BiG PENINSULA NEWS REVIEW COMMUNITY Wednesday, April 15, 1998 The Canadian Cancer Society needs your time and your shoe- leather! Please come out and help canvass for the Canadian Can- cer Society's April campaign. Do it for a friend. Those interested can call 655-1311. Emergency Social Services needs volunteers. Part of the Provincial Emergency Program, ESS is responsible for setting up and running a reception centre for the public in the case of emer- gency or disaster. Monthly meetings. Training provided. For more info., call John at 655-3602 or Arlene at 656-5136. Bingo lovers — host a weekly Friday bingo game for residents mation on these and other volunteering opportunities, call the Capital Health Region, SPH Volunteer Resources at 652-7519. Volunteers needed to work with children and adults with vari- ous disabilities. If you enjoy horses and people, this will appeal to information, you. No experience necessary. Call 656-7472 or 652-6341 for more The Sidney Museum is looking for volunteers to work in the gift shop and reception on weekends. Shifts are 10 a.m. to 1 p.m. and 1 p.m. to 4 p.m. Please call the museum at 656-2140 and talk to Pe- of Saanich Peninsula Hospital. Visit a patient or resident. Accom- pany them on walks in our therapeutic garden. For more infor- The Canada Education Savings Grant - The proposed changes to the RESP rules and the new. Education Savings Grant .were passed into law. on 10 March 1898. The_ following article highlights. the benefits of the enhanced RESP ; ; What are RESPs? - They are education savings plans which grow tax free until your child is ready. for post-secendary education. Virtually eligible. for. assistance RESPs. When ‘the ‘student begins to use’ the RESP: for education, the ‘investment income: becomes :taxable.: However,: ‘because ‘the student typically has little other income, he or she effectively: pays little or no tax on RESP "income. ious “budgets included. measures to-make RESPs ‘more ‘attractive: by raising the’ annual contribution limit from $7,500 . he . previous ‘two: all ~ * full-time post-secondary education is wea RE ES : through In the same pe Sal if a family saves © ~~ assuming the: to $4,000 per. child and the lifetime . limit. from . $31,500 RESPs were: also made. more flexible by. allowing contributors to transfer RESP _ income into. their registered retirement savings plans (RRSPs) if the child: does not. pursue higher education and no new beneficiary: is named. er rn The Canada Education Savings Grant: Effective January.1, 1998, the overnment will provide a. Canada q Education Savings Grant that gives - parents and others even greater incentive to save through RESPs. The grant will be 20 per cent on the first 2,000 in annual contributions for children up to age 18. The maximum annual grant will be $400 per child. The Canada Education Savings Grant will be provided directly to the RESP firm chosen by the contributor, to _be invested in the contributor's plan. The ‘grant itself is not counted in calculating the annual. and lifetim RESP contribution limits. With the introduction of the Canada Education Savings Grant, RESPs are now among the most altractive savings vehicles available for your children's, nephews, nieces. and grandchildren's education How does the new grant work? « Ifa to... $42,000. - . receive 25 to an RESP _have_ only. $3,300 for. each: of years of higher education... This weeks tips brought to you by... Wim Leeuw Vantage Securities inc. every two weeks for their child’s education -- a total of $650 a year. -- their RESP receives.a grant of $130 (20 © per.. cent of. their ~ total contributions). : _ if the family contributes this amount - every year over 15 years (assuming a - 5-per-cent rate of: return. on their investment), their child would have about $4,700 for each of.four years of higher education. outside’ an RES interest is taxable -- their child would “Saving. for’ your. child’s. education — through “RESPs* means. benefiting from the’ Canada: Education’ Savings . Grant . and .the = tax-free “growth” of investment income.. °. Who can contribute. to RESPs? = Parents, grandparents, aunts . and uncles, : other _ family. members. and anyone else who. wants to contribute to a child’s education. can participate, subject..to. the annual and. lifetime limits. © te ee What happens. if .1° can’t. take advantage. of: the full. Canada Education Savings Grant in a given ear?: - Grant. contribution room can e carried forward to future years. For example, if parents contribute $650 in a given year, they can carry forward $1,350. in grant contribution: room to the next year. They could then the Canada: Education Savings Grant based on 20 per cent of $3,350 in contributions: (or $670 per child). Grant contribution room can be used up to an annual contribution of $4,000, . When should 1 start saving for my children's education? - The effects of compound interest make it much more advantageous to start saving for: our child's education when he or she 8 very young. It is important to remember that the Canada Education Savings Grant is ald on contributions for children up 0 age 18, In addition, contributions to RESPs for a child age 16 and 17 will receive a Canada Education Savings uffax Dep Newton X Rd. 475 Mt. contribution . room: ~ four. withdrawn. ke nt ‘ei ” ™ ter or Sherry. Training provided. Alzheimer Society of B.C. needs volunteers. You can provide a Grant only if there have already been minimum contributions in respect: of that child in previous years. . What happens if my child doesn’t ursue higher education? - Most ESPs. give you~ the option . of ‘designating another. child. if you wish. If no other child is named, the Canada” Education Savings ‘Grant. will be returned to the government. You are allowed to transfer RESP. income into RRSPs, ©. provided’ you. have: .-the receive the = investment tax frees as Are contributions to an» RESP. tax” deductible like they are for RRSPs? © ‘No. But-the money invested in-RESPs. - ‘earns interest tax free: In° addition, ° when the money is- withdrawn: for: - education, tax applies only to. the . ‘accumulated interest, not the principal © contributions: In contrast, the principal. in an RRSP is. fully taxable when -What types of plans are available? | There ts.a:range of plans with many different features. Plans can be set up. - for one child or for several children in a family. There are also group plans in which investment income is pooled © and shared equally. among a number of children. Plans also differ in the range of investments. they. offer, as well as other features. . Where can | open an RESP or get . more: information? A. number. of firms offer RESPs, including non-profit - foundations and other companies that specialize in education savings plans trust. companies, mutua fun companies. and other _ financial institutions. You may contact the rovider of this article, Wim Leeuw, at” 27-1803 Is there a deadline for contributions to RESPs? No. You can set up an RESP and make contributions any time of the year, sub ect to the arinual and lifetime imits. The Best Return for Your Money “INCOME TAX PREPARATION Seer See eg? ‘QUICKLY FOR AS LOW A A y ou’’ can salso.- “income °- directly, subject to.a charge of 20 per -cent ‘in. addition: to“regular: tax: in‘ail’: cases, the principal is returned to you - family caregiver with a much-needed break by walking or visiting with a person who has Alzheimer’s Disease. Call Arlene Senft at 382-2052. The Peninsula Youth Centre is in search of someone to assist -youth in making cards, candles, soaps, potpourri and other crafts for local fund-raisers. Workshops can be arranged. For more info., call Jay at 655-4045. Volunteers needed to support teen (11 to 18 yrs.) programs. Folks needed to help write proposals, phone calls, workshop pre- sentations. Young adults are also needed to assist youth workers at drop-in sessions, sports activities, fund-raising and organizing. 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