(February 2008) Show clients what a proactive advisor you are. Send them this customizable letter about the Federal Budget.

Dear [Client/Prospect name],

As you know, Finance Minister Jim Flaherty delivered his third federal budget on Tuesday in Ottawa.

This budget has many items that could affect your financial plan and present additional savings and investment opportunities. In case you haven’t had a chance to review the media coverage, I thought you would appreciate a quick overview of the federal budget.

Tax-free Savings Account: Beginning in 2009, Canadians over the age of 18 can contribute $5,000 each year to a TFSA and investment income, including capital gains, will accumulate tax-free. Withdrawals will also be, as the name implies, tax-free. Unused contribution room carries forward to subsequent years.

Shelter for your investment gains
Tories chart a cautious course
Retirees benefit from tax-free savings account
TFSA changes game plan for investors
Capital investment will garner writedowns

Registered Education Savings Plan (RESP): The RESP contribution period has been extended from 21 to 31 years. The life of the plan has been extended from 25 to 35 years.

Guaranteed Income Supplement: The GIS earnings clawback will kick in at $3,500 instead of $500.

Dividend Tax Credit: A reduced gross-up and dividend tax credit will reflect lower corporate income tax rates, effective in 2010.

I hope you find these highlights useful. If you’d like to discuss these and other federal budget initiatives and how they affect your financial plan, please don’t hesitate to contact me.

Sincerely,

[Your signature]

[Your name]

(02/26/08)

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