Your client’s tax return can tell you a lot. It can tell you about support payments she’s making to her former spouse, what sports her kids play or what charities she supports.
Retirees taking RRIF withdrawals, or those with even modest non-registered accounts, are likely to have enough untaxed income to be called upon by the CRA to pay quarterly tax instalments.
Investment advisors generally don’t aim to generate capital losses. That said, strategically realizing capital losses and using them to a client’s advantage can be a prudent approach.
My focus is to help clients and their advisors achieve the best after-tax returns, because at the end of the day, that’s what their financial plans are based on and that’s the money they can actually spend. Good returns aren’t good for much if they’re not tax-efficient.
Conventional wisdom says clients should contribute as much as possible to an RRSP and wait as long as possible to start taking withdrawals.