Encouraging clients to contribute to their RRSPs early and consistently throughout the year is a great way to offer better service while keeping clients on track toward reaching their financial goals.

Every advisor would agree that it’s important for all clients to maximize a strategy involving tax-free investments, says Marilyn Trentos, an investment advisor with RBC Dominion Securities Inc. in Richmond Hill, Ont. That’s true both for millionaires and for working people who are trying to save just a few dollars a month.

Of course, avoiding the RRSP end-of-season crunch is easier said than done. Follow these tips to get your clients contributing to RRSPs earlier in the year:

1. Don’t wait
Tell clients that they don’t have to wait until RRSP season to contribute to an RRSP.

Many clients don’t realize that you can place money in an RRSP any time before the March 1 deadline, says Trentos. Once your clients know they can contribute earlier, talk to them about the benefits of moving their money as soon as possible into a tax-free vehicle.

2. Contact clients
Reach out to clients and give them a gentle reminder about saving.

Trentos sends out emails to clients at the beginning of January to remind them about RRSP and TFSA contributions.

“It’s really about being proactive,” she says.

3. Make it easy
Create an automatic system for clients who don’t wish to contribute to an RRSP all at once.

Some clients don’t like to write a large cheque at the start of the year, Trentos says, and some can’t afford to do so. For those clients, set up an automatic monthly deposit to their RRSPs. Once the plan is arranged, there is no need to remind the client about deposits throughout the year.

Tell your clients that if there is a month in which they have a few more unexpected expenses than usual, they can request to stop the deposit for a month or two.

If your clients still have some extra contribution room at the end of the year, you can suggest they write a cheque to make up the difference, she says.

4. Move things around
Make the process easier for clients by finding ways of making contributions without taking money out of their cash flow.

For example, if the client already has money in a savings account, suggest moving some of that money into his or her RRSP, Trentos says. That way, there is no need to write a cheque.

IE