| AOE SSA caine Sekt Datars RRSPs, RRIFs & ANNUITY OPTIONS: An Intricate Web of Products and Variables Variable rate or fixed rate? Self-directed? Funds guaranteed? Beneficiary, survivorship and estate planning considerations? The wide range of Registered Retirement Sav- ings plans and options available to the public today have created a technical nightmare for the average investor and without expert advice, individuals planning for retirment are vulnerable. But if you want to save money for your retirement, government approv- ed RRSPs remain an attractive oppor- tunity — your contributions are tax deductible and the income generated by the contributions is tax sheltered. “A lot of financial institutions offer RRSP products and services like we do. But this is what we do best,” says Keith Sanders, Manager of Trust Ser- vices at North Shore Credit Union. “Let's face it, personal service is what we're known for. That's what we're all about.” Important Fectors to Consider © There are a number of options, so you have to decide what you want to lo: A. Receive lower payments now B. Build an estate for your spouse or heirs C. Keep your income ahead of inflation © 1987 RRSP contribution limits can be up to 20% of earned income or a maximum of $7,500 © You may be able to retire earlier by creating an annuity from your RRSP before age 60 ¢ RRSP information is important naw. If you understand the implica- tions of a spousal RRSP at an early stage of your RRSP plan, you can minimize your future tax liabilities. There are distinct advantages in consulting with a knowledgeable RRSP professional and the sooner the better if you want to maximize your retirement income potential and keep your best options open, “Flexibility is the key,” says NSCU’s Keith Sanders. “With government changes and about- faces, it pays to consult regularly now.” Credit Unions, ‘banks, trust com- panies, life insurance companies, in- vestment dealers and mutual funds al! sell RRSPs, but while all RRSPs pro- vide the same tax deduction, not all plans are the same. Each issuer offers One or more ways to invest your money and growth rates, terms, con- ditions and fees vary. Common Questions Concerning RRSPs 1. What should you look for in an RRSP? Look for the plan that gives the best -tetum for the risk: that you are prepared to take. If there are fees involved, take them into account in comparing the an- ticipated annual growth. Remember, a front end load reduces your investment. If for any reason you prefer a short yal ‘or.6:m (by: post-dated privity Eats ». From $200.00 to: $1, 00000" Subject to 0 approval term investment, make sure that your plan can be terminated quickly and at little or no cost. To compare the earnings on guaranteed type RRSPs, don't look just at interest rates. Ask for the net annual yield. The more you know about your RRSP before you invest, the better. 2. Can you transfer your RRSP? The Income Tax Act allows you to transfer until the lock-in period ex- pires. The transfer must be made directly from one issuer to the other, using Revenue Canada form T2033. If the money goes through your hands, it is taxabie. 3. Can you withdraw funds? Funds invested in an RRSP can be withdrawn at any time, provided your funds are not locked in. The rnoney you withdraw is taxable and will be reported on a T4RS by the issuer of your plan. {There are special rules withdrawals from spousal plans.} 4, How safe are RRSP investments? Before you invest in any RRSP, ask about deposit insurance protection. There is no insurance on mutual funds, nor on most investments com- monly held in self-directed RRSPs. 5. Can you borrow from an RRSP? Yes, but you cannot deduct interest on money yoy borrowed after November 12,’ 1981 to contribute to an RRSP. You cannot use the RRSP as security for a loan. If you do, the value of the plan will be included in your taxable income. This may also happen if you transfer your RRSP in exchange for approval of a loan, or in exchange for a reduced interest rate 6, Can you contribute to an RRSP for your spouse? Yes, you can contribute ail or part for . of your personal contribution limit to ‘an RRSP for your spouse and claim the contribution as a deduction on your own income tax retum. The more you can equalize your two incomes in retirement, the less total incorne taxes you will pay. A spousal RRSP is one of the few remaining methods of in- come splitting to achieve this goal. When the contributions are made, you get a deduction from your higher tax- able income. In the future, when your spouse withdraws the funds or con- verts them into retirement income payments, the income will be taxed at your spouse's lower marginal tax rate. In addition, having RRSP funds in your spouses name will ensure that both of you can qualify for the $1,000 pension income deduction by age 65. 