BUSINESS

Wednesday. August 29, 1290 - North Shore News - 35

No one simple way for seniors to beat inflation

**DO YOU have any words of wisdom on how to approach
the management of money in the declining years?’’

That question comes from
reader R.L. He and his wife are in
their mid-70s, ‘optimistically ex-
pecting a further 15 or 20 years
and determined to stay financially
comfortable in spite of inflation.*”

They have indexed pensions
totalling $23,500 a year and in-
vestments of $185,000 earning
about 10 per cent interest.

“*To keep up with inflation,

Michael
Grenby

DOLLARS AND SENSE

should we reinvest part of the in-
terest or spend some of the capital
each year — or accept an ever-
lower real income?’”

R.M. and his wife are also in
their 70s, with some non-indexed
annuity income and $108,000 in
Canada Savings Bonds.

““We can no longer use RRSPs

to save tax — are there any other
tax shelters? Where do we go
from here to augment our in-
come?’’

(This reader wrote a_ second
time, reproaching me for not
replying personally to his first let-
ter. I] receive quite a bit of mail
and unfortunately cannot answer
each letter individually. However,
I do deal with as many readers’
questions as possible through this
column.)

While there is no one simple
way for seniors — or others — to
save tax and keep up with infla-
tion, consider these ideas:

if you are 65 or older, check
your 1989 tax return. Under the
section entitled Calculation of
Total Non-Refundable Tax Cred-
its, see if you claimed the Pension
Income Amount (maximum
$1,000) — that’s Line 314.

If not, move now to create your
own private pension income so
you can claim the $1,000 pension
income amount. You can do this
by using RRSP funds to buy an
annuity or RRIF, or using non-
RRSP funds to buy a qualifying
annuity.

(When I mentioned this point in
a recent column and suggested on-
ly life insurance companies sold
this type of annuity, credit union
officials Denis Casavant of Maple
Ridge Community Credit Union
and Bob Saunders of VanCity
were quick to point out other fi-
nancial institutions may also offer
such a qualifying annuity.)

¢ Try to split income as equally

It’s Coming ...

The "Business
Opportunities
At Your Doorstep"
Conference

FOR THOSE INTERESTED IN STARTING te

OR EXPANDING A SMALL BUSINESS

Look for your brochure in the mail.

Details can be found in your community
NEWSPAPER or on your local RADIO and
CABLE stations.

OR

Contact the North Shore
Economic Development Commission
to have your name placed on a
PRIORITY REGISTRATION LIST
CALL 984-3580

Sponsored by:
The Ministry of Regional and Economic Development Bm
Honourable Stanley B. Hagen, Minister

MINISTRY OF REGIONAL AND ECONOMIC DEVELOPMENT
Honourable Stanisy 8 Hagen, Menester

CREATING A CLIMATE
FOR GROWTH

as possible to save tax. For exam-
ple, you might be able to shift in-
come to the spouse in the lower
tax bracket by = splitting CPP.
Have the lower income spouse
declare investment income — as
long as that spouse provided the
investment capital.

From now through 1994 one
Spouse may contribute up to
$6,000 a year of pension income
(but not CPP or OAS) to a
spousal RRSP for the other (age
71 or younger) spouse. Leave
RRSP/RRIF funds to grow tax-
free as long as they are not need-
ed, and spend non-RRSP funds
first — unless that will put you in
a higher tax bracket when the
RRSP/RRIF funds do come out.

© Investing to keep up with in-
flation means taking higher risks.
The stock market offers both an

inflation hedge and tax break —
provided you can take a [0-year
approach to give prices a chance
lo recover from the inevitable
downturns. Buying revenue prop-
erty or sharing a home purchase
with a family tnember are other
options — again, as long-term in-
vestments,

A prescribed annuity offers a
tax break which can help counter
inflation. But you give up control
over your funds while you are
alive in exchange for a guaranteed
income. Reinvesting some of your
investment income (from term de-
posits, bonds and so on) is
another way to build up your cap-
ital as an inflation hedge. Drawing
on the capital to supplement your
income to maintain purchasing
power is fine —- if you can
manage to die just as the capital is

used up!

