Contributing
| yearly shelters
crowth sooner

REACERS ARE asking about RRSPs, the reverse mort-
gage/home income plan, children’s investments, the home
buyer’s plan, éthical funds and more. Here are some an-

Swers.

“My maximum RRSP contribu-
tion is about $3,000 a year. If 1
contribute that amount every year
for four years but postpone my
‘Claim for $12,000 until the fourth
year, when [No be in a much
higher tax bracket, will I exceed
the $8,000 over-contribution
limit?”’ — K.K.

No. An _ over-contribution oc-
curs only when you put more than
your allowable limit into a regis-
tered retirement savings plan.

By the way, your approach is
better than waiting until the
fourth year to make your ac-
cumulated contributions. By con-
tributing cach year, you shelter
the investment growth from = tax
sooner,

“What are the advantages and
pitfalis of the ceverse mortgage we
are hearing a tot about today?"’
— W.B.

“Could you arrange something
like a reverse mortgage. with a
private individual rather than
dealing with a financial institu-
tion?"* — ALY.

A reverse mortgage, also known
as a home income plan and grad-
ually becoming available in more
areas across Canada, allows you
to draw a lifetime tax-free income
and/or lump sum based on a
mortgage secured by the value of
your home.

In most cases, you may stay in
the home and needn’t pay back
the mortgage until you and your
spouse die or sell the home. You
get more money now but you (or
your heirs) get Tess money later
when the place is sold.

You certainly could make a
private arrangement —_ perhaps
having somebody (a family
member?) gradually buy your
home from you with the provision
that you could live there as long
as you wanted. Just make sure
you draw up a legal agreement to
protect all parties.

“We've been investing our
children’s family allowance in our
names in trust for them, and plan
to do the same with the new child
(ax. benefit. Bui when f asked
about reinvesting the money in a
GIC or other instrument to earn 2
higher return, the hank said I'd

Infiniti 045
Stk.#Q2042

Michael

DOLLARS AND SENSE

have to declare the interest. Can
you help?*’ — R.B.

The bank is wrong. It's the
source of the money that counts,
not how it’s invested. As long as
the money comes from family al-
lowance and now the child tax
benefit, payments, the income
earned by this money belongs to
the child(ren) for tax purposes.

Show the bank paragraph 20 on
page 13 of the leaflet Under-
standing Your Child Tax Benefit,
available free by phone from your
local tax office.

“What is the maximum a per-
son can take out of an RRSP tu
buy a home before being taxed?
And can a person use an RRIF to
buy a home the same way?”’
D.R.

Under Ottawa’s Home Buyer’s
Plan,
$20,000 from your RRSP by
March I, 1994, to buy a home in
which you will live. As long as
you repay the money over a max-
imum 15-year, period starting Dec.
31, 1995, you will pay no tax on
these funds. Unfortunately, this
program doesn’t include RRIFs.

“What do you think of ethical
mutual funds? Shey sound like ar
ideal vehicle for my grandchil-
dren.’ — W.B.

The funds have different defini-

See Claim page 63

you may borrow up to-

Wednesday, March 24, 1993 - North Shore News - 61

Women’s centre hosts night of storytellers

RESIDENTS OF the North
Shore are invited to attend the
ongoing Women's Night series at
the North Shore Women’s Cen-
tre (NSWC) tonight, Wednesday,
March 24 at 7 p.m.

Tonight's event is “A Night of

Storytelling,”" and the focus of

SPECIALIZED
MAZDA SERVIC
Mace:
PARTS
SSORIES

* THIS SPECIAL NOT:
VALID WITH ARY
OTHER PROMOTION

the evening will be on women in
various cultures.

“A night where women from
several cultures, West Indian,
Iranian, Japanese and = Celtic,
share their experiences and those
of other women through
storytelling,’ say organizers,

‘93 CRONOS 62

-

Scheduled storytellers are
Abegael Fisher-Lang, Yukiko
Tosa, Leli Motedi, and Barbara
Binns.

Everyone is welcome to at-
tend. The NSWC is located at
#103-145 West 15th St. in North
Van. For more info, 984-6009.

PRICE INCLUDES FRT & POI

|“ JUST FEELS RIGHT”

SERVICE HOURS
MON. - SAT. 8AM- 9PM _

_ For che sake of comparison, by all means add a BMW and a Mercedes to your list.
Then drive the Infiniti Q45.
Its extraordinary handling and smooth 278-horsepower, V8-power prompted the
editors of Road & Track co claim, “...chere’s probably no other big 4-door in the world that
will hustle you down a twisty road like che G45." Perhaps their recommendation will
prompt you to hustle co an Infiniri representative soon.

TOTAL PAYMENT $39,600, OPTIONAL BUY OUT AFTER LEASE $16,000.

WW

INFINITI.

G20 * J30 * Q45

*Road & Track, Dec. 1990