• Question
  • The majority of my wife's pension income comes from Canada. I use a conversion rate of 70 cents (US)

    Asked by a 56 year old man from Canyon Lake, TX on 9/18/2015

    The majority of my wife's pension income comes from Canada. I use a conversion rate of 70 cents (US) to the Canadian Dollar in our retirement planning. Is this a reasonable rate to use? Since it will be the majority of our retirement income should I use a lower exchange rate?

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  • Categories: Retirement Planning, Guaranteeing Income

Answers

  • Steve 

    Steve 
    NewRetirement

    San Francisco, CA

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  • Since 2011 the Canadian dollar has dropped from buying ~ $1 US Dollar to buying ~ $0.75 USD - so for now assuming $0.70 is probably ok.

    http://www.x-rates.com/calculator/?from=CAD&to=USD&amount=1

    However you probably want to revisit this every year or so since no one knows what will happen to interest rates in the future.

    One of our blog posts informed by one of our advisors suggested that you should revisit your retirement plan annually.

    http://www.newretirement.com/blog/2015/09/15/no-retirement-withdrawal-strategy-is-perfect-particularly-the-4-one/

  • Login to rate this answer:   Answered on 9/28/2015
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.