Plan for chi educat ACCORDING toa Statistics Canada find- ing from 1997-98, a four-year undergradu- ate degree costs $40,500. Tuition has increased 159% over the last decade. This creates a challenge for many parents and students trying to finance a university education. Until recently, financial advisors have preferred rec: ommending in- trust accounts when advising par- ents about funding their chil- dren’s post secondary educa- tion. In-trust accounts were favoured vehicles for this rype of saving because: ©. i the level of contributions is . ? :. Wit'allows the potential to :-+ split. the capital gains por- tions of the total rerurn with “va minor; “Wi there is total flexibility in selecting investments, although growth investments should be preferred if you wish to maximize income splitting; the assets can be used for other purposes besides fund- i a post-secondary educa- tion... The'above are tremen- dous advantages, but : there are some. drawbacks that in M‘if. they are not . properly drawn up, in-trust accounts may: be challenged by Revenue Canada (for exam- ‘ples the’donor must give up r-assets in the the child is entitled to the assets upon reaching the age of majority; @ the, capital may not be eturned to the donor. New changes: have signifi- cantly. ‘improved . Registered Education. © Savings . Plans (RESPs) to. the point that . -many “now. consider: them | perior to in-trust accounts: 2 ACctax-deferred savings fe, RESPs' are; “designed : to enable’ parents’ to’ defray the costs of their child’s post- ‘secondary education. . Under the: current’ plan," up. to ld’ n fees $4,000 can be invested in an RESP annualiv. Because the time frame for saving and growth of the investment is usually many years, and equities have the greatest potential for long- term growth, equity mutual funds are ideal for RESPs and many mutual fund companies now offer their own RESP products. In the past the biggest drawbacks to RESPs were: ® the funds could oniy be used for the funding of a post secondary education; @ the risk that earnings would be forfeited if the plan’s beneficiary didn’t pur- sue higher ~—s education. (Capital can be withdrawn by the donor at anytime.) These two issues are not as relevant now because under certain circumstances any income earned can_be rolled into the donor’s RRSP (if there is sufficient room). Or, if there is not suffi- cient RRSP contribution room, the donor can receive the carned income back after aying a 20% penalty tax. P The money i is then j includ- ed in his or her income for tax purposes. New rules also allow RESPs to be transferred ‘between siblings, and contri- butions can continue while the child is still in post-sec- ondary school during the 25- year life of the plan. ~' The sweetener that makes ’ RESPs more attractive is the 20% Canada Education Savings Grant which was promised in the 1998 federal budget. Every. year, each child is eligible ‘to receive a grant of 20% cf the contributions to the plan, up to a maximum grant of $400. The Investment ‘Funds Institute of Canada is the national. trade association for the investment funds indus- try. A key mandate. is to enhance. the. confidence: of ‘Canadian ‘investors - by ‘ pro- viding objective information about investment funds and investing in general.) * -: For.more investor educa- ‘Material, turn to IFIC’s “Summer t is here; so put your mind © at ease with our Speciai offer. “IRE, Oil, FILTER - Chack all tiuis levele and corcect if necessary | *tnctades cll & filter . Tone un incladicg ignition sysiem inspection, ' : raplace spark plugs, battery service, alr fiter service, ‘scope engine and check axbrost emission levis a dele part, : "poate have secat a6 bop inact Sa ee Cooling System Service Pressure test cooling system, change antireaze, check belts and hoses. - incidas anitivenze . Wheel Alignment Jn the latcst 614 Hunter alignment | machine providing a computer generated bafore & after raport 2 Front whol” ‘es ara (nee ears & ght tects) S4T EE sat. taxes Parts extra if required. Prices cover most makes and models > We are also a complete autobody repair shop. Ltt ’ 183 Pemberton Ave. FAS TALKING . 8385-7195 . iar. WEST Vancouver Coun. Victor Durman — who is a member of the standing committee of council on recre- : ation facility planning — joined the West Vancouver Soccer Club at Pauline Johnson sporttield for a ceremo- | Wednesday, September Ready for play 20, 2000 —- North Shere nial kickoff. The field is ready for action again after underdoing reconstruction for the past year. SAFEWAY FOOD & DRUG | ety ee St AB MILES geen ies ‘Stores, nies Besse hy Gaon Sacsree al eve eee epee pupes upen at en nen Su Kateri A SEE veer OE MY Seasoned. Individuatly Quick Frozeit. Sold - in a 4 kg box only: for $69 96 ea LIMIT TWO, SAVE at least 40¢nb. ease ae Large Eggs One Dozen. FIRST THREE. Bathroom Tissue FIRST ONE - Combined varieties. - Bakeshop ~- - Raisin Bread Nows - 35 A sage ne a ae a he: Safeway Club Price :