To Clients: RRSP contributions

(January 2008) Use this customizable template letter to touch base with your clients about RRSPs and how market volatility affects them. Dear [Client’s name], The Registered Retirement Savings Plan (RRSP) is probably the single best long-term savings vehicle available to Canadians. You can deduct your contributions from your income and you are able to shelter […]

By Staff | January 22, 2008 | Last updated on January 22, 2008

2 min read

(January 2008) Use this customizable template letter to touch base with your clients about RRSPs and how market volatility affects them.

Dear [Client’s name],

The Registered Retirement Savings Plan (RRSP) is probably the single best long-term savings vehicle available to Canadians. You can deduct your contributions from your income and you are able to shelter your earnings from taxation for as long as they remain inside the plan.

Please note the deadline for 2007 RRSP contributions is Friday, February 29, 2008.

The maximum RRSP contribution limit for 2007 is $19,000. You can find out your own contribution limit by checking last year’s Income Tax Notice of Assessment or by phoning the Tax Information Phone Service at 1-800-267-6999.

If you have already topped up your 2007 contributions, consider getting started on 2008 contributions. Maximum contributions increase to $20,000 this year, offering you another reason to increase your rate of savings. And the longer your money is working for you, the better.

Rather than contribute a lump sum near the end of the RRSP deadline, consider setting up a monthly saving plan with us. Many studies have shown it’s easier to meet savings goals if you are used to consistently saving a specific amount each month.

During this unsettling time, you might be wondering about the appropriate strategy for your RRSP. Here at [Company name], we feel market returns are best measured over decades, not years or months. Sometimes when the markets are soaring, it’s easy to forget there will be times when the economy isn’t so robust. This is one of those times, and it’s still important to focus on your long-term goals.

Thank you for your trust and patronage to date, [Client’s name]. If you have any questions about RRSPs, market volatility or would like to discuss your situation in greater detail, please don’t hesitate to contact me.

Sincerely,

[Your signature]

[Your name]

(01/22/08)