Crunch Time: An RRSP Special Report

The countdown is on for your clients to make an RRSP contribution for the 2011 tax year, but shaky markets and economic uncertainty have left many skittish about locking up their available cash.

A recent Scotiabank survey found that only 39% of Canadians plan to contribute to an RRSP for the 2011 tax season. Affordability was cited by 61% of those polled as the top reason for not contributing more often to their RRSP.

“Concerns around the affordability of making investments paired with the rise in market volatility have made many Canadians reluctant to contribute to their RRSPs this year,” says Andrew Pyle, ScotiaMcLeod wealth advisor.

“Living in challenging financial times is all the more reason investors should speak to a financial advisor to find a way to build their retirement savings and make their 2011 RRSP contribution.”

And there’s a lot of expertise advisors can share with your client. To brush up on the strategies you can employ to make the most of that RRSP contribution, read our RRSP Special Report.

RRSP essentials and strategiesThis year, the RRSP turns 55, an age which many Canadians have targeted for retirement. You would think that the basic idea behind RRSPs would be ingrained in Canadians’ minds. Guess again.

Tax Tips: Delay that RRSP deductionWhile there is little one can do about the vagaries of the stock market, there is plenty an advisor can do to help clients control how much tax money they fork over to the CRA.

Rethinking asset locationThe so-called “new normal” of ultra-low interest rates continues to lay waste to long-standing investment practices.

Canadians feel financially unfit for retirementThe services of Canada’s financial advisors are desperately needed, judging by a recent survey. More than half of Canadians (58%) don’t feel financially prepared for retirement, according to a poll conducted on behalf of ING Direct.

Mid-life and behind in retirement planningWith the looming increase in the cost of mortgages, household bills and kids’ tuition, Canadians in their 40s admit that they are not properly preparing for retirement, and 32% haven’t even opened a registered retirement savings plan (RRSP).

Small business dilemma: Save or investIt’s not just individuals who are failing to plan and prepare for their retirement. Canadian business owners are no better, having to choose between investing in business or saving for a comfortable retirement, according to a BMO Financial Group study.

Should this client commute his pension?If he commutes the pension, the client would get a large lump sum that would go into a LIRA if he holds off on withdrawing the money until later, or a LIF if he starts withdrawing now. But taking the pension is a turnkey, immediate solution.

How to destroy an inheritanceIt is said that there are two certainties in life – death and taxes. Unfortunately, many are not aware how the two can come together at the same time to create unintended distributions.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.