Alma Peake a aacawd ite eeeele OA! Welcome to the world of self-serve scrip Maybe we'll soon have a chance to buy stuff entirely without cash, cheque or credit card. That’s the latest word from the Canadian Imperial Bank of Commerce, developer of Canada’s first self-serve. debit card service called “In- stant Payment Scrip”. The bank says the service .transfers funds from a customer’s account to the ‘ merchant's but doesn’t needa cashier’s help to do it, unlike other debit card systems. In- stead, an instant payment machine at the front of the store issues a voucher, or diately on the spot. - The first terminal is now undergoing a six-month pilot program at a convenience store in Georgetown, Ont., and while the debit card sys- tem isn’t new,-this is the first of its kind in electronic bank- ing in Canada, the bank says. Two-part voucher CIBC card holders indicate the amount and the account to be debited and key in their secret code. The machine then "issues a two-part voucher in- dicating the merchant's} name _and location, amount, date, scrip, to pay for goods imme-_ [Cashless society step closer This In-store “instant Payment Scrip" machine dispenses vouchers usable like cash. It's being test-marketed by the- Canadian Imperial Bank of Commerce, time and type of account. The top copy is kept by the store and the customer gets a dupli- cate. Any change is returned to the customer in cash. CIBC spokesman George Board said, “The vouchers are as good as cash and the ser- vice cuts down on waiting time at the check-out counter because the customer con- trols the debit transaction.” The service costs 25 cents a time and vouchers come in $5, $10, $20, and $40 denomina- tions. Withdrawals are limited to an established daily limit. “bi tne R- . 8 . Mut ual funds © | cg a, ae - 3Q° wee PA cot eee nm axdy 3 alta: Long-term outlook remains attractive | By JOHN SWITZER _ National Trust ‘Over the past few years, mutual funds have become the darling of many investors. But now after flooding the Can- adian market, the industry is . experiencing a shakeout as in- vestors dispose of fund units purchased, in many cases, for the wrong reasons. The long-term outlook for these investments is still very good, provided they aré bought’ for the right reasons. The basic appeal of mutual funds lies in the fact they rep- resent an attractive way to in- vest in a variety of asset types including stock market equi- ties, corporate or government bonds, real estate mortgages and money market instru- ments. Thus individuals with small investments can obtain a diver- sity in the portfolio that would- n't be possible otherwise. Hundreds of funds There are literally hundreds of funds available in Canada today and if you’ve been con- sidering investing in one, the first step is to consider some basics. For example, how will you determine which of the many funds is appropriate for your needs? To answer this ques- tion, you must establish your investment objectives. If short-term gain is your goal, then mutual funds are not for you. While the funds yield significant capital growth, they will do so over the life of the investment, not overnight. And perhaps more important is the fact many mutual funds deduct a commission from pur- chases (commonly called a “front-end load”), Sometimes as much as nine per cent, these _commissions initially reduce the net amount of the invest- ment, In addition, most funds charge management and ad- ministration fees. So investors pulling their money out of funds after only a short period will often not have investment returns adequate to recoup these costs. Mutual funds are sold by financial institutions, in- surance companies, brokers, financial planners and sales representatives. In most cases, the fund salesperson is paid by commission. Meet the Sales rep Before you make your pur- chase, it’s vital to consider the sales person with whom you're dealing. Is he or she inde- pendent of the fund being sold? Has the rep taken the time to assess your investment strat- egy and objectives carefully before proposing a particular fund? Is he or she sensitive to your goals or merely trying to talk you into something? For an information package on mutual funds plus a list of funds and their addresses, write the In- vestment Funds Institute of Canada, 70.Bond St., Suite 400, Toronto, Ont. M5B 1X2. | PBS PERSONNEL > Specializing in Temporary OFFICE ASSISTANCE 635-2104 Secretarial — Clerical 305 - 4722 Lakelse Avenue (Tilllcum Theatre Building) Terrace, B.C. V8G 1R6 Reception — Word Processing Quality Statt Hourly Contract | aN Tne! sic ar eee eee Lt NR EES ae rh qaeeey ee ee foe eee 8h MONEY SUPPLEMENT, 1990, PAGE 3 These are the new Registered Retirement Sav- ings Plans (RRSPs) are more important than ever under tax reform, still Canada’s biggest tax shelter and the essential factor in millions of Canadians’ hopes for solvency in retire- ment years. ' Plans for major changes to ex- pand RRSP opportunities were first announced by finance minister Michael Wilson in 1986 and have been on-again- off-again since then. In Decem- ber, they were “on” again; with the legislation ‘before Parlia- ment. Here’s an RRSP/pension cal- endar to show you what’s scheduled in the RRSP saga and when, courtesy Royal Trust: For the 1989 tax year (for which your return is due by April 30) RRSP contribution limits for taxpayers without a company pension were 20 per cent of earned income to a max- imum of $7,500. Pension plan - members could contribute up to 20 per cent of earned income toa maximum of $3,500, minus the amount they paid into their employer’s plan. Also for 1989, all pension in- come (including Old Age Security and Canada/Quebec Pension Plan. payments) and up to $6,000 paid in periodic income from ‘private pension plans or deferred profit sharing plans could be rolled into spousal RRSPs; but transfers of retiring allowances into RRSPs were limited to $2,000 for each year of service after 1988. (Pension plan member- ship doesn’t affect this rules on RRSPs amount.) RRSP contributions can normally be made to the end of February, but for 1989 pension rollovers had to be made by Dee. 31. In 1990, the same contribu- tion limits will apply as in 1989 for members and non-members of employer pension plans. But pension rollovers will no longer be allowed except for the spe- cial spousal plan rollover described above, and foreign pensions. Direct plan-to-plan transfers will still be permitted although special rules may limit amounts. And in 1991... By 1991, the contribution limit for taxpayers without pension plans becomes 18 per. cent of 1990 earned income to atop of $11,500. For plan mem- bers in 1991 and subsequent: years, contribution limits will, be determined by Revenue Canada individually, relating to the year’s earned income minus a “pension adjustment”, Taxpayers can expect to be ad- vised of their amountsin ample time to make contributions. Then for 1992 and years fol- lowing, contribution limits for taxpayers who aren’t pension plan members will be 18 per cent of earned income to maxi- mums as follows: 1992 — $12,500; 1993 — $13,500; 1994 — $14,500; and 1995 — $15,500. Then for 1996 and after- wards, contributions for “non- plan members” will be 18 per cent of the prior year’s earned income to a maximum indexed to the annual increase in the average industrial wage. Frank Donahue Phone: 635-2387 Licensed with Mutual Lite of Canada/Mutual Investco Inc., two | The Mutual Group. “Retiring? Icanhelp you through the RRIF and Annuity maze.” “Whether you want the security of a guaranteed income annuity, the flexibility.to change your retirement income as your needs change, or a balance of the two, | can help. For personal service, call me.” ike The Mutual Group Facing Tomorrow Together & & i 7 Andrew Brodie, C.G.A. DEMERS & BRODIE” Certified General Accountants | Specializing in accounting and income tax services fo: Small Business + 2 +4623 Lakelse Avenue Terrace, B.C. V8G 1P9 638-8705 . £, Donna Demers, C.G.A.