HomeMy WebLinkAboutThe Citizen, 2009-02-12, Page 12PAGE 12. THE CITIZEN, THURSDAY, FEBRUARY 12, 2009.
By Keith Damsell
(NC) It’s time to re-think the
piggy bank.
Educating your children about
money is a great way to give them a
head start in life.
“Parents can’t go wrong teaching
smart money habits to their
children,”said Dennis Tew, father of
two and a chief financial officer at an
investments company. “Mom and
Dad can play a critical role in
shaping their children’s attitudes
towards money. It’s an essential skill
they will appreciate their entire life.”
Some money tips:
• Allowance. Encourage your child
to divide their allowance: one-third
for spending, one-third for saving
and one-third for charitable causes.
Review charities that may appeal to
your child. As a savings incentive,
match the amount your child is able
to save.
• Banking.Make a trip to the bank
or credit union and open a savings
account. Let your child fill out the
deposit slip and explain how the
bank will pay interest. It’s a great
way to introduce the importance of
saving.
• Shopping.The grocery store is
often a child’s first spending
experience. Review the grocery list
and how to plan purchases. In-store
price comparisons are a great
means to demonstrate value,
quality and other consumer
concerns. Encourage your child to
review flyers and search for
coupons for items you regularly
purchase.
• Credit cards.When using a
credit card at a restaurant, explain
to your child how the card works
and how to calculate a tip. When
your statement arrives in the mail,
have your child verify the charges.
• Investing.Review your child’s
Registered Education Savings Plan
statement with them and explain
how the investments are
performing. It’s an excellent tool to
help your child learn the
importance of long-term financial
planning.
By Sarah Kingdon
(NC)-Whether newlyweds or
married 25 years, couples are
concerned about money.
Why not increase your savings
and reduce your tax bill
by contributing to a spousal
RRSP?
Start contributing immediately
“If one spouse earns a higher
income than the other, they can
contribute to an RRSP in their
spouse’s name, providing that there
is contribution room,”said Stephen
Reichenfeld, a vice president of a
national trust company.
“The higher-earner’s taxable
income will be reduced by the
contribution amount, leading to
significant tax savings.”
RRSP contributions must remain
invested for the year in which they
were made and two years following.
If not, the contributor will be taxed
on the withdrawal.
Save tax as a couple during
retirement
Ultimately, the goal of a spousal
RRSP is to balance the couple’s
individual annual income in
retirement, keeping both in the
lowest tax bracket possible. When a
withdrawal from the spousal RRSP
occurs either before or during
retirement, the lower-income spouse
will be taxed rather than the
contributor.
Don’t worry if it’s not forever
No one likes to think their nuptials
will end in divorce. But some
marriages do not last until “death do
us part.”
This prospect should not prevent
you and your spouse from planning
for retirement and taking full
advantage of tax-saving
opportunities.
“If a marriage ends and a spousal
RRSP needs to be cashed out, the
contributor will not necessarily be
taxed, as long as proof of separation
or divorce is provided,”said Mr.
Reichenfeld. “Rather, the spouse
who makes the withdrawal will be
taxed on the amount.”
Speak to your investment advisor
about spousal RRSPs and other
ways you can reduce tax.
Saying ‘I Do’ to spousal RRSPs
Time here to rethink the piggy bank
(NC) Did you know you can
begin investing in a Tax-Free
Savings Account (TFSA)?
The Government of Canada
announced the new program in the
2008 federal budget. This new
savings vehicle gives Canadian
residents 18 or older access to an
exciting new tax-free investment
vehicle to help them reach their
financial goals that much faster.
Canadians can invest up to $5,000
a year in a TFSA without being
taxed on their TFSA investment
income or withdrawals from their
accounts. Equally exciting is that
investment income, or capital gains,
earned in a TFSA are not subject to
taxes.
The Canada Revenue Agency has
the information you need to know
about the TFSA on its Web site at
www.cra.gc.ca/tfsa.
Financial
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Personal Financial Solutions
Blyth Memorial Hall
Thursday, February 12
at 7:00 p.m.
Limited seating is available so please RSVP to
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or Darren.Stevenson@himginsurance.com
One Stop Bookkeeping
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New clients always welcome
81 Alfred St., Brussels 519-887-8642
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"FREE CONSULTATION"
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R.R. #2, Clinton
Home # 519-482-3244
Cell # 519-524-0957
Jeff Bloemberg
IFA
152 Josephine St.,
Box 849
Wingham, ON
N0G 2W0
Tel: 519-357-4554
Toll Free: 1-888-349-4447
Fax 519-357-2879
Email: steward.jeff@bellnet.ca
Appointments available Saturdays for the
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Call to set up your appointment today!!
TAX FREE SAVINGS ACCOUNTS
Are they for you? We have the answer.
We can also assist you with
RRSPs March 2nd deadline
RRIFs Special rules this year
RESPs (plus 20% grant money)
GICs Top rates from
Severance & Pension Questions
Tax and Estate Planning
• Gather all your income tax information, including your information
slips and receipts.
• Review the list of restrictions at www.netfile.gc.ca to ensure you are
eligible to use NETFILE.
• Ensure you have your NETFILE access code (found on the
information sheet of your T1 income tax return package or get it on-
line at the NETFILE Web address).
• Go to the NETFILE software page at www.netfile.gc.ca and select the
NETFILE-certified tax preparation software you wish to use for your
income tax return.
• Save your return. Ensure you follow instructions to save your return
for NETFILE, which will create a “.tax” file.
• If you prepare a joint return with your spouse or common-law partner
using NETFILE, save two separate “.tax” files one for each individual.
• If you need to change your address or information for direct deposit,
make sure you do so with the My Account service at
www.cra.gc.ca/myaccount prior to filing your return using NETFILE.
• Go to www.netfile.gc.ca.
• Click “Ready to File” or “File Now.”
• Read and agree to the terms and conditions.
• Enter your social insurance number, date of birth, and NETFILE
access code.
• Attach your “.tax” file.
• If you are expecting a refund, have no balance due, or do not want
your payment reflected on your notice of assessment, you should skip
step three.
• If you have a balance due, step three is not mandatory, but if you
plan on making a payment within five days of filing your return using
NETFILE and want your notice of assessment to include your
payment, indicate this in the box found in step three. Note that by
doing so, your notice of assessment will be delayed until the CRA
receives your payment.
• If you have a balance due, note that you cannot make your payment
with NETFILE. Ensure any balance due is paid by April 30.
• Read the information and select “I agree. File my return now!” If all is
correct, within two seconds you will receive a confirmation number and
message.
• Should you receive an error message, it means that your return was
not accepted and you must follow the instructions in the message to
correct the information.
• Once you receive your confirmation number, you have completed the
process.
Checklist for filing your
tax return using NETFILE
Begin
investing
in TFSA