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Home My WebLink AboutThe 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 ZT"------------\ ^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 convenience 236-7494 236-7277 R.R.S.P.s ■ Mutual Funds ■Annuities ■ RRIFs ■Estate Planning ■ Education Plans ■RESPs ■ Group Plans ■GICs RRSP DEADLINE: TUESDAY, MARCH 1 ESS! 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