Higher relative yields in the U.S. support the dollar, which may benefit Canadian investors holding U.S. assets, though at the cost of added volatility.

In the cross-border world especially, the Canadian to U.S. dollar exchange rate matters immensely, but its drivers are often little understood, relative to its importance. While much attention is paid to recent movements, often little is done at the individual level to mitigate currency risks. A stronger or weaker loonie has the potential to affect everything from relocation decisions to ultimately the lifestyle you can afford today and in retirement based on portfolio investment returns.

Canadians returning home with U.S. retirement accounts like 401(k)s often wonder whether to transfer them or leave them as is. Under the Canada–U.S. Tax Treaty, these accounts can maintain their tax-deferred status, potentially providing long-term growth and estate planning advantages. Unlike RRSPs or RRIFs, they are not subject to deemed disposition at death, and beneficiaries can often stretch withdrawals to minimize taxes.

Explore the implications of central banks lowering interest rates as inflation stabilizes. Learn how these changes can stimulate economic growth, the potential risks involved, and strategies to adapt your investment portfolio for a low-interest environment. Stay informed to make the most of evolving market conditions.