17 - Sunday, November 30, 1986 - North Shore News Business Straight Answers... / to your investment questionsS ' Talk to a full service investment dealer. Call ROD CLARK 669-6262 rules relaxed * Free initial evaluation cee oe PARROTS SERENE EET ESE RE TPN NTE PLE ARES, PPT INP ATE OES EAT a é b E i i t & Hd E b. £ a ¥ 2 g bh 4 Z IT IS over eight years since the government introduced the Registered Retirement Income Fund (RRIF) as an alternative to the annuity option for maturing Regis- tered Retirement Savings Plans (RRSPs). The popularity of the RRIF has increased yearly and the gov- ernment continues to relax the restrictions originally imposed. The latest improvements are be- fore Parliament now and are vir- tually assured to become effective before the end of the year. One objection many people had to RRSPs was the requirement to purchase an annuity from a life in- surance company. The only alter- native was to take cash which fre- quently resulted in a heavy tax penalty. retirement planning by Bert Wickham Under the new rules it is now possible to organize your RRSP funds almost any way you wish to provide income and emergency funds during your retirement years, : For example: —You may now have any number of RRIFs as well as any number of annuities. —The original requirement to ~ take a minimum amount from the RRIF each year remains. The min- ‘imum income for any year will be equal to the total amount of the fund divided by the number of years remaining to age 90. —The earlier ceiling has been removed and an individual may now withdraw any amount in ex- cess of the minimum specified. —The new legislation also per- mits individuals to make im- mediate withdrawals from their RRIF, rather than wait until the following calendar year. However, until the legislation is actually passed, financial institutions will ‘probably not permit massive withdrawals at this time. A note of caution: Most of the flexibility available under the new rules can best be enjoyed by using a self-directed RRIF. Many RRIFs being sold today by financial in- stitutions are packaged RRIFs and are structured along the same lines as an annuity. These plans provide for a regularly increasing income from commencement until age 90 based on the minimum formula with or without some form of in- dexing. Most of them do not per- mit any variation from the fixed income Jaid down at the outset. Although commutation may be permitted, this will frequently result in some kind. of discount or penalty. On the other hand, a self- directed RRIF will enable you to control the investments in your fund in such a way as to have them available for withdrawal at your own option. Most financial institu- tions recommend $50,000 as the minimum amount required to make such a RRIF worthwhile. aoe This series of articles is designed to help you make the most of your income in retirement and keep your taxes to the legal minimum, However, as they are of a general nature, readers are advised to check carefully before applving them to their personal situation. _ Divorce and Family Law Debra Van Ginkel Bradbrooke, Crawford & Green Complete Legal Service Lonsdale Quay 980-8571 600-171 West st Esplanade LAST CHANCE..SHELTER YOUR TAXES! 1986 MINTAX MINERAL LIMITED PARTNERSHIP* Minimum purchase: $25,000: After tax cosi: $7,130 Present portioiio value: $17,635 CAPITAL GAIN ON PREVIOUS OFFERINGS. AVERAGING 160% + CLOSING DATE: DEC. 10, 1986 — CALL TODAY 669-6262 Karen Faulkner or Renelde Bergman * This offering has not had the benefit of a review by the Office of Superintendent of Brokers & is only available to persons who qualify as sophisticated investors. WALWYN STODGELL COCHRAN MURRAY LTD. 21st FI. 1055 W. GEORGIA, VANCOUVER, B.C. . New carand light truck _