WRAL IRIS EAE LI MA EOE, RRSPs afford benefits Russell Moidowan - THE BOTTOM LING LAM still reeling from being “hit with the news about what . might be done with our pre- cious RRSPs. Economists go on and on about how lucky we are to have our ’ RRSPs; haw few other countries can offer its residents such a tax break. ' . What they fail to Point out is this is , Our last opportunity to protect our hard-earned income and provide for -our own retirement. ‘Believe me, I'd rather not have to .: be writing about this, but after losing _our Capital Gains Tax Exemption, 7 the threat is real. The information that has recently “ . made headlines points out that an -: effective way to reduce the deficit is _,,to take away some or all of the bene- fits Canadian investors now enjoy. The Financial Post reckons that Canadians contributed about $16 bi- lion and that reduced tax revenues by about $5.5 billion. The benefits afforded us RRSP holders include: sheltering $13,500 of income from tax this year, having the interest, dividends and gains not taxed while in the RRSP, having no maximum size of an RRSP, allowing 20% foreign content, and piece of mind from knowing that you are doing something for yourself and your family without government assistance, The followinginformation should help you make up your own mind: ° If you do not already have an RRSP, start one, If you can, have a self-directed RRSP, so that you may have better control over it and enjoy the enhanced returns. We are fortu- nate in that we can contribute into our RRSPs amounts that we have nat previously used up in the past, These past contribution limits are not deductible from income but any returns are not taxed while in the Plan. © You may transfer investments like Canada Savings Bonds, BC Savings Bonds, Bonds, mutual funds, GICs and shares of both public and private companies into your RRSP if you do not have the extra funds available. The value of the transfer is the mar- ket value of the investments at the time of transfer. Any further returns are not taxed as long as they are held in the Plan. If you have a self-direct- ed RRSP, this strategy is easily car- ried out . ¢ Take advantage of your $8,000 lifetime over-contribution. I suggest that you use up all but $1,000, to still have a cushion. ¢ Take this opportunity to use the 20% foreign content portion for a good investment. Many of the mutu- al funds companies have high quality international funds that can fit into a conservative portfolio. * Try to make your contributions ear- lier than March 1, Set aside some- thing cach month, if you can and get a your money working sooner. « Use a spousal RRSP to ensure that you are getting income-splitting f working for you and your spouse. A spousal plan will let the contiibutor & with the higher income pass retire- ment wealth to a spouse and at retire- ment, the amount in each RRSP (his and hers) will be closer to equal. The Bottom Line is this: Planning for this possible disaster can be simple, if you start thinking about it soon, Ottawa has. Our RRSPs are used to protect our hard- eamed income from taxation and to provide us with a means to maximize the growth of our investments for a comfortable retirement. Implementing these strategies will help make your goals a reality, regardless of changes to RRSP legis- lation. A call to your investment advisor will reveal more options, tips and tactics to help you reach your coals, Russell Moldowan is an invest- ment adviser in Vancouver. He advises on investment management and retirement planning. Cail or write to Russell at (604) 661-7475, P.O. Box 10342, Pacific Centre, Vancouver, B.C., V7Y 1H6, Or by E- mail at russellm@unixg.ubc.ca. ” RETIREMENT INCOME PLANNING IN. THE 90s FACES THE CHALLENGES OF: «Continuing low interest rates * Volatile equity and bond markets * Increasing taxation directed at retirees * Instability of financial institutions Our information-packed two hour seminar will help you plan for your financial security ; TT. VAN ‘Park Royal Hotel , §40.Ct ' River Room Wednesday October 19th 4:30-3:30pm Telephone 925-3101 GU * SOLGUARD FINANCIAL LTD. Consultants & Brokers since 1974 Left to right: Nancy Farran, Gordon Brown, Janet Kelchen tyde Avenue D VER NORTH VANCOUVER Deibrook Community Centre Oak Room 600 W. Queens Tuesday November 1st 1:30-3:30pm/7:30-9: ‘30pm There Is no charge for the seminar, but seating is limited. Please call to reserve your space. i , Refreshmente will be served #1205-675 West Hastings St. Vancouver, B.C. W. Vancouver, B.C. V6B 1N2 #401 Kapilano 100 Park Royal South V7T 1A2 Above all else, people seek trust in an investment advisor. Fer 85 years we've built a ) Make Your eeceis FORTUNE FINAN Cc? invites you to attend a complimentary presentation on Global Investment Opportunities Seminar Dates Guest Speaker Giles Marshall Director of Global Strategy Rothschild Tuesday, October 18, 1994 7:30 - 8:30 a.m. Muckenzie Reom The Waterfront Hotel 990 Canada Place Way, Vancouver Guest Speaker Marcus Slade V.P. and Director of Mackenzie Financial Corp, Tuesday, October 25, 1994 7:00 - 8:3) p.m. Hollyburn Country Club 950 Crosscreek Road, West Vancouver * Coffee and dessert will be served For Reservations Or Information, Please Call Christine : 681- -1300 or fax 681- 0880 * Breakfast will be served SEMI-ANNUAL INTEREST GOVERNMENT GUARANTEED BONDS 1 Year: 6.4% 2 Year: 7.6% 3 Year: 7.9% 4 Year: 8.4% 5 Year: 8.55% FEDERAL GOVERNMENT GUARANTEED MorTGAGE BACKED SECURITIES MONTHLY INCOME 5 Year Term: 8.47% For More Info On Today’s Best Rates, Call: 981-6600 (Rates subject to change without notice) Minimum investment of $20,000. RBC DOMINION SECURITIES Member of Royal Bank Group ' North Shore’s Number I Investment Firm #201-250-15th Street, West Vancouver YES, please send me information on: (3 Wotices of future investment seminars [CJ Timely investing in Canada C Free video — Appreciating Your Worth tradition of trust with Canadians. A tradition that is one step closer te you with our new North Shore branch. Cty PHONE RICHARDSON GREENSHIELDS 911 — Kapilano 100 Building, Park Royal South West Vancouver, B.C. V7T 1A2 Phone: 981-2300, Fax: 981-2305 10-14