“FAMILY FINANCIAL AFFAIRS

By WILLIAM HUNT

You've heard about
Registered Home Ownership
Savings Plans (RHOSPs).

They’re a tax sheltered way ©

of saving for your retirement.

But have you ever heard of.

a Registered Educational

Savings Plan (RESP)? That’s .

one other tax sheltered way
of saving fora worthwhile
purpose — your
future university education.
And-with the way university

costs have been rising over*

the past ten years, a tax
sheltered method of planning
ahead for a university educa-
tion. seems like a pretty
sound investment alternative.

For example, in 1965, the
average costs .of four major
Canadian universities for a
one-year general arts course
was $1,350. This included
tuition, books and room and
board in residence. By 1977,
the average cost in the same
four universities, University
of British Columbia,
University of Toronto, McGill
and Dalhousie, had risen 55

per cent to!a whopping
$2,460.

And based on an under-
stated annual inflation rate of
6 per cent, 1985. costs could
rise another 60 to 65 per cent
to approximately $4,000
annually. That means that
‘over a regular four. year
university course the total
cost could approach $16,000.

So you can see that if any.

of us are going to be able to
afford to provide the benefits
of higher education to our
children, we’re either going
‘to have to be very rich or very
smart. And RESPs appear to
be a very smart solution.

Here’s how they work.

* Money is invested in trust by
parents, grandparents or any
other interested party and a
child is made the nominee of

at tk ie

The funds. - ~
can be deposited on a

child’s °

the investment.

monthly, semi-annual,
annual or lump sum basis.
The investmentearns interest
until the child i is ready to go
to university.

But the big bonus i is that
the interest ‘on your, invest-

ment in an RESP compounds -

tax free.

When the child enters

university the principal of the |
investment is returned tax .

free to the investor to be
used for first year expenses.
The interest on all plans that

has accumulated tax free is—

then paid out to qualified
students for.the second, third
and fourth year of university.
It is taxable in the student’s
hands but in most cases his
or her income is nominal and
the tax burden is usually
quite low or non-existent.
The interest payments are
called scholarships. And
awarding of scholarships
does not depend on academic
excellence. But like most
good deals, there are some
rules. First, the student
must be accepted into the
second year of university and

- successively pass that year

and the third year to receiye
the three full annual scholar-
ship payments. The only
exception to this is for
medical reasons or other
extraordinary circumstances.

There is another important
factor to keep in mind. If
your child decides not to go
to university, you would only
receive the principal of your
investment back. The ac-
cumulated interest goes into
the scholarship pot and is
shared by other students
enrolled in the plan who do
enter university. Basically it
works on the co-operative
principle.

*~BUYER PROTECTION PLAN!!

1979 SPIRIT

New Liftback

RESPs are available fré6m
three companies, University
Scholarships of ‘Canada and
Canadian Scholarship Trust
of Toronto and Bourses de
Universitas in Quebec.

only offer from Polaroid in

government

Here's a very special, one: time-

celebration of their 20th birthday

Deposits in all three com-
panies are governed by
non-profit : foundations. and
are insured by the federal
sponsored
Canada Deposit Insurance
Corporation. -_

" Page 51, March 14, 1979 - North Shore News —

1eck is an RESP‘

One final point. With the
other Registered Plans that

most of us are familiar with,

RRSPs and .RHOSPs, the
principal in the investment
can not be used as collateral

Celebrate Polaroid’s —
birthday with a OneStep
camera. And delay send

POLAROID LAND CAMERA

Polaroid’s 5.00 Rebate Offer.

Polaroid’s $5.00 Rebate Offer.
i Please send me my $5.00 Rebate.
As proot of purchase of my oes

~"T Our

{ regular $ 34°"

for a loan. But the principal
in an RESP can be. -

RESPs — possibly the only
alternative many of us have
in financing our children’s
future university education,

other Polaroid camera using $X°7 Oli, price
in Canada. Simply p ut, they i the camera registration card and the |
give you $5.00 for purchasing sales receipt dated between February 15, i
a OneStep camera (or any r 1979 and March 3tst. 1979 are
other camera that uses SX-70 enclosed

Send to: Polaroid Rebate Offer, P.O. Box 8164
Toronto, Ontario, Canada M5N 1S8

| Poets SOO

Not exactly as Hustrated

film). The Onestep| is the world's |
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sway bar simple as using the camera. i (Ptease allow 4 6 weeks for delivery Ailrequests for rebate | OQneSten.
Price lnchedes pre-service & freight must be postmarked before April 211979) Acceptance of ’
WA S ‘see if you act ngnt now. so i thes offer prectudes (he use of this Potarord proof of purchase l The World s

far the redemption of any other Polaroid offer
nh fn oe om ae ee eee ee eee ee eee eee oe

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“eBUYER PROTECTION PLAN! *BUYER PROTECTION