DEMERS & BRODIE EXPERTISE THAT ~ REALLY MEASURES UP Specializing i in accounting and income t tex services for individual and small business. : a Andrew Brodie | Donna Demers __. 038-8705 No. 29-4623 Lakelse Ave., Terrace, B.C. V8G 1P9 | Certified General Accountants A MACKENZIE RRSP WITH NO ACQUISITION FEE. With Industrial Horizon Fund, your RRSF benefits from the renowned prafessional management of Mackenzie Financial Corporation. At the same time, you pay ne acquisition fee (and, may pay no redemption fee either). Add in our financial planning services — also at na charge — and you: have an ideal RRSP combination. Return the coupon below or call today. Great Pacific Management Co, Lid. 635-4273 ‘Redemption fee: 4.5.% in year one, declining by 0: 5 annually to 0% by wear te ten. Any offer made de only by prospects. ara on at Looking both ways. To manage your RRSP. For growth and income. O Please send me more information on an Industrial Horizon Fund ARSP. NAME ADDRESS CITY POSTAL PROVINCE CODE (Resijence) (Business) MAILTO: Great Pacific Management Co. Ltd. 5133 Agar Avenue Terrace, B.C, Mackenzie | | | | | | | | | PHONE . | | | | | | The industrial CroupofFunds | There's 1 more than one way to invest RRSP dollars. m4 And you need only go to one place to find them ali. Scotiabank, First: Deposit RRSPs. We offer Redeemable and Non-Redeemable Guaranteed Rate Investments and Dally Interest Savings Pians with interest rates you'll find hard to beat. Second: Scotia Funds* RRSPs. Scotia Defen- sive Income Fund, Scotia Income Fund, Scatia Stock & Bond Fund and Scotia Canadian Equity Growth Fund. Four professionally- Managed mutual funds, each with its own growth potential and income objectives. ’ Third: Self-Directed RRSPs, They permit you to select from a wide range of investments RRSPs r gore fen & does not eealitule ano olf fing Suchan ofing nate by Sl # rospecius only. Depending off the province or territory In which-yott reside th Futdert walaple tought ah. Ne Bank ol ol Nova Se or trong FUNDS’ Seater means believir And re Proving every ey ee ae a Bie PEE ROIS fi ge ge AT Rag : ’ ‘ ‘ 1 Updated information NN RS my Se tg sa Nay ng ig ng ARs ly ge te Re gu “RRSP & tax _planning _ ‘Proposed retirement tax changes _ On December 11, 1989, the “federal government tabled to the House of Commons the ’ long ‘overdue tax measures, relating to savings for retire." ©. ment, The measures tabled were ~~ -basically the same as those pro- ‘posed in 1988 and included in the April 1989 budget. The most .. _motable features were the in-. - creased contribution ‘limits, changes in the definition of, . - €arned income and changes in the rollover provisions. _.- Contributions limits The contribution limits -to: a a Registered Retirement Savings Plan (RRSP) remain the ‘same for 1989 and 1990, The limit is 20% of earned income, to a _ Maximum of $7,500, for in-. ~ dividuals who are not members _ -of a Registered Pension Plan (RPP) or Deferred Profit Shar- ing Plan (DSP). For individuals . who are members of either of ‘these plans the limit is 20% of earned income to a maximum of $3,500, less any contributions made by an individual to an RPP, Commencing in 1991, ‘the’ RRSP contribution limits for individuals: who are not memabers of RPPs or DPSPs become 18% of the prior year's earned Income to a ‘Specific dollar maximum, which is phas- ; ed inas follows. a “SU, 500. 1991: . 1992 © 12;500- 1993. © 7 13,800° 1994. 14,500 "1995 * 15,500. tion. . The contribution limits for individuals who are members of RPPs or DPSPs will be 18%: of the previous year’s earned. in- come to the dollar. maximums listed: above, minus an amount called .-thé . ‘'Pension Adjustment” (PA). The PA for these individuals is basically the ‘total of ‘all employee ‘and employer contributions made in the previous calendar year to RPPs. and DPSPs. The -employer will be responsible for. getting the PA information to _ the employee. ‘In addition to the increased Jimits from 1991 the proposals introduce a mew seven year _ carry forward period. Starting in the 1991 taxation year, the _unused portion of your RRSP “contribution limit can be carried forward up to seven years. After 1995. the - maximum limit wil! be indexed for: ‘nfla- ” ‘ . RRSP contribution is determin- ° ed by your eared income for . _the taxation year. For the 1989 taxation year, earned i income is esa young family may skip RRSP contributions in order - to pay down their ihortgage. The “Seven Year Carry For- ' ward" ‘will enable them to ‘make up. for missed ¢on- tributions up to seven years | after the year in which they - were missed. What is earned income? The allowable limit for your defined as follows: ® salary or wages before the deduction of RPP contributions but after the deduction of other employment expenses | ® income from certain types of royalties ; * income from ¢ carrying ‘on a . business * net rental income from real property — ® payments from supplemen- tary unemployment . -benefit plans *alimony or “maittenance ‘payments ® net research grants ; ® superannuation or pension benefits, retiring allowance, death benefits, and