Winnipeg Free Press

Winnipeg Free Press (Newspaper) - May 21, 1989, Winnipeg, Manitoba Signs to read when charting Money Cost trend by Stevens wild will interest rates continue to Rise or have they finally peaked while most financial analysts agree that picking the top of an interest rate Cycle is risky Busi they say there Are indicators that can be used to predict which Way interest rates Are and experts suggest that the cur rent exceptionally High real rates make Lon term interest instruments a sound at the same Consumers should avoid Lon term Loans and Mort theres no major indicator that tells you when rates Are going up or said Alan portfolio manager with investors group you have to look at a whole series of How much weight you put on any one will be continually monetary policy is one Brownridge if the Bank of Canada or the Federal re serve system tightens the Money that could be a sign that rates will As demand for Money increases faster than the look at Ontario the critical thing for monetary policy is managing the inflation so you can look at things that can give you an indication of where future inflation rates Are going to Check for trends in commodity prices usually one of the first indicators of rising or falling changes in the unemployment rate Are As a lower rate could mean higher wage in because wages make up about 50 to 60 per cent of the Tom president of Rice i Stancial group says investors and Consumers should look at the Ontario Economy for signs of where interest rates Are going to falling Toronto housing prices May be a sign that the Central Canadian Economy is starting to leading to lower he mortgage rates and housing starts Are important he both Are decline he also suggested looking at cur rent interest which Are run Ning higher for oneyear deposits than for longer this suggests that the rates Are temporary and in the Longrun rates will be coming he but Andrew Vic Epresi Dent for investments with the greatest life Assurance Compa said the unusually High Short term rates indicate that the Bank of Canada does not want to see a sudden drop in interest inflationary both Here and in the United should be taken into he the consumer Price which was High at the beginning of the but lower is an important in a High inflation youre going to see higher interest he Check the value of the Canadian Dollar and look at the Bank of Canadas stated objectives for in Terest he while predicting that interest rates were near their Alleyne said the indications were the Economy is slowing we Are in the seventh year of an economic but inflation is Royal Bank of Canada economist Allan Yarish said to look for drop in personal and business Loans and mortgages and slower growth in the Money Supply before interest rates Start to Money Supply figures suggest a slow but not enough yet for the Central Bank to be complacent about but enough to suggest that within a few months interest rates will Start to come Yarish suggested investors capitalize on interest rates while they Are still if you take a five year Gic now youd be looking at a rate that going to be higher than what you May get in the next five he Brownridge said real interest nominal rates minus Infra Are at historically High that a critical Way to Mea sure a fixed income investment How fat is the real he Long lineup forming to claim prize in Wilson sweepstakes by Dean Beeby Canadian press step right up for the great Canad an cashback with billion in prizes from the Federal detailed entry rules Are expected this when the finance department announces How it plans to give Back billions in sales tax Cash starting in eligible to enter Low income new Home buyers and Middle income the billion represents extra revenues Ottawa will reap and then return to taxpayers after scrapping the old Federal sales tax for a nine percent tax on goods and the old mostly hitting manufactured would have been Worth about billion in finance department spokesman Joel said in an its covering almost All goods and will skim about billion from the he finance minister Michael Wilson has repeatedly promised the new tax will be that any extra Cash it delivers will be returned to theres a Long lineup to claim a piece of that Wilson has already promised that Low income canadians will be sent cheques several times each year to compensate for the higher living costs they will face because of the extra Wilson has also repeated a prom ise that Middle income canadians will see their income tax rates although the precise design of these measures is not yet Wilson said in his budget last month the governments goal is to assure that families earning less than 000 per year will be better off after the goods and services tax is in place than some Money will also offset Price hikes on new Homes resulting from the redesigned the Canadian Home builders association says the increase will be about seven per an average of a How much will these promises Cost the government the National Council of welfare estimates the goods and services tax will Drain billion a year from families earning less than Wilson would have to bet Ter that number in his cashback Wilson has also said hell help Home buyers who otherwise might be faced with an affordability prob Lem As a result of the tax this initiative will substantially Benefit Middle income average new Home prices Are and Home builders estimate houses will be built in 1991 refunds to offset the new tax could Cost Ottawa which leaves perhaps billion to reduce Overall income tax that less than five per cent of the billion in income taxes Ottawa expects to receive in the current fiscal but let the taxpayer beware Wil son has already reneged on a prom ise that the extra sales tax revenues would be used to remove income tax Wilson Revenue Neutral Early resp contributions vital to ease surtax Impact rears of experience free Esli Maies Erhard Streu floor Supply company 1976 your Vinyl it Hardwood flooring specialists see us for Quality Winnipeg 6674890 919 Mcleod that lasts 14824404 474 main Stock Market course every 79 topics preferred Market interest rate Mutual tax shelters much Call Bill Graham 9426141 starts May 30 Cost Call now to hold seat f of Uii Tud generating Pride in Manitoba