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The Huron Expositor, 1984-10-31, Page 10A10 — THE HURON EXPOSITOR, OCTOBER 31, 1904 Canada Savings Bonds on`t put all eggs in one basket BY HARRY L. MARDON Several readers have queried the recom- mendation that a taxpayer should only own about $10,000 worth of Canada Savings Bonds (CSBs). These readers have noted that the new federal government has raised the lintit on the amount of CSBs a Canadian can buy when the Series 39 goes on sale on Oct. 24. The limit has been raised from $50,000 to $75,000. The point they make is that the interest rate for the new CSB issue, which is 11'4 per cent, is an attractive one. Why not invest up to the limit of your resources in this government - guaranteed investment vehicle? It is true the interest rate is good. It's considerably higher than the rate of return you are making on your money in a savings acdount with your bank, trust company, or credit union. Right now that rate is in the eight to nine per cent range. Another point in favor of CSBs is that it is a completely safe investment. Yet another attractive feature of CSBs is that they are cashable at any time without penalty after Dec. 31. This accessability to all or part of your CSB investment is usually in the event you have a sudden financial emergency. Getting down to the amount of CSBs you should buy, it's a cardinal rule of sound" personal financial planning that you should position your savings and investment dollars where they are least exposed to income tax. Under the Income Tax Act the first 51,000 off CSB interest income is tax-free each year. This $1,000 exemption includes interest or dividend income from certain other savings and investment vehicles; but the total claimed cannot exceed 51,000 -- including what your CSBs earn. Any interest that your CSB investment,, earns which exceeds 51,000 a year has to be declared and you pay tax on it at your marginal tax rate. For example, if you have CSB interest income in 1984 totalling $2,000, half of that amount is tax-free. When you make out your 1984 income tax return next spring, you have to declare the other 51,000 of CSB earnings as taxable income. If you are in, say, the 40 per cent tax bracket you would have to turn back to the government 5400 of that second 51,000 - of CSB income. It is obviously in the government's best interest to persuade Canadians to buy Canada Savings Bonds to the maximum limit of 575,000. Ottawa needs the money, in the first place. And secondly, the government will get back in income tax a lot of the interest earned by CSB purchasers. Anybody who has 575,000 to invest would be far better off by allocating only $10,000 to CSBs and putting the balance of $65,000 in other forms of investment which contain tax -saving features. Or they can invest in government -guaranteed Treasury Bills, which provide a better rate of return than the CSB. This review of the CSB is not an indictment of this saving vehicle. 1t is an excellent buy --safe and readily cashable. It is especially attractive in that if you are an employee, you can buy CSBs under the payroll deduction system. The payroll plan is very popular among Canadians who like to save a certain amount of money for Christmas shopping, a winter holiday or 'a year-end financial commitment. But don't invest so much money in CSBs that you start to pay unnecessary taxes. (Mr, Mardon is manager of corporate communications for The Investors Group, the Winnipeg -based financial planning services company.) Beef B.B.Q. very successful SUCCESSFUL EVENING The members off our entertainment committee had a very successful evening this past Saturday. About 200 people turned out to the Beef B.B.Q. with quite a few remaining to dance to the tunes of "Lively Lou", our local D.J. Brian Dale. To those who worked most of the day and helped at night in the kitchen, we who attended, offer our thanks for a good meal and a nice evening. LEGION JACKETS Tom Wilbee is now taking orders for Legion jackets. Any member interested in ordering one should let him know imme- diately, He has one on display downstairs at the branch. CRIBBAGE CHAMPIONS The Branch entered three teams in the Zone Cribbage tournament held in Clinton Saturday afternoon. A team consisting of Ken Barry, Jim Watson, Gord McKenzie and Bob Harris brought the trophy back to Seaforth. All three teams qualified to go on to the District Tournament to be held in Goderich next March. POPPY DRIVE On Sunday afternoon comrades, the branch is holding our annual Poppy Drive. As everyone realizes many hands make light work and if all of us turn out at 1 p.m. at the Branch I'm sure the whole area can be blitzed in a couple of hours or less, but we need your help. PARADE On November 11th the parade is being held before the Church service. Parade will leave the Legion at 10 o'clock and proceed to the Cenotaph where the presentation of wreaths will be made. The parade will then travel to the 1st Presbyterian Church for the church service and then back to the Branch. At the going down of the sun and in the morning we will remember thein. Gordon Scott P.R.O. Quality BULK John and Lorri it+ sir' f hIg4li, SULTANA RAISINS .89 lb. k. ' FOODS Anne Moore z COFFEE Oct. 31 Nov �rzti,'h 44 ha S��ai" ' 3 .h WHITENER 1.59b. COCOANUT 1.49 lb. HONEY .89 lb. BAKING SODA .59 lb WHITE SUGAR .29 Ib. • t �rgg� n q i1 PRESENTING CRAFTED •Thinnest •Swiss •Quartz precision •Layaway •See CONCORli ----J� dpi 11 1 \ .ss I� .