TheReview Wednesday, January 31,1990 — C2 A financial planning quiz Could financial planning benefit you? Take this quick quiz to find out. Circle or highlight only the “no” answers. If you live with somebody else, take this quiz separately. You might be surprised when you compare answers. “These dozen questions represent the key personal financial areas that apply to most individuals,” was the summary conclusion reached in a survey of Certified General Account- ants. (1) Do you live within your means? (2) Are your debts decreasing? (3) Are your assets increasing? (4) Do you have adequate reserve funds for an emergency- Or opportunity? (5) Will you have enough money for the children’s (perhaps grandchildren’s) education? (6) Do you have enough of the proper type of life, disability, home, car and possibly business insurance? Are you paying the most competitive (7) Are you regularly saving towards a comfort- able retirement — or if you are retired, are you enjoying and spending your money? (8) Are you using every possible means to save income tax? (9) Are your savings/investments producing a Satisfactory return? (10) Have you done some basic estate plan- ning? (Do you know what estate planning involves?) (11) Do you have an up-to-date will? (12) Can you honestly Say you feel comfortable about all aspects of your financial life: eaming, borrowing, spending, saving, investing and paying taxes? If you circled one or two “no” answers, yOu ~ should meet with the relevant financial adviser(s) to change to “yes”. And if you circled several “no” answers, meeting with a CGA or other financial adviser to do an over-all review of your personal financial situation should almost cer- TAX TIME offers many advantages to the investor premiums? tainly pay off - personally as well as financially. ‘Cannie Mae’ sales pass $3 billion mark over three-year period “Cannie Maes” have moved you pay? : nice ee Re NHA MORTGAGE-BACKED SECURITIES “Many people have investments _ Under the ee $1.940 billion in 1989 to reach a 1987 - 1989 that are substantially debt-free eer d ae Caeicce le Tienicen total of $3.169 billion since they 3-5 while having personal property, should Seek dusts bake ea . - . 5 Is were first issued in January, 1987. like a home, with a large mort- that capitall gain to minimize any They're the new and immensely 3.0 gage,” Says a release from the JORMA sie oF CMI, Gumi popular National Housing Act $ Certified General Accountants. ‘ive Tei Tnvesiment losses) mortgage-backed securities com- 2.5 “Taxable income is produced by ae bining the qualities of a govern- B those investments while you pay “A 1987 tax decision (Bronf- ment bond and a direct investment [210 interest — which you can’t deduct man Trust) has questioned the in prime first mortgages. They are — on the personal property. validity of this procedure when the government guaranteed and traded ; 19 “What you might do is sell the steps are tied directly together The at a fair market price so owners e) investments and use the proceeds judge suggested this approach can offer them for sale at any time. N 1.0 to pay off the existing mortgage. could be considered a sham. And Theyre socially valuable, too, S Then, a little later, arrange new then is also the new general anti- according to Alan Redway, minis- 0.5 financing with the home as collat- avoidance rule to consider. ter of state for housing and respon- eral and use the funds from this ~ However, the approach may be sible for Canada Mortgage and 0.0 new financing to buy different valid if the last two steps are Jp Housing Corp. investments.” isolated from the first two steps §& “A particularly rewarding That way interest on the new _ and if the new investment is not an aspect is that while offering inves- mortgage may be tax-deductible identical replacement of the origi- tors timely payment and a compe- NHA MORTGAGE-BACKED SECURITIES because you borrowed the money nal one. litive rate of return, they generate 1987 - 1989 lower-priced mortgage funding for 350 Canada’s social housing pro- grams,” Redway said. 300 pases — “These programs provide assis- 250 LS tance to households which can’t | a obtain affordable, suitable and S 900 a] adequate housing in the private S ne market.” : 150 ee The MBS securities are sold in S ae two types: those based on regular 100 —— Be ls et es If you currently have an RRSP dential mortgages and non- 50 oe s ‘ 4 u DEMO vesions, Unig a : or are thinking about opening one, pogee e feov eum: bonds on : = do you know what the limitations the over-the-counter market in TOTAL : : multiples of $5,000. They’re and benefits are for income tax RRSP- and RRIF-eligible too and Sebies Cure purp os es? there is no withholding tax for foreign investors or Canadian expatriates. Issue term is for a minimum of five years with no upper limit and the coupon interest rate is deter- mined by the market at slightly higher rates than for government secunties of comparable maturit- ies. Cannie Maes are also fully redeemable on maturity and monthly payments start 45 days following the date of issue in mid-month. Central Guaranteed Trust Co. is the central payor and transfer agent, holding records, issuing cer- tificates and statements and mak- McKIMM & LOTT BARRISTERS, SOLICITORS & NOTARIES NICHOLAS W. LOTT R.G. WITT LAPPER D. MAYLAND MCKIMM GEORGE F. McKIMM CHRISTOPHER S. LOTT TIMOTHY F. LOTT GRANT S. WARRINGTON Personal Injury / Real Estate Criminal Law / Wills & Estates Family Law / Commercial & Co. Law Municipal Law FIRST 1/2 HOUR CONSULTATION FREE Can you make | debts deductible? * How might you make your debts deductible — that is, be able to deduct for tax purposes the interest to make investments, provided these investments have the poten- tial to produce income. Find out from the income tax specialists at H&R Block. Let us show you how the RRSP could benefit you in your tax situation. Put us to work for you. Hé&R BLOCK CANADA'S TAX TEAM 6A 9843 2nd Street ing payments to investors. Sidney Additional oo ae 9830 FOURTH ST. 118 HANSON RD. 656-2411 ble rou eee SIDNEY, B.C. GANGES, B.C. 1205 Verdier Ave. gage-Backed Securities, Atria North, Phase IJ, Suite 1103, 2235 Sheppard Ave. E., Toronto, Ont. M5J SBS. 656-3961 537-9951 BRENTWOOD BAY 652-1482