Loading...
HomeMy WebLinkAboutTimes Advocate, 1997-01-29, Page 8Page 8 Times -Advocate, January 29, 1997 _COMM' Blue Water Rest Home holds retirement party for convener and secretary ZURICH - The Christian Reformed Church, Exeter visited Blue Water Rest Home on Tuesday with Peter Visscher as•Chairperson and Joyce Pepper as organist. -Annie LansBeigen read a poem entitled."Make the.New Year a Stepping Stone". Afternoon tea was served in the auditorium on Wednesday by Cathy Shantz, Adjuvant. Evangelist Arnold Gratton, Gospel Hall, Grand Bend conducted' Thursday afternoon Chapel Service. Father Matthias Wronski, St. Boniface Church, Zurich celebrated Mass. . Max Ducharme and the "Town Liners" visited the home on Thursday evening. - • January 25 is Bobby Burn's. birthday and along with his poetic literary accomplishments and in recognition of his birthday many people of Scottish origin celebrate his birthday with haggis. Resident Bob Carson had the kitchen dethaw his parcel from' his Scottish Tomntonian friends and serve up his delicacy of haggis with his , roast of beef dinner on Thursday. The residents look forward to visiting with their Buddies January 28, a Western style potluck supper with the staff on January '22 and a pizza party January 30. • • Best Wishes to Eleanor Watson who is visiting South Huron Hospital, Exeter. • Condolences to the family -and friendcof the late Vaino (Vic) Vireo who passed away at BWRH on January 22 in his 75th year. Vic had been at resident at the home since August 1996 and was well known by his friends in Grand Bend. • • The residents welcome a new resident,'who is also a Grand Bender - John Snyder. Reta, his wife will con- tinueto live in Grand Bend. " A retirement party was held at Erb's Country Kitchen, Zurich on Wednesday evening for Gladys Martin, Hobby Room Convener for over 14 years and Berit Wallace, a part-time secretary for over 9 years. Gladys was presented with a collector plate and wooden -frame and Berit with a gift certificate from Village Collect- .ahles from their fellow staff: At the,StaffBoard of Directors' Christmas dinner the women were presented with silver- trays by the Board of Directors in honor of their retirement. Gladys' mother Elizabeth Gingerich is a resident at the . home, so she will still' be involved with the residents. Bent has volunteered to be an auxiliary member and therefore will still be in contact with the residents and staff. Other recent award winners were Lois Thiel, RN, a silver tray for 20 years of service, Veronica Bedard. Dietary Aid a gold watch for 25 years of service and Dorothy Dietrich, Nurse's Aid, a Royal Dalton figurine for 30 years of service. ADVERTISING FEATURE Making the most of your retirement package • :By Brian If you've been laid Tiff—or are - thinking about taking an early retirement package—make sure you maximize the potential of your retirement allowance. If you use -it to start a new business, for example, you'll lose half of it to the tax man. A far • better strategy is to put as much of your retirement allowance as you can in.a self-directed RRSP. It will not only 'escape taxation. hut the income and gains - produced by your-RRSP will he able to compound tax -.free. Under existing tax laws, you • can take $2.000. for every year you worked at your company and put.it inside your RRSP.. If your retirement allowance was $40.000. for example. and you •had worked at a company for 18 - years, you would be able to • shelter $36,000—and.only be taxed on the remainder. That was capped in 1995, and will no ionger apply to years of service beyond that date. • Also. if your company did not have a pension plan during that period; you can roll over another S I',500 a year into your RRSP for every year you worked until 1989. If you were thinking about using this money to start a nevi business. Costello a better stritegy wou Id be to take a "second mortgage on your home or ' borrow from your RRSP. This way you'll be able to keep either all or most of the settlement and be able to deduct the • interest you pay on the loan from your taxable income --even if the loan comes from your RRSP. You win both ways. That's why it's iniportant to have a financial planner between you and your•emplbycr and the .eventual direction of your money. This raises another question many people are -facing today: if you have the option of taking a pension package today. should you do it now or wait until the next window? In many cases. that . • usually occurs three or five years down the road. • There are a few factors to consider. First, the $2,000 rollover has been capped. as' we noted. as of 1995. if you decide to opt for retirement four years from now, this deduction will not he a'r • • ato-you tyou for the years 1996-,2000. Another consideration is the security of the company you're working for. Would you rather have this concern passed on to the insurance . company that handles your company's pension?• Or is there a possibility that you may he caught in another corporate downsiiing—before being able to opt for the next package'' - There are real concerns that require a lot of hard thinking. But if you decide to go now: your best option is sheltering as much of your.ntoncy as you can. It will pay off handsonieh' down the road—when you will need it most. . WE CAN TAILOR A RRSP OR RRIF TOEMEET ,YOUR ;NEEDS Don Thompson • Financial Consultant Representing Trust Companies, Banks and Mutual Fund Companies Over 30 years in banking and taxation experienceto help you through the maize. Lawrence Bean Manager RRSP LOANS AT PRIME BEST 5 YR, GIC RATE 5.7% Y.I.S. Financial Inc. 282 Main St. Exeter _ • (519) 235-3368 5 Ratteobury St. Clinton (519)482-9924 58.Ontario St. Grand Bend (519) 238-5014 1-888-235-9260 YOUR INVESTMENT SHOPPERS - 7 THIS RSP RETURNS UP TO 83% OF YOUR ICONTRI BUTION Loans pre -approved. Sold by prospectus only Ralph Geiger 2364784 Licence sponsored through W.H. Stuart Mutuals $.1 YOUR RURAL RRSP HEADQUARTERS Ask about A CREDIT UNION R.R.S.P. with "Farm Plus" eligibility Each RRSP & RRIF contract is insured individually for up to 560,000.00 RRSP Loans Available at Prime Rate CLINTON COMMUNI CREDIT UNION 48 Ontario St. Clinton 482-3467 118 Main St. North Exeter 2360640 Open Mon. to Thugs. 