The Huron Expositor, 1999-01-27, Page 8S. -TN[ HURON (LXPOSITOR, January 27. 1999
1/41
Financial Advice... Tax Tips and Traps
I. Medical Expenses: Keep
track of all medical expenses
for the family for the year
including any premiums paid
for private health care insur-
ance plans. The non-refund-
able tax credit is the total of
expenses paid less 3% of net
income or $1,614, whichever
amount is less. The medical
Expenses can be claimed for
any 12 -month period ending.
in t he year. (ie. February
1997 to January 1998 cold be
claimed on the 1998 tax
return) It is possible to have a
claim in one year and not in
another year and therefore it is
important to keep track of the
expenses each year:
- Donation Tax Credit:
The non-refundable tax .credit
is 17% of the first -$200 of
donations and 29% of the -
amount over $200. Since one
spouse can claim the dona-
tions made by the other. it is
more beneficial to claim all
donations on one- tax return to
• maximize the tax credit;
3. RRSP Deductions:
Monthly contributions are an
excellent way to make RRSP
contributions and avoid hav-
ing to find the money for a
contribution in a lump sum. If
• your taxable income fluctu-
ates and you expect it to be
higher in the next year, con
sider delaying the deduction
of the contribution so that the
tax savings will be higher.
For employees that contribute
to a RRSP. an application can'
be made to Revenue Canada
to authorize_ your employer to
reduce the tax withheld frim
ypur employment income. By
doing this. you can increase
your take. home pay instead of
waiting for the ,tax refund
cheque at the end of the year.
4. Filc'on Time: 11. you
•
•
have taxes owing on April 30
and .you can't pay thebalance
owing, file your return with-
out the payment. Revenue
Canada will still charge you
interest on the outstanding
amount. but you will savethe
late filing penalty.
5. RRSP Withdrawals: Any
funds withdrawn during the
year from your -RRSP will be
included inyouur income. The
financial institution is
required to withhold income'
tax and unless you .have husi-
ness Tosses or very low'
income to offset the RRS-P
income, thc taxes withheld
will not cover the full amount
of tax owing on. April 30. -
6. ..Child Tax Benefit:
Consider setting up a separate
hank account and depositing
the money received in this
account, so that the interest
earned will he the _child's
income and not the parent's.
•
Since the child may have little make sure that youJtave at est income, certain invest-
or no other income there will least $1.000 of pension. ments issued by life insurance -
be no tax"to .pay.. income to qualify for the tax companies will generate
. 7. Pension Tax Credit: If credit. If you arc not eligible .incopte eligible for the tax
you are over 65 years of age, for a' pension, but have inter- credit.
Brian E Wighunan C(,A
A Better Way to Save Money
LOOKING FOR A BET-
TER WAY TO SAVE FOR
:A NEW HOUSE, A
CHILD'S EDUCATION,
OR FOR YOUR RETIRE-
MENT? •
This February. The Mutual
Investment Portfolio will.
offer you even more invest-
ment choices managed by
such top names as Trimark
Financial, Fidelity
Investments, Perigee Private
Management - Ltd..
Mackenzie Financial Corp..
and AGF Funds Inc. .
With The Mutual
investment Portfolio, you tan
invest in an RRSP for retire-
The financial realities of long term
With advances in medical involves dramatic changes in
knowledge and care, eight out government-sponsored health
care plans:. Canadians arc
being asked to be more finan
cially responsible for their
own healthcare and continu-
ing long tcnn,care.
As.you age; these realities
impact considerably on how
you use your•retirenient sav-
ings.- Forty percent of long
term care is received by peo-
ple- ages 18-64 ,years for rea-
sons such as'accidents, strokes
and degenerative illnesses. it•
you or .your spouse become
incapacitated for any of these
-reasons or simply due to the
aging process. the cost for
long term care could be sig -
of ten North Americans will
live past age 65. A long life
brings with it a greater likeli-
hood that instead of a sudden
death, we will experience a
long term, chronic condition.
