HomeMy WebLinkAboutThe Lucknow Sentinel, 1990-02-07, Page 176'.
Gettiug a head start on •
retirementvvith_RR.SPs
Because me Canada Pension Pian Are RRSPs protected frim
and Old Age Security provide yt?o creditors? •
with only the most basic income in In the event of bankruptcy, most
.retirement, you: should take steps RRSPs are collapsed and the funds
today to planyour financial future. To distributed among creditors. The
maintain a respectable standard ofiiv exception to this rule is an RRSP pur-
ing during retirement, Registered chased from a life insurance coin -
Retirement Savings Plans ;(RRSP} or • parry: Life insurance RRSPsoffer this
other types of retirement and invest- . protection, provided the beneficiaries
ment income are now essential. . wined in the policy are your spouse
What is a RRSP? ° or dependant; rather than an estate.
RRSPs were introduced by • the When .must 1 use the RRSP
Canadian' government to help Ca- income?
nadians supplementtheir retirement By the end of the year in which you
income, By putting money into an, reach age 71 you must either cash rn
RRSP; you accumulate funds for your RRSP or convert it into a Regis
retirement,lower.-yourtaxableincome tered Retirement Income. Fund
and tax slielter-the earnings. of your (RR1F) or an annuity. These retire
plan, ment income vehicles allow you to
RRSP contributions in a calendar reduce the taxes of ``cashing -in" your .
year 'nest be claimed against income RRSP. (Of courses because your
earned in that year. Contributions RRSP was coMpletely tax sheltered,
made within 60 days after .the year the income from. the RRIF or annuity
end can, however, be claimed against is taxable>)
income in the previous or current A RRIF can -provide you •with
year. - income until age 90. It jays.yuu an
Can you have more than 'one :income, based on an allocation of the
RRSP? funds . you accumulated in'. your
Yes. -You can buy a different RRSP RRSPs. A life annuity guarantees you
from different sources every year; but a -.monthly income as long as you live
you must keep in mind your ability to and may be set up to include a guaran-
manage theseplans effectively and teed payment period such as 15 or 20
the maximum amount you are allowed • years. Under the guaranteed annuity, _
to contribute. . if you die before the end of 'the
Many individuals take advantage ' •guarantee period, annuity payments
of the spausaI contribution option continue to your spouse, beneficiary
Under 'this "strategy, you make your Or estate until the :contract is fulfilled.
An..annuity: to age 90, . as the. name . .
suggests, makes payments until you.
turn 90. if you die before then, the •
payments go to your beneficiary or
estate.,.
.earlier you start your. OSP;
SP,
the more you'll . put. into it and the
better.off you'll be in.retirei ent:;By
the time you. reach your Iate.30s you
should try to . make the ntaxirhurn
annual contribution,
Where can you purchase
RRSPs? • .
A broad range of institutions offer
RRSPs, including life insurance corn- •
panies, trust companies, banks; credit
unions and various' investment com--
panes.
If ;� a have questions aboui RRSPs
Or would like additional information;
c coram the Life Undenvriters Ago-
ciation of Canada,4! L,esruill Road,
Don .Milts, Ontario, M. B 2T3, .or
your local life unde►irriters asso-
elation.
contributions to an RRSP registered
in your spouse's name. However, the
combined total of your contribu-
tions to your own RRSP and to your.
spouse's must not exceed your own
permissible maximum. To maintain
the tax deduction advantage, how-
ever, the; contribution must, not be
removed from your spouse's plan for
at. least three years.. If :your spouse's
taxable income�will be lessthanurs
at retirement then this .approach
becomes a distinct advantage when
planning your household's retirement
income.
The Huron Provincial l'14"V‘ { onative
Assiodic
WAN
INTHOOS
> 4}
You can vote. on May -12,
Asso07"
To beco
a Y
H lk}
f1 1ARTY:.LEADER 4
by becoming a member of the local Huron P.C.
Por
11711 �:
%Ontario
'WO •
at li'r' contaet Clinton - 482-7744,
'524'-4069,, Exeter ;235-2667,
Searoa / 1-0249, Wingham .d 357-1494
VOTL.WiLL coma
t30 fora family membership to:
TION ti '
P
VP
Lneksew fiesdarel, Wei, Felormary 7, 1111164Page 1?
FOR ALL OF YOUR
sN� uacnH1 LAMBING
�� REQUIREMENTS
Be sure and visit the guys at
Dauphin Feed & Supplies
WE CARRY A
COMPLETE UNE OF .,.
*LAMB CREEP
*SHEEP RATIONS,
*SHEEP MINERAL
*SHEEP WORMERS
PLUS WE HAVE A FULL UNE OF ACCESSORIES
*lamb Nipples.
*Bottles
•Elastorators
•Pliers, etc.
DUNGANNON
529-7951. 529-133
naunxn�
FEED 8. SUPPLY LTD.
. HQU.Rs:
Mon. - -12 noon a \ WALTON
Sat. ti ^ 1noon
8874023 • 1-800-265.9685
omething
isell
Auto? B9at?, Home?
Antiques? Garage'Sale?
Or is it a 'servicelike'
Painting? Plumbing?
Odd jabs? Cabinet work?
.'IlVhateierayou have to sell,
• we can help you sell it faster.
Call 828.282 'r
and -place a classified ad
for so little; •you'll never
sell anything without it
again. Na question about it.
•