Did you know that the beginning of the year is one of the best times to get in touch with your clients?
In good years or bad, lots of people make financial resolutions in January. 2020 has been a year like no other. Many families have had major changes to their finances!
For example, some of your clients may have:
- Changed their spending and consumption habits
- Received CERB for several weeks or months
- Changed how much of their budget goes to savings, depending on their situation
For these reasons (and many others), the start of 2021 is particularly important when it comes to financial planning!
Some of your clients will want to review their investment risk level. Others may have questions about their taxes.
Contacting them will make sure you can answer their questions as well as advise them so that they don’t run into any unpleasant surprises in 2021.
The advantage of an RRSP
Clients who received the Canada Emergency Response Benefit (CERB) may find that they have unexpected taxes to pay.
Investing in an RRSP is a good option that will help to reduce their tax payment, or even get a return.
For those hoping to buy property or go back to school in the next few years, there are other programs they could benefit from:
- The Home Buyers' Plan (HBP) allows people to withdraw from their RRSP to buy or build their first home
- The Lifelong Learning Plan (LLP) allows people to withdraw from their RRSPs to finance technical, vocational or post-secondary education
Don’t wait too long to contact your clients! They have just over a month to invest in their RRSPs for the 2020 fiscal year.
