LL a ‘trade union TAX TALK SAVING FOR RETIREMENT — - BIG PROBLEM - ' TODAY From the Institute of Chartered Accountants of British Columbia High tax rates and in- flation make saving for retirement one of your biggest problems today. To ease this problem, many provisions have been put into the Income Tax Act to help you accumulate savings for retirement, In general terms, if your savings are put into a “yegistered” plan, con- tributions will be deductible from your income, The income earned by the savings will be sheltered from income tax until your savings are taken out of the plan. oo The two most commen s of registered plans are e Registered Pension Plan (RPP) and the Registered Retirement Savings Plan (RRSP). An RPP can be set up by elther an employer or a or its em- ployees or members. Both the individual employee and his employer may make contributions into the RPP. If your contributions into the RPP for your services in the current year are withheld from your wages: by your employer, or paid as part of four union dues, you may deduct those’ con- tributions from your income up to a maximum of $3,500 fer the year. In addition to this, you may, in some cases, make more deduc- fible contributions to the RPP for your services in past years, i 4n RRSP, on the other - hand, is available to an individual who is not in an RPP, or who ig in an RPP. but does not put the maximum $3,500 into it. The RRSP is like a private pension plan which covers only the one person. The amount which can be deducted for contributions: fo an RRSP js limited to 20 percent ‘of your earned come for the year, up to a maximum of $5,500. However, if your employer contributes to an RPP for you for your current year’s ‘employment, the $5,500 maximum is reduced to $8,500, and the deduction of contributions to-both the RPP and RRSP is limited to $3,500 in total, A 1974 amendment per- mits taxpayers to make a contribution into an -RRSP ‘for their spouse and deduct the contribution from their own income, so long as’ the contribution plus tributions to your own plans are not more in total than: your limits. This permits taxpayers ‘to transfer some future retirement income to their spouse and still obtain . the tax deduction.. Contributions into ‘the RRSP may be deducted from incomeif they are paid within. the year or up to 60 days after-the end of the- year. Since contributions into the RPP or RRSP within the limits are deductible from income when you are calculating how much in- come tax you have to pay, you are able te save “‘un- ROTI INT He ay gf Werner Question: . In a recent magazine article, I read that Canadians should increase their intake of dietary fibre. Is it possible to take too much? Answer: - Humans do need fibre in the diet, however, we are unable to tolerate ex- cessively high levels, With a very high fibre diet it is sible that the fibre may ind fats, cholesterol and . even minerals which could mean a loss of important nutrients. A diet based on the Daily Food guide with sufficient servings of whole grains, raw fruit - and _ vegetables should provide adequate fibre. . Question: Does frozen orange juice have less nutritive value than fresh? Answer: The major contribution of orange juice to the diet is Vitamin C. Fresh and frozen. preducts are. remarkably similar in Vitamin C con- nt. Question: Are non-dairy creamers: Answer: . Non-dairy creamers are usually made from plant oils and” do not contain cholesterol, as does cream. However, the plant oil most: . commonly used is coconut,. which is a saturated fat. If: the reduction of saturated: fats in the diet is the goal, non-fat, dry er liquid skim milk would be a better substitute for cream, Non-: dairy creamers contain about 11 calories per: teaspoon while cream’ contains about 14 calories per teaspoon. Produeed by the Nutrition Service, B.C, Department of . Health. con- . taxed” dollars. Also, the earnings from _ these savings are not taxed solong as they are left in the registered plan. ; This means that, in a registered plan, there are more funds earning income, and this can produce sub- stantially greater savings by retirement time than if ou try te save out of your income after taxes. Income tax will have to be paid on any amounts which are received out of the plan in the year they are received. This would include hoth the accumulated savings and the ae- cumulated earnings on the savings, and