RRNA EERIE ELE ATH PIR L TEE : MIKE GRENBY’S MONEY TOON WHAT ARE YoU WAITING) MY TAK REFUND 14, BECAUSE 1 PAID WAY TOG MUCK LAST YEAR ! than receivin« Mike * SAY “NO thanks” to future > tax refunds and “yes please” to paying less tax during the year. Cut out that interest-free Joan to “the government — as more and "more Canadians are doing. “Last year, one tax office expect- -. @ 5,200 requests to have less tax withheld at source - and received », 6,958 said Revenue Canada com- "munications officer. Dave Morgan. “We get more'requeésts each yeur as _ Taore people realize they have a- choice.” ‘Perhaps you get a refund because “you contribute to an RRSP. Or you ‘give to charity. You might be paying aimony or support. Or you have . “., rental or other investment or busi- ness losses, Any time a deduction - »_ Creates or increases a tax refund, ask “your local tax office to give your © employer permission to withhold © “less tax from each paycheque. If you pay quarterly, look at reducing your _instalments, "Many people have more tax than -Mecessary withheld at source; they often put themselves down as single even though they have dependents. ".". Change your choice so less tax is withheld. A better forced savings “approach is to have your financial institution automatically transfer the "extra amount to your savings” . dollars and sense account. Then make sure you do something with that “raise,” or the, money will simply disappear. Pay _ off debt, contribute earlter to an. ~ RRSP or otherwise invest. (You -naight, dare I say it, even spend some of the money.) If you do get a refund this year, direct it toward the same three (or four) choices. oe Paying off your mortgage as quickly as possible isn’t the only way to go, as mutual fund sales pioneer Paul Rockel, chairman of Regal Capital Planners Ltd., points out. Investing part of those payments instead allows you to diversify. “{ enjoyed your column which "We will be hosting a valuable information session for investors who are with- in five years ‘of selecting a retirement income option. . TAKE THIS OPPORTUNITY TO LEARN: . «What isa Registered Retirement Income Fund (RRIF)? + What invastments qualify fora RRIF? - * Kay strategies to maximize performance within your RRIF. «How to structure a RRIF portfolio to meet your personal retirement needs. WHEN: Wednesday, June 21 at 12 noon WHERE: Richardson Greenshields Executive Boardroom No cost = = just call DAVID BLAIR or ROBERT GLYNN at 844-5702 to attend. CAN'T MAKE IT? Call for a free information kit. 500-1066 West Hastings Street, Vancouver, British Columbia V6E 3X1 Member of GiPF rte SIGN eur Bring In your old computer for ~. Consignment - ... i pecabbolrement STORE PC. GALORE CONSIGNMENT LTD. VANCOUVER'S FINEST COMPUTER CONSIGNMENT STORE 4 199 Lonsdale Ava. 996-0547 2744 W. 4th ave. 2352-7816 Mon. to Thurs. 10 - 6; Fri. 10 - 3 Sat 10 - 5:50 EVEN INTEREST ON MAY Ge es ae BETTER TO PAY LESS TAK AND INVEST OR SPEND THE showed how much you can save by paying off the mortgage in 15 rather than 25 years,” he said. “But too many people look only at how much they can save — and never think how much they miss if they had put some of that money to work for them instead.” Rockel suggested choosing the lower monthly payment of a 25-year miortgage and investing the extra money in mutual funds. This approach involves more risk (what if the mutual funds you cheose do poorly?) but Rockel’'s point does make sense — provided you do indeed successfully invest the extra money you would otherwise have used to pay down debt. That way, you will have assets to draw on if, for example, you lose your job or otherwise need emergency funds — rather than having all your money tied up in your home. If that happens, you might have a hard time borrowing money if you are out of work. As an alternative; you couid set up a line of credit while you are working in case you ever need emergency funds. Mike Grenby is a North Shore- based columnist and independent Jinancial adviser who works with individuals; he will answer your questions in