HomeMy WebLinkAboutThe Citizen, 2005-02-10, Page 13THE CITIZEN, THURSDAY, FEBRUARY 10, 2005. PAGE 13.
FINANCIAL
If a deal sounds too good to be true, it often is
(NC)-Have you ever been offered
“the investment opportunity of a
lifetime” by a complete stranger? Or
been told you won a contest that you
can’t even recall entering? If you
answered yes to either of these
questions, then you have been the
target of a scam.
While it is impossible to keep
track of every new scam out there, it
is possible to protect yourself by
remaining vigilant
and remembering
sounds too good
Find Canadian economy answers on-line
against scams
if something
to be tru^, it
time you come
term or
(NC) - The next
across an economic
definition that you would like to
have explained, or any time you
would like to learn more about
Canada’s economy - in a quick,
authoritative and straightforward
format - go to the Canadian
Economy Online website at
canadianeconomy.gc.ca This one-
stop guide to the economy lets you
Mortgage
Should you focus on paying down
your mortgage or contributing to an
RRSP?
“Mathematically, you can
calculate which alternative is better,
given assumptions about mortgage
rates and the rate of return in your
RRSP. Most analysts conclude that
it is better to pay off your mortgage
first, assuming that the rate of return
of the investment in your RRSP
Tax relief without spending
probably is.
To help educate consumers,
Western Union offers the following
fraud prevention tips:
• Keep abreast of consumer fraud
trends - knowing is half the battle!
• Contact the Better Business
Bureau to see if there have been
any complaints about the
individual or company with whom
you are considering doing
business.
• Be cautious if someone will only
accept a money transfer. Most
check out statistics and learn more
about economic concepts, and it
offers access to a wealth of federal
government information.
Under “Pulse of the Economy,”
for example, you can instantly view
key economic indicators, including
Canada’s current population,
unemployment rate, exports,
imports, inflation rate, exchange
rate, prime interest rate, national
does not exceed your mortgage
rate,” says chartered accountant
Danielle Sideris of Toronto.
“However, there are many factors
that you should also consider. Will
you be able to catch up on your
RRSP contributions once you’ve
paid off your mortgage? Will you
need the funds in your RRSP for
emergencies? Do you want
to diversify your investments
legitimate sellers will accept more
than one form of payment.
• Only transfer money to someone
you know personally or whose
identity you can verify. Criminals
often have access to fraudulent
identification, which can be
difficult to distinguish from
legitimate IDs.
• Be aware that the “test question”
options offered by some money
transfer companies are not intended
as a form of protection
when purchasing goods or ser-
debt and more.
In “Learn more about...” you can
find any economic topic from the
alphabetical list and learn how it
affects you. “Resources about the
Economy” invites you to access the
latest economic information from
government sites by clicking on six
different subjects: the current
economy, families and workers,
money, government and the
all of
in your
having the
rather than place
your available cash
home?”
“Keep in mind that
discipline to save money, either by
paying down your mortgage or
putting money in your RRSP, will
mean that you will increase your net
worth in the long run. Both paying
off your mortgage and saving for
retirement are important
to safeguard your
never provide the
a money transfer
vices.
• In order
transaction.
details of
transaction to anyone other than the
intended recipient.
• Remember, if a deal sounds
too good to be true, it probably
is.
You can help stop fraud by taking
action when you suspect someone of
trying to defraud you. Call
PhoneBusters at 1-888-495-8501 to
report fraud.
economy, international interests, and
business.
On the subject of money for
instance, find out how the prime
interest rate is set, or what the Bank
of Canada’s role is in managing
inflation. Information on the
Canadian economy is also available
on the primary Government of
Canada website at Canada.gc.
ca
versus retirement savings
components of any good financial
plan.”
For further information about
RRSPs, contact a chartered
accountant.
- Brought to you by the Institute of
Chartered Accountants of Ontario.
It a
For more lips on how to avoid
becoming a victim of fraud and to
learn about other common types of
scams, visit www.westernunion.com
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^holdiceX J financial'
Susan Alexander, CFP
and Doug Sholdice
472 Turnberry St. PO Box 69
Brussels, Ontario NOG 1H0
Phone: 519-887-2662
Toll Free: 1-866-887-2662
Fax: 519-887-2671
Email:
salexander@peakgroup.com
J
If you hold shares, or interest
bearing investments in Canadian
public companies that you do not
intend on selling in the near future,
consider using them towards your
self-directed RRSP - to take
advantage of the tax relief without
spending any extra money, says
chartered accountant Derby Stern of
Toronto.
“If you transfer these investments
to your RRSP, it can trigger a capital
gain since the transfer will be
deemed to take place at fair market
value.”
“However, you are prohibited
from claiming a.capital loss on the
transfer of these investments to your
RRSP. But, you can sell the shares
on the open market, contribute the
proceeds in cash to your RRSP and
have your RRSP buy back the same
shares. This strategy will permit you
to trigger the capital loss on the
shares, which you can apply against
other taxable capital gains,”
explains Stern.
For further information about
RRSPs, contact a chartered
accountant.
- Brought to you by the Institute of
Chartered Accountants of
Ontario.
CHARTERED ACCOUNTANT
Death, taxes and RRSPs
An important part of your tax and
financial planning should include
taxes that arise upon death, says
chartered accountant Sam Zuk of
Toronto.
“The value of your RRSPs and a
Registered Retirement Income Fund
(RRIF) at the time of your death
must be included as income, if
capital assets or RRSPs/RRIFs are
inherited by a surviving spouse or
partner, the resulting capital gains
be
the
grandchild or used to buy a term
annuity up until age 18.”
- Brought to you by the Institute of
Chartered Accountants of
Ontario.
and income inclusion can
deferred until the death of
surviving spouse or partner.
“Another exception arises if the
RRSPs/RRIFs are inherited by a
financially dependent child or
grandchild. Then the resulting
income inclusion can either be taxed
in the hands of the child or
Don’t delay contribution
Even if you don’t need the tax
relief, don’t delay making an RRSP
contribution.
“It makes sense to contribute
when you have the available funds
and the RRSP room. This will
shelter the income earned from
taxes. Once you have made a
contribution, .you can carry it
forward indefinitely and deduct it in
a future year when you could
potentially save over 46 per cent in
taxes,” says chartered accountant
Steven Aprile, of Toronto.
- Brought to you by the Institute of
Chartered Accountants of Ontario.
Dwayne Laporte
ZURICH
Appointments at your
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236-7494
236-7277
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INVESTORS GROUP FINANCIAL SERVICES INC.
306 Josephine St., PO Box 300
Wingham ON NOG 2W0
Phone
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(519) 357-1522
(866) 756-4770
(519) 357-1551
Email.Teidca@scsinternet.com
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