-�__J\ "'' .,Jllli Il I l I I 1 , BY HAND watches hand movement and now Concordat of -made technology for durability for Christmas CONCORD IN SWITZERLAND 14 Id, gold Gift•Giving . sT E TT JEWELLERS ✓ 8 Albert St CLINTON 284 Main St EXETER '16 Main St South SEAFORTH Queen SI East ST, MARYS Durham SI E WALKERTON 135 203 EYEING THE GOODIES—Ethel Halst was attended the annual bazaar at Northside one of a number of local residents who United Church, Saturday. (Mcilwraith ohotol BOY SCOUTS, CUBS & -BEAVERS NOWitaY' A rte• Thursday, Friday & Saturday NOVEMBER 1, 2 & 3 Booth will be set up on MAiNN'`STREET- - w Advertisement sponsored by: • WHITNEY-RIBEY FUNERAL HOME HOEGY'S FARM SUPPLY WILL BE REMOVING THE PIONEER CORN PLOW at RALPH SIEMON'S FIELD across from Stan Terpstra Farm Sat., Nov. 3rd at 10 A.M. EVERYONE INVITED OPEN- NOV. i st! OVER 25 NEW PONYS-STANDARD & AUTOMATIC TRANSMISSIONS AVAILABLE FOR IMMEDIATE DELIVERY. STRfTFDRD m �B3 itrie Street, Stratford `-'271-7202 Propane vehicle must be inspected After Dec. 31, it will be illegal in Ontario to fuel or drive an Ontario -licensed propane vehicle not displaying a windshield sticker indicating its fuel system has been inspected and meets government safety standards. The inspections are part of a new propane motor vehicle safety program introduced by the Ministry of Consumer and Commercial Relations in co-operation with the Ministry of Transportation and Communications (MTC). The inspections are mandatory under the Highway Traffic Act and the Energy Act. There arenow more than 50.000 propane vehicles and approximately 1,400 propane filling stations in Ontario. Identified vehicle owners and filling station operators have been notified in writing of the new program and provided with additional information on the safe handling of propane. Most propane vehicles in the province are part of commercial fleets. Vehicles may only be inspected by certified staff at stations licensed by MTC. Propane conversion centres and filling stations across the province have been invited to apply to MTC for a licence to inspect propane -fuelled vehicles. More than 1.000 propane system install- ers, licensed by the Consumer Ministry's Fuels Safety Branch, have successfully completed a training course at community colleges to qualify for the required inspector certificate. Licensed inspection stations are free to set their own fee for the inspection and consumers are advised to shop around. MTC regional vehicle inspection office will have information on inspection stations in their area. The inspection is mandatory for vehicles that have had their fuel system converted to propane and also for vehicles in which a propane fuel, system is original equipment, However, because vehicle manufacturers are required to comply with federal installation standards, new vehicle propane fuel systems will be checked for wear and tear, leaks and damage only. Any person filling an uninspected vehicle with propane after Dec. 31 is fable to a fine up to 510,000 or up to one year in jail, or both, upon conviction. Anyone driving a propane - fuelled vehicle after that date without the appropriate sticker is liable to a fine of up to 5200. A poster will be prominently displayed at propane filling stations warning drivers that their vehicle must display a propane inspection sticker in order to obtain fuel. Also among testing procedures set out in the regulations passed by the Ontario legislature on Aug. 14 were changes to the standards governing propane vehicle fuel system equipment and installation. These new standards call for special vapor -tight enclosures over fuel tanks and fittings installed inside vehicles; improved, permea- tion -resistant fuel hoses and pressure testing of all newly installed fuel systems. The characteristics of propane make it imperative that all vehicle fuel systetns are free of leaks and other defects. Propane is stored in a vehicle's fuel system under pressure in a liquid state. If released, it rapidly turns into a heavier-than-air vapor that may collect in low areas or inside the vehicle. The smallest spark or flame may result in a flash fire. Dept. heads consolidated Some shuffling of subject departments at the five county high schools has resulted in a streamlining of department heads. The Perth County Board of Education approved depart- ment head positions at the high schools. Besides their regular salaries, department heads receive an annual allowance of $3,108. Minor heads receive an allowance of $2.116 per year. Locally this will mean that Mitchell District High School will have three changes. Classroom teacher Bart Brown becomes head of the combined departments of geography, family studies and music. Ano- ther classroom teacher, Janet Campbell will become assistant head of the combined English and French department. Minor head, Ettore Delvecchio becomes head of history and B.L. academic.