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HomeMy WebLinkAboutThe Huron Expositor, 1999-02-24, Page 9THE HURON EXPOSITOR, February 24, 1995-9 FINANCIAL ADVICE FINANCIAL PLANNING STRATEGIES FOR YOUR FUTURE Spousal RSPs let you share thewealth and save taxes (NC)—income - splitting among partners is no easy feat within today's tax rules. One notable exception, though, -is the spousal RSP. This income - splitting method enables individuals to direct all or part of their maximum contribution to a plan belonging to their partner. This feature is available to legally married and common law couples. The spousal RSP is an excellent way to assure tax savings hoth immediately and during retirement - especially if either spouse will have substantially less income at retirement. Taxes on split spousal incomes will generally be lower than those on income earned by just one partner. The amounts contributed to a spousal RSP do not affect your partner's personal RSP contribution limit. While you claim the tax deduction. the amount contributed to your RSP and the spousal RSP can not exceed your maximum annual contribution amount. Although you can Getting the right RRSP advice (NC) -With the RRSP season just around the Corner. now is the time to get the advice you need to make sure your retirement income investments are %corking their hardest. A recently commissioned CIBC Financial Health Poll revealed that two thirds 167'5 ) of Canadians lack a financial plan for their retirement. Sound ad%ice in developing a financial plan for retirement is the key to building a successful .RRSP and while many' people seek the advice of an independent financial planner. few people consider the help their hank can provide: I. Your bank can provide • RRSP advice free of charge. Fast facts for RSPs ( NC) Contribution deadline: Midnight. March 1.1999 Maximum contribution: 187 of your 1997 earned income to a maximum of S13.5(X), Tess your Pension Adjustment if you belong to a Registered Pension Plan or Deferred Profit Sharing Plan. which is indicated on your annual T4 income slip. RSP Carry -Forwards: If you haven't made your full RSP contribution in the past years. you may carr} forward the unused portion(s) and add to this year's or future contributions. Foreign Content Limit: You can hold up to 2007( of the total book value of your RSP in investments that are considered to be foreign property. However. there are ways to maximize your global diversification beyond the foreign content limit. For example. the Canada Trust Growth Funds are uniquely structured so that the 20 per cent foreign content limit does not apply. $2.000 Lifetime Over - Contribution Limit: There is a lifetime limit of S2.000 on contributions in excess of your regular contribution limit. Any amount over $2.000 will he penalized. Over - contributions are not tax- deductible. - News Canada 2. Your bank generally knows your whole financial picture. including loans. mortgages and other investments - this knowledge helps in providing you with the advice that is right for you. 3. Banks today have access to a wide range of investments, including "brand name" mutual funds and man have' highly trained investment professionals who can help you make the right decisions for.your RRSP. To find out more about the right advice for your RRSP. contact you financial institution or CIBC at 1-800-465-3863 CIBC no longer contribute to your own plan after the end of the year in which you reach age 69, you can continue to contribute to a spousal RSP alter the end of that year as long as your partner is under age 69 and you have qualifying earned income. While a spousal RSP can be used to split income prior to retirement. the government has set up rules to discourage using it this way. Contributions to a ' spousal plan must stay in the plan for at least two full calendar years after the last contribution is made (the balance of the year during which the last contribution was made, plus two years), otherwise, withdrawals will be attributed to the contributing spouse 'for tax purposes. So, if you plan to make a contribution to a spousal RSP, try to do it before December 31 instead of within the first sixty days of the following taxation year. That way. your spouse can. if they wish, withdraw one year sooner, without . tax implications for the contributor. Contributions to a spousal RSP are the property of your partner who will have full control over the plan. In the event of a relationship break- up, 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 home or business. 527-1331 Whatever your plans, we have plans to help! Rudy Jansen • Life Insurance • Personal Health Insurance • Financial Planning • Disability Income • Critical Illness Insurance 107-342 Erie Street Stratford ON N5A 2N4 iv] The Mutual Group 1519)271-2041 4J Lcersed r!