30 - Wednesday, October 21,

Business.

AS FAR as Keith Sanders is
concerned, CSB time might
just as well be RRSP time.

‘Many people who buy Canada
Savings Bonds on the payroll plan
take delivery of their bonds around
this time each year,’’ said Sanders,
trust services manager for North
Shore Community Credit | Union.

dollars and
sense

“They don’t realize they could
put CSBs into a self-directed regis-
tered retirement savings plan and
claim the tax deduction — instead
of waiting until next January or
February and perhaps having to
borrow then because they are short
of cash.”’

If you have some extra funds
now, for a higher return than
CSBs you could buy Treasury bills
and put them into an RRSP the
same way, Sanders added. For a
self-directed plan holding gov-
emment securities like CSBs or
T-bills, the fee is $35 a year.

The RRSP is probably the only
tax shelter most people should
consider, I will deal with RRSPs in
more detail early next year, when
the annual promotion season gets
under way.

Workshop

“A ONE day workshop aimed, at
helping British Columbia com-
panies to increase their trade with
England is being planned for
November [0 at Le Meridien Hotel
in Vancouver.

The workshop is sponsored by
members of the Pacific Division of
the Canada - UK Chamber of
Commerce.

“The workshop will be of par-
ticular interest to small to medium
size companies wishing to explore
how they can tap the UK and
European markets or how they can

1987 - North Shore News

But if you want to avoid the
rush (Sanders said the credit union
still does about 70 per cent of the
year’s RRSP business in Febru-
ary), look forward to the safest
way to save tax and build a larger
retirement fund, review these key
points:

e A maximum contribution for
1987 will save you more tax
because if tax reform proposals are
passed into law, tax brackets will
be higher this year than in the
future.

eCheck you have the correct
balance between guaranteed in-
struments (for safety) and equities
(for the chance of higher growth
— provided you can accept the risk
of possible loss). When you
analyse the proportions, look at
the total breakdown of both RRSP
and non-RRSP guaranteed and
non-guaranteed investments.

© Go for the highest returns and
lowest costs. Look for flexibility so
you can change your RRSP mix as
your personal or the general
economic situation changes.

® Qualified and understanding
service is important. You can look
for easy-to-read statements, but
from the selection I’ve seen, you
probably won’t have much success.
At least try to get statements more
often than once a year.

¢ Finally, contribute sooner
rather than later.

if the $1,000 interest exemption
does disappear in 1988, you want
to tax-shelter your investments as
soon as possible.

As the following example shows,
contributing sooner really boosts
your retirement fund.

This wallet-warming story comes
from Don Pooley, a financial
planner. -

“Maureen is 20 and lives with
her parents,’ said Pooley, past
president of the Canadian Associa-
tion of Financial Planners, Pacific
Chapter.

“She found she could save $150
a month if she really wanted to, or
she could spend the money.

NEWS photo ‘furry Peters

BURT AND Naomi Allen talk about RRSPs with Keith Sanders, right, manager of trust services in the Lons-
dale branch of the North Shore credit union,

“‘] showed Maureen if she put
that $150 a month into an RRSP
compounding at 10 per cent for
only the next 10 years, she’d have
$806,185 by age 65.

“That’s almost $320,000 more
than if she started such a program
at age 30 and continued until age
65. For by putting aside her $150 a
month into an RRSP during those
35 years, Maureen would ac-
cumulate only $487,844."”

In other words, her savings be-
tween age 20 and 30 will provide
65 per cent more cash at‘age 65
than her savings from age 30 to
age 65.

Of course there must
balance between your
needs and wants and

be a
present
that in-

to boost opportunities

is $35
which includes lunch, refreshments
and any workshop materials.

said Allard W. van Veen, honorary
representative for the Canada - UK
Chamber of Commerce in Western
Canada and chairman. of The
Noram Group, an international,
Vancouver-based marketing firm.

The workshop will deal with
specifics, explaining ‘thow to’’ do
business in England

Registration for this seminar

- establish connections with UK .

companies who want to do
business in British Columbia,”

-Noram Group,

which starts at 9:30 a.m.

To register contact Canada - UK
Chamber of Commerce, c/o The
#502 - 455
Granville Street, Vancouver, B.C.
V6C 1V2 or by telephoning
669-2488.

© CORDLESS
TELEPHONES

© COMBINATION
TELEPHONE &
ANSWERING MACHINES

SALES & SERVICE

PANASONIC QUALITY AT AFFORDABLE PRICES

definite future. But if you leave the
future too Jong, it suddenly
becomes the present — and much
more expensive as far as saving for
retirement.

In Maureen’s case, said Pooley,
if she starts her RRSP program at
age 20 and continues through 65
instead of quitting at age 30, that
$150 a month will produce about
$1.3 million.

But if she waits until age 30 to
start her RRSP program, she will
have to contribute $400 a month to
achieve the same $1.3 million goal.

eee

MIKE’S MONEY TIPS: If you
contribute to a spousal RRSP, do

so by Dec. 31. If you contribute in
1988 (even though it’s for the 1987
tax year), your spouse will have to
wait an extra year before taking
out the money in his/her name.

eet

Do you have a financial or con-
sumer question for Mike? Or a
story you think should .be in his
column? Please write to” Mike
Grenby, North Shore News, 1139
Lonsdale, ‘North Vancouver V7M.
2H4. Remember to include your
phone number in case Mike needs
to contact you.

Mike cannot reply individually
but will answer as many of your
letters as possible through The
North Shore News.

THE NORTH SHORE ENTERPRISE
DEVELOPMENT CENTRE
presents

‘BUSINESS FEASIBILITY WORKSHOPS

Aseties of 4 workshops designed especially for owners of new
and growing small businesses who want to assess their ideas.
Workshops will be presented by qualified professionals and
are offered at minimum costs to make them both attractive
and affordable. Call us now to reserve a space. All workshops

will be held at the Centre.

#1 THURS,, OCT. 22 “EVALUATING YOUR IDEA!”
Business feasibility — an overview and first steps Aa 00

success, 7-10 pm

#2 TUES., NOV. 3 “WHO ARE YOUR CUSTOMERS?”
Determining the extent of your market through market

research. 7-10 pm

$30.00

#3 THURS., NOV. 5 “MONEY MAKES IT HAPPEN”
Financial plans and budgets for a small business. $300

right the first time.

7-10 pm

#4 SAT., NOV. 14 “MEET THE LENDERS CONFERENCE”
Your opportunity to learn how to correctly apply for a
Joan, how to finance your business other ways and a
chance to meet representatives from iocal financia 0

3

institutions. 9 am-4 pm

caNSEDC

Suite 301
145 W.15th, North Van.

984-2004