A recent study showed that
there is a greater that 50%
chance we will need home
care or nursing home care at
some point in our lives:
In the past, many women
workedas homemakers and
could care for aging family
members. Recently. we have
seen more women in the work
force and out of the home.
Another current trend
Whatever your plans,
we have plans to help!
• Life insurance
• Personal Health Insurance
• Financial Planning
• Disability Income
• Critical illness Insurance
Rudy Jansen
• Annuities and RRIFs
• GICs and Savings Plans
• Employee Benefits
• RRSPs
107-342 Erie Street
Stratford ON NSA 2N4 J The Mutual Group
(519)271-2041
licensed •.th Wee] LA0 of Canada. lead company of The Mutual croup
a Whin
\ affair A
nificant. .1998 costs for pri-
vate residency in a Long Tcrrn
Care facility' ran as high -as.
$30-$60 per day ($ I 1,000-
$22,00
,000-$22,00 per year)..Long-term
care insurance cstahlishes a
.fund for .you and/or -your
spouse to use if pin need long
ment savings. a non -regis-
tered plan for other financial
needs. and a RRIF for your
retirement income - all in one
-convenient package..
'You can personalize the
way you save and grow your
money'. You can balance your
investments between guaran-
- teed interest -accounts and
•term care in either your umn
home or in a personal carr
facility. .
Talk to your financial advi-
sor about thc ways -that long
team care insurance will
enhance your financial plans
for the future. Doug Elliti
Brian E. Wightman
Certified General. Accountant
64 Main St., Seaforth
(519)527-1331
Brian Wightman
• Accounting & Bookkeeping
• Personal & Corporate Tax
• Farm, Business & Indvidual
• Tax Planning
•
Call for a free consultation at
my office, your hone or business.
527-1331
More
Financial
advice on
page 17 -
THE
rF
THE BEST' MUTUAL
FUND ADVICE IS
AS CLOSE AS
l'OLR TD BRANCH.
TD Investment Specialists
Ranked #1 For Advice
FOUR Years In A Row.
An independent, nationwide study.. of leading financial
institutions has confirmed bnce again -that
• the best mutual fitted advice is at your TD Branch.
When you're investing; you want the best advice you can get.
Fortunately, you don't have to travel'far to get it.
Call or visit us at:
TD BANK
56 Main St., S., Seaforth, Ont.
527-1460 Fax. 527-2908
GREEN LINE MUTUAL FUNDS
MAKING YOU A SUCCESSFUL INVESTOR'1"111.1w
�
The Green tine Finds 01So-toad Mutual Rands s or&ted try TD Asa Management inc. (TDAM' 1, a aholh or ed
sisidnry d TD Bank. [natant , informer= about these mind fundi o oontauxd m thea sunp(ied prospectus,
girth se mom, you to read carefulh Wore investing. Please obtain a copy thus values and investment renxtu suit
6rrnate. Metes. Red investaenta are tut insured by the Gado Deport Irwaece Cteporatioa sr the Regie de
I'aaamaarcedtgEp da Qatbec mai ere not guaranteed try TD ttmk. • Tradrnarka d ID Bank, TDAM s a hurtled met
lamed on an otdeperdent. tanmveide surly d leading renancol sonmons conducted be Marketing Solutions
segregate funds.that are
market-based. but with
in protection. -
You choose. You decide. h's
your personal plan. "
.Contact your MMlutual:_Life
agent or representative to
discuss the many advantages
' of thc all -in -one Mutual
Investment Portfolio.".
Achieve Your Financial Goals
with our complete financial planning services.
