Timely template letter: Help clients plan now for a more tax-efficient 2004

By Staff | May 6, 2004 | Last updated on May 6, 2004
2 min read

(May 2004) Income tax filing season may largely be over for your clients at this point, but the fallout might just be beginning. Plant the seed with your clients that you are willing and able to help them reduce their tax burden for next year’s filing by sending out this introductory letter:

Dear [Client’s name],

Most of my clients tell me that the end of April is a time of mixed emotions. While many people are happy to see the snow melt and the flowers appear, they’re usually less than thrilled about having to file their income tax returns.

The problem with taxes is that by the time they’re due, it’s usually too late to make any significant changes or find opportunities for savings.

If you feel that you paid too much in tax for 2003, don’t let it happen again. Now’s the time to start planning for next year. If you’d like to book an appointment, I would be happy to sit down with you and find ways to reduce your burden. For example, we can:

  • Take a look at how your debt is structured. Any interest you pay on a car loan must be paid with after-tax dollars, but interest paid on a loan taken out for investment purposes can be completely tax-deductible. Changing your borrowing habits could save you hundreds of dollars in taxes!
  • Shelter educational and retirement savings. If you are setting aside money for your retirement or your children’s education, are you taking full advantage of tax-sheltered plans offered under the Income Tax Act? I can help you choose the Registered Retirement Savings Plan (RRSP) or Registered Education Savings Plan (RESP) that’s right for your situation.
  • Consider trusts and estate freezes. More complicated situations, such as those faced by small business owners and beneficiaries of large inheritances, may require advanced tax planning. Depending on your situation, I can explain your basic options and refer you to a qualified tax expert.
  • Review your employment status. By changing from an employee to a self-employed business owner, you may be able to change expenses into fully deductible business expenses. If you operate from a home office, you may even be able to write off a portion of your mortgage interest, heating and electricity bills!

If you’d like to find ways to minimize your taxes, I hope you won’t hesitate to contact me at the number above. Remember that while we may be obliged to pay taxes, there’s no reason to pay more than we have to!


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[Your name]

Advisor.ca staff


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