Many Americans are worried about the potential rise in taxes, including capital gains tax and the top marginal income tax rate. Some are even considering moving to avoid these increases. One surprising solution? Canada.
Canada offers several benefits that could help Americans save money and improve their quality of life. For instance, the country’s healthcare system is heavily subsidized, reducing the risk of medical bankruptcies. Additionally, the average annual tuition for Canadian universities is only about $7,000 for the 2023/2024 academic year, which is significantly cheaper than in the U.S.
One example of this cross-border advantage is a 25-year-old friend from Vancouver, Canada. He studied computer science at the University of British Columbia, where the annual tuition is only $5,399. After graduation, he moved to San Francisco for a job in an online real estate company, where he earns twice as much as he would in Vancouver. His plan is to make money in the U.S. for a few years, then move back to Canada to start a family, taking advantage of the country’s stronger government safety net.
This strategy isn’t just for individuals. Americans can also benefit from investing in Canadian real estate. Canadians are consistently among the top foreign buyers of U.S. real estate, so it makes sense for Americans to consider doing the same in Canada.
One of the biggest challenges in the U.S. is the high cost of healthcare. For example, a family of four could pay about $28,000 a year for healthcare premiums plus co-pays and co-insurance in 2023. Moving to Canada could significantly reduce these costs, allowing families to use the savings to improve their lifestyle.
However, it’s worth noting that wait times for healthcare providers in Canada can be long, so it might still be a good idea to have private health insurance.
Another advantage of moving to Canada is the lower cost of college tuition. The average Canadian college tuition is only $6,800 a year, which is significantly less than what many American families contribute to their children’s college savings plans each year.
Moving to Canada could result in massive savings. For example, a family could save $51,000 a year in healthcare and college expenses. Even though the average home price in Vancouver is high at $1.4 million, it’s still about $200,000 less than the median home price in San Francisco.
The benefits of moving to Canada aren’t just for adults. Children can also take advantage of the country’s education system. The acceptance rates for top Canadian universities are much higher than for top U.S. universities, making it easier for students to get into a good school.
In conclusion, moving to Canada could be a great life hack for Americans looking to save money and improve their quality of life. It’s a solution worth considering for those worried about potential tax increases and the high cost of living in the U.S.
