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For the 78% of investors who have unused RRSP
contribution room, Talbot's RRSP Contribution Optimizer software helps significantly increase the value of their RRSP plans and this year’s contributions by:
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determining the optimal amount to contribute this year using available and borrowed funds, accounting for different tax brackets, clawbacks, and behaviour
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using the best combination of forced and automatic savings approaches to reduce the behavioural risks of reduced or suspended contributions
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creating a simple, one-page, personalized Action Plan
Try the FREE Evaluation
version of Talbot's RRSP Contribution Optimizer.
With interest rates near 40-year lows, the typical
investor with over $19,000 of unused RRSP contribution room would benefit from
objectively understanding the best amount to "catch up" on RRSPs this
year. A better question to answer is ...
What is my optimal long-term RRSP
contribution strategy, using available and borrowed funds?
What is the best combination of automatic and
forced savings approaches, accounting for all factors, including different tax
brackets, the "hidden tax" of clawbacks, and most importantly,
investor behaviour?
With the savings rate in Canada near 0%, getting
investors to graduate from an "ad hoc" saving
approach to an automatic savings approach of "paying yourself first"
monthly is good. Getting clients to act on any combination of automatic savings
and forced savings (paying off a long-term RRSP loan) is better, since the
forced savings component locks in a higher level of commitment. Having clients
implement the optimal combination of automatic and forced savings, accounting
for both the math and behaviour, is best -- for everyone.
For most investors, the optimal RRSP contribution strategy will be at least 28 - 92% better than their current plan, also benefiting advisors, lenders, and money management firms by the same amount.
Those in the financial industry can help clients
implement their own Optimal RRSP Contribution Strategy, while also realizing
these benefits:
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Significantly
increase short-term business. First-year
RRSP contributions for most mass-affluent investors will be 2-10 times
larger for those not currently using a catch-up loan.
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Increase long-term
business. Most investors
can increase the value of their RRSP over 10 years by 28-92% or more,
relative to their current approach.
Additional opportunities to increase business are available later with Next Steps and a “Help a Friend”™
referral system.
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Benefit over 75% of
investors. Over 75% of
investors have unused RRSP contribution room, averaging over $19,000.
With interest rates near 40-year lows, the majority of mass-affluent
investors should learn the optimal amount to catch up on their RRSPs,
objectively accounting for different tax brackets, clawbacks, and
behavioural risks.
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Increase sales
effectiveness using process-driven systems.
The RRSP Contribution Optimizer software is a business-building
process, progressing through a simple, 15-minute discussion of Education,
Analysis, defining a personalized Action Plan, and Projected Benefits.
The tool itself is part of a larger process to add value and increase
business later through Next Steps opportunities.
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More permanent
client relationships. Investors
using any amount of forced savings (paying off a long-term catch-up loan)
are much less likely to switch to competitors than “ad hoc” investors,
or even “pay-yourself-first” monthly investors.
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Build client
relationships with a unique, value-added discussion.
Advisors always need a good reason to connect with clients to build
the relationship, and in turn their business.
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Increase client
trust. Objectively showing
how some clients are better off catching up less than the maximum
demonstrates that the client’s interests are first, increasing client
trust in the advisor and firm.
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Increase client
perceived value and appreciation. The
tool quantifies the immediate and long-term benefit of personalized,
professional advice.
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Increase referrals.
Delivering industry-leading, client-first value related to the core
of financial planning will automatically lead to appreciative clients who
will tell others, and referrals can be further increased with an integrated
“Help a Friend”
referral system.
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Increase savings commitments with one-page Action
Plans. Most investors don’t have any form of a financial plan.
Providing a brief Action Plan outlining a client’s optimal RRSP
contribution strategy addresses the most valuable core of a financial plan.
This new web software provides a complete
process-driven, business-building solution that is easy.
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Easy to benefit. The process-driven
discussion template naturally progresses through
background education, analysis, Define Action Plan, Projected
Benefits, and Next Steps.
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Easy to use. Simple, start-to-finish navigation
menus require only a web browser and internet connection. Fast Track,
Basic, and Advanced detail modes provide the desired level of detail.
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Easy to learn. Use standard web browser skills and
a self-learning Education section including Case Studies, glossary, and help elements.
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Easy to deploy and update. With web software, all users can
be updated instantly.
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Easy to customize. For large clients and partners,
branding, content and links to additional business opportunities are easily
customized. Off-line use is also possible for larger firms.
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