MONEY MATTERS

PAYING LESS TAX:-ON YOUR’1990 INCO:

Start

The earlier
you start
the better

PEOPLE TODAY are wor-
tied by the prospect of less
government pension help as
more older Canadians will
have to be supported by a
shrinking base of working
taxpayers,

“Nevertheless,” said a Certified
General Accountant who
specializes in the investment and
tax aspects of retirement planning,
“you must strike the correct
‘balance between spending and en-
joying your money now and sav-
ing to spend and enjoy it after
you retire.””

Saving every penny when you
(and possibly your family) are
young might produce a sizeable
nest egg. But what aboui all the
things you need, and want to do
now?

On the other hand, too small a
retirement fund could mean never
having enough money — a bleak
prospect if you retire at 60 and

live to 85.

HOW AND WHY.O

To choose the best approach,
first estimate how much vou will

MAKE YOUR retirement more enjoyable by planning for your future financia! needs now. But don’t
sacrifice too much of your income to do it.

necd to live on after retirement, in
terms of today’s dollars.
Financial institution worksheets

Tips to make investments pay off

HOW CAN you make investing pay off? A group of
Certified General Accountants came up with some
relatively simple steps:

(1) Add up your total savings and investments,
both present and planned.

(2) Decide the correct percentage of each of the
four main investment types (guaranteed, stock mar-
ket, real estate, business) according to your own feel-
_ ings, skills and objectives.

(3) Diversify among the four main groups.

(4) Diversify within each of the groups — mutual
funds in the stock market, for example, or guaran-
teed investments with staggered maturities.

(5) Keep up to date with financial and economic

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news.

(6) Review investments quarterly, even monthly.
Relate them to both personal and also economic de-
velopments. Adjust as necessary.

(7) Meet with your financial adviser(s) at least an-
nually.

(8} Remember to spend and enjoy your money,
too!

This article was prepared by the Certified General
Accountants Association of British Columbia, the
province's largest professional accounting body. For
further information the Association can be reached
at 1555 West 8th Ave., Vancouver, B.C. V6J ITS, or
by telephone at 732-1211.

“CERTIFICATE.”
investors
Group
Tres aaucher entities Ihe Bearer
%

apie ©

a.
1% HOUR

TAX AND FINANCI,
Al sl

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To arrange your seqsene Catt

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CALL ROD OR KAY
FOR YOUR COMPLIMENTARY
GOLD CERTIFICATE

ROD
936-2949
(24 HRS.)

526-3725 me
986-5859 ee

SPECIAL NOTE: Rod and Kay will have a booth at Mike Grenby's Money
Magic Show on Saturday, Feb. 9th beginning at 1 p.m. Come and see us
for any of your financial needs. For info. please call Rod at 936-2949 or

Kay at 526-3725.

Wednesday, February 6, 1991 — North Shore News - 29

jectives:

+ Pay off your debts. When a
debt disappears, apply that pay-
ment to your next debt, or to your
investment program.

- Put money into your own (or
a spousal) registered retirement
savings plan, deduct your con-
tribution from income to reduce
your tax bill, and when you take
out your money, hopefully you
(or your spouse) will be in a lower
tax bracket. (When you get back
RRSP money, it is added to in-
come.)

Another plus: money
RRSP grows tax-free.

¢ Study your choices: Canada
Savings Bonds, term deposits,
Treasury bills and similar guaran-
teed instruments; mutual funds
and the stock market; revenue
property; a business. Diversify
both among these groups and
within each category.

« Have your employer or fi-
nancial institution automatically
deduct money for an RRSP or
other investment every (or every
other) payday. Then live on
what's left. (You might have to
cut up your credit cards and close
your line of credit to make this
approach work.)

« Monthly, quarterly or an-

in an

Photo submitted

or a computer program can help

you find how much you need to
save to reach your objectives.

“Of course, the earlier you
Start, the less you have to put
away each year,”’ said the CGA.
“*But it’s ‘never too late to start.””

The CGA listed several common
savings/investment approaches
and instruments to help you reach

nually, review your priorities, the
economic climate and the progress
of your investments. Adjust your
program as recessary. If you have
a family, make this a family pro-

+ Read, take courses and talk
to the experts in the financial
world. But accept the final re-

your retirement — or other — ob- sponsibility.

Dan Dowber Edith Stevenson

“We can help you
choose the RRSP that's
right for you.”

“We have a full range of Registered Retirement
Savings Plan Investments. Let us help you make
the choice that's best for your needs.

« 60-day interest rate guarnatee on RRSP
transfers to The Mutual Group

¢ RRSP loans available with up to 24
months repayment

See us at the show or give us a call. We look

forward to being of service.”

The Mutual Group

Facing Tomorrow
Together

1680-650 W. Georgia
Vancouver. B.C.
683-0905

Licensed wth Mutual Lite of Canada Mutual Investco lec two of The Atutual Group