The Citizen, 2006-02-09, Page 13S holdice
FINANCIAL
SERVICES
PEAK lirKr•APnenl S•nAcoo Inc.
Susan Alexander, CFP
Doug Sholdice
472 Turnberry St. PO Box 69
Brussels, Ontario NOG 1H0
Phone: 519.8874662
Toll Free: 1.866.8874662
Fax: 519.887.2671
Email:
salexander@peakgroup.com
awrence
Bean e
INTERGLOBE
Financial Services Corp.
Financial Services Mutual Fund Dealer
Let me help you retire in
comfort and style
RRSP DEADLINE: MARCH 1, 2006
Check out RRSP and RRIF plans designed to meet your needs.
GIC, Mutual Funds, LSIF, Seg. Funds.
— foi the 2006 RRSP season —
Invest in your future today! Lawrence Beane
CLINTON 482-9924
GODERICH 524-9260
CALL OUR TOLL-FREE NUMBER 1-888-236-9260
9 Rattenbury St. E., Clinton, ON NOM 1L0
Make your money work as hard for you as
you did for it.
See Lawrence for a
free consultation.
RRSP deadline Wednesday, March 1
Trudy Kassies; C.F.P.
519-482-8304
Fax: 482-1784
10 King St., Clinton
Your Options for
RRSP Contributions include:
• GICs • Mutual Funds
• LSIFs • Segregated Funds
Y.I.S. Financial Inc.
YOUR INVESTMENT SHOPPERS
FundTrade
Ank Bert Askes CFP
0 discuss your
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DON'T PUT ANY MORE MONEY INTO
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Proper planning will ensure that you have a:
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152 Josephine St. S., Box 849
Wingham, Ont. NOG 2W0
Tel: (519) 357-4554
Toll Free: 1 888 349-4447
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130 Inkerman St. W.
Listowel, Ont. N4W 1B7
Tel: (519) 291-6006
Toll Free: 1-866-323-5534
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stewardf.s@bellnet.ca
THE CITIZEN, THURSDAY, FEBRUARY 9, 2006. PAGE 13.
10,
Financial
Take quiz to discover your inner financial self
(NC)-Complete this quiz and
uncover your inner financial self:
A. How do you visualize your
retirement years?
I. Retire? Who has money to do
that?
2. Living the good life - playing
golf, travelling, fiddling in the
garden.
3. Managing my Registered
If you're winding down your
career, there are still ways to extend
the tax relief offered from an RRSP.
"At the end of the year in which
you reach age 69, your RRSP
matures and the funds in your plan
must be removed," says Scott
Conner, a senior tax manager in
Huntsville.
It is possible to use your RRSP to
invest in a Canadian-controlled
private corporation (CCPC).
If you deal at arm's length with the
CCPC, and the cost of the shares
you hold in the CCPC or a related
corporation is less than $25,000, you
can invest your RRSP in shares of
the company, says Chartered
Accountant Jim Lockhart, of
Kenora.
"In determining the amount and
cost of the shares that you own, you
have to consider shares owned by
family members, both inside and
Should you focus on paying down
your mortgage or contributing to an
RRSP?
"Mathematically, you can
calculate which alternative is better,
given assumptions about mortgage
rates and the rate of return in your
RRSP. Most analysts conclude that it
is better to pay off your mortgage
first, assuming that the rate of return
of the investment in your RRSP does
not exceed your mortgage rate," says
chartered accountant Ann M.
Retirement Income Fund (RRIF)
portfolio as opposed to my RRSP
portfolio.
B. How do you get to work every
day?
1. In style, in my sporty
convertible.
2. Car-pooling into work from the
"burbs".
3. Public transit all the way - why
"If you still have unused RRSP
contribution room or will continue to
generate earned income, you can
make RRSP contributions to a
spousal RRSP after the year in
which you turn 69.
Remember that your spouse must
be under 70 for this to be possible —
at the end of the year in which your
outside their RRSPs. Also, all or
substantially all of the company's
assets must be business assets at the
time the shares are purchased by
your RRSP."
If you own less than 10 per cent of
the shares, there are generally no
restrictions on the amount you can
invest.
However, if you own more than 10
per cent together with family
members, the investment may not
qualify as an RRSP asset, advises
Lockhart.
"If you have a qualifying
Donohue of Toronto.
"However, there are many factors
that you should also consider. Will
you be able to catch up on your
RRSP contributions once you've
paid off your mortgage? Will you
need the funds in your RRSP for
emergencies? Do you want to
diversify your investments rather
than place all of your available cash
in your home?"
"Keep in mind that having the
discipline to save money, either by
waste money on parking?
C. You just received a $5,000
inheritance. You:
1. Book the first flight out to Vegas
- after all, it's not really like I'm
spending my own money.
2. Buy a new big-screen TV - the
old one has just about had it
anyway.
3. Use it to "max out" my RRSP
spouse turns 69, his or her RRSP
will mature as well. For 2001 and
subsequent taxation years, a spouse
includes a same-sex partner."
For further information about
RRSPs, contact a chartered
accountant.
— Brought to you by the Institute of
Chartered Accountants of Ontario.
investment in a CCPC, you can
increase your foreign content limit.
The new foreign content limit is
calculated as 30 per cent of the
RRSP balance, plus three times the
cost of your CCPC.
The maximum foreign content
allowed using this formula is 50 per
cent of the cost of all investments in
your RRSP."
For further information about
RRSPs, contact a chartered
accountant.
— Brought to you by the Institute of
Chartered Accountants of Ontario
paying down your mortgage or
putting money in your RRSP, will
mean that you will increase your net
worth in the long run. Both paying
off your mortgage and saving for
retirement are important
components of any good financial
plan," advises Donohue.
For further information about
RRSPs, contact a chartered
accountant.
— Brought to you by the Institute of
Chartered Accountants of Ontario
contribution - I believe in making
my money work for me.
D. Your ideal vacation is...
1. Booking a first-class ticket to
Paris, staying in the hottest boutique
hotel and shopping `til you drop.
2. An all-inclusive Caribbean
cruise.
3. Heading up to the cottage to
relax with friends and family.
E. You head out with a colleague
for a morning coffee break and
order:
1. The usual: triple Chai latte.
2. Medium double, double.
3. Nothing. I can get perfectly good
coffee at the office. I just came
along for the walk.
Calculate: For each question,
1 - I point
2 - 2 points
3 - 3 points
Less than 7
You live your financial life for the
moment.
Between 8 and 11
You are a practical planner, albeit
a dreamer.
Between 12 and 15
You are well on your way to a
successful retirement.
How long are you allowed
to contribute to your RRSP?
Use RRSP to invest in business
Mortgage vs retirement savings