Now that Joe Biden has been elected president, there’s going to be a lot of unhappy people who want to leave this country. The capital gains tax rate might go up. The step up basis might go away. And the top marginal income tax rate might go up too! Therefore, may I present the best life hack for Americans: taking advantage of Canada!
I’m always looking for arbitrage opportunities to help readers make more money and live better lives. Taking advantage of Canada may seriously be the best American life hack of them all.
My favorite money-making arbitrage opportunity for the next couple of decades is investing in non-coastal city real estate due to lower valuations and higher net rental yields. Technology is accelerating the flow of capital and people towards attractive real estate opportunities.
However, taking advantage of Canada could be an even greater multi-decade arbitrage opportunity, especially if you have children. Despite the frigid weather for four months a year, Canadians have a lot going for them.
Their GDP per capita is a respectable $45,000. Few people go through medical bankruptcies because healthcare is heavily subsidized. Meanwhile, the average annual tuition for Canadian universities is only about $6,571 for the 2021/2022 academic year. Even compared to public university tuition in America, $6,571 a year is cheap.
Let me share how one Canadian friend is taking advantage of America and how we, in turn, can take advantage of Canada.