© Reader R.M. was skeptical of
the home equity plans which allow
you to live in (or even rent out)
your home while drawing on its
equity, receiving both a lump sum
payment and regular income.
Nevertheless, these programs can
be appropriate in some situations.
Moving to a less expensive home
could be an alternative.

* Depending on your health,
temperament and financial need,
you might take a part-time job or
develop a self-employed sideline.
Perhaps you could rent out part
of your home.

The first step should be to ask
where you (and partner) rank on a
scale of (1) ‘‘spend it all?’ to (5)
“leave it all behind.’’ The answer

See Beat page 36

SCHOOL DISTRICT #45 (WEST VANCOUVER)
BACK TO SCHOOL - TUESDAY, SEPTEMBER 4th

ELEMENTARY SCHOOLS
Opening and closing times on September 4th are listed below:

Bowen Island Community School
Caulfeild Elementary School
Chartwell Elementary School
Gleneagles Elementary School
Hollyburn Elementary School
Irwin Park Elementary School
Lions Bay Elementary School

Pauline Johnson Elementary School

Ridgeview Elementury School
West Bay Elementary School
Westcot Elementary School

947-9337
926-3241
922-3928
921-7421
922-9348
926-3244
921-8311

922-7814

922.0125
926-3248
922-0185

SECONDARY SCHOOLS

HILLSIDE MIDDLE SCHOOL

926-7534

Students are asked to report to homerooms at 10:00 A.M. on Tuesday, September 4th. Regular classes will
be held for the rest of the day and the cafeteria will be open. Students will be dismissed at 2:00.

Student Fee: $30.00

_SENTINEL SECONDARY SCHOOL

Homeroom lists will be posted on the front windows of the school.
Students in grades 10-12 are asked to report to homerooms at 10:00 A.M. on September 4th, and will leave

the building by 12:00.

922-3291

Students in grades 7-9 should report to homerooms at 1:00, and will be dismissed at 3:00.
The cafeteria will not be cpen.

Student Fee: $30.00
S.W.A.P. (Boys and Girls)

WEST VANCOUVER SECONDARY SCHOOL

922-3116
Students are asked to report at 10:30 A.M. on September 4th — Inglewood Building.

922-3931

Students mew to the school should report for enrolment between 8:00 A.M. and 3:00 P.M. on September 4th.
Students requiring timetable changes should report to the Theatre as follows:

Grade 12
Grade 11
Grade 10

9:15 A.M.
10:15 A.M.
11:15 AM.

Wednesday, September 5th will be a full day in session for all students with regular classes starting at 8-50 A.M.
Student fee: $30.00. Homerooms will be posted on front windows.
Work Experience Students are asked to register with Mrs. Barbara Hunter at West Vancouver Secondary

School.

ALL WEST VANCOUVER SCHOOLS ARE OPEN FOR REGISTRATION
FROM 9:00 A.M. TO 12:00 NOON — AUGUST 29TH TO AUGUST 31ST

FOR FURTHER INFORMATION, PLEASE CONTACT THE SCHOOL PRINCIPAL

BUS INFORMATION

s

Elementary School Routes —- Buses will bring students to school at regular tires on September 4th and will leave
immediately after the dismissal times shown above.

Secondary School Routes

Sentinel Secondary School — Separate buses will be running in the morning for seniors and in the aftenoon for juniors.
See the August school newsletter for details
Hillside Middle School ~~ On September 4th, morning buses pick up for Hillside 142 hours later than usual. Afternoon
buses leave the school at 2:00 on regular runs. Please telephone the school for more details.

West Vancovver Secondary — Sentinel and Hillside buses may be used anytimne during the day an September 4th.

Regular schedules will operate effective September 5th.

For routes west of 3600 block Marine Drive and in the Southridge: Westridge-Cypress Park area, look for yellow and black
conventional school buses. Municipal (Blue) buses will continue to serve regular fare routes and information may be obtained

by telephoning 985-7777,