B4 - Wednesday, September 26, 1984 - North Shore News

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RETIREMENT PLANNING

Don't smash your RRSP piggyback

Bert Wickham ts the author of the current tex-
tbook on life insurance and annuities for the In-
surance Institute of Canada. He has appeared on

television

to discuss annuities

and written

numerous articles on life insurance and retirement

planning.

feeling still persists among some RRSP
holders that their only viable option before
age 7] 1s to cash in their RRSP, pay the tax,

and take their lumps.

This 1s usually because of a
deep-rooted objection to
**having to buy”’ an annuity
from a life insurance com-
pany. Where there ts a health
problem this 1s a valid objec-
tion. Although a few life
companies will quote a better
rate for annuitants with a
demonstrable health  pro-
blem, this is not yet a
dynamic factor in the highty
volatile annuity marketplace.
The top compantes frequent-
ly do not have the time or tn-
chnation to quote special
rates during the short period
they are leading the market

Selling ‘‘special rate’ an-
nuities with medical evidence

The

By NOEL WRIGHT

HISTORIANS will lkely
describe the closing decades
of the twentieth century as
‘‘the age of independent
business’’---and with good
reason, according to a local
expert on the subject.

That was the message
from Jim Wright, manager
of the Royal Bank of

Canada’s North Shore Retail
Centre, addressing the open-
ing fall meeting of the North
Vancouver Chamber of
Commerce last week.

Independent businesses
today have become the ma.
jor creators of new jobs and
are the economy's mayor
growth area, he said) They
are the key to a. strong
private sector, which as
essential for prosperity

Their importance, he
noted, can be judged by the
fact that they now comprise
90 per cent of all the Royal
Bank's business customers

Their growth has also suc
ceeded in making
respectable word
something for which dig
business, often the target of
crities otf Ccthe

“profi a

protit

motive’, should be grateful,
Wright added But make no
mistake, he warned, “a

small business is not a small
big business and the bank
always recognizes that fact ”’

He stressed the need for
educating the public about
the role and contribution of
tndependcnt business, prais
ing in particular the efforts

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By BERT WICKHAM

is a new and highly specializ-
ed technique mastered by
very few of the leading annu-
ty brokers. There are other
varying degrees of prejudice
against itfe insurance which
may or may not be justified
but which nevertheless exist
and are very real to the peo-
ple whose money 1s involved

So, with the end of the year
approaching for the 71-vear-
olds and tn lhght of the recent
expansion of the RRSP
maturity options, we ate
reviewing the current
including the
popular *

rules,
increasing ty
*Returement Income

a
of Jumor Achievement in
spreading the entrepreneurial
gospel among the younger
generation.
And national pride is good

for business, too. Indepen-
dent business people should

be more positive about
Canada. ‘‘No nation has
more to otfer en-
trepreneurs,'° Wright
declared.

Independent (or ‘‘small’’)
business is usually defined as
companies with less than 100

VICTORIA

Fund’’ option.

The current options are:
e Take all or part of your
total RRSP funds in cash and
pay up to 50% tax.
e Take any number of life
annuities.

Bert Wickham

© Take any number of an-
nuilies certain to age 90.
e Transfer all or part of your

funds to a Retirement I[n-
come Fund.

e Any combination of the
above.

Bearing in mind that the

job creator

employees and under $5 mil-
lon in annual sales. Recent
estimates put their contribu-
tron to the Canadian
economy at around $50
bilhon a year and their
employees at well over 80
per cent of the total work
force. They are credited with
creating, annually, more
than 60 per cent of all new
yobs

A native of B.C., raised
and educated in the Lower
Mainland, Wright has been

ae MES nee

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CORPORATION LTD.

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#101. 747 Bute St. Vancouver - 688-8311
#28, 110 Government St. Victoria - 381-3522

G

PARTICIPACTION

Retirement Income Fund can
be self-administered with
either guaranteed or equity
investments, there seems to
be no justification for taking
a tax beating on retirement
just to obtain what appears
to be a greater measure of
control.

If you need some cash - by
ail means take what you need
‘and leave the rest in its tax
shelter. If you need an in-

come, some combinauion va?

the above options should
meet your needs. If you are in
good health and require the
maximum mcome available,
then a hfe annuity with a
suitable guarantee ts still your
best bet. A highly com-
petitive marketplace will
assure you of a good deal if
you have expert help in shop-
ping around.

Otherwise, you should ex-
amine the RIF option very
carefully. Don’t smash your
RRSP Piggybank! Just
rename it your RIF pig-
gybank and keep your tax
shelter intact.

For a detailed article on the

involved with the Royal
Bank for 33 years, spending
his entire banking career in
this province.

RIF option, call 925-3101.
You still have time to exercise
this valuable option before
the end of the year.

Bert Wickham is one of
B.C.’s foremost authorities
op financial planning for
retirement. This series of ar-
ticles is designed to help you

make the most of your in-
come in retirement and keep
your taxes to the legal
minimum. However, as these
articles are of a general
oature only, readers are ad-
vised to check carefully
before applying them to their
personal situation.

FROM
ONE PRO
TO ANOTHER.

Are you satisfied with your answering
service? If not, consider how much more
you get with Wes-Tel’s professional
answering service: expertly trained
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References gladly provided.

wes TEL
980-3611

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