would consist of such things as with- drawals on the cancellation of the plan, or pensions or retirement annuities. . It’ is also important to know that if ‘the RRSP is “deregistered” the entire amount accumulated in the plan becomes taxable in that year. After retirement, your income will likely be less than during your working years and so you will be in a. lower tax bracket. The tax’ on funds being received out of your ‘registered plan would therefore be less than the tax saved in earlier years when the con- tributions were made. | If you wish to set:up an RRSP for yourself, there are many organizations réady to help. A mutual fund sales organization or trust company, will normally arrange for such a plan if one of its mutual funds or pooled funds is selected as the investment for the plan, Similarly, a life insurance company will arrange a lan if the plan's funds are “Invested in the savings portion of one of their life insurance policies or in one of their managed funds, If you wish to use your own judgment in investing, many trust companies will set up and administer a “‘self-directed”’ plan, which allows you to select and change the plan’s_ in- vestments within those permitted by the Income Tax Act. ; One word of caution: in the heat cf saving im- mediate income tax you should not lose sight of the fact that you are making an investment. . You should take care to ensure. the plan’s in- vestments have the proper | degree of income potential, growth potential and security, -sultable to your particular situation, having Tegard to how soon you - intend to retire and the amount of retirement in- come you will need, | SHOP AROUND. ALL RRSP’S AREN'T CREATED DIAMOND DIAMONDS ARE CRYSTALS MILLIONS OF YEARS AGO. a WHICH IS ALSO THE MOST Ha >>ye ENDURING OF GEM STONES, @F Digan FORMED MOSTLY GF CARBON. DIAMONDS WERE FORMED AFRICA PRODUCES ABOUT BO%OF THE WORLD'S SUPPLY, ea maetememl, SOUTH AFRICA'S DIAMOND FIELDS ® WERE DISCOVERED AROUND 1866, BY A BOER FARMER'S KIDS WHO 7 FOUND A “PRETTY PEBBLE” IN THE VAAL RIVER. THE LARGEST EVER am FOUND WAS THE CULLINAN, A a CIAMOND THAT WEIGHED ABOUT 13 LBS. (3,106 CARATS) IT WAS CUT INTO 9 LARGE STONES AND 96 SMALLER ONES, came. WHO WAS A PASSENGER IN A’ PLANE PILOTED BY ARCHIE s DID YOU KNOW? CAZyC™ “THE HARDEST NATURAL SUBSTANCE KNOWN IS A ow (i Migee \ ie If you think you're tired... You paid a lot of money for your. car and when it doesn’t run right you're apt to throw a fit. But put yourself in your car’s place, says the B.C. Automobile. Association. If ‘ou’d been through what it’s n through, maybe you wouldn’t run right either. The average age of cars in North America is six years. Each has more than 15,000 parts welded and bolted together. If you drive a typical eight-cylinder model, here's what it went through in the past year, according to the BCAA, while it racked up its average 11,000 miles: Each spark plug fired 16 million times, the points open and closed 128 million times, the coil delivered 128 million jolts, the carburetor mixed 3.5 billion ‘cubie"feet’~ of air with 550 gallons of gas, the fuel pump pulsed 16 million times, each valve opened and closed 16 million times and the speedometer — cable rotated 11 million times. Each piston in the engine travelled more than 3,300 miles up and down inside.the cylinder.. Add to this the time the engine was idling (not recorded on the odometer) and you have the equivalent of another 2,000 miles of driving time. . All that makes you tired? - It makes your car tired, too, says the BCAA. That's why maintenance is so important in keeping your car healthy and safe to drive. Cars can last ten years or 100,000 miles without major overhauls, but they won't last without maintenance. If you've maintained your car -in Food, safe running order an it conks out, maybe you have a right to complain. If you haven’t, then maybe your car has a right to beef. =e DUG | ——-fenta truck 4 OFFER GOOD. by Hugh Power WHO TAKES THE GED TESTS? GED .or ° General Educational Development Tesis are designed for adults who, for some reason or other, did not complete their high school education. Even though they did not eomplete their Grade 12, these adults may be as well educated as those who did -complete grade 12. They may have become educated through their own means by reading, on the job training, or other methods. However many businesses and organizations still require a grade. 12 certificate as a qualification for certain positions. Many adults lead a frustrating existence for the lack of a grade 12 cer- tificate which prevents them from getting a job or a pormotion. In some cases, there is a considerable difference in the salary paid to employees who have and those who do not have a . grade 12 certificate even though they are doing the ‘Same work, | The GED tests enable an THE HERALD, Wednesday, February 2, 1977, PAGE B? Community Education Services adult to prove he is capable of reaching a grade 12 standard in one weekend. Many adults take the GED tests for self-satisfaction. They want to prove to themselves and to others that they have the ability to reach a grade 12 level of education. Passing the GED tests has enabled many adults to rid themselves of a feeling of inferlority and has given them a real emotional uplift, WHAT ARE THE GED TESTS? The GED tests are designed to measure the ability of an adult to handle high school material. The tests cover the following subjects: English Ex- pression, English Literature, Social Studies, Natural Sciences and Mathematics. The tests are usually written in one weekend, starting Friday evening and finishing Saturday afternoon. HOW TO STUDY AND APPLY FOR THE GED TESTS It is very easy to apply to write the GED tests. Ap- Time lost due to Direct time loss from work stoppages due to strikes -an lockouts amounted to 1,736,230 man- days in September, Labour Canada reported. The ‘number of stoppages was 168 and the number of workers involved was 134,465. The comparative figures for August were 188 stoppages, 88,931 workers and 953,940 man-days. In relation to total get estimated working time of non-agricultural paid workers in September, time lost represented 97 man- days ont 10,000 man-days worked, compared with 50 in August. The time lost in Sep- tember includes fifteen stoppages under federal jurisdiction. These involved 3,423 workers and accounted for 38,760 man-days (or.two percent of all time lost). SATURDAY THRU SUNDAY, FEBRUARY RATES SUBJECT TO CHANGE WITHOUT NOTICE Rent any T licants must meet the allowing requirements: Minimum of nineteen years of age, lived in B.C. for six months, and been out of school for at least one full academic year. A simple application form to write the tests is sent to Victoria: together with the $5 registration fee. The a plication forms, sample questions, and other in- formation are available. from the Canada Manpower. office in Terrace, Northwest, Community College at 635- 6511 or from Hugh Power at. 635-4931 or 635-3843. A textbook on how to. prepare for the GED tests is: available from Northwest, Community College. bookstore for $5.75. WHEN IS THE NEXT . GED SESSION? The next session for. Terrace is being planned for. March. In order to have a. session it is necessary to have at least 20 applicants. - People are urged to send in. their application forms. as. early as possible in order. that a definite date may be " get. labour Twenty-eight of the work stoppages in effect in September involved 500 or - more workers, Twelve of these were in manufac- turing, six in construction, four in services, three in| transportation and utilities, two in mines and one in trade. Together these 29 large stoppages accounted for 87 percent of time lost in September. . ruck BUSSES EXCEPTED any better for your health " than cream? g” | | AL ® | | , . 3 . Ik PLUS Ee Su mmer “Registered Retirement Savings Plans may /4 Pic -Up P Ml LEAGE oo appear to have similar benefits, but they T er 24 Hour Day tan also include hidden costs thar will . ke Sc hool cut your return, ruc & GAS ‘ I've shopped around and found es . the B.C, Central Credit Union deers 1S RRSP one of the best, Stop in at your nearest participating credit union and check out these facts for yourself: of the Arts — unlikely — * Contributions are deductible from taxable income (within Bid . Terrace and District government regulations) Summer School of the Arts A high rate of incerest return - Remtsseiue may not be held this year not subject to incume tax i because there are presently: while in the RRSP. at 7:45 p.m. ‘in the Terrace Little Theatre building. on “Kalum Street. .. RETIREMENT SAVINGS PLAN Now available to members at.al! participating credit Snians. hig rent a truck 3 (B.C, Central Credit Union, trustee of 11.C. Central Retirement Savings Plan)