HomeMy WebLinkAboutThe Citizen, 2005-02-03, Page 12PAGE 12. THE CITIZEN, THURSDAY, FEBRUARY 3, 2005.
FINANCIAL S^SS=S
■ ’
Staying one step ahead of inflation
(NC)-While many of us are aware
of how declining interest rates and
income taxes serve to reduce the
income you receive from your
investments, there is also something
else at work that is not as evident but
effectively erodes your standard of
living. The culprit is inflation. It is a
subtle, gradual force that has an
adverse effect on the future spending
power of your money.
Over the past 25 years, inflation
has averaged approximately 4 per
cent annually. Currently, the annual
inflation rate is approximately 2 per
cent. Although the latest inflation
figures show relatively low inflation,
over the long term a yearly inflation
increase can add up to a serious
drain on your buying power.
To better demonstrate the effect a
2 per cent and 4 per cent rate of
inflation would have on your
retirement portfolio, assume you
currently rely on $50,000 per year
from your investments to sustain
your current lifestyle.
Due to the rising cost of living, to
afford what you have grown
accustomed to, you will need to
draw $51,000 from your retirement
portfolio next year at the current
inflation rate, or $52,000 if the
inflation rate returns to historical
levels. Further, over time you need
to draw even more from your
retirement portfolio just to stay even
with inflation.
So what’s an investor to do?
A common and often effective
antidote to inflation is to build a
retirement portfolio that is primarily
geared towards income generation
and capital stability but includes a
capital growth component as well.
Equity mutual funds and common
stocks have historically offered the
best after-tax opportunity to stay
ahead of inflation and keep income
growing. And contrary to popular
belief, it may be possible to include
stocks or equity mutual funds in
your retirement portfolio without
incurring much additional risk. This
is because many financial markets
and asset categories do not move in
the same direction at the same time,
solicitation to buy or sell
investments, nor is it intended to
provide professional advice
including, without limitations,
investment, financial, legal,
accounting or tax advice. For more
information on this topic or on any
other investment or financial
matters, please contact your
which can decrease the overall
volatility of your portfolio. For
instance, when bond prices decline
in value, stock prices may be going
up.
Staying ahead of inflation is
. critical and .it’s important that you
’ take steps now to protect your
purchasing power by finding the
right balance between stocks and financial advisor.
bonds.
For financial planning
investment information
www.investorsgroup.com
This column, written
published by Investors i
Financial Services Inc., is presented
as a general source of information
only and is not intended as a
and
visit
and
Group
Qholdice
FINANCIAL
SERVICES
Watch out for identity theft at tax time
(NC)-Be aware that your personal
data is far more vulnerable to theft
during the race to get things done at
tax time.
Common mistakes include
disclosing your social insurance
number (SIN) in e-mails, postal
communications, or in telephone
conversations when getting help to
fill out your tax forms, or RRSP
applications. Innocent oversights
such as these make life so much
simpler for criminals to first steal,
and then make use of your identity
for personal gain.
Your name, date of birth, address,
credit card, SIN number and other
personal identification numbers can
be used to open credit card and bank
accounts, redirect mail, establish
cellular phone service, rent vehicles,
equipment, or accommodation, and
even secure employment. When
your identity is stolen, it is you that
will be stuck with the bills, charges,
bad cheques, and taxes.
Before this happens, be pro-active
and minimize your risk. Take a look,
for example, at these recommended
websites, to lead the way. At
SafeCanada.ca a whole set of
guidelines, tips, prevention and
recourse procedures are posted to
help prevent identity theft and also,
to help you repair the damage.
And, at the Canadian Consumer
Information Gateway at
consumerinformation.ca you are
invited to use the identity theft “tool
kit”, a step-by-step service to help
you spot the first signs of a problem,
and as importantly, what you should
do about it.
Take Action
A sampling of the immediate
steps:
• Contact each financial institution,
credit card issuer, etc., and report
what happened. Ask for fraudulent
accounts to be closed, and for the
cancellation and the reissue of any
cards that were affected. Also find
out if the additional information is
required, like an official, Identity
Theft Statement.
