What will Harry and Meghan do now? A high-net-worth personal finance expert weighs in

Harry and Meghan are now in unique financial circumstances.

The Duke and Duchess of Sussex dropped a shocking and surprise announcement last month: The pair is stepping away from “senior” royal duties, citing motivations to “become financially independent,” and will begin a bi-continental living arrangement between the United Kingdom and North America. 

Given their new roles, Yahoo Money reached out to Adam Sansiveri, managing director at Alliance Bernstein and an expert in advising high-net-worth individuals, to get a better sense of what life might look like for the couple who desire a life of normalcy. 

Who and what are they seeking financial independence from? 

Stepping away from “senior” royal duties implies and becoming “financially independent” means that the two are no longer eligible to take money from the family coffer.

Part of the deal for working British royals is that they are barred from earning money. This means that for the 10 years Harry served in the Royal Army, rising to the rank of captain and serving two tours in Afghanistan, he was not compensated. 

So instead of earning money, Harry’s lived off an allowance from his dad. Prince Charles maintains the Duchy of Cornwall, a private estate account, that provides the funds for “the public, charitable and private activities of the Prince of Wales and his family.” It's unclear how much of the Duchy — last year’s surplus income was £21.6 million or roughly $28.3 million— goes directly to Harry. 

But that wasn’t their only income source. Up until their announcement, Their Royal Highnesses took 5% from the Sovereign Grant, otherwise known as the monarchy’s purse. For reference, the Sovereign Grant for 2019-20 is £82.4 million or $107.9 million meaning their Royal Highnesses would take nearly $5.4 million per year. 

So, what does “becoming financially independent" mean when you’re starting with an estimated nest egg worth millions?

Working for a living, something most do out of necessity, will now be a novelty for the 35-year-old Harry. Meghan, on the other hand, is no stranger to the hustle. Before staring in USA Network’s “Suits” for seven seasons, where she reportedly made $450,000 annually, she worked several jobs like blogger, calligrapher and restaurant hostess. 

“If their net worth is what speculation tells us it is, then no they don't have to work,” Sansiveri said. “But it all depends on what your lifestyle is like.”

Of course, they’ll have to start financing their jet setting lifestyle, but leveraging their celebrity doesn’t seem it will be a problem. 

Where the Sussexes decide to make their North American home is up for speculation, though Canada seems to be the frontrunner. Meghan has been vocal about her affinity for Canada and the family of three recently returned from an extended holiday vacation in the country. 

But beyond the Duchess’s love for country, there are tax considerations that make Canada an even more attractive option.

“Canada, I think could be a little bit more flexible in negotiating a deal on how they're going to be taxed as residents. But I don't think that's possible in the US,” Sansiveri said. “The complexity of their tax picture is going to change if they are going back to work and starting to be financially independent.”

Even without preferential treatment, Canada still offers the wealthy couple a better tax deal. In both countries, the Sussexes income will fall in the top tax bracket, but they will pay 4% less north of the border — Canada’s top tax bracket is 33% compared with 37% in the United States. 

What expenses should they budget for? 

Moving is expensive, even for royals. Yet there’s one consideration that most of us don’t have to budget for: personal safety.  

“The most practical item is security because they are still a part of the royal family,” Sansiveri said. “So even if they're breaking tradition and becoming financially independent, their celebrity doesn't change.”

And the peace of mind that comes from security presence doesn’t come cheap. CASS Global Security founder Shawn Engbrecht told the New York Post that a single guard runs $1,500 per day. 

What are their career options? 

It remains to be seen if they will default to their former vocations, but they did pledge that their “new working model” means they will “continue to carry out their charitable endeavors.” 

The public will surely see more from the couple’s tentpole charities: Harry’s annual Invictus Games, an athletic for injured servicemen and women; and Meghan’s involvement with Smart Works, a London-based nonprofit that provides underserved women with professional support like interview coaching and resume writing. Not to mention the monthly rotating roster of nonprofits they spotlight on their Instagram account. 

Where have we seen this before? 

Albeit unorthodox, it’s not unprecedented for a member of the British Royal Family to step away from their royal duties. Prince Harry’s great-granduncle, Prince Edward, the Duke of Windsor, abdicated the throne in 1936 after only 326 days of reign because the British government and the Church of England denied his intent to marry Wallis Simpson, an American divorcée, because it would have been scandalous and the public would not have tolerated her as their queen. 

Although the Sussexes didn’t renounce their titles or abdicate the throne (Harry’s sixth in line of succession), the public was quick to note that history seems to repeat itself in the House of Windsor when an American divorcée enters the monarchy. Meghan, an American divorcée, married into the family and drew the ire of the notoriously invasive British tabloid culture. 

The move is not a full detachment from the Crown and the two wrote that they would continue “to fully support” and “collaborate,” with the royal family, citing specifically Queen Elizabeth II and the two succeeding heirs: Charles, the Prince of Wales, and William, the Duke of Cambridge.

“The complexity of the life that they've already built and are continuing to try to build is a surprise to me, but I think we're gonna have to wait and see because if they're going to do everything that they seem to want to do, it's not going to be under the financial responsibilities of the royal family,” Sansiveri said. 

This article originally appeared on Yahoo! Finance.

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