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

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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
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‘ ‘ 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

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Group — sa

This vector n't cohdfund ts & ath ti, Th i ey i i in :
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