a A ae, ie a a a Ei ae nn, Nite ala heal neattiine i Eittiend we so Fee OEE

a ra a ie Nie ie eine cine ee ies thee aie teal, —

A6 - The Terrace Standard, Wednesday, January 29, 1997

. Lending a hand
_makes a difference!

ee ee ee

lanaging
your mo ney

Most financial -professionals will tell -you that your.
cost of-living will actually decline by 30% upon retire-
ment. To put it another way, if your currant gross
income each year is $40,000, you will need $28,000
per year at retirement without allowing for inflation.
However, assuming even a modest 3% inflation
each year, you would need $72,244.45 in 20 years
to have the purchasing power of $40,000 today, The
chart below shows the effect of 3% annual inflation

At tax time, you can make a difference by
helping people who may not be able to |
complete their personal income tax returns. Jt
You can lend a hand by joining the network of :
taxation volunteers and learning how to
complete basic tax returns.

Revenue Canada will provide the training in cooperation with Northwest 4
Community College and the Happy Gang Seniors Centre.

by Scot Robinson Cees

Haw much money do you need for retirement. It’s
a difficult question. Taking into account inflation ana
the likelihood of increasing future tax rates, the
answer is almost certainly “more than you think”,

If you retire at aga 60, you could have one-third of
your lifetime - and presumably one third of your total
lifetime expenses - ahead of you. At the same time
you will be subject to the ravages of inflation and

i future income requirements.

taxation. oe s Date: Wednesday, February 5, 1997
Times: 12:00 pm and 6:00 pm 1
Present Income 10 Year 20 Year 30 Years Locations; NWCC.- 5331 McConnell Avenue ,
‘ ea Seniors Centre - 3226 Kalum Street ;
$20,000 $26,878.33 $36,122.22 $48,545.25 oo
Please pre-register by calling NWCC Registrations in Terrace
$40,000 $53,756.66 $72,244,455 97,090.50 at 635-6511. ;

. Pour renseignements sur le Programme communautaire des bénévoles
$60,000 $90,634.98 $108,366.7  $145,635.7 en francais, veuillez téléphoner a (250) 561-6933. : /
Some of your requirements may be covered by a company or government pension. At present as most peo- Revenu da
ple are aware, there is a great deal of concern over the future of the Canada Pension Plan. Unless you are a Canada ( 7 I lal a :

long-term employee
cf a company that
has a very generous
plan, corporate pen-
sions often fail to fill
the enormous void.
Again, the most logi-
cal answer is an
RASP. It's up to you
te build the right one.

The challenge is to
decide realistically
what you'll need -
accounting for infla-
tion - and what you'll
be left with at retire-
ment from your exist-
ing RRSP and pen-
sion plans. Most
financial consultants
have software pro-
grams that can help
you caiculate if you
are on track for your

We Sosa

Altamira would like !
to invite you to attend
our latest Seminar .

in Terrace. |

Getting the Most
From Your RRSP
Wednesday, January 29, 7 pm

retirement require- ms
ments. The final step Personal . =. ;
is to put a plan in Consultations 7 os
motion to make sure Thursday, January 30, ee cee

you get there,

Scot Robinson is a
Financial Consultant
with CIBC Wood
Gundy Securities Inc.
in Edmonton. The
views of Mr. Robinson
do stot necessarily
reflect those of CiBC
Wood Gundy
Securities Inc. This
article is for the infor-
mation of investors
only and does not
constitute an offer to sell or a solicitation to buy the securities referred to herein.

12 noon to 8 pm

Coast Inn of the West
4620 Lakelse Avenue

Terrace, BC

Please call 1-800-263-2824 to make | |
your seminar reservation or to book a |
personal consultation. SS

Helping yeu take control

Getting your
tax refunds
electronically

If you misplaced your
income tax refund
cheque—and it does
happen—don't panic. It

| can be easily replaced.
| Just visit your nearest

BORROW MONEY TO SAVE | |
MONEY? ARE YOU NUTS? :

Revenue Canada office,
fill out a form (you'll need
two pieces of identifica.
tion) and you'll get a new
cheque in tive or six
weeks.

If that’s inconvenient,
you can also do it by
mail—the process just
takes a bit longer.

Best solution—and
this applies to all other
government payments as
wall—is to have the
refund paid directly to
your bank account.
Revenue Canada {ikes it
that way and so do a lot
of other Canadians who
now use this methad to
get their refunds, Just
pick up a special form at
any Aevenue Canada
office to get the process

going.

The same applies to —
Canada Savings Bond
interest payments. {In the
case of the bonds them-
selves, if they're ever lost
or stolen, you can easily
have them replaced by
writing to the Bank of

Canada and filling out |

the appropriate forms.

Short of cash to
make your RRSP
contribution?
There’s no need to
worry, thanks to
Northern Savings.
From now until
March Ist, we're
offering RRSP Loans

Prince Rupert
627-7571

- 626-523!

Below

Don't miss out.

N

NORTHERN —

859-4407

Prime
ala very attractive
BELOW PRIME rate.
Simply commil to a
monthly contribution
plan of $50 or more
per month, and you'll
receive a 1/4%
reduction on our

already low, low rates.

Drop inte your local branch today.

SAVINGS.
“Masset Queen Charlotte "Terrace

© 638-7822

So you've fallen behind on your RRSP contributions. You know
it's smart to keep up, but when March !st rolls around, it seems that the
money's just not there. What to do! What to dol? Here's a thought:

THE SCOTIA RRSP CaTCH-UP" LOAN

(Here'sa quick math version as an example, just to get you thinking.)

1.
Borrow $15,000.

(Oras much as $50,000" at rates as low as Prime**)

2 PY ,
GET BACK $6,000 ON YOUR TAX RETURN
AND PAY DOWN YOUR LOAN.
(This depends on your tax rate and other stuff. Doesn't everything?!)

3,
PAY BACK $157/MONTH.
(Seem possible? If need be, you can take up to 10 years to repay.)

e
WATCH YOUR RRSP GROW TO $19,361 IN
5 YEARS AND 6 MONTHS, WHEN YOUR LOAN IS PAID OUT.
IN 25 YEARS, YOU'LL HAVE $47,856.
(SO WHO'S NUTS?)

(Here comes the fine print. The example

above is based on the following assumptions.)

}Hovestor |s Int 40% marginal income tax bracket and {s elig bla for a $6,009 tax refund, 2 is amortized over 10 years and
is subject to applicable credit criterla, Loan rate over tia life of the loan ts 4.75%, Rate is fixed for each term al the loan - 105 yaar
ferris available. 3}-Tax ralund is used to pa down principal ai the fourth month ~ you pay back an addiflonal $10,048 ($9,000 af
principal & $1,340 in Interest), 4}-AASP investments aam an average annual compound return of 4.75% ina dharsitied portfolio,

(So much for fine print. Talk to us. We speak in large print.)

Of course, you'd rather not borrow. But this is borrowing to save.
So you can catch up and keep up. Because doing nothing is the worst idea of all.

Scotiabank &
| What to do”
4602 Lakelse Ave, Terrace 635-2261

" §Registered Trade-mark of The Bank of Nova Scotia; ™Trade-marks of The Hank of Nova Scotia, ‘Subject to
applicable credit criteria. **Scattabank’s Prime rate as of November 25, 1596 was 4.75% and Is subject to change,