mw 44 - Wednesday, April 18, 1990 ~ CAPILANO-HOWE Sound MP Mary Collins awards Tom Johnston, president of the West Vancouver engineering firm Keen Engineering, a certificate of merit for the Canada Awards for Business Excellence recently. Keen Engineering won the award for the small business category and was judged on the basis of the achievements of the past year, managerial skills, innovation and marketing. The West Vancouver company designs heating, ventilating, air conditioning, fire protection and plumbing systems for new construction, North Shace News expansion programs and modernization projects. Make the right choice From page 43 savings to pay down the mortgage? (6) Do you feel comfortable with debt? The more ‘tyes’? answers you have, the more likely it is you should choose the RRSP route. Of course, you could also decide to contribute to an RRSP, then use your tax refund to pay down the mortgage. And if the proposed RRSP changes go through, starting in 1991 you could pay down the mortgage, then make catch-up RRSP contributions up to seven years later. Let’s take a closer look at some of the preceding questions. The higher your tax bracket now, the more tax you will save when you contribute to an RRSP. Ideally, you could then also invest your tax savings to produce even more investment growth. Conversely, if you are in the lowest tax bracket, with taxable income below about $28,000 for the year, the tax savings of the RRSP approach diminish subsian- tially. The relative rates of return are important. If your mortgage is costing you 1i per cent and you can get at least that return on your RRSP funds, you'd lean toward the RRSP. But if you have a 13.5 per cent mor- tgage and when you make your RRSP contribution the best return you can get is only around 10 per cent, paying down the mortgage might be better — at feast in the short term. The longer you leave your money in an RRSP, the more money magic the tax-free com- pounding can produce. If you expect to be in a lower tax bracket when you withdraw your RRSP funds, you increase the tax advantage. This would also apply if you contribute to a spousal RRSP and your spouse will be ina lower tax bracket when the funds come out than you are when the funds go in. Theories and computer projec- tions are fine. But you must face the realities of the way you manage and save money. Whichever route you choose, make sure you will indeed be able to follow through. A second best approach that you stay with is bet- ter than a best choice you don’t follow. Many people pay off a mortgage because they feel better about get- ting out of debt — even though an RRSP route might be more prof- itable. You should be aware of your feelings but also check any costs involved so you decide only after examining both the personal and financial sides. nee Mike Grenby is a Vancouver- based columnist and independent personal financial adviser who will answer your questions as space allows in his columa. Write to him c/o North Shore News, 1139 Lonsdale Ave., North Vancouver V7M 2H4. Business Management Information Meeting Wednesday, April 25 — 7 p.m., Room H501 Time is running out! Our two year full time Business Management Diploma Programs start this Septembe: r. Come to the information meeting to find out more about how you can become job ready for today’s market place. Programs inci ude Accounting/Finance, Administration, and Marketing, and a new Business Com includes 8 mo 16 months of puting Co-op Program that nths of paid work in addition to academic study. Information will also be given on the new International Business Program, as well as course and carcer information on Merchandising Management. ; Call 984-4966 a = coming. CAPILANO COLLEGE 2055 Purcell Wa and let us know that you are y * North Vancouver « British Columbia are tainment sensation. Back at the Gull for 7 excitinig days. Wed. til Tue April 18-24 PODrare *h % LHR “ ‘ as SESE MEANS ERE NEWS photo Neil Lucente NEIGHBOURHOOD PUB 175 East 1st, N. Van 988-5585 SYS ARR es At Dairyland Foods, we care about the environment. We have to. Our products startat the farm.So we have a vested interest in the quality of the land, the water and the air. We also recognize that to do something positive for the environment, we d/l have to do our part. That's why we introduced a unique plastics recycling program on alf our Lower Mainland Home Service routes. Hone Service customers will now have all their used Dairyland plastic containers collected and recyeled. It’s a small step in the right direction, And there's more to come. This sunimer, you'll see the return of glass milk bottles distributed by Dairyland. HW youd like to know more about Dairyland’s Home Service Recycling Program, please call us at 421-4663. We're listening. Dairyland ar ws —