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.