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Times-Advocate, 1999-02-10, Page 4r Lawrence Beane r 2 4 Beware Of These Money Mishaps (CBA) -Managing money in today's world is increasingly compli- cated. Not only do we have more spending options than in the past, we now have more choices of how to pay - cash, cheque, credit card, debit card, pre - authorized withdrawals and via the Internet. We all use our money in different ways, reflecting our values and priorities. Regardless of our finan- cial personalities, what we decide to do with our money today will NMI Tax Refund Cheques Exeter Times—Advocate Wednesday, February 10, 1999 impact our lives tomor- row. That's why taking control of our money right now -where it comes from and where it goes -is the first step towards a secure future. Money Mishaps • Not knowing your financial worth. If you don't know how much money you have to work with, it's impossible to plan and budget with confidence. • .Not having a grip on your expenses. If you don't know how much you're spending, it's impossible to stick to a budget or financial plan. You need to figure out your spending habits and start keep- ing track of where your money goes. Watch impulse buying -it can get you into trouble. Revenue Canada will pay from $2,900 to $4,000 as a refund to the RRSP investment of $5,000. Sign up for your cheque today. For information call 519-236-4784 RRSP loans starting at prime. Catch up loans available. Ralph Geiger 519-236-4784 Financial Licence sponsored by Ten Star Financial MAKE SAVING PON wttttTIasMNNT LESS TAXING! ► RRSP, With a Mutual RRSP. you benefit from: Personal service Secure. financially sound company Mani• investment options Leader in retirement planning Mark McLlwain We make investing easy. Call today to make your retirement savings less taxing! Life Insurance • Term and Cash Value Insurance • Universal Life • Custom Designed Insurance Plans RRSPs and RRIFs, GICs, Annuities Critical Illness Insurance ,Ys� 183 Main Street South Exeter ON NOM 1S1 (519) 235-1344 Personal Health Insurance Financial Planning Disability Insurance Employee Benefits Pension Plans IthThe Mual Gr°uP Licensed with Mutual Life of Canada, lead company of The Mutual Group. • Not paying off high-cost, high -interest debts first. If you have several debts that are very high -interest, think about consolidat- ing them through a con- sumer loan or personal line of credit, both of which usually carry a lower rate. •Overextending your credit cards. It's easy to get into debt, especially' when using credit cards. While it may be tempting to pay only' the minimum each month and use the excess cash for other purposes, try to treat credit card purchases as you would cash pur- chases. Pay off the bal- ance every month to avoid interest charges. • Not having an emergency fund. Try to save three to six months, worth of living expenses to get you through a financial cri- sis like job loss or ill- ness. • Not knowing your goals. What do you. want your money to do for you? Figure out what your goals' will cost and then plan .how to achieve them. • Not protecting your family with ade- quate life, medical, property and disability insurance. If you become disabled, you'll need enough coverage to provide 60 to 70 per- cent of your family income. See an insur- ance specialist to make ' sure you're properly covered. • Not having an up-to-date will. Nobody should be without a will -especially if you have dependents. To protect your family and beneficiaries, make sure you have a recent will that has been pre- pared by a professional. If your will was done more than three years ago, review it; the law or your personal cir- cumstances may have changed since then. • Poor investing practices. Making all of your investments through one vehicle can be a fatal error -it's bet- ter to diversify your portfolio. Don't con- stantly shuffle your investments looking for the best return. And make sure you carefully assess your tolerance for risk before invest- ing. If all of this is too complicated or time- consuming, think about using a financial advis- er., • Not keeping financial records. Don't keep haphazard finan- cial records. To be pre- pared at tax time or to protect your family if you should die or become ill, you need to keep your financial papers in order. In a safe place, keep a list of investments, banks