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The Citizen, 2002-02-20, Page 10It's RRSP Time Make the most of your money Invest in your community Credit Union North Huron Credit Union Limited 8 Alfred Street, Wingham (519) 357-2311 Call us for competitive RRSP and Term Deposit Rates. All funds reinvested in our local community. Tips for responsible gambling (NC) — For many people, gambling is exciting and entertaining. They make careful decisions about spending time and money, where to go and how to have fun. The following are some ways people gamble responsibly; • Gamble for entertainment, not as a way to make money • Balance gambling with other leisure activities • Only use discretionary income, not money for everyday expenses • Set a budget and stick to it. If you. have lost the money you budgeted for gambling — stop • Don't borrow money to gamble • Avoid on-site cash machines for additional gambling money RESPONSIBLE GAMBLING COUNCIL (Ontario)' • Always set a time limit • Take frequent breaks • Be aware — risk increases at times of loss or depression If you want to know more about responsible gambling, visit the Responsible Gambling Council (Ontario) website at www.responsiblegarnbling.org or phone at (416) 499-9800in Toronto or toll free at 1-888-391-1111. - News Canada CARTIER PARTNERS FINANCIAL SERVICES Susan Alexander, CFP, C.I.M. Murray Siddall, CLU 453 Turnberry St., Brussels, ON 519-887-2662 alexanders@cartierpartners.ca RRSPs, RESPs, **GICs, Mutual Funds *Life & Disability Insurance Lite & Disability insurance sold through Cartier Partners Insurance Agency GICs sold through Maitland Valley Financial Consultants Ltd. CHARTERED ACCOUNTANT 306 Josephine St., P.O. Box 300 Wingham ON NOG 2W0 Phone: (519) 357-1522 Fax: (519) 357-1551 Website: www.reidca.on.ca B.W. REID, C.A. - R.M. TAYLOR, C.A. - RRSP & RRIF Planning - Efiling Tax Returns available now - Professional Services for over 25 years IT'S YOUR FUTURE DON'T DELAY INVEST IN YOUR RRSP NOW In planning your retirement you know that your RRSP is one of the best ways to achieve your goals. At CIBC, we can help. Our experienced professionals, planning resources and investment options can help you make the most of your RRSP. START PLANNING FOR YOUR RETIREMENT NOW. CALL TO ARRANGE FOR YOUR FREE FINANCIAL PLAN TODAY! CIBC Brussels 519-887-6521 CIBC Blyth 519-523-4247 CIBC • PAGE 10. THE CITIZEN, WEDNESDAY, FEBRUARY 20, 2002. tr,triqUi, ita 0,0 t t t.c.0 Don't be afraid of roller coaster markets While trying to figure out the wonderful world of investments, you may have read about something called a "volatile market," Ina bully market, stock prices rise. In a bear market, stock prices fall. When stock prices change quickly, and sometimes move in both directions all in the same day, we have a volatile market. Remember when stock prices for many high technology and web- based companies were doubling, tripling, even quadrupling? Many of these same organizations have since seen the value of their stocks shrink drastically. Those of us who owned shares in these firms know first-hand what volatile means! In a volatile market it is important that we take a step back from the headlines of the day and look at the big picture. Stop listening to Chicken Little, who is always saying that the sky is falling. It's not easy to maintain your long- term investment perspective when any 10-minute section of a 24-hour news show will give you dozens of reasons why you shouldn't invest in If you need cash, raid your Registered Retirement Savings Plan (RRSP) only as a last resort. "Removing funds from your RRSP could jeopardize your retirement plan," cautions Sam Zuk, a chartered accountant. "The money will be spent instead of compounding, tax-free, inside your RRSP." "If you feel you must take money out of your RRSP, the timing of the withdrawal is important," adds Zuk. "If you have lost your job and need cash, try to wait until the next Have you designated a beneficiary for your Registered Retirement Savings Plan (RRSP) or Registered Retirement Income Fund (RRIF)? If not, the plans may be subject to taxation upon your death. "If you want your spouse to inherit your RRSP or RRIF, designate that person as the beneficiary in the RRSP or RRIF document itself," explains CA Kevin Dunn. "Don't just leave it for your will to deal with." the -stock market. Emotion is a wonderful thing. But it adds doubtful value to your investment program. No matter what crisis is impacting the market today, you'll benefit from thinking about what has happened in the past. If you take a look at the historical performance of the market, the overall trend line is upwards. Why does it eventually rise in most cases? Sooner or later the market usually reflects not the political noise or what's happening with speculators, but the underlying performance and profitability of the companies. You can take comfort in the knowledge that those blue chip companies you constantly hear about, the big global banks, the large utilities, pharmaceuticals and countless others, will not disappear overnight. Investing in companies mat have demonstrated success over tit,: long-term will give your collection of investments strength and stability, helping you to navigate through uncertain waters. But before you start accumulating these investments, you should have calendar year to withdraw funds from your RRSP," Zuk explains. "This will reduce the tax impact, because you will be withdrawing the funds during a year in which your income is likely to be lower." Zuk also suggests looking for other sources of cash. "Ask yourself whether it makes sense to borrow money to tide you over, instead of withdrawing funds from your RRSP right away." Brought to you by the Institute of Chartered Accountants of Onta- rio. "If you designate your spouse as beneficiary in the RRSP or RRIF trust document, the remaining funds will bypass your will and estate and pass to your spouse without income tax, provided the amounts are rolled over to certain tax-deferred plans of the spouse," says Dunn. "Otherwise, they are likely to be subject to full income tax." • Brought to you by the Institute of Chartered Accountants of Onta- rio. n overall financial plan. It is critical that you talk to an advisor. Once you've worked with your advisor, through dialogue, you make the right choices, you build that plan, and you stick to it. The first step in creating your plan is to ask yourself some key questions. What am I saving for? What do I want this money to do for me? What am I doing to protect my family's financial future? Once you know these, then you ask, What is my investment objective? Your investment strategy may call for you to place your investments in an RRSP. At this time of year, banks, insurance companies, and other financial institutions remind us -to think about our futures by encouraging us to contribute to our Registered Retirement Savings Plan. To make RRSPs more attractive, the government has created rules for them to help you meet your goals. By placing your investments in an RRSP, you're protecting your future, but the government has also provided flexibility to react to any immediate investment or financial needs that you might have. That means you can borrow from your RRSP to buy your first home or go back to-school. We're learning more, living healthier lifestyles, and living longer. We're also retiring earlier. As a 'result, our retirement careers will often be equal to or longer than our working careers. One strategy to combat market uncertainty involves diversifying your investments to help reduce your risk and get the most out of your money. You want to have different types of investments in your plan. You can balance your portfolio by including low risk bonds and guaranteed investment certificates with higher risk choices like mutual funds. Sometimes this balanced approach process is called "asset allocation." Exactly how much risk you're willing to take is entirely up to you. If you can put your money away for 20 to 40 years in an RRSP, you can likely handle more risk. And don't forget, market volatility is a fact of life. It is part of the reality of investing. The message is clear. Don't be afraid to invest in the markets when they're on a roller coaster ride. Just make sure you get some professional advice first! And buckle up! Designate beneficiary for your RRSP, RRIF Never raid your RRSP