EES TOP STORY RENTE REVOLT RS Cutting Bench Crimpers Utd. MON., TUES., SAT.: 9-6 WED., THURS., FRI; 9-8 HOURS: the cutting edge in hair technology PRICE LIST APPOINTMENT NOT ALWAYS NECESSARY . SERVING YOU FROM 6 GREATER VICTORIA LOCATIONS 1841 FORT ST. 995-2423 2616JUACKLINRD 474-3244 GATEWAY VILLAGE 381-3351 103-300 GORGERD. 361-4948 915 ESQUIMALT RD. 380-1838 MARINER VILLAGE MALL 656-0752 RRIF s Offer : Retirement Flexibility If you're like many thousands of Canadians you re preparing for retire- ment by investing Registered Retire-_ ment Savings Plans (RRSPs). How- ever, you cannot leave your money in an RRSP forever. Before the end of the year in which you tum age 71 you must either transfer your RRSP into registered, tax-sheltered retirement vehicles, or cash them in. There are two types of retirement ‘vehicles in which you can invest your RRSP savings and maintain tax- sheltered status. They are annuities and Registered Retirement Invest- ment Income Funds (RRIFs). This column will discuss RRIFs. ; What is a RRIF? RRIFs were introduced in 1978 as an extension of RRSPs and are de- signed to provide retirement income until you reach age 90. Basically, a RRIF pays you an annual income based on the amount of RRSP money you have accumulated: Your money is transferred from your RRSP to a RRIF. Similar to the RRSP, you can move funds from one RRIF to another or purchase several RRIFs. How does a RRIF work? Under the minimum payout for- mula, if you begin a RRIF at age 71, the annual payment to you in the first year 1s 1/19 of the total amount in the RRIF. (The fraction is determined by the difference between 90 and your Current age.) In the second year your RRIF payment would be 1/18 of the RRIF value, and so on. These pay- ments continue until age 90. wv \onn Life Underwriters Association of Canada Through this schedule of increas- ing taxable RRIF payments, it’s the government's intention that you receive more money as you become older. RRIFs can be tailored to meet your personal needs as long as the plan follows the minimum income guidelines set by the government. What advantages does a RRIF provide? The primary advantage of RRIFs as a retirement income vehicle is their flexibility. For example, because you may have a number of RRIFs, you may put your money into a variety of investments which allow you to con- sider changing interest rates, stock market fluctuations and inflation. Also, you may withdraw more than the minimum amount if you need it and you may convert a RRIF into an annuity. Z What types of RRIFs are ayail- able? While some RRIFs are available ona fully guaranteed basis with speci- fied payments to you ensured annu- ally, others guarantee interest rates for a fixed period of time such as five to 4 10 years. After that period, you must renew the RRIF at current interest rates. Other types of RRIFs depend on factors such as the performance of mutual funds. Self-directed RRIFs in which you make your own investment decisions are also available. Statistics Canada says that 59 per cent of men and 87 per cent of women Over age 65 have less than $3,000 income over and above Canada Pen- sion Plan and Old Age Security payments. These startling figures show that you need to start early if you want a worry-free financial situation - in retirement. If you have any questions about RRIFs or would like additional infor- mation, contact the Life Underwriters Association of Canada, 41 Lesmiull Road, Don Mills, Ontario, M3B 2T3, or contact your local life under- writers association. ja which would pro- Continued from Page 3 sidizes the difference between the cost to construct the rental units and the amount of rent the tenants pay. With the assistance of this program Cottage Grove Development is pres- ently constructing five affordable housing pro- jects in the Greater Victoria area. The Rental Assistance cent moderate income ($15-20,000) and 15-20 ber cent middle income (over $20,000). Co-op housing is subsidized by the federal and provin- cial governments. This form of housing is considered one of the best alternatives for people who can’t afford a new home. Many first-time buyers are unable to get into the limited amount of co- Program offers develop- ers a mark-down on inter- est rates from the current levels of 14 per cent to 8.5 per cent. Lloyd is “not enthusiastic about. this proposal”. “Even at 8.5 per cent, when you are paying the high cost for land, the return on your equity is zero. The rents don’t go high enough to give a return to