Put the spring back into a financial plan

Put the spring back into a financial plan

Put the spring back into a financial plan

This could be as simple as strategically divvying up a tax refund or making an RRSP contribution and then using the tax savings down the line to pay off some debt, he suggests. "Clients will ask, 'If I have some free cash, where do I put it - debt repayment, short-term or long-term savings?' Often the answer is all of the above. A good advisor or planner will do all of those things (for clients)."

For small business owners, McKay points out the need to meet not only with accountants for tax purposes, but with their advisors to establish the next steps in their business plan, such as incorporating their company.

Mike Lakhani of Tax Matters for Dentists (TMFD) believes advisors may be hard pressed to get this spring cleaning venture off the ground, pointing out that clients have a loyalty to their accountants that overrides the relationship with their advisor, particularly at this time of year.  

“The client’s most trusted advisor is the accountant. That’s always the case from what I have seen,” Lakhani told WP. “No matter what anybody says, I still say the client has more respect for the accountant than they do for the advisor.”

Do you feel now is the prime time to ‘spring clean’ your clients' financial plans? Tell WP your thoughts in the comment box below.

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