this column as space allows + write to him c/o 2444 * Haywood Avenue, West Vancouver, B.C. V7V IYI. GUARD Rate Watch . THE RETIREMENT SPECIALISTS Monthly income on $50,000 investment Lita Annuity 40 yr. Guarantes eT 399.36 8 se ae amlanr fst Yt. [fon Ye. | Yr, 139.00 ben 31 R.RLF, Minimum 10th ¥r. Fund Value $71,863 | 71 |469.37| 37 [499.15 | A personal B Annuity or RAIF lilustration or a copy of our Guide, 925-3101 65% | 6.59 67 | 875 | 70 Solguard Financial Ltd. 401-100 Park Royal S., West Vancouver Building better retirement incomes since 1974 Advertisement Siash thousands of dollars off your mortgage By Karen Cote Wf you are the average Canadian home- owner with a mortgage of $100,000.00, you could now save over $2(),000.00 in interest. Two local financial planners, Javier Aragon and Doug Canning have developed a num- ber of financial strategies that can save you a fortune in interest. “Look at the figures.” If you have a $100,000.00 mortgage at !0% amortized aver 25 years, you'll pay aver $268,000; that's over $168,000 in interest, Even worse, people don't consider another factor: you're paying with after-tax dollars. If you are in the 40% marginal tax bracket, which means you ears more than $30,000.00 per yeur, you'll have to ear close to $450,000.00 over 25 years to be able to pay for your home. “When you Sook at the total cost of your mortgage, it's pretty easy to save o client $20,000.60 in interest and “taxes.” claims Doug Canning. “After being a financial plan- nee for a number of years, Javier and I were compering notes on our clients. We noticed one of the most common goals of most of our clients was to pay off their mortgages carly or save interest. So we decided to work together to come up with some clever ways far better than bi-weekly or occasional lump sum payments to reduce the cost of a mort- gage and add more money to the clients’ bot- tom fine. That was about a year ago, and we haven't been stumped yet.” Javier and Doug are quite modest when asked about their new strategies and are only adamant about one thing: they claim they don‘t care if a home owner is currently work~ ing with a financial planner, accountant, bank Manager or mortgage broker; no one else in the Lower Mainland appears to be using these strategies that save home owners thou- sands of dollars. After following the two financial planners, 66 ... no one else in the ‘Lower Mainland appears to be using these strategies that save home owners thousands of doliars...29 around for a few days, it became abundantly clear no two clients are the same, so they need to review the client's circumstance, which can usually be done in about one hour. Then they team up and review the client's data, form a plan of attack & then go to work on the computer. Currently, it's a fittle cum- bersome for them to do, as they use parts of five different computer software packages. One day, tney'd like to write a program and sell it. The end result is every client saves a fortune in interest, income taxes or both. Javier and Doug's strategies work best for home owners with a mortgage or clear title anda combined family income of $50,000.00 or more per year. The more income you earn, the higher the potential for savings in taxes or interest, If you want more information on these intezest and tax saving strategies, call 473-6369 NOTICE TO MOTORISTS SEA-TO-SKY HIGHWAY 99 PORTEAU BLUFFS CLOSURES & DELAYS JUNE 5 - JUNE 29, 1995 The Ministry of Transportation and Highways advises that there will be 2 1/2 hour closures and 20 minute delays on the Sea to Sky Highway 99 at Porteau Bluifs, 25 km north of Horseshoe Bay. The delays are needed for slope stabilization work and will be in effect as follows: 20 MINUTE DELAYS Monday to Thureday $:00 am - 4:00 om Friday 9:00 am - 12:00 nooz 2 1/2 HOUR CLOSURES June 12 &13 7:30 pm - - 10:00 pm ” Note: There will be no scheduled delays on Friday afternoons or Saturdays and Sundays. The Ministry thanks motorists for their patience and ccoperation.- Province of British Columbia Ministry of Transportation and Highways