20 - Sunday, August 7, 1988 - North Shore News

BUSINESS |

Education trusts good
way to save...tax free!

EDUCATION TRUSTS are an
ideal way to shelter income from
taxes and to save for your child’s
or grandchild’s post-secondary
education.

Recent changes by Revenue
Canada have made the education
trust a popular investment alter-
native. The $1,000 interest and
dividend income deduction has
been eliminated. Secondly, and
more importantly, the in-
come-splitting benefits of interest-
free loans and family trusts ended
December 31, 1987.

Education trusts are a valuable
income splitting option for families
with young children. A conser-
vative investment strategy is the
likely route in almost all cases.

The education trust is easy to
start. Simply complete a one page
application, and make a contribu-
tion of up to $30,182 per child/
grandchild. The investment income
accumulates tax free for up to 21
years. Tax is later paid by the stu-
dent,

Safety
council

gets

funding

THE WORKERS’ Compensation
Board has awarded $25,000 to the
British Columbia Safety Council.
The special projects grant supports

the development and operation of §

20 industrial safety training pro-
grams and conferences, including
several new programs this year.

“Without the WCB grant, fees
for participating in safety council
programs would be substantially
higher,’ said Terry Swain, pro-
gram manager of industrial safety
at the safety council. ‘‘The grant
allows us to charge a much more
reasonable fee and that makes the
programs available to many more
people.’”

The WCB grant makes possible
the new, popular Link Safety Sem-
inars. This program instructs
supervisors and managers separat-
ely but the program content is
linked to ensure the two most im-
portant people in safety programs,
work together to plan safety strat-
egy.
As a result of the WCB grant,
several other programs are being
introduced this year including
Emergency Evacuation Planning
for Industrial Sites and a com-
prehensive program for mid-
management on reducing accident
loss.

‘Knowledge of safety in the
workplace is instrumental in the
WCB’s commitment to safe work-
ing conditions,”’’ said Jim Nielsen,
WCB Chairman,

Since 1946, the B.C. Safety
Council has offered programs on
industrial, fleet and home safety,
as well as motorcycle driver train-
ing.

Approximately 2,000 people
participate in B.C.Safety Council

The education trust is flexible.
The contributor can make deposits
or withdraw his principal at any
time. Eligible investments could be
as straightforward as purchasing
fully guaranteed bond coupons, or
a wide range of other investments.
There is Mexibility in naming the
beneficiaries. A beneficiary can be
your child, your grandchild, your
nigce, your nephew or anyone you
wish.

For instance, Bob Jones has a
12-year-old granddaughter. He has
more than $30,000 in term deposits
and Canada Savings bonds, and is
in the 45 per cent tax bracket.

He deposits $30,000 into the
education trust and chooses a
one-year GIC paying nine per cent
in the education trust. At the end
of year six, he withdraws his
$30,000 initial principal, without

COMPUTER Ti

paying tax. The education trust is
left with almost $21,000 in interest.

His granddaughter, who is
enrolled at the University of Vic-
toria, withdraws about $5,000 per
year. The money is used to pay
education costs, Since she has no
other substantial income, she pays
no income tax because of her
allowable deductions.

Had Jones invested the money
outside of the education trust in
the same GIC, his after-tax return
would have been $10,300 versus
the $21,000 available for his
granddaughter. His annual tax
saving is $1,243, If he has three
granddaughters, this example can
be multiplied by three.

Cynthia Jackie is a stockbroker

with RBC Dominion Securities
Inc. in Vancouver.

NENG

DOS-TUTOR
SUMMER SPECIAL -— °25°

S>
INTRO TO BASIC COMPUTER SKILLS

Word Processing Data Bases
Financial Soreadsheets

ne ACCESS CENTER

... at Lonsdale Quay

at the North Vancouver Seabus Terminal

Hours: Mon

984-4671

Management Diploma

Program

This full credit program is a comprehensive
Study of modern business management practices
leading to an Associate of Arts and Science
Diploma. Graduates are market-ready for career

advancement.

lf you are energetic, hard working, and looking
for a career change, this is the answer. (Grade
12 English and Algebra Il are required.)

Classes begin on September 7 and run from
4:30 to 10:30 p.m. Monday through Thursday

with some Friday labs.

COME TO OUR INFORMATION MEETING
August 10 at 6:30 p.m. in H Building, Room 501.
For more information, call 984-4960.

SESE

et stairs

hazardous.

“| Please be careful

when watering your lawn

that your stairs are not
being sprinkled too.

are

We ask readers to
cooperate in keeping
their stairs dry for our

1139 Lonsdale Ave.
North Vancouver, B.C.
V7M 2H4

YOUR COMMUNITY
NEWSPAPER
SINCE 1869

PARENTS & GRANDPARENTS: |

Do you handle
your child’s future as

carefully as you handle
your child?

To many parents, it seems like only
yesterday their children started school.

But time flies so quickly that the
minute you turn around, your kids are
off to university or college.

To help take the financial worry out
of the inevitable day your child heads
off for higher education, consider in-
vesting in an RBC Dominion Securities
Education Trust.

It helps you handle the cost of post-
se condary | education.

Income earned on your choice of
investments is sheltered from tax, With

ee ene

your earnings compounding tax free,
your investment grows quickly,

Plus, it’s easy to start.

For further information, return the
coupon below or call:

For your benefit. And especially
your child’s,

Grandparents may also contribute
to their grandchildren’s educstion.

RBC
DOMINION
SECURITIES

ctmart seternint esate oreo ternemrite writ iin ena eae eset
Yes, Dw ant to know more about the tax-saving RBC Dominion Securities
Education Trust. Please send me your brochure today.

* Note: Successful candidates may be eligible for continued
ULC. benefits, and should consult their local unemployment
Office.

G_ew Capilano

College

programs each year.

Since 1977, the WCB has con-
tributed $308,500 to the B.C. Safe-
ty Council.

Name bee rr

Street a . . pete ee eee

City -- a

Provinwe Pastal Code

fel. (Busy

Ms RBC DS Consultant's name (ih applicable)

, . Bob Wells, Hugh Cooper

Send to: Suite 2210, Hong Kong Hank Building

BHS W. Georgia St, Van. BC. VOC JER

Of call 661-2433
—

pmnems geen rome

{Res.)

2055 Purcell Way
North Vancouver, BC.
V7J 3H5

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