9 a.m. - 5 p.m. Fri. 9 a.m. - 8 • .m. SERVING THE COMMUNITY SINCE 1952 Did You Know? • Today, one-third offthe 350,000 who retired early in 1993— some by choice, most not—live in poverty. • The greatest risk facing us today is outliving our money? • Most Canadians have most of their wealth in the wrong, type of. assets—namely their homes • Every seven seconds, for the next ten years, somebody in North America will turn 50. - • To retire in 2020, with an income of $40,000 a year, you •will require a savings .of $1.2 million. By 2015, half of the Canadian population will be over 40 for the first time in. history. • • About two-thirds of Canadians have never mode an RRSP contribution. • Sixty per cent of Canadians who have paid off their mortgages don't have an RRSP.' .. • if you put your RRSP into a GIC, your savings will probably not even rise as much as inflation, meaning an actual loss in its purchasing power. if you own. your own home and are mortgage free,. your " significant" amount of equity is probably earning 0% because real estate values almost everywhere in Canada are not exceeding the inflation rate. • Over the next three decades, nearly 10 million people will be retired. From "Garth Turner's 19V,' RRSP Guide: How to Build Your Wealth and Retire in Comfort" o Trimark es Mackenzie o- AGF . Dynamic or Templeton Don't Limit Your Choices Looking for a conservative investment or grotvtb? We represent these front-line companies • • - Barry Southcott Check your investment options. These are five of the leading mutual fund companies that we represent. They offer diversification, liquidity, professional management and a variety of objectives for your RRSP investment. Let me show you: We make house calls. Ph. 234-6367 Barry Southcott Crediton PFSL Investments Canada Ltd., Mutual Fund Dealer for: Trimark, Mackenzie, Dynamic, Templeton, AGF and more INV1:-"1 IN A i1i•:1'•1.1:IZ IZIZS') .1.1115 YEAR 1f you arc like most people. you have probably purchased an RRSP from a bank. trust company. investment broker or life insurance company. An RRSP purchased from a life insurance company has the same features as their non -insurance counterparts but also offer much more. These additional features can play an important pan in your financial planning. One area where life insurance companies have an important edge over other institutions is in the area of estate settlement in the event of the death of the RRSP contribu tor. Life insurance companies do not require probate of the will (that is, court certiftcatiort that Ute will is valid) where there is a nand beneficiary. Non•insurance companies nay delay payment until the will has been probated. They will likely require probate for amounts in excess of $25,000 if the named beneficiary is not the RRSP owner's spouse. The amount used to determine the need for probate will vary by company and industry. In addition to the delay required to probate, there is a cost to the estate for probate which will vary by province. In Ontario, for example, there.wiil be a cost of SI5 per thousand heli by the estate for probate, while in Quebec, there are no probate fees if the will has been notarized. The purchase of an RRSP from a life insurance company permits the timely payment of money at a difficult time and allows more money to be passed onto your heirs. in normal circumstances. RRSPs available from life insurance companies offer a amain degree of creditor protection that other financial institutions may not provide. Generally, creditors cannot seize RRSP or life insurance assets as a result of a bad debt a bankruptcy if there is appropriate beneficiary designation. (This can be challenged in court, fa example. when an owner is shown to have purchased these investments in an attempt to evade creditors. Other actions by the owner may affect the limited creditor -proof status of these contracts). Investment funds issued by life insurance companies are known as segregated funds and they offer even more advantages. The death benefit on segregated funds usually equals the greater of the fund value or a percentage of the amount invested into the fund. For example. if at the time of the owner's death, the fund is worth less than the amount of money invested, the beneficiary could. depending on the plan. receive an amount equal to the total amount invested. Mutual fund companies will only pay the market value at the time of death which could be much less than the original investment. Some segregated funds can also offer a partial guarantee of your invested capital For example, a fund could have a guarantee that after a certain period of time. a portion of your investment will always be worth at least a certain amount. regardless of your funds value.. Depending on the fund. some insurance companies will guarantee up to l00 per cent of your investment after a certain amount of time. Other financial institutions do not provide this guarantee. Our l rprrtise It Your Guarantee! MetLifid 183 Main St. Exeter, 235-1344 • BORROW MONEY TO SAVE MONEY? ARE You NUTS? So you've.fallen behind on -your RRSP contributions. You know it's smart to keep up, but when March 1st rolls • • "around. it seems that the money's just not there. What to do! What to do!? Here's a thought: THE SCOTIA RRSP CATCH-UP"' LOAN - • (Here's a quick -math version as•an example, just to get you thinking) 1. Borrow $15,000' - , - 2: Get Back 56,000 on your tax 3. Pay Back $157/month Or as much as 550.000• at rates as tow as return and pay down your loan. (Seem possible? if need he. you pnf :-:) ' - - (This depends on your tax rate and other stuff. can take up to 10 years to repay.) • . Doesn't everything?l)I 4. Watch your RRSP grow to $19,361 in 5 years and 6 months, when )aur loan is paid out. In 25 years, you'll have $47,856. (St.) who's nuts?) (Here comes the fine print. The example above is based on the following assumptions.) 1) Investor it in 4/Yi marginal income rat bracket and is ebribk kw a S6JO) ae refund 2 r•I.oun is amortized over 10 years and is subsea to applicable ire& cntena. Loan rate over the life of the Inca is 4 7537 Rase is hied tor each tern or the loan • I to S fear terms available. 31-Tas refund is used to pay down principal at the fourth north - you pay back .,n additierul $ I03k8 t$9,000 -of poncipal and S I.48 in interest t.4}RRSP investments earn an average annual compassed return of 4.7Ss4 in a diversified portfolio. (So roach for the flex print Talk to us. we.speak in large prim( • Of course, you'd rather not borrow. But this -is borrowing to save: So you can catch up and keep up. Because doing nothing is the worst idea of all Scot i a b a n k -3 ' Registered Trade -mark of The Bank -of Nova Scotia "Trade -marks of The kAillilt to do:" Bank of Nova Scotia. •Subiecttoapplicable credit criteria.••Scottabank's • 280 Main St. S. Exeter 2354142 Prime rate as of November 25,1996was4.75%andissubiecttochange. _ • o Trimark es Mackenzie o- AGF . Dynamic or Templeton Don't Limit Your Choices Looking for a conservative investment or grotvtb? We represent these front-line companies • • - Barry Southcott Check your investment options. These are five of the leading mutual fund companies that we represent. They offer diversification, liquidity, professional management and a variety of objectives for your RRSP investment. Let me show you: We make house calls. Ph. 234-6367 Barry Southcott Crediton PFSL Investments Canada Ltd., Mutual Fund Dealer for: Trimark, Mackenzie, Dynamic, Templeton, AGF and more INV1:-"1 IN A i1i•:1'•1.1:IZ IZIZS') .1.1115 YEAR 1f you arc like most people. you have probably purchased an RRSP from a bank. trust company. investment broker or life insurance company. An RRSP purchased from a life insurance company has the same features as their non -insurance counterparts but also offer much more. These additional features can play an important pan in your financial planning. One area where life insurance companies have an important edge over other institutions is in the area of estate settlement in the event of the death of the RRSP contribu tor. Life insurance companies do not require probate of the will (that is, court certiftcatiort that Ute will is valid) where there is a nand beneficiary. Non•insurance companies nay delay payment until the will has been probated. They will likely require probate for amounts in excess of $25,000 if the named beneficiary is not the RRSP owner's spouse. The amount used to determine the need for probate will vary by company and industry. In addition to the delay required to probate, there is a cost to the estate for probate which will vary by province. In Ontario, for example, there.wiil be a cost of SI5 per thousand heli by the estate for probate, while in Quebec, there are no probate fees if the will has been notarized. The purchase of an RRSP from a life insurance company permits the timely payment of money at a difficult time and allows more money to be passed onto your heirs. in normal circumstances. RRSPs available from life insurance companies offer a amain degree of creditor protection that other financial institutions may not provide. Generally, creditors cannot seize RRSP or life insurance assets as a result of a bad debt a bankruptcy if there is appropriate beneficiary designation. (This can be challenged in court, fa example. when an owner is shown to have purchased these investments in an attempt to evade creditors. Other actions by the owner may affect the limited creditor -proof status of these contracts). Investment funds issued by life insurance companies are known as segregated funds and they offer even more advantages. The death benefit on segregated funds usually equals the greater of the fund value or a percentage of the amount invested into the fund. For example. if at the time of the owner's death, the fund is worth less than the amount of money invested, the beneficiary could. depending on the plan. receive an amount equal to the total amount invested. Mutual fund companies will only pay the market value at the time of death which could be much less than the original investment. Some segregated funds can also offer a partial guarantee of your invested capital For example, a fund could have a guarantee that after a certain period of time. a portion of your investment will always be worth at least a certain amount. regardless of your funds value.. Depending on the fund. some insurance companies will guarantee up to l00 per cent of your investment after a certain amount of time. Other financial institutions do not provide this guarantee. Our l rprrtise It Your Guarantee! MetLifid 183 Main St. Exeter, 235-1344