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Answers will show knowledge

From page 34
this money and pay little
tax.
(14) You may deduct the cost of
having your personal tax return
prepared.
(15) A mutual fund usually has a
higher risk than, for example, a
government bond.

And here are the answers:
(I) False. Interest could be com-
pounding at the current savings

or no

account rate — which is usually
far lower than the term deposit or
GIC rate. Check your certificate
or institution.

(2) False. How much you may put
into a spousal RRSP depends only
on your own contribution limit.

(3) False. Part of the profits on
investment revenue property held
prior to March 1992, may still
qualify for the capital gains ex-
emption.

NEWS photo Mike Wakefield

“DOLLARS AND sense are the keys to proper financial planning
and a being prepared for retirement.

DAVID
INGRAM.
SAYS
YOUR
RRSP

(4) True.
(5} False. While the stated rate of
interest shows up as 28.8%, that
rate is compounded monthly —
which works out to a true annual
rate of 32.9%,

(6) False. You may operate a
business as a proprictorship or
partnership; you don't have to in-
corporate & company.

(7) True — thanks to the dividend
tax credit.

(8) False. Revenue Canada looks
at the source of the invested capi-
tal, not at the names on the in-
vestment. You may report income
and profits 50-50 only if you each
contributed half of the money to
the investment.

(10) False. You may never have
mere than an $8,000 over-con-
tribution outstanding at any time.
If you do, Revenue Canada
charges a penalty of 1% a month
on the excess. Note that a past
service pension adjustment could
reduce your $8,000 over-contribu-
tion limit.

(11) False. You must report the
difference between the T-bill pur-
chase price and the maturity value
as interest.
(12) True.
(13) False.
under 18,

While the child is
the person giving the

Money is supposed to report the

investment income. However, the
child may report any capital gains.
(14) True and False. The tax act
doesn’t provide for such a deduc-
tion, yet by administrative practice
Revenue Canada tends to allow
the claim.
(15) False. If a mutual fund in-
vests in government bonds, then it
has about ‘the same risk as those
bonds. :
Mike Grenby is a North
Shore-based columnist and in-
dependent: financial adviser who
works with individuals.

. REAL ESTATE COMMISSION

IS NOT AN
INVESTMENT!

o of ao ©

ITS CONTENTS

WHY PAY MORE?

Interested in
Interest?

Farming interest income inside your
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don't pay tax on the money until it's
withdrawn. Earning one or two percent
extra makes even more sense. We offer a
wide range of interest bearing investments
at very competitive yields. For example:

* Government Guaranteed
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* Liquid

To learn about our current rates and other
fixed income investment opportunities

William D. Wallace, ca.
- (604) 443-1449.

r g y LIMITED |
* Rates are as of January 1 5, 1993 and are subject to change,
800 Park Place, 666 Burrard Street, Vancouver, B.C.

Janice Noble, ca.
(604) 443-1474

YOUR RRSP
SHOULD BE MORE
THAN A
TAH DEDUCTION!

BOY AN
(HVESTMENT FOR
YOUR RRSP FROM

SHOUILID IBIE9"

a) Q a [=]

-CEN-TA FINANCIAL
PLANNING SINCE 1969
U.S. & CANADIAN TAX

RETURNS
~ PROFESSIONALLY
PREPARED.

DAVID INGRAM'S CEN-TA
201 Capilano Mall, 935 Marine Dr.,
North Vancouver - Phone 657-845 1

‘A PROFESSIONAL
IN BOTH TAX AND
VESTIMENTS

Seo Don Walsh, F.CB.A.
or George Hatton, ca.
et the Money Show

Ji SHORT
649-7321
CEN-TA REALTY

Traditional
Commission

REGAL CAPITAL PLANNERS

and

DAVID INGRAM'S CEN-TA -
* 201 Capilano Mall, 935 Marine Dr,, .
North Vancouver ~ Phone 649-4755

Cen-ta Advantage

Centa Savings

“Figures include G.ST.