Our team of advisors work with you to
establish your comprehensive financial
plan involving
•insurance,
•investment,
•tax and -
. •estate planning -
Doug f 1rottYrtA Call us for your no -cost consultation
iflbefltCefl1r€
Seaforth • • 96 Main St. 527-0420
Sem* Seajnrth Since 1986
We'd
(C sc
like to contribute
to your RRSP
• Protected Mutual Funds
• G1Cs -
• Prime Rate RRSP Loans
• Professionally Managdd Accounts
OPEN EXTENDED HOURS FOR RRSP SALES
Feb. 25, 26, 27 -
Better advice. More Options.
On your terms.
527-0100
THE FARMER IS
A TRUE INVESTOR
IT'S YOUR MONEY
By Paul J. Rockel
Chairman, Regal Capital Planners Ltd.
(NC) I've never3armed, but f've always
- admired farmers. To me, farmers are •real
entrepreneurs. They are the capitalists of the
world, .the people who stake their. financial
future on something that isn't guaranteed.
After all, the .farmer invests his time in
studying agriculture,:knowing the soil.
improving. it; and then invests his earnings in-
seed,
n
seed, fertilizers, equipment. • livestock, etc.,
without, any guarantee there will be good
weather to give an abundant crop, or eventhat
• the seed is top quality and will germinate."If he
.bas livestock, there is no guarantee- that they
- will live, or not get diseases, or that there wilt
be a profitable market for them when he
wishes to sell. ..
The only thing a farmer knows is that -if he is
. successful, he will be supplying a basic need
for all of us. Whether fulfilling that need is
profitable is partly due to good management
on his part; and things that he 'cannot control,
such as the -weather, be it too dry or too wet,
Or too hot or too cold.
_
.Trouble is most Successful farmers. like -most
• Canadians, once they have saved some
money, tend to want fo put it where they are
"guaranteed" a fixed rate of retum, despite. the
fact they achieved their income without a
guarantee. "
Personally, I can't afford a guarantee. There
is not one guarantee I know of that costs
'nothing'. Even a savings institution that may
offer 'Guaranteed Investment Certificates" or
REGAL
CAPfTAL
PLANNERS
LTD.
Maitland Valley Financial Consultants Ltd.
453 Turnberry St., Brussels, ON NOG 1H0
"Term Deposits" always guarantee an amount
that is less than they expect to earn. That is
the. cost of.a guarantee.
read in -a paper some ago that the •
difference in what the savings -institutions pay
out and .what they earn with those deposits •
was 4.7% per year. Maybe on their "term
deposits or GICs they only -earn 2% more that
they pay depositors. but that stili amounts to
having to forfeit a total.of 10% over a five-year
period. That's too costly for me!
I like to invest my savings where -t receive
what they earn. Furthermore. t like to -have. the
value of my. savings: increase (lust as the farm
increases in value); giving. me two kinds- of
gain, namely capital gains (only 75% 0l Which •
are taxable), and dividends (like the. profit
"earned" by the farmer) Which -bear much
reduced taxation.
Furthermore, there • is- a semblance of
"guarantees" in investing in something like
mutual funds because they have a public
record of past performance, many of them
-averaging 12% and -better, -over the.:past, many.
years.
like the farmer, my investments (in mutual
funds, he in his farm) are not guaranteed, but
they have a record of being profitable: I.like
that. -
For a comparison of GICs and two mutual
funds; contact she advisor pictured here and
ask for it's Your Money." -
Bus. (519) 887-2662
Res. (519) 347-2569
Susan Carter. C.I.M.
Financial Consultant
SOME OF OUR PRODUCTS AND SERVICES
Top Paying GICs, Tex Saving Strategies, Mutual Funds, Life 4 Disability Insurance, RRSPs, RRIFs and RESPs
(The above list represents only a few of the many financial services available
through your Regal Financial Centre.)
This is No. 1217 in a series of articles that have been appearing in newspapers and magazines across
Canada for more than 15 years. For Paul J. Rocket's book -WHY INVEST IN MUTUAL FUNDS' contact your
local book store or Regal Capital Planners Ltd., telephone 887.2662.
1