Who else uses flow throughs to reduce taxes for people in the top brackets or to reduce OAS clawbacks?

Some prospects / clients bristle, based on the notion that these are "risky".  In fact, once considering the tax credits, people in the top bracket would have to see a drop of 30% (e.g. $10K invested now worth $7K) before they are worse off (as compared to not buying a FT product at all).  To me, that's the opposite of risk – that's a built in margin of safety.

What are other people doing to overcome (unduly rigid) client objections?

Finally, something Degoey and I agree on. We've been using LPs for many years, the FT O&G/Min products since '98. We've used them for people who have max'd their RSP and still have taxable income in the high marginal brackets. They work really well for those receiving a retirement package and they don't have enough RRSP room to shelter the ineligble amount – nice big tax benefit the year they retire, nice low marginal rate when the LP rolls over. Sure, it's considered a "risky" investment by those that don't understand them and for those that don't diversify their purchases (the same people who didn't understand or use Venture Funds properly) but to me it's a no brainer. But if after explaining the upside and the downside to a client they aren't interested, I don't push it. I do make sure I buy lots every year for myself. If you stay with the good ones you'll do just fine. In our experience there have only been a couple of negative "vintage" years – 2007 and 2008 most notably. Some of the LP companies publish after tax rate of return tables that you can show people if that helps.

John, I'm surprised you use LPs since they are only available as DSC, no?

BTW, another reason that I think being Securities licensed is essential.