7, Contribution deadline? You may contribute any time dur- ing the year. Contributions made dur- ing the first 60 days of the year may be deducted for the current or the im- mediately preceding taxatior. years. For a No-Charge appointment to review your present or future RRSP and Annuity plans, call our RRSP Department, 1100 Lonsdale Avenue, 986-4321. 101-1247 ae Ri Bey ~ North Vancouver - 986-0352 . Seventy-five senior NSCU members attended the first ever RRSP Lun- cheon Seminar at Canyon Gardens on September 15, 1987. NSCU’ss Retire- ment Planning Department extended invitations to all senior members 70 33 - Sunday, November 1, 1987 - North Shore News EINE Fa LTR a a ab es RE Te at ee ae PC a a OE EET AE RRSP LUNCHEON SEMINAR ’87: A lot to digest. and 71 years of age with existing RRSPs. By legislation, all RRSP in- vestors in their 71st year must convert their investments into some other form of retirement income option or withdraw their funds. MR. FRED GRAYSTON: “Seniors Activist” Christmas Bureau: The doy of Giving Each year at this time our Credit Union gears up for fund raising in sup- port of the North Vancouver Christmas Bureau. The sale of “Enter- tainment 88" booklets, a branch park- ing lot sale and the production and sale of our own cookbook are some of the events that have been organiz- ed by staff so far this year. There will be more fund raising events before year-end. Once funds are raised, even more volunteer time and energy is required to buy gifts, goodies and groceries and distribute them to needy families. Apart from our staffs efforts, we make it easy for our members to make a donation directly to the Christmas Bureau. When you are in any of our branches during the season, staff will be happy to accept your donation. Receipts for income tax purposes will be mailed to you. Lights, camera, action!: NSCU agreed to provide the Davie Branch as a film Iccation for the production of “ACCESS REVUE: THE BUCK STOPS HERE.” The 15-minute videotape was pro- duced locally for the B.C. Coalition of the Disabled and highlights the problems that disabled people face regarding accessibility to businesses and recreational facilities. The seminar was conducted by NSCU's manager of Trust Services, Keith Sanders, and began with his presentation outlining the various RRIFs (Registered Retirement income Funds), other retirement options, new government legislation and an over- view of NSCU's retirement products. Following his presentation, Keith field- ed questions from the floor and the quality of the ensuing questions and answers easily demonstrated the need for qualified information concerning the technical implications of maturity options. Queries focused on the con- solidation of several RRSPs for con- version into a RRIF, the “transferabilil- ty’ of RRIFs, funds insurance coverage, the difference between self-directed and directed RRSPs as well as the dif- ference between RRIFs and Annuities. And whos to say there is “no free lunch” At the end of the seminar, members were treated to lunch punc- tuated with an address by special guest speaker, Mr. Fred Grayston. The Vancouver Sun's Prime Time’ colum- nist, Chuck Bayley, had been slated to speak but was waylaid by illness. Billing himself as one of Canada’s first “seniors-activists’, Fred Grayston has travelled from one end of the country to the other volunteering his time to speak at engagements and set up senior networks. He also writes for several publications. Thank you, Mr. Grayston. “CLEAN AIR” ARRIVES IN NORTH VANCOUVER Following the lead of most major cities in Canada, the City of North Vancouver has banned smoking in public places and by November 30, 1987, will ban smoking in the workplace, except for specially designated ‘smoking areas! Several of our Credit Union bran- ches and departments already had a “Clean Air Policy” in effect but with the recent introduction of No Smoking By-laws in many of the communities that we serve, NSCU has reviewed and revised its policy, Effective January 1, "988, ‘smoking will not. be permitted on any work "premises. of North Shore. Credit ° -.@. NSCU's 1988 calendar feat ing. “SELECTED | NORTH SHORE ARTISTS”: willb ‘available: to members: in"'mid-!:[ - November; NSCU wants to take: this opportunity to thank Sharon: Gordon of.” SHARLIS. GALLERIES for her assistance:' in this production. An exhibition: | _ featuring the. artists'.who con* tributed work to our calendar will“ * be held at SHARLI GALLERIES ° ..on Lonsdale near the comer of.’ ' Esplanade from November :13 through November: 2A, 1987, : ¢ NORTH SHORE” “CREDIT UNION | in’ association - with: - CHQM is proud to sponsor the ~great Canadian CIRKIDS — -Canada’s‘only children’s circus. CIRKIDS will .be performing at: North Vancouvers: Centennial Theatre in a. -special.- cut-rate. ‘preview. performance -: on. November. 19th at :7:00- PM... ‘Regular performances are slated - -for: November 20th: through November 22nd. For ticket infor- mation phone 987-PLAY: