CHOOSE THE RIGHT. REPRESENTATIVE * One who Knows which plan is'-best: for the average Working person. “One who knows. the challenge of living in the north * One ‘who. knows which — R.R.S.P. is tallor-made for you. ae -C. G. “Bud” Hallock 635-4273 Representative for _ GREAT PACIFIC ‘MANAGEMENT, co. LTD. 7 ie ae ae ” Positive Financial Planning _ For A Positive Future : A: #AADUK "3 Ua tb ater lupe. vient spat oer een Tears ‘uit cee beep ee siseo GhaGe GF plata eT SS as i _ know ab By FILOMENA TAMBURRI “Registered Retirement Sav- ings Plans (RRSP) are a popular and sensible way to build a nest -ege for retirement years, The more you know before you in- vest, the more you will benefit from this savings option. An-RRSP. is a plan through which tax-deductible contribu- tions made’ during your peak " income-earning years are in- vested. Interest is-tax-sheltered until it is withdawn from the plan. ‘This gives you sizeable savings over a period of years. Anyone with salary, business or rental income is eligible to ‘contribute within specified limits. For 1990 tax deductions, RRSP contribution limits ae un- ‘changed from previous years, if ‘you are nota member of a pen- * sion plan, the RRSP limit is the lesser of 20 per cent of earned ‘income or $7,500. Members of ‘pension plans are limited to * $3,500. minus their own con- | tributions to the pension plan.: New legislation governing contribution ‘limits will take ef- fect for 1991 deductions, You, may contribute the lesser of $11,500 or 18 per cent of your previous year’s income, minus a Pension Adjustment (PA). The PA is based on ‘contribu- ions you and. your employer make to registered pension plans. From. - 1992-1995," the limit will increase by’ $1,000 per year’ to $15,500. At that point rhe limit will be indextd annual- y. The timing and frequency of your contributions depend on your own financial situation, To gain a tax deduction in‘one particular ‘year, . contributions can'be made until February 28 of the next calendar year. For example, . contributions’ forthe ‘1990 taxation year can be made until February 28, 1991, Beginning January 1991, a new ‘provisicn in the legislation , will allow you to carry-forward -_s deduction allowances up to seven years. For instance, if you are eligible to contribute $2,500 to your RRSP, but con- tribute only $1,000, you can carry forward a contribution of $1,500 for seven years. You can also -accumulate' your unused contributions for Up. to. seven years. . This carry-forward contribu- tion is in addition to contribu- ‘tions that you will normally be entitled to make. This way, you get future tax advantages, even if, you don't: have the extra money to contribute during one particular year, You may contribute to an RRSP until December 31 of the year of your 71st birthday. At that time. you must arange to convert your RRSP into a Registered Retirement Income Fund (RRIF) or an annuity to provide you with retirement in- come. RRSPs are available at finan- cial institutions, including credit unions and trust. companies, ' which offer a number. of ‘invest- ment options: guaranteed funds, mutual funds, and: self- directed plans. Within each of these options .there! are several plans to choose from, and their — features will : vary among issuers. a ; The plan you choose wil ide- pend on your financial situa-: . ‘tion, willingness to assume risk; ' and, of course, the benefits of. the. option’.as an-investment.. When considering : an: option,. . ask about administration fees or. commissions and the terms of: the investment. : Talk to the personnel at your. fi nancial institution bout what. is available so-you can make the. best decision. © ‘y ~- hs Filomena Tamburri is: Publications - Coordinator - for: the Canadian. Co-operative: Credit Society. For more. infor- mation, please write to. Credit. Union Financial “Counselior, ‘: CCCS, 300 The East Mall, 5th St, Etobicoke, Ont. M9B 6B7, | _R.R.S.P.’s supplement pensions | Contributed By . * | THE BANK OF MONTREAL With recent changes to pen- “sion legislation, RRSPs_ will ‘become an increasingly impor tant source af retirement in- come for Canadians. This arti- cle, looks at the various types of Pension plans available today. What kind of Income will you sudotpst? Gres Sib Mb ee ade * | Monthly deposits.. ‘Instant © Ray ithe easy way Tax Receipts Wh you lovest ina Cadi Union Haglan save. ! tos ment Savings Plen,-we'l iiep your official tak ; (eee! on the spot —' while you wait, When you're ready to Bie your ingame fix retin, your RFS TOW tay won yu nade A better way:to ff build your future. § Terrace & District ~ Credit Union / 4860: Lazelle Avenue, Terrace, B. C. ' ~ RRSP. | +hetr have when you retire? Like most people, you’ll pro- bably be getting something from the -government. And if you belong to an employee pen- sion plans, you know that you'll also be getting regular retire- ment benefits from _ your employer. Then there's ‘the in- come from. your savings or in- vestments, as.well.as the mongy you've accum ulated i ng ide'y your ee ALERT ,. Given’ ‘all _these,. different sources, you might assume that your retirement income, will. be adequate — even if you're not sure of exactly, how much it will be. And you might be.right. But _ if you’re not, now is the time to find out. So let’s take a closer look at _ the various sources of retire- ’ ment income available to you. Government pensions. ’ Chances are you’ve always " thought that if worse came to worse, you could at least survive retirement on a government pension. After all, the govern- ment wouldn’t let. you starve, would it? ; Weil, maybe not, But you'd come pretty close. To see why, let’s say that you’ve worked for more than 20 years, during which you con- jbuted the maximum amount | ad the Canada Pension Plans, or CPP. ° 0 ). ° “What would you get on retire-" ment? In 1991, you'd be entitled - : to the maximum benefit of $604.86 a month from CPP, as well ‘as Old Age Security (OAS) payments of $354.92, for. a monthly total of $959.78 or $11,517.36 a year. Under normal circumstances, . that’s as much as any Canadian can expect to get. But if you’re really destitute, you're also en- titled to receive the Guaranteed Income Supplement (GIS) Save FRANK GONAHUE oO __.twoot The Mutual Group.” If you ara receiving Income from a - Qualified pension plan you may transfer up to $6,000 of this pension. * Income to your spouse's RASP.”. ~ “Call tor more details. “PS. If you don't have a spousal RASP Skrera Mal leanstartone for you. 635-2987 . a The Mutual Group 7 Leena win bel Ue of Caracal Mutwal Investco Inc... ” Facing Tomarrow : Together on Income Tax which, for a single person, is currently $417.61 a: month... Allin all, it doesn’t add up. to much of a retiretnent lifestyle.- . Company benefits: - Employee. pension plans, or RPPs. (the ‘!R’’: is for. Registered), are an. important source of retirement incoméfor about 40% of Canadians, vs Most RPPs are defined- benefit plans, to which yout “yalrid/or fyour™” employer cons “tribute e during your years of ser- ; vice, “and from ‘which you receive regular monthly benefits | upon retiremerit. The amount“ of the benefit is usually based” on a formula that includes your : average salary and years of ser- vice with the company. .. Still, there is no:fixed rule as to how retirement benefits are calculated. So two people with the same salary and years of ser- vice can end up with very dif- ferent levels of retirement in- come == simply. because : they : worked for different employers. What about you?. If you belong to an RPP, and if you ‘haven't’ done so. already, you should make a point. of asking your personnel-office about the kind of retirement benefits you can expect from your plan, And when you do, keep in mind that benefit amounts’ are . often ‘quoted with the value of CPP payments inchided. : The Tax Load By Provinces er ee “tax year 1987)”. — ($ million - rouncied) © Province | Number - Total. taxable. Income Taxes . ee of talurns = income. —s income “Federal Provincial, Newfoundland 843,890 5,173. 2,823. 591 312, PEL, " 78470, +1858, 718 ‘127 ai Nova Scola 589,710 10,107 ~~ ~6088.~=«,178~S«*«s:«C New Brunswick 403,760 7,800., 4078 819 405. 1,eed Quebec _, 4520500 61006. 5600 O608 .. 3- O6d2 Ontario... 6,407,020 147,202: 84877. 10,600 8 Manitoba: 746,340 13,1a7,, 7580. 144d, Saskaichewan 620,900 11,430 ~~ 6,660 Tea iz Fi Alberta “yapel260 92,566. 20,807 Ae a Bo. 1,995,010 41,099, 7 “5169 2,60 NWT. 28050. ~—~oS SSC z s Yukon .. “+ 16,670: = 380 a 25, 42. ‘Non-residents. 28,180 “a5 ie ~ a | Canada 17,071,350" sea 260 IO 7OT Sal AL ; TST 708 Bs Te] “available, BE {Columns may not add due to rounding) (ares? Ravenue Canada) be -How many pay how: much tax? _ Well over 17 million Canadians pay income was taxable. : tax’ to be precise, 17,071,350 men and: Taxes payable: totalled: 961: women across the country and from abroad, which’ $44.285 ‘billion: ‘we in 1987, the latest year forwhich numbers are. $17,422 billion-for the provinces ‘The table abbve shows ‘; Between them. they reported. income: of numbers by places: of residence teakd $958.26 260 balion, of which $219,700" bul.