accounts, credit card numbers and insurance policies, as well as past income tax returns. Do the same with the name of your financial advis- er, the location of your will and your safety deposit box. • Not planning for retirement early enough. Set up a Registered Retirement Savings Plan as early 'as possible, and try to con- tribute what you can afford. If you make monthly contributions, you are earning interest earlier than if you make a lump sum payment at the end of the year. •Not having an under- standing of available tax benefits. You're missing out if you don't take full advantage of all the tax credits and deductions available to Better Understanding you. Make sure you're Program, offering a free using all of the series of publications "tax -planning ranging tools,>> �4-;;.:f r o m including . ;t '' ''' ` m o n e R R.S P s,l ; ` y �"manatee- a n d ment and 'mom s. interest split- rates to ting .,. mort- gages, Reduce � � -ff f yourCs N ry;•>`; $ t, starting taxes.::. ::•:, a small wherev- `'`'': Y "���{::.. '� �,,. �, >� business, and er possi- °<; [:> ;S'• " y y . „ saving for your ble. You may ;. -:<f children's edu- want to see a tax -Q°-,s.;;??!: '' cation. For more adviser to get you start- information, call 1 -800 - ed. 263-0231 or connect to (Reproduced with www.cba.ca.) permission from The Canadian Bankers Association: Building A Canadian Bankers Association LET US I IN COM -IELP YOU RETIRE FORT AND STYLE Don Thompson Financial Consultant Check out plans desig I R. R.S. P. De 1 r e YOUR INVESTMENT SHOPPERS t 303 Main .Street S., Exeter (519) 235-3368 5 Rattenbury St. Clinton (519) 482-9924 58 Ontario St. Grand Bend (519) 238-5014 • 1-888-235-9260 ,t our RRSP and RRIF ned to meet your needs. adline March 1/99 Manager Y.I.S. Financial Inc. thiaLm ainiaLwiummantaLiLamymmyiammainlamiagymiamiLimaiamminlaw mmanint aotamiLtin►ayinmaLatamaLIL! uN.w.w....r. w.w. w.w.r.w.r •.. r BORROW MONEY TO SAVE MONEY? ARE YOU KIDDING (No e. The thousands who did last year lau hed all the I av to the ban!' 1 SCOTIA RRSP CATCH-UPTM LOAN (here's an example, just to get you thinking) 1. BORROW $15,000 *(or as much as $50,000 at rates as low as ScotiaBank Prime). 2. GET BACK $6,000 ON YOUR TAX RETURN AND PAY DOWN YOUR LOAN. (Assumes 40% tax bracket. Yours might be different) 3. Pay Back $170/Month (Seem possible? If need be, you can take up to 15 years to repay.) 4. Watch your RRSP grow to $20,996 in 5 years and 4 months, when your loan Is paid out 5. In 25 years, you'll have $72,415. See assumptions below. This year it's your turn. The Scotia-RRSP Catch-up Loan offers an affordable way to take advantage of unused RRSP contributions. The idea is to do this once, so you can catch up and keep up. Call us for details. t • 1-800-575-8888 Scotiabank www,scotiabank.ca What's right for you? 280 Main St.S. Exeter 235-1142 'a • Assumptions: 1) - loan is amortized over 10 years and is subject to applicable credit criteria. Loan rate over rthe life of the loan is calculated based on 6.5%, Scotiabank's 5 -year average Prime rate. -a Rate is fixed for each term of the loan. 2) - Tax refund is used to pay down principal at the fourth month. ▪ 3) RRSP investments eam ari average annual compound retum of 6.5% in a diversified portfolio. r ®Registered trade -marks of ank of Nova Scotia TMTrade-marks of The Bank of Nova Scotia. L LuuigL4i4Litaq_LiLuuuw_iquiumemmulL•muiulLLL •m_�►a� iL�L�LK�LLL�LLL�L"iL�L�L�L L+ 13 13 13 t` 13 .a u'LLL LLwailL'LCLL-19e9*7****-1y1-aLaLaLayLaL7 Invest In Your Community With Your CREDIT UNION RRSP Your RRSP deposits are used to assist our borrowers who are your friends and neighbors in the community RRSP Loans at Prime RRIF's Also available Each RRSP and RRIF contract Is insured individually for up tO $60,000.00. Other R.S.P. options available, inquire at branch Index Linked Term Deposits They offer the appeal of an above-average rate of return from participation in stock market appreciation, and also have the safety of a guaranteed retum of principal like a G.I.C. No Fees RRSP RllQible CLINTON COMMUNITY CREDIT UNION LTD. 118 Main Street Exeter, 235-0640 ciintoncu@odyssey.on.ca 6 OPEN: Mon to Thum- 9:00 a.m. 48 Ontario Street Clinton 482-3466 exetercu@odyssey.on.ca 165 Main St. W. Dashwood 237-3777 tues. 10 a.m.-3 p.m. Fri. 2-7 p.m. 5:00 p.m. Fri. 9:00 a .m. - 8:00 p.m. L L L L� L" 'L 'L►ettam.vyiaa41a4y1.a1a►.1,4L�e