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HomeMy WebLinkAboutThe Citizen, 1996-01-24, Page 6Hot cargo A trip to the dump proved eventful for one man this past Saturday, when the hot ashes he was transporting in the back of his pickup truck ignited other garbage. A passerby seeing the flames contacted the Blyth Fire Department, who came and extinghuished the blaze. The incident occurred at Conc. 3, East Wawanosh Twp. "YOUR" MONEY MATTERS Dear Linda, It's RRSP season again and everyone is talking about investing in their RRSPs. I don't understand why RRSPs are so great when you have to pay income tax on your money when you withdraw it from your RRSPs. Signed, Linda Henhoeffer Tired of Taxes, Brussels Dear Taxpayer, The best income tax break for most Canadians is putting our savings into our Registered Retirement Savings Plan. When we put our savings into our RRSP, we receive an income tax refund. Then, over the years while our savings are growing in our RRSP, the interest earned on our savings is also NOT income taxed. Income tax is only paid in retirement as we withdraw amounts to live on. The rest of the savings stay inside our RRSP and continue to grow without being taxed. These two income tax breaks make a big difference to the amount of savings in our retirement funds. For example, investing $3,500 each year at 10% for 25 years into our RRSP will give us a retirement fund of $380,000. The same amount invested in a regular savings program will give us only $180,000. The RRSP tax breaks doubles our retirement savings! Dear Linda, My spouse and 1 need to know whether we should pay down the principle on our mortgage or put our savings into an RRSP? Signed, Confused, Walton Dear Confused, Paying off our mortgage and saving for our retirement are both good goals. The fmancial planning 'rule of thumb' is to do both! Putting our savings in our RRSP gives us an income tax refund. This refund can be used to pay down the principle on our mortgage. In this way, the government is helping us to pay for our home and save for our retirement. Dear Linda, I am 62 now and I am getting tired of working. Can I work part time and collect my Canada Pension Plan? Signed, Retiring, Wroxeter Dear Retiring, Yes. Under the Canada Pension Plan rules, we can start collecting our pension anytime after age 60. Our pension will be reduced .05% for every month we are younger than age 65. For example, to start collecting at age 60 our pension will be reduced by 30%. NOTE: the amount our pension is reduced to when starting the pension younger than age 65 will NOT be increased to your full amount at age 65. It will always be calculated at the reduced amount. The only increase will be the inflation factor calculated January of each year. We can continue to work part time while collecting our CPP. Under the CPP rules, we have to 'substantially stop working'. In 1994, this meant earning less than $694 per month, or $8,333 per year. 'YOUR' Money Matters is sponsored by Linda Henhoeffer, Financial Advisor with the investment Centre, Trimark Mutual Funds Company. To have your questions answered, send them to The Citizen at Box 429, Blyth, ON NOM 1H0. Everyone who sends in a question will receive a free 'Financial Planning Calculator' computer disc compliments of Trimark. PORTFOLIO ASSESSMENT RRSP Seminar * Wednesday, Jan. 31 * 8:00 p.m. * at MVCA, Wroxeter Call to reserve your seat Linda Henhoeffer 1-800-667-3887 335-3887 nuestmerztGertre East Wawanosh council learned at its Jan. 9 meeting that it will receive less than a one per cent decrease in roads and unconditional grants from the provincial government for 1996. In a letter from the Ministry of Municipal Affairs and Housing, council was advised that they would be receiving a total grant entitlement of $255,978 for 1996 under the new Ontario Municipal Support Program. In 1995 the township received a total of $257,679 in grants. The amount received this year is $1,701 less than last year. Council passed the new tipping fee bylaw for the township landfill site to come into effect Feb. 1. All household garbage will have to be bagged and tagged. Township residents will receive 50 free garbage bag tags. When used up, additional tags may be purchased at $2 per tag. The tags will be available at the landfill site and at the township municipal office in Belgrave. A