Loading...
The Citizen, 1996-01-31, Page 14INCOME TAX SERVICE • farm, business, or personal • complete year-round service including tax audit representation • E-File available Over 15 years' experience Quality work at reasonable rates "FREE Consultation" Stephen Thompson Box 287, Blyth 523-4916 It's RRSP Time Make the most of your money. Invest in your community credit union NORTH HURON CREDIT UNION LIMITED 8 Alfred St., Wingham, Ontario (519) 357-2311 Call us for Competitive RRSP and Term Deposits Rates All funds reinvested in our local community and deposit insured to $60,000. ecroman.. For Your Financial/Productivity Software Needs: Microsoft Money $ 3.99 - Investment Management - Finance Planning Wizards Brian Costello's HOMETAX $ 29.99 - Bonus TaxTips! - e-file service BusinessVisioll II $159.99 - A full-featured business management package! Microman is Moving across the Street Effective March 1st! 135 WALLACE AVE N, (519) 291-9633 Listowel, ON N4W 1 K8 Fax - 291-9634 PAGE 14. THE CITIZEN, WEDNESDAY, JANUARY 31, 1996 w S IPIPRIPOW II MEIN —NEW 1111 -11111ML AI Eiliff•IfsN11•11‘11111ffiNiN1W•IMIIIIIIIIN IIIIIIINIMIIIIIIIM!‘11111111111111IMIRwO1 n !.F1"111=111111 INIIININwMarAINk Investing in global market made easy Diversifying investments within a portfolio is a wise decision. Holding a variety of asset classes (e.g. stocks, bonds, GICs) from a variety of sources (industries, governments, institutions, etc.) can Credit plays an important role in all the stages of adult life. It is vital to understand how credit can work for you, so it doesn't work against you. Almost everyone has to borrow to acquire initial assets. In the first stages of financial experience, young people often borrow money for needs like their education. The first personal asset financed is usually a car. As they pay down their debt, the car becomes a positive reflection of their net worth. Credit becomes a tool The role of credit develops as Continued from page 13 The third portion of CPP is the orphan benefit. It goes to any child who has lost at least one CPP-con- tributing parent, where contributory requirements have been met. The child will receive a monthly pen- sion which is adjusted annually. In 1994, the flat rate was $160.47. A child may receive two benefits if both parents were contributors to CPP and are disabled or deceased. Orphan benefits stop when the child is between 18 and 25 and is no longer attending school, com- munity college or university full- time, reaches the age of 25 or dies. A recipient of orphan benefits must complete a "Declaration of Attendance at School or Universi- ty" to remain eligible. An attendance form, signed by the child and school official, must be sent to CPP each year or semester for payments to continue. If the child leaves school, but returns full-time, benefits will be reinstated when the recipient applies. The child will not lose the bene- fits when marriage occurs if all other requirements are met. If the child is under the age of 18 at the initiation of benefits, the pay- ment generally goes to the person with whom the child is living, how- ever, it may go directly to a child who has applied. Contribution requirements In order for survivors to qualify for benefits, the contributor must have paid into the plan for at least three years. If the "contributory period" (period one was eligible to contribute) is more than nine years, the person must have contributed for one third of the calendar years in that period or 10 years, whichev- er is less. (Editorial example: if the deceased was 47 at the time of death and had been working since the age of 20, the "contributory period" would be 27. That person reduce your risk and potentially improve your returns. Now a third dimension of this technique is emerging — international diversification. Canada offers many excellent people move into middle age. Many have equity in major assets by now, including a home, and credit becomes a tool to help them build wealth. Their expanded credit base can help them acquire long- term investments for retirement, or buy a second property for recreation or income. In the pre-retirement years, well- established people are interested in protecting their wealth. To avoid disrupting their investments for short-term needs or opportunities, a loan can be a good alternative. A Personal Line of Credit (PLC) continues to make sense at this would have had to pay into CPP for at least nine years for the sur- vivors to be eligible for benefits.) Applying for benefits It is advisable to apply for sur- vivor benefits as quickly as possi- ble after the death, as CPP will not make back payments beyond the 12-month period. The survivor is responsible for applying for benefits for them- selves as well as any minor chil- dren. Children under 18, living on their own, or between the ages of 18 and 25 who are attending school full- time, should apply for the orphan benefits. If the surviving spouse is unable to apply for the benefits, a trustee investment choices, but it repre- sents less than three per cent of the global market. If you look at the global stock market performance since 1970, countries such as Japan and Hong Kong have outperformed stage, as does borrowing for asset accumulation. Avoid disturbing assets that generate retirement income During the retirement years, the need for credit slopes - away. Convenience is the main consideration here - credit cards and short-term credit may be used to avoid disturbing assets that generate retirement income. A modest PLC may be all that's needed. Credit plays a role throughout adult life. Used wisely, it can help build assets and acquire wealth. should complete the application. The death benefit should be gath- ered by the executor, administrator or legal representative, on behalf of the estate. If there is no estate, the responsibility falls to the person taking care of funeral expenses, the spouse or the next of kin, respec- tively. Once benefits are received, CPP" must be informed of any changes to eligibility. If monies are received td which the recipient is not entitled, repayment will be required. Application kits may be obtained by contacting the local Income Security Program office, listed under Human Resources Develop- ment Canada, in the phone book blue pages. the Canadian Stock Market by nine - 13 per cent. Professionally managed international mutual funds How does one invest in foreign markets? One of the easiest ways is through professionally-managed international mutual funds. Like all your investment purchases, foreign funds should meet your overall investment objectives of safety, income or growth. If you intend to hold these funds in your RRSP, be aware that Revenue Canada will not allow foreign investments to make up more than 20 per cent of the "book value" of your RRSP. Amounts beyond 20 per cent are subject to penalties of one per cent per month. Monitor your RRSP account daily or monthly Some Mutual Fund companies will monitor your RRSP account daily or monthly to make sure your foreign content does not exceed the 20 per cent limit. Once you have exceeded the 20 per cent limit, procedures vary from company to company. Some will call you for investment instructions, others will act on standing instructions to transfer the excess amount to a money market fund or your largest Canadian fund holding. Make sure your financial institution or mutual fund company offers this service and at no additional cost to you. Make credit work for you CPP has application kits