To Clients/Prospects: The 2009 federal budget and your financial plan

By Staff | January 27, 2009 | Last updated on January 27, 2009
2 min read

Show clients that you are proactive by sending them this customizable letter about the Federal Budget.

Dear [Client/Prospect name],

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

This budget has a few items that could affect your financial plan and present additional 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.

For small business owners: The government plans to increase the amount of small business income eligible for a reduced 11% federal tax rate from the current $400,000 to $500,000 retroactive to January 1, 2009.

RRSPs, RRIFs and estate planning: There will income tax provisions to recognize a decrease in the value of RRSP or RRIF investments that occur after the annuitant’s death and before they are distributed to beneficiaries.

RRIF withdrawal reductions: There will be a one-time 25% reduction in the mandatory withdrawals of RRIFs for the 2008 taxation year.

Senior age credit increase: The government increased the age credit amount by $1,000 for a total of $6,408.

Home renovation tax credit: Planning to upgrade or retrofit your home? This new credit, effective between January 28, 2009 and February 1, 2010, allows you to claim 15% on the portion of eligible expenditures exceeding $1,000, but not more than $10,000, for a maximum tax credit of $1,350.

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.


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This budget coverage is sponsored by: staff


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