amounts received from RRSPs, DPSPs and income from RRIFs rhe = types of income will be excluded - from earned income after 1989). Earned income is reduced! by the following: “*losses from carrying on. a business #net rental losses from real Property" * deductible alimony or - maintenance payménts * most transfers to RPPs or : RRSPs ‘The ‘proposed reform will have the most immediate impact on individuals rolling certain types of income into 'a RRSP. 1989 is the last year. that Periodic Pension - income, Canada Pension Plan. ‘payments and Old Age Security can be ‘rolled over tax-free into. a RRSP... An . exception: to this restriction is a transitional pro- vision which will apply from” £989 to 1994, It will allow the transfer. of up to $6,000 of i in- . come frém a RPP or a DPSP to a spousal RRSP. ~ Lump-sum pension payments may only be transferred tax-free . On a direct plan to plan basis. : - The.deadline for doing your annual contribution or an!in- direct rollover for 1989 is March I, 1990.. Successful money management By FILOMENA TAMBURRI Do you often look in your wallet or check your balance, shake your head, and wonder “Where does the money go??? You can control your cash flow by developing your own per- sonal money management pro- gram, smonthly basis, Successful money manage- ment depends on four essential elements: _ Planning: You must. decide “what you want and when, you hope to get it. . HT st . Control: Determine your ‘living expenses On an annual and a This section Frank Donahue Skeena Mall Terrace 635-2387 "Let me help you choose the RRSP that's right for you.” © ¢ “All options’’ available “Compatitive” rates “Transtars” completed “RRSP loans” at prime “Recelpts” auditable Llcenoed with Mutual ile of Canadaftinua Invedtée Ine. two of The Mutual Group, The Mutual Group Facing Tomarrew Together AR RRSP decision making _ iSas easyas one, two, Uifee. a and give you the flexibility to take full advantage 0 of: changing market conditions and investment oppor < tunities. If you wish, you can also have access toan -’ experienced ScotiaMcLeod Investment Executive who'll be happy ta help you plan a portfolio specifi: . cally designed to achieve your personal financial goals, . So now you can look at all the RRSP options without running all over town. For further information, visit your. branch and pick up a free copy of the. 1989/90 edition of The RRSP Answer Book or call: Toll-free - 1-800-663-0678 : SELF DIRECTED RRSPs ngin people ; Bp d vie oe ae a rca: ke aati re oe ee ee should include regular contribu- tions to a savings account beyond the goals yau list above. Self-discipline: You must stick to your budget. Keep some flex-. “> ibility: for ‘unkkowns, but try: not: to spend on impulse, Co-operation: Each member of the household should be involv- ed in the plan to make it. suc- ‘eeed. f These six steps will help you develop a successful money Management plan, 1, List your goals, according to their priority, under three headings: short-term (12 mon- ths), intermediate (five to ten year period) and long-term (more than ten years). Then, éstimate how much money you will need to achieve each of your goals, Be realistic both in identifying your goals.and in estimating their cost. 2. List all sources of monthly income. If you are planning for the entire fmaily, include the contributions family members: make to ‘the overall. income. ‘Make sure you list net-income if | all deductions have been made. |. already, Otherwise, list gross in- ‘come and note the items which will be taxable, THE. IDEA OF © - SPREADING YOUR | R R. S.P. INVESTMENT. ISN'T NEW. : ‘BEING ABLETO | - AFFORD TO 3. List monthly expenses. In- clude everything — gifts, enter- tainment, hobbies — not just the essentials. Review your che-” que book, copies of bills, ‘and *, Cash withdrawals for the past “several months. You may be. surprised to see where some of . your money has gone. 4, List annual expnese, such, as insurance, taxes, vacations, furniture and appliances, home . repairs, and other once-a-year spending, Divide the total by 12 to get a monthly amount. 5, Add the monthly and the _ divided annual expenses to. get . your total monthly costs. Deduct the total from your monthly i income, The remainder is the amount you can apply towards your goals, At this point you must make a decision. If you are. happy with the amount you save. each month, you already are manag- ing your money successfully. If, -however, you feel you should then you must save more, decide where to cut ‘back on , your monthly’ expenses. Go ‘back to ydur list, decide. how: - much you are going to cut, and allot a new amount for each item you have reduced, ‘Ron Bently.: 635-6637 | Clit McChesney... 696-682 | Kelly Jones... jansnosseesene 47-9620 4 Led dordon baton Lite) i, ‘Serving Prince Rupa, Terdce Kina & Sites oe : Weerailcotion bn tee thing od nrveteti Hive ter. - Sesto seamen - thd enky be tare rar easton Synchro Linfed:447 Porige Ave, Wintpe, Paola, ASG 986 Ln Seve 1209 Ain Go, Wana POE AD, Y i : ct Saye eye vf att t iavestors Group — sa This vector n't cohdfund ts & ath ti, Th i ey i i in : 4 F