� M.rtua[ L fe 4 Canada eac con nary d The 4h.tuai Grow • Annuities and RRIFs . • GICs and Savings Plans • Employee Benefits • RRSPs fres a Mutual affair Please feel free to • drop in to discuss: The Rule, The Tax Advantage The investments Registered Retirement Savings Plan Information Nights Date: Every Wednesday Night in February Time: 7:00 - 9:00 p.m Place: Edward Joneg Office Joe Waite 79 Ontario Rd., 79 Ontario Road, Mitchell Mitchell, Ontario NOK 1N0 (519)348-9873 No Charge. http://www.edwardpnes.com Edwardjones Serving ladi.idud Investor, Member Cf PF the money remains the property of your partner. unless a court orders otherwise. . As with any RSP, the sooner you begin contributing to a spousal plan, the better of you'll he in the years to come. For more information about RSPB and other registered plans, visit Royal Bank's Web site at www.royalhank.com/yourm oneymatters. - News Canada RSP Quick Tip (NC)—If you're a frequent traveler you should look at the convenience of subscribing to an annual travel insurance plan. It saves you from having to apply and pay for emergency health insurance every time you go. You can take as many trips of up to 15 days each within any given year. It works particularly well for people who travel on business. as well as for those who like to make quick trips to neighbouring provinces, or south of the border for shopping. -News Canada TAX PLANNING... a long term process. The best accounting is a 10 year plan, your accountant canlook to the future and find ways to - help you save. -Reasonable Rates -Personal Service -No advance payments -Registered Tax Consultant HURON TAX CONSULTING SERVICES •By appointment only HARRY DENILIAN •Few appointments left LAURIE BERGSMA 527-0557 SIX REASONS WHY SO MANY PEOPLE FAIL • FINANCIALLY, THAT IS ! IT'S YOUR MONEY By Paul J. Rocket Chairman, Regal Capital Planners, Ltd. (NC) - Statistics! They tell us that only 2 people out of every 100 will end up with sufficient assets of their own to retire and maintain their previous standard of living. True, we don't need those assets of our own today In Canada because the govemment forces us to save, by making us contribute to the Canada Pension Plan. It also taxes us extra so we can also receive the Old Age Pension when we retire. Keeping the standard But even with those benefits, they tell us only 5 out of 100 people will be able to and do many of the things you wanted to do earlier, but couldn't because you were working). Venita. Van Gaspe', .author of the • million -selling book "The Power of Money Dynamics and several others, plug, moderator of a TV show which is carried by over 150 Public Broadcasting Stations in the U.S. each week, says there are six reasons why so many fail (financially). Here they are: 1) Procrastination (1'II start saving . tomorrow, or next week, or next year) and then never starting. 2) Failure to establish a definite financial maintain the standard of living they were goal. used to, until the time of their death. It's a shame isn't it? I believer every person can achieve a measure of wealth if they would only apply a simple rule. .. And that rule simply states: "save a part of what you eam and do not spend the eamings on your savings, but let them compound for your future." Then, when retirement comes, you will have the assets to retire in dignity, and maintain your standard of living (who just wants to maintain their standard of living when retirement is the time to travel the world REGAL CAPITAL PLANNERST L Maitland Valley Financial Conauttants Ltd. 453 Tumb.rry St., Brussels, ON NOG 1 HO Branch address: 401 Shiba Avs. N., lJstowN, ON Nhtl 1L3 3) Ignorance of what money -must do to accomplish that goal. 4) Failure to understand and apply the tax taws. 5) Being sold -the wrong._.Ic-Ind_of _life insurance. . 6)' Failure to develop a winning attitude about money. Ouch? How many of those six reasons apply to most of us? Even if only a few apply, the wise ones among us are those who will try and correct our shortcomings. I'm starting today. Bus. (519) 887-2662 Res. (519) 347-2569 Susan Carter, C.I.M. Financial Consultant SOME OF OUR PRODUCTS AND SERVICES Top Paying ci1Cs, Tax Saving SIIMglss, Mutual Funds, k d Disability Insurance, RRSP., RIVE. and RESP, (The above tat represents only a few of the many financial services available through your Regal Financial Centre.) This is No. 116 in a series o1 articles that have been appearing in newspapers end magazines across Canada for more than 15 years. For Paul J. Rockers book 1NHV I INVEST IN MUTUAL FUNDS' contact your local bookstore or Regal Capital Planners Ltd., telephone 887.2662.