motion accepting the working agreement between the Wingham Area Fire Board and the Township of Culross, was passed. Council also passed a borrowing bylaw for $400,000 to meet current expenditures for the year 1996 until taxes and grants are received. The first grant payment in 1996 will be the end of June. North Huron Special Transit Corporation Treasurer Barb MacDougall, and Douglas Fraser, attended the meeting to make a presentation on "Wheels Away" for 1996. Under a new financial agreement for 1996 each municipality will make a payment based on a 25 per cent capita basis and each municipality will make quarterly payments at a rate of $2 per ride by residents of the municipality. A new billing system will be used in that the municipality will be billed quarterly improving the cash flow for Wheels Away. The anticipated bill for East Wawanosh in 1995 should be approximately $680. A motion was passed by council that a resolution be prepared to be forwarded to Bell Canada resolving "that Bell Canada be requested to provide toll free long distance Blyth employee gets thanks Continued from page 3 Allan to thank council and village staff for their support during recent water damage problems. Reeve Bailey read aloud a por- tion of the letter, which states, "In particular we wish to acknowledge the efforts of village employee, Mr. Bill Bromley, whose understanding and consideration of our position, together with his help in steering us to the appropriate contact people and acting as liaison between the various departments, was invalu- able." *** The date of the first February council meeting has been changed to Monday, Jan. 29 at 7:30 p.m. calling from Blyth and Wingham exchanges." In the year 1996 the cost of all new entrances will be recovered from the property owner. The road superintendent is to approve all construction. Reeve Don Schultz attended the directors' meeting of the Huron County Plowman's Association Jan. 17 at OMAFRA Office, Clinton. The Bylama Drainage Works report was reviewed by Council. Jan. 30 has been set for consideration of the report by council and concerned ratepayers. Tom_ Pridham, R.J. Burnside & Associates presented report. The regular February meeting for council will be held Jan. 30, at 12:30 p.m. The council meeting for "Community Action Kit" will be held Feb. 13, 1996 at 1 p.m. A 64-year-old Wasaga Beach woman escaped injury after an accident on County Road 8 in Hul- lett Twp. on Jan. 16. According to Goderich OPP, the Continued from page 2 and the Family and Business Christmas dance will be held again. Snofest will be discontinued. In reviewing the prices of rentals and the implementation of a new liquor license, the board' agreed to drop the cost to the general public for rental of the kitchen and audito- rium facilities. A discount will be given to all designated community organizations which are listed in the annual board appointments. All part-time arena staff will receive a 25 cent per hour wage increase. On the advice of the board audi- tor, booth commissions received by Board Manager Murray McArter, will be incorporated into his annual salary. McArter was also given a two per cent wage increase. All other salaries and remunera- tions, including the rec board chair, PAGE 6. THE CITIZEN, WEDNESDAY, JANUARY 24, 1996 E. Wawanosh sets landfill tipping fee secretary-treasurer, booth and pool staff, will remain the same. Accounts totalling $19,526.94, were approved for payment. Earlier in the evening, Alvin McLellan was acclaimed to the position of chair and Kevin Deitner was acclaimed to vice-chair. Community organizations with designated board members are as follows: Lions, Alvin McLellan; Optimists, Duane Gibson; Legion, Keith Johnston; Fair board, Julie Mitchell; Women's Institute, Mary Bernard; BMG Catering Group, Pete Exel; Curling, Mervyn Bauer; Minor Hockey, Mitchell; Minor Ball, Bill Sellers; Morning Star Lodge, Mary Stretton; Oddfellows, McLellan; Jr. C Bulls, Gary Pipe; Town League Hockey, Kevin Deit- ner; Fire Department, Pipe; Figure Skating, Pipe; Minor Soccer., McLellan; Crusaders, Deitner and Homecoming Committee, Pipe. accident occurred when the woman lost control of her 1988 Dodge pickup in the freezing rain. She entered a ditch and struck a hydro pole causing moderate damage. Accident in Hullett BMG Rec board votes to discontinue Snofest