Sa a rn ta a a nesday, December 15, 1999 Provilled ‘by your local Edward Jones Investment Representative 1. Seek professional iad- vice — We rarely have tthe time to concentrate our ef forts in managing our in- vestments and personal fi- nances well. This is why we seek help from accountants, lawyers.and investment rep- resentatives to help manage our investments. 2. Consider . spousal RRSPs to help distribute your wealth — it is impor- tant that you and your part- mer both have RRSPs, but it is even more important to. plan to have equal retire- ment income when you re- tire. The main benefit ofin- ‘come splitting is to reduce the amount of income taxed . at Shigher marginal rates when you retire. 3. Use.aself-directed plan for convenience and flexibil- ity — Selfdirected Regis- tered Accounts can help in- vestors better manage their time and paperwork. With all their investments under one plan, they have easier access to their funds, as well as the flexibility to invest in a mumber. of different in- vestment vehicles, all for one fee. 4. Invest conservatively ~~ Rewards in investing do not:come without some risk. However most investors prefer a conservative ap- proach with minimal or no risk and investing in quality investments is one of the most important rules in sav- ing foryour RRSP 5. Diversify ... 10 an ex- tent —'To achieve the bene- fits of diversification, many ‘Canadians use mutual funds to spread the risk among dif- ferentinvestments.and asset classes. Beware: A number - of investors over-diversify their portfolios and spread their investment dollars too thinly. Asa result, successes are buried in their vastly di- versified portfolios. 6. Invest early — Ac cording to ‘Statistics Canada, the average RRSP contribution in 1997 was al- | marginal tax rate, which in 4 | most cases is around 50 per cent; The in- — _| come earned by a testamentary trust is | taxed at the same progressive rates as in- _ | dividuals without the benefit of tax credits. any peanle assume that trusts are only for the wealthy. But the truth is that almost anyone can i. useatrustto help achieve certain financial | planning goals. 5; |. A trust is an arrangement whereby a ‘person’ (known as the setilor) transfers le- gal title ofcertain assets to another person’ ‘trustee manages those assets according to - lithe terms specified inthe truston behalfof - ~ the] beneficiary or beneficiaries (N.B. in || ‘Quebec, assets are transferred to another patrimony constituted for a particular pur- | po se and a trustee manages the assets)... ‘There are two basic kinds of trusts..A liv- ing or inter: vivos trust, which is established - | while you're alive, and atesta- __ \ mentary trust, which is speci- | fied in your will and goes into effect iter your death. Trusts are considered as | individuals for tax purposes... | |The earnings retained within \.a living trust are taxed ata | | flat. rate equivalent to the | highest | federal-provincial | Bere are a dew ways trusts can be used | toachieve financial planning goals. ® Provide for your spouse. You can set: }up.a trust te provide a professionally man- aged source of income for your spouse and \ defer taxes. Unlike other kinds of trusts, property | transferr ed toca “spousal trustdoes not ltriee: apital gains taxes until the trust 1sc: F operty ofthe beneficiary spouse | die. sets transferred to other types af PY trusts are deemed to be sold at their fair market value, which can create tax Tiabili- AEB os A spousal: tr ust isa good choioe when a \Jongderm care or you wish to ensure that childrenare beneficiaries of your est aleon tee dee an of your spouse, “ Goe yc TS ~ MeDermid. M, ee Cit wh ew Oma THINS steed er a (av? Ney sing your money How a aad can help your financial plan as trustee, you continue to control the as- ; ‘Sete This strategy is often used as part of - gets at their current value. You'll have to |. "(pay Capital gains tax on any imcrease in the |. - ‘or organization (the trustee) for the bene assets’ value at the time of transfer, but fa- | | fit of someone else. (the beneficiary). The: spouse lacks financial expertise, req WINES ® Transfer assets to children. A trust: can be used to transfer assets to your children while you're alive. By appointing yourself “estate freeze” — a way. of freezing as-| ; ture gains will be taxed n you beneficia | ries’ hands. : re . Taxes are deferred until your’ ence: | : Mies sell the assets or until their deaths. © A managed inheritanoe. You may. be; - eoncerned that a child or grandchild won't |. - beable to handle an inheritance wisely un- |. “fil a certain age. Through a trust, the | money can be professionally managed bya’ = trustee, such as a trust com- ; pany, until the beneficiary | i Reataceas specified age. e Care for children. Al trustcan ensure that minor | children are cared for after ' dren with disabilities who | require special care, a trust. ssary to provide for their, needs after your death. A professional trustee can manage the trust assets and : disperse the income and capital as 1 e quired, If you have e adult children, setting up a’ trust to take care of their financial needs: may reduce taxes. Trust income that is paid out or payable to the adult child is: taxed in his or her hands, possibly at a: dower rate, There are many other possible uses of trusts, Ask your financial advisor how a- trust.can work for you. This column, written and published: by dn: pestors Group Financial Serwices Inc. 18 pre pentad asia gencral source of information: ‘only and is not intended asa solicitation to. buy oreell investments, nor ts W intended to | provide legal advice For move ingormation ion this lopic orion: any other investment or financial matters, © Haase contact your Financial adluis non, ‘ ve, bap tenors ftp onto my EN Rolph Sommettelt, nen Senioninvestment ie Tol. (280) 655-5556 cent. ‘tax. rate, » ety nee 385 |. monthly payment: and a--3 “mortgage and. investment = “rate of' 6.5 per cent, then us- sh ing this strategy. will allow. accumulate almost. your death. Ifyou have chil- |. > can be set up to make sure. they | have the income nec: | sennnyiemunpereeneren eter mariany Hamntmccs ning edh eS most $4,500. By making your $4,500 RRSP contribu- tion at the beginning of the year instead of waiting until the end of the year, your RRSP can grow an addi- tional $20,000 over 20 years. 7. When dealing with RRSPs .... maximize -— Maximizing your RRSP.con- tributions can provide-you with a larger retirement portfolio in the future, while — maximizing your foreign content will provide you with additional diversifica- tion in your registered plan. 8. Be conservative with government benefits— The future of government bene fitsisuncertain. For amore conservative calculation of what you will need to save for retirement, try not to in-- clude government pensions. “Tf there. are additional benefitsin your future,then § you can enjoy them as a bonus to your savings. 9 Put extra money into — an RRSP not your mortgage — For example, ifyou have — an extra $10,000, investitin’- | an RRSP and paydownyour 4. mortgage with the tax re | f fund. _Ifwe assume a40 per - | $1,000 «| ‘you to : $500,000 in additional RRSP Savings Over 25 years. your foreign content limits, that’s even better. Y2K — VEAR END PLANNING | NOTICE TO bec , taformation eecived indicates: 1" * The 911 phone system will operate i. * Water supplies will not be disrupted ° Emergency vehicles will operalé Mire and Ambulance staffand. equipment will bevon hand to respond ® The Town will have staff working through this period: * Public Works staff will be patrotting + The Fire Wall Operations Centre will he manned day niuiniclpal ist will and ive, Department volunteers + Additional municipal staff areon standby : 2 Phe Town Hall switchboard 6$6-1 984 will he operating with cat) forwa dito ‘the Operations Centre commencing at S200 pm, December 34" for as long as NoGEKhUry:. © The Town wilPbuve cantact with the Provingial Himerg call ingulry BC at 3876921 (0 pot mmswers 10 spo ifie eneacipeae en that they. : ahinkomay.be Y 2K related, dh Because al dime 2onies 6 WOK jwudblems will oust fue! M RGAE 1 inves aan al counities, J ® Patice, | nner meen nnirains aes @ Hei IN CASE: 10. Go beyond the limits. § , —The foreign content limit { is 20 percent ofaregistered’ ‘portfolio. Investing outside 4 of Canada provides diversi- fication ofa portfolio across: 4 countries and maximizing — | your foreign content is | ideal. Ifyou can go beyond ad = Keep 72 hours supply of kei water’ ‘ind esi cerialcan bund Her yaetl Keep in tough: with yeu nol phhourk a Ariends: wane Blas \ eon aT you nced further, infornvation, contact, theTow wit, «Hall at 656011 39° alia irlat dbaloliae thliaabataltalt tied bade! Nene ahah aks baNil tia tall TOWN OF SIDNEY SNOW CLEARING Inthe event of snowfall, the Town of Sidney Bylaw No. 353 requires ‘businesses, individual property owners, ‘strata |. councils and tenants under contract to the owner, 10 clear | -snow and ice from the sidewalk in front of their property. Y ° The'Town of Sidney wall keep major arterial and collector streets open and clear of snow from as many downtown Streets as possible. In addition, snow iand ice are cleared from the sidewalks :at intersections and bus stops. ‘The co-operation of ail property owners in this matter is greatly appreciated. D. Reynolds Manager of Public Works : Town of Sidney a a - 4 = Photoshop “e . ‘Animation | cies * Wlustration