‘allows for The Terrace Standard, Wednesday, February 7, 2001 - Al3 FOUR EASY WAYS TO SAVE ON INVESTMENT RETURN (NC)-Canadian investors know that investing money in a Registered Retirement Savings Plan {RRSP} is a smart way to save for retirement because it tax-sheltered growth untif the money is withdrawn, However, when it comes to investing outside on RRSP, most Canadians don't realize that taxes can take a big bite out of their investment returns — in some cases as much as 50 per cent. These four tax:manage- ment strategies can help: . 1, Maximize Your RRSP Contributions IF you are nat contributing the moximum allowable ‘ amount to an RRSP, this is . ble and the savings grow -tox-deferred 7 the first thing you should do. Contributions to an RRSP are fully tax-deducti- until with- drawn. Consider taking a loan to reach the maxi- mum and use the tox sav- ings to pay down the lean. 2. Carry Forward Any Unused Contribution Room Even if you haven't con- ‘ tributed the maximum to your RRSP in the past, you could carry this unused contribution room forward (dating back from 1981). “By carrying | forward unused contribution room you could reduce your cur- -rent income taxes signifi- cantly,” says Ed Legzdins, 4, Cut Taxes Outside Your “ment President and CEQ, BMO Mutual Funds. “For exam- ple if you make a catch-up contribution of $15,000 to your RRSP at a marginal income tax rate of 40 per cent, you could get a tax benefit of $6,000." 3. Invest in Foreign Opportunities Make your RRSP work even harder by increasing your exposure to foreign investments, Although the amount of foreign content you can include in your RRSP is 25 per cent (this amount increases to 30 per cent in January, 2001), there are many - options ovailable to help you take advantage of the growth potential from mar- kets outside of Canada and foke you beyond the 30 per cent restriction. For example, RSP-eligible foreign mutual funds, such as BMO RSP World Funds, will not affect your RRSP foreign content _ limit because they do not invest _ in foreign markets directly. Instead, they use invest- instruments called derivatives to mimic the rlormance of an under- big foreign market or a reign mutual fund. You: get exposure to foreign _ Investments but these funds - are cansidered Canadian content and therefore, do not impact your foreign. content limit. ' ' ' RRSP Once you have contributed - 8. maximum RRSP, - consider. boosting "your non-registered sav- ings. Outside of your RRSP you may wish. to consider » ipvestments that generate ~ faxcadvantaged ~ income such as capital gains and to your - Canadian-source —divi- dends. You should also consider keeping the most highly -taxed investments such as Guaranteed Investment Certificates (GICs}, money market and bonds funds in your RRSP. Bae Include tox advantage funds such as the family of Global Tox Advantage Funds, in your non-regis~ tered savings. This family of mutual funds uses a spe- cial corporate structure that allows you to transfer between funds without trig- gering capital gains that year. Taxes on your capital - gains ore deferred until you redeem or switch out of the corporate structure. News Canada Deposit insurance SM rete? Reine a Prerer - Excelient Reasons © _to Invest with Northern Savings this RRSP Season 1. Northarn Savings quarantees a minimum 5% return on its 3-year variable rate Primer RRSP. 2. The Primer AR: P qualifies for depositor protection up to $100,000 from the Credit Union : corporation of BC. : 3. The 5% Interest rate is competitive. Ni 5 jorihem Savings Invites you to compare, . You'can maximize your contribution and tax savings with an RASP foan as low as Pime-1%. . Money invested with Northem Savings is reinvested in our community, * 4702 Lazelle Ave. Terrace, B.C. (250) 638-7842 www.northsave.com DF a ws Peter-Arcadi’ . Reglonal Vice President Pri merica Financial Services la Terrace We Want To Help Your Family - Have A Better Financial Future!!! * What happens if the Canada Pension Plan Isn’t enough? Learn how to supplement your current retirement pian. * Worried about a post-secondary education? Learn how to prepare for yaur. children’s future and not start their adult lives in debt! * Worrted about the security of your family’s income In the event of your death? Get life insurance coverage that meets your needs. . « Do you Know when you will be debt free? . Primerica Flnanclal Services educates consumers about money management. We belleve that it’s getting tougher every day to decide ‘where to put your money to make it work more effectively for you. yO PRIMERICA J Amember of citigroup Investments Canada Ltd. ra Licensed be soft xvetuat temic tereuah 635-780 Ths advertisement paid in part by AGF Funds ina, Call us today for a free appointment fora | FINANCIAL NEEDS ANALYSIS. How many paycheques do you have left? 1-4619 Lakelse Avenue, Terrace . 0 or 1-800-295-7676 arcadipfs@kermode.net : ‘ Ht pauwrhoee CONCERT” eMutual Funds RRSP Equity Shares *lnstant Tax Receipts Financial Planner Your one-stop RRSP Shop! — | {lame WEN ui I. Pe 8) i Terrace & District Credit Union The biggest contribution to any RRSP is good advice Successful RRSP planning depends on making choices that match — your long term goals. As a Clarica Agent, Vil talk about your retirement goals, and then help you put together an RRSP strategy ALlbe 4 val ‘ylaat that helps you achieve them. "°°. Skeena Mall, Terrace BC, Tel 635-2387 Fax 635-6532 CLARICA’ Investment end insurance solutians-Since 1876 woh Tremor fin it surance Company we. Representing Crea Life lesuronce Corrpony ond ‘Chua Laveskolw. With RSP-Matic, Saving For My Future Is Easy. When I was looking for an easier way to contribute to my RSP, I talked it over with my Royal Bank RSP Specialist. Now I know how to maximize my contributions with RSP-Matict, a convenient automatic savings plan. Its a flexible, affordable way for me to build my retirement sayings so'I can get the future I want. Easily.” . Visit our Royal Bank branch for your free consultation today or call 1-800-ROYAL 9-9, RSP solutions 20 wywaroyalbank.com FH Registeted Trade-rhark of Royal Bank of Cansda ‘ Tradé-nuark of Royal Bank of Canada