RECESSION 2023: Almost 90% Of Your Clients Are Worried

The October Knowledge Bureau Report poll question asked: “Are your clients worried about a recession in 2023 and its effects on their financial status?”  Overwhelmingly, the answer was yes, at 87.25%. This means there is a tremendous opportunity to connect with your clients for year-end tax planning and help them stay on plan, with tax efficiency.  Advisors who participated from across Canada had these observations:     

Beat the Recession Blues – Ann Laurin.  As an industry we have an opportunity to provide further information–widespread–to all of our clients on how to buckle up and stay seated during a recession! Based on DAC and all the amazing speakers, there were clear warning signs a recession is only months away. And the leadership of our governments are stuck in their own political bubble pushing us further down the rabbit hole!  Our knowledge, and expertise can ease this strain on Canadians (with an) “it takes a village” approach.  Reach out to your clients, talk about their investments, areas to pull back on like unnecessary spending, tax planning, how to max out their RRSPs, offer mock returns to get a head start on tax season, and share your best advice and experiences. Beat the recession blues!! Everyone is concerned, but as an industry we cannot wait for our clients to react, we need to react for them.

Recessions Don’t Last Long – Richard Keshen. Most people are more concerned with rising interest rates and inflation. Recessions last on average 10 months. The main thing is not to panic with investments and to prepare a strategy now.

Mortgage Squeeze – Paul Farago. With interest rates increasing on mortgages, I know clients are feeling financial pressure already.

De-accumulation Challenges – Nancy Campbell.  I think many seniors are concerned especially with forced withdrawals from RIFs and LIFs in a down market.  They have no opportunity to recover from this.

Good Reason to Worry - Mitzi-Lynne Morgan. They worry about it all the time, and with good reason.

It’s About the Inflation – Randolph Edmead.  Clients are worried that their savings will not be able to keep up with inflation.

And to round out the end game, there are those who are not that concerned – Cindy G. Nagassar.  Based on conversations and lack of reaction to my emails (which advise how to weather a recession), clients are not as concerned as they should be.

20^th Anniversary Draw – Poll participants who leave a comment and fill out the form are entered in our draw to win a free registration to DAC Acuity in Banff November 11-14, 2023!   Sincere thanks to everyone for participating. Your name will be added to our 20^th Anniversary Draw! Please join us for our November Poll where the question is:

Should investors harvest tax losses in 2022 to recover taxes paid on capital gains declared in the prior three years?

©Knowledge Bureau, Inc.  All rights Reserved