January and February

January and February are both the simplest and most difficult two months for financial professionals in wealth management.

Before 2009, January and February were "RRSP season." The lords and ladies at the Canada Revenue Agency give us sixty days to figure out our previous year's income to see if an RRSP contribution might make sense.

Does it make sense to make an RRSP contribution? It depends. But, in keeping with one of the laws of finance, a dollar invested today is worth more than a dollar tomorrow, so saving more and getting a bigger tax return should be desired.

Let me explain: say you make $90,000 a year and your employer takes the right amount of tax off your paycheque. Well, a $10,000 RRSP contribution will result in about $2,800 in taxes saved, and, as a result, a $2,800 tax return. Would you rather have $10,000 or $12,800? Exactly.

What makes that simple and difficult? It's simple because saying, "save more and you'll have even more" is desirable. Who wouldn't want that? And it's difficult because it's up to us to ensure the people we serve are getting optimal amounts into their RRSPs. And that's not counting double checking contribution limits (I wouldn't wish an RRSP over-contribution on my worst enemy), considering group RRSPs, or uncovering there are RRSPs we don't administer.

That was "RRSP season" before 2009. Now we also have TFSAs, FHSAs, and RDSPs to consider. Those accounts have their own rules, benefits, eligibility, and limits, but the principle is the same: fund them as soon as possible. Our job is to make that happen. And don't get me started about updated RRIF payments for retirees.

Why am I sharing this? I'm not complaining. I'm a workaholic. I live for this stuff. There's something so satisfying about staring at a long list of to-dos (on paper) on January 1st and having most of them crossed off by RRSP deadline day.

This is the first year it hasn't just been Carey and me crossing off the list. Arman joined early in January. He made his impact felt immediately. Because of him, our to-do list was an excel spreadsheet this year and not a piece of paper. It was an adjustment. He's also been attacking that to-do list faster than me, bringing on his own clients, and making sure new clients' questions are answered before they're even asked.

I spent years thinking I didn't need help. Carey and I had a system that worked. But watching Arman tear through that list made me realize what's been missing, and now I'm wondering who else is out there.

If you're an advisor who thinks more about how your clients will react than about predicting where markets are headed, please give me a shout. If you think financial planning is a process and not a one-time thing, please give me a shout. If you think our value is decided by our clients and not us, please give me a shout. But, most importantly, if you care more about your clients than trying to be right about an unknowable future, please give me a shout.