• Contact each of Canada’s
national credit reporting agencies
(details on the websites) and ask if
a fraud alert should be placed on
your file. The credit report may
reveal further incidences of debt in
your name.
• Report the incident to your local
police department.
• Report the incident to
PhoneBusters National Call
Centre. This organization has a
mandate to gather information and
intelligence about identity theft,
and provides assistance to victims.
• If your government-issued
documents were stolen, report
them to the responsible ministry or
department and order new
documents.
Identity theft information and
details, plus other topics of interest,
can also be found on the primary
Government of Canada website at
canada.gc.ca
On-line tax filing saves time
Susan Alexander, CFP
and Doug Sholdice
472 Turnberry St. P0 Box 69
Brussels, Ontario NOG 1H0
Phone: 519-887-2662
Toll Free: 1-866-887-2662
Fax: 519-887-2671
Email:
salexander@peakgroup.com
v J
(NC)-Many Canadians receive a
federal tax refund each year. And the
sooner you get it, the happier you
are.
EFILE, the tax filing service for
tax professionals offered by the
Canada Revenue Agency (CRA),
allows tax professionals to send their
clients' tax returns directly over the
internet. As a result, clients just like
you can receive their refunds quickly
- in as little as eight working days,
or less if you have direct deposit.
By using tax preparation software
certified by the CRA and an internet
connection, tax preparers simply go
to the EFILE website at
www.cra.gc.ca enter their EFILE
number and password, attach the tax
file, then press “Transmit.” Tax
professionals who apply to use this
easy and convenient service are
authorized to do so by the CRA.
Once your tax professional has
filed your return, you can go on-line
and visit the new “My Account”
Service for seniors
makes filing a breeze
service to find out about your refund
or balance owing, instalment
account, RRSP information, and
more. You can even make a change
to your return.
To make the whole experience
paperless, if you owe money or if
you have to pay your tax by
instalment, why not make your
payments electronically through
your financial institution’s internet
or telephone banking service.
Simply contact your financial
institution.
For more information on other
convenient electronic services, to get
answers to your tax questions or to
make payments electronically, visit
the CRA website at www.cra.gc.ca
JACQUIE GOWING ACCOUNTING SERVICE
Accounting & Income Tax Preparation
Monthly Bookkeeping Tailored To “YOUR” Needs
• Reconciliations • Personal, Farm
• Government Remittances Business & Corporate
• Payroll • Electronic Tax Filing
All services available on site or at our office
RR 2 Bluevale
(519) 887-9248 Fax 887-9454
(NC)-Last year, thousands of
seniors received a letter inviting
them to file their tax return using a
simplified telephone tax filing
service called Service for
Seniors.
It's free and no special skills or
equipment are needed.
Again this year, Canadian seniors
invited to do so can use this
service.
If you’re eligible to use this
service, you’ll receive a letter from
the Canada Revenue Agency (CRA)
inviting you to try it. Service for
Seniors only asks you to identify
yourself and answer a few ques
tions.
You don't have to enter your
income or deductions. They will be
included automatically using the
CRA’s information.
For more information on all the
services designed for seniors or to
get answers to your tax questions,
visit the CRA website at
www.cra.gc.ca
The right tax planner can
make tax season a lot less
taxing. This year, let us
prepare your taxes and enjoy
the convenience and peace
of mind that comes with
knowing your return is in the
hands of an experienced,
trusted professional. We’ll
make sure you get all of the
credits and deductions you
deserve, so you keep more of
your hard-earned money.
Stop Stressing!
Returns completed in one week or less
Electronic filing available
One Stop Bookkeeping Services
Personal tax return preparation
& bookkeeping services
472 Turnberry St., Brussels 887-2662
DON’T PUT ANY MORE MONEY
INTO YOUR RRSP!
Check first to see if Canada Revenue Agency
will benefit more from your RRSP than you!
Proper planning will ensure that you have a:
Responsible
Realistic
Secure
Plan
That is set up for your benefit.
Steward Financial Services
152 Josephine St. P.O. Box 849, Wingham, Ont. NOG 2W0
Ph (519) 357-4554 1-888-349-4447 Fax 357-2879
e-mail: steward@wlghtman.ca
Licence sponsored by FundTrade Financial Corp