the developer or investors. Why would anyone do something for nothing?” Low cost housing pro- ponents argue that profit needn't always be a factor in the construction of low cost housing. They point to a community housing group in Winni- peg called Habitat for Society. The group is made up of volunteers who donate their time and skills to build affordable housing for low income people. They don’t receive any govern- ment assistance or even need it because all the building materi- als for the homes ALICE ALBERT op housing so they must face the high prices and interest rates in Victoria’s _ housing market. House prices have almost dou- bled in the last five years. Many homes in Victoria are on expensive large lots with a price tag: far out of reach of the first- time home buyers. “We are forced to look for a home in the sur- rounding communities,” comments a former Cal- gary resident who recent- ly moved his family into a Saanich basement suite. He had hoped to purchase a modest house in Victor- ia but he said escalating real estate costs have put that dream out of his reach. The man, who asked not to be identified, said he is considering moving to Sooke where he can afford to rent a house rather than just a basement suite. The city of Victoria has attempted to take steps towards solving the hous- are donated by people and local businesses in the community. Alice Albert describes the group as “a hopeful sign” showing people can participate in many different ways to help those looking for an affordable home. Pacifica Hous- ing Advisory As- sociation is a non-profit hous- ing agency which tries to help fami- _ lies find afforda- ble housing. The agency has a three-year wait- ing list which is escalating. In May 1989, the waiting list was 583 families long with 150 to 175 of them in a crisis situation. Today, | . me ing problem. - On May 27, 1989, city council received a report from an advisory planning com- mission identify- ing potential de- velopment sites for affordable housing. The APC projected a 520 units for the District. The APC report sited James Bay and Oaklands as the areas that will receive most of the rental units while Fairfield continues to have no social housing. “This needs to said Citizens for Affordable Hous- ing’s Alice Albert. She says that all communities the list has © grown to 728 SINGLE FAMILY HOME ownershi many. Reality is more likely to be the high rise families, with oy- erathirdofthem Opartment picured behind in desperate need (Photo by SHAWN SLEMKO) of a home. “They are living in inadequate accommoda- tion or in an abusive situation because they -have no other place to go,” said Hilary Steward- son, Pacifica executive director. Many live in motels, sub-standard housing, and some spend more than 80 per cent of their income to pay for horrendously high rents, said Stewardson. Pacifica Housing Advisory Association and many other housing movements would like a greater commitment to co-op housing in Victor- vide homes for needy families. have to play a fair share if Greater Victoria is going to resolve its housing crisis. aide “There hasn’t been any public input into the APC report,” said Ald. Geoff Young. The Neighbourhood Environmental Committee (NEC), a housing group in James Bay, is expressing its community's concerns by propos- ing its own housing plan to the CRD outlining what the community wants. Charles Ball, head of the committee, says James Bay welcomes the building of single family residential units, co-op housing and the legalization of illegal seconda- ry suites. However, the community group Pp is merely a dream for this James Bay duplex. Phofo by SHAWN SLEMKO “Stupid irrational cutbacks of co-op housing units” has given the province of B.C. the worst record in the coun- try for support of co-op housing said Robin Blencoe, Vic- object to the con- struction of more apartment build- ings being built in James Bay; because they will increase traffic and ruin the city street-scape said Ball: toria MLA and NDP housing critic, Co-op housing is a publicly owned housing where the tenants discuss and decide together on a reasonable affordable rent to pay. Current- ly, the co-op membership consists of 50 per cent low income people ($15,000 or under), 30 per While there is general acknowl- edgment that affordable rental housing is need- ed, sometimes there are higher considerations. “The community wants to keep its heritage character,” said Ball. Continued on Page 15 ; ek net increase of Capital Region ~ be addressed,”