TRY: TO contribute to a registered
retirement savings plan (RRSP) as
well as saving for a home or paying
down your mortgage.

“That could give you the best of
both worlds,” said a Certified
General Accountant. “For example.
put money into an RRSP and then
make your tax savings pay off by
putting that money toward buying
the home or reducing the mortgage.”

The CGA provided some guide-
lines for each type of investment:

RRSPs

© The higher your tax bracket, the
more tax you save when you put
money into an RRSP, But the rules
could change. so if your taxable
income for 1994 was more than
$30,000, get your money in soon to
save $41 to $54 tax for.every $100
contribution,

O1The money in an RRSP grows tax-
free. Over 36 years, for example, the
magic of compounding

will turn a $350

monthly contribution

earning 8% into

$848,694.

-C) The early contribu-

tor gets the biggest

pile of cash. If you

use the figures in the

last example, but start

contributing when.

you are 47 instead of 29, you will
end up with oaly $169,873.

You contributed half as long (and
half as much), but ended up with less
than a quarter of the money.
© Both Ottawa and employers are
promising tess as far as pensions go.
so you must save for your own
retirement.

Unless you have another invest-

ment plan which will give you a.

higher return over the long run, you

should contribute te an RRSP.

7 An RRSP allows you to. split
income (o save tix, HE your spouse
(married or comsnon-law) will be in
a lower tax bracket than you when
the RRSP funds are withdrawn, con-
tribute (up to your own limits) to a
spousal RRSP.

A couple with $30,000 income
each pay about $4,500 a year less tax
than a couple with one $60,000
income and one zero income.

Housing

O Buying a home is one of the best
investments most people can make,
You never have to worry about rent
increases or having the place sold
from under you,

Of you are a real homebody with

no debt problems, you can justify

spending a higher-than- average per-
centage of your income on housing,
including the mortgage.

O List the most important things

your home must pro-
vide, then compromise
to find what you can
afford.
J) Not enough money?
See if a family mem-
ber, friend or even out-
side investor will cither
lend you money or
share the purchase.

If you already have an RRSP. the
Home Buyers” Plan may allow you
to borrow up to $20,000 from your
plan to buy a hone.

C} Choose a place with space for a

tenant. The rent will help with the

nlortgage payments now and provide
extra income later. You also get tax
breaks on your housing expenses.

Fix up a. rundown’ phice to

increase its value. When you ‘sell

your principal residence, the profit is
tax-free.

RBC DOMINION SECURITIES SALUTES

JOHN HUMPHREYS

ON BEING NAMED ONE OF FIVE FINALISTS IN THE

INVESTMENT DEALERS ASSOCIATION DISTINCTION

PROGRAM FoR THE PACIFIC DisTRICT.

avid French, Manager of the West Vancouver branch of RBC

Dominion Securities, is pleased to announce that Investment

Advisor John Humphreys, FCSI, CIM, has been selected as one of

only five Pacific District Semi-finalists for the Investment Dealers
Association of Canada’s DISTINCTION program.

John has been an Investment Advisor for 16 years, specializing

in portfolio management for conservative investors, both fee and

’ brokerage based.

°

The honour of being selected’ means John is among the very
best Investment Advisors in Canada. His high standards of
dedication and professionalism means he will serve as a model for

his colleagues.

* Congratulations John, from all your friends at RBC DS!

"RBC DOMINION SECURITIES, THE NOxTH St 1ORES HL INVESTMENT Fue
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