Feed the plan: Talking to clients about RRSPs

(February 2008) Since their introduction in 1957, the RRSP has been the cornerstone of millions of Canadian retirement plans. For many advisors, RRSPs are integral to their book of business and it’s unlikely that will change any time soon.

In fact, the buzz around retirement planning has been growing for the last few years — RRSP contributions have been increasing as more people see the value in saving for their golden years. But, just because you’re busy helping clients save, doesn’t mean you still can’t learn a thing or two about RRSPs.

1. Tailor RRSP investment to risk reassessment: You have a client, you have a plan, and you have his or her RRSP contribution — that’s the easy part this year. The hard part is what to do with that money in a volatile market so you still have that client next year. Click here for more.

2. RRSP contribution tips for your clients: For some clients, contributing to their RRSP is harder to do than visiting the dentist. Last year Canadians used just 7% of the total room available to eligible tax filers, despite a record 6.2 million Canucks contributing. Read more here.

3. When it comes to RRSP investing, stick to the plan: With recent market turbulence, clients may be having second thoughts about investing their RRSP contribution. Seasoned advisors say market volatility provides a great opportunity to demonstrate to clients the value of the long-term financial plan you have created. Click here for more.

4. Expats face complex RRSP rules: Very few global companies are headquartered in Canada, yet our global economy requires professionals to interact on the world stage. As such, many professionals, seeking an edge, opt to work abroad. As can be expected, this choice comes with a plethora of logistical problems; it also can mean significant financial losses or gains depending on the depth of financial planning involved. Read more here.

5. Market turmoil not scaring away RRSP investors: With the markets moving up and down like a roller coaster, it would be understandable if investors were getting a little panicky. So it might be surprising to learn that 60% of RRSP-owning Canadians say they are not concerned at all about the recent market turmoil. Click here for more.

6. To Clients: RRSP contributions: Use this customizable template letter to touch base with your clients about RRSPs and how market volatility affects them. View the letter here.

Staff

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