passive investing http://www.cfoc.com.au/financialplan...hilosophy.html and gets into the nuts and bolts of what I am referring to.

By the way, anyone that has global/expat insurance could you PM me with the details of the provider please? I am searching for good disability and trauma policies at the moment. Also if anyone uses a good English-speaking accountant or lawyer familiar with Japanese estate planning issues I would really appreciate their contact details too.

Thanks,
Adam

[simonejohansson]

Have you heard about TD Waterhouse, part of TD Bank? They have an offshore broker especially for expats like us, they are called Internaxx (http://www.google.com/search?hl=en&q=internaxx+TD+bank)

You don't have to pay any Canadian taxes and can have a USD or CAD interest bearing cash account, together with access to dozens of stock markets, including Canada and Japan.

Be careful about IFA's Independent Financial Advisors like Magellen, normally your first 5 years contributions just go towards paying their astronomic (and hidden!!!) commissions.

Good luck,

Sim