TheReview Wednesday, November 14, 1990 — A19

ONES, NE. (Ted) X|

| Business

Grenby’s day for reader mail

Marriage breakdowns, tax cre-
WAis for the retired — we have it all
ei in today’s reader mail.

“Lam legally separated from my
wife who moved away with our
sons, age 7 and 9. I claim the $600
a month alimony I pay, but can I
also deduct the travel expenses
when I visit? Rather than mail the
alimony, I feel more secure deliv-
erigg it in person each month.” —
wee

you might get some tax breaks if
you have any self-employment
activities and so can deduct related
expenses. Or you might save some
tax by helping adult children with
housing finances — if (a) you
would feel comfortable with such
arrangements, (b) everything is

rental income possibilities) to free
up at least some funds?

If you expect to receive a pen-
sion starting between 60 and 65
and that, together with CPP and
OAS will provide for your needs,
then you might cash in your RRSP
in small chunks ($5,000 or less)
each year to kéep you going until

your pensions start.
ee

FOR

MAYOR
CENTRAL SAANICH
Phone 652-5792

Are you supporting a handi-
capped family member? What will
happen when you die?

Concemed by the answer to that
second question, parents of handi-
capped children have formed a
Planned Lifetime Advocacy Net-
work in B.C. to provide ongoing
personal, legal and financial sup-
port for their adult disabled chil-
dren.

PLAN held its first annual gen-
eral meeting earlier this year. Fall
workshops have been held on wills
and estate planning; a financial
planning seminar will be held Nov.
28. For information contact Al
Etmanski, PLAN’s executive
director, in Burnaby at 439-9566;
FAX 439-7001.

Mike Grenby is a Vancouver-
based columnist and independent
personal financial adviser; he
will answer your questions as
space allows in his column —
write to him clo The Review, P.O.
Box 2070, Sidney, B.C. V8L 3C€5.

No, you may not deduct your
travel expenses. However, you
might change your separation
agreement to increase the alimony
“by the amount of your travel
expenses. Your wife could then
pay for a similar expense like the
boys’ visits to you (which now you
__ might be paying).
fea You could then deduct the
higher monthly payment; of
course, your wife would have to
add this increase to her income, so
her tax bill would probably rise.

SAANICH PENINSULA
CHAMBER OF COMMERCE
GENERAL MEETING
THURSDAY, NOV. 15, 1990
AT 12:00 NOON
AT IMAGES,
AIRPORT TRAVELODGE

Guest Speakers: Peninsula

_ Mayorality Candidates
Tickets $7.50 at Chamber Office

CALL 656-3616
PUBLIC WELCOME

S.

carefully documented and (c) all
parties are protected.

A prescribed annuity produces
higher after-tax income but locks
Ee in your money for life and is

72 vulnerable to inflation.
Could y ou move “I am a 56-year-old woman,
fo aless expensive divorced without any support. I
i own a house without a mortgage
: Pp lace (again, and have $45,000 in my RRSP. I
ideally with rental need more income. Should I sell

income

possibilities) to free

the house so I can rent a modest
apartment and invest the money in
up at least some
funds?’

CAPITAL CONSULTANTS LTD.

Personal - Corporate
INVESTMENT ADVISORS

~ FINANCIAL PLANNING PAYS —
Complete Investors Service

GICs? Or should I cash in my
RRSPs, pay the tax and invest the
balance in GICs?” — JJ,

It’s usually better to own your
home. Inflation and income tax
can do considerable damage over
the years if you rent and live off

= Ottawa might consider this
~ aggressive tax planning. So get

Be Careful |

|
1e a 3 53
| ‘expert advice to make sure Reve- interest investments. with Fire : Including RRSP a bed =
*@ nue Canada has no grounds for © Renting makessenseonlyifyou | e he 12.96% Money Market Fun .
challenging you under GAAR — can count on reasonable rent fora | If t Forest | | Daily iaies sa} 2119}2e3 “9 change
the general anti-avoidance rule long period and can reinvest some le offered by prosp : h
which can void arrangements Of your after-tax interest asahedge _| B.C’s Most Valuable ‘"'l | Lee Ann Weig old
made only to save tax. against inflation. Natural Resource Financial Planning

Could you rent out part of your
home to provide some income?
Could you move to a less expen-
sive place (again, ideally with

RE-ELECT

NORMA
SEALEY

“Why does Ottawa give us only
17 per cent of exemptions like
pension income and donations?
We used to get 100 per cent.” —
VP.

That 17 per cent figure you see
in your tax return is only the
federal tax credit. By the time you
add the provincial tax credit, you
end up with a tax saving of about
27 per cent. :

That means if you are in the
lowest (27-per-cent) tax bracket,
you receive the first $1,000 of
y & nrivate (not CPP or OAS) pension
income tax free.

Note that with charitable dona-

384-8844

or 655-4105 Res.

STRAIGHT TALK [2 ;
ABOUT
YOUR MONEY.

- (St
}{ [325 [Feb [Maz |Aar May Wun: bul

1 i

4

HLS, ao
i
|

tions, on every dollar over $250
your federal tax credit jumps to 29
per cent, which translates into a
total tax saving of more than 45
@ per cent. To maximize the amount
over $250, combine several years’
donations into one claim.

“I'm a 67-year-old widow with
one-third of my income from pen-
sions. Married people can put up
to $6,000 a year of private pension
into a spousal RRSP but what can

widows/widowers do?” — MLL.
Fro much, I’m afraid. However,

MAYOR OF SIDNEY

A PROVEN “ELECTED” RECORD OF
EXPERIENCE — INTEGRITY
DEDICATION — ACHIEVEMENT
VOTE — SEALEY

On November 17th
VOTE — SEALEY

sponsored by committee to elect Norma Sealey

Getting the most for your investment dollar is as easy as
talking to the right people. For security, a higher rate of return
and straight talk call Gurney Smith & Asssociates today.

GURNEY SMITH & ASSOCIATES LTD.

FINANCIAL CONSULTANTS ¢ LIFE UNDERWRITERS

SUITE 6 - 9843 2nd St., SIDNEY (In Marina Court) 656-2411
1205 C Verdier Ave, (Brentwood Bay Shopping Centre) 652-1482

Re-elect

Alderma

VALIQUETTE, Gary b

Central Saanich

VOTE: November 17th

TIOME-BASED BUSINESS

WORKSHOP

TATTSS.

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Learn how to market your
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WORKSHOP:
pate: Nov. 20 & 21
TiME: 6 p.m. - 10 p.m.
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contact: 656-3616

ree: $35.00 Advance
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TOPICS
COVERED:

© Marketing products and
services from the home

e Advertising, promotion and
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e Developing the right image

e Short course in selling

e Examples of effective HBB
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e Managing more efficiently
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Sponsored by: Saanich Peninsula
Chamber of Commerce