on Sale guaranteed by the r province of Manitoba Jim an Ideal Way to invest your savings in Manitoba in Selkirk Mcmillan agencies 357 main Street pm 4823421 in Portage Perry Robinson 58 Royal pm 8577203 Winnipeg 491 Portage 7884040 Intersex toll free 18003921388 Brandon 61310th 7285640 Hydro Bonds Are available through Rice financial the people place for Money management by Rob Carrick the Canadian press Over the coming taxes will bite More deeply into the aver age Canadian thanks to last months Federal and finance minister Michael Wilsons tighter rules for sheltering investment income mean that Many people Are Likely to have less disposable financial planners that makes it More important than Ever to keep As much Money As possible out of the Taxman perhaps the most far reaching effect of the budget on personal finance is the july 1 increase in the governments income surtax to five per cent from the current three per for those with a total income of More than the surtax climbs to eight per Gordon an author and commentator on personal says the trick is to take advantage of All Means available to reduce taxable personal particularly by using registered retirement savings maximum remains same most people wait until Winter to buy their but Pape recommends doing it As soon As with the higher surtax going into effect in it becomes even More important to make resp contributions said youve got to get that Money tax sheltered As soon As he notes that the government postponed plans to raise the limits on resp so the Maxi Steele enterprises phone 204 8374003 fax 204 8318002 fax machines p rent to own Fob As Low As Day mum for 1989 remains the same As last for people not on a company pen Sion that Means contributions Are held to 20 per cent of earned income to a maximum of people who belong to a pension plan can put in 20 per cent of earned less the amount paid into the pension to a maximum of Pape says people should also be aware of changes in the taxation of savings Bonds and guaranteed in vestment certificates that earn com Pound which is paid Only when the Security has be sure to buy gics and savings Bonds before the end of the Pape because after 31 tax must be paid on securities each there was an option of paying it every three up until youve had a Pape you now must declare the even though you Haven been paid any Good bet interest bearing investments should continue to be a Good bet for the remainder of the says Timothy president of financial theres an indication in the governments Casto borrowing projections that interest rates Are going to come Down next Egan people might want to consider extending the term on interest ear ing like a five year Gic for ism selectric ii with dual pitch copy machines rent to own does not include sales tax Winnipeg free May 18 Cushion disability plan from inflation by Michel Desbiens when it comes to Dis ability Many insurance companies take a flexible enabling you to select from optional cover Ages to tailor a plan that meets your in previous weve High lighted three Basic features that Are essential to a disability insurance heres a Quick Recap of what to look for in a policy Dit should be so that you own your coverage and the premiums Are guaranteed to age 65 Dit should provide for total Dis so that if sickness or Acci Dent prevents you from working in a gainful benefits continue for As Long As you have selected coverage finally d the policy should also cover Par tial disability in other it should allow you to return to a productive work environment with out lowering the Standard of living you have optional benefits with those Basic features in lets look at three optional benefits that can help tailor a disability plan to meet your inflation can Chip away at your buying even when youre in the Best of but the effects of inflation can be financially Devast ing for someone who is disabled for a Long period of and whose in come is not adjusted for lets for at a Dis ability policy providing a monthly Benefit of that level of in come might be sufficient for the first but Over an extended period it could fall far Short of the amount needed for living expenses As those costs grow with there is a Way to ensure that monthly disability payments keep Pace with inflation through an option that indexes the monthly Benefit based on the consumer Price Index on a preset increase coverage for if the consumer Price Index climbed by five per cent Over a oneyear the monthly Benefit of would be indexed at five per for an indexed pay ment of per the automatic indexation of your monthly coverage would apply Only while you were there is another option called guaranteed insurability that enables you to increase your coverage while you Are there Are several reasons Why you might want to consider increasing your coverage through a guaranteed insurability inflation is the primary but there Are for your coverage should reflect any promotion or salary increases you receive in future to enable you to maintain the Standard of living youve another reason to consider guaranteed insurability is to protect your ability to increase your cover age amount in even if you Are no longer Drivers seat while a firs class no Cancellable policy cant be cancelled by the insurance any further in creases in coverage on the existing policy can be declined if the insureds health has the guaranteed insurability Benefit protects your ability to Purchase additional coverage in future in line with your income regardless of the state of your chances you like your present occupation and youve worked hard to be where you Are if you were disabled and unable to return to your own you would probably want to be in the Drivers seat in terms of choosing another occupy that what a regular occupation period Extension is designed As Long As you cannot do the substantial duties of your regular occupation because of a sickness or and youre not working in another gain Ful you will receive your monthly Benefit even if your doctor says that you Are fit to go Back to work in another individual situation which of these three benefits Cost of living guaranteed insurability and regular occupation Protection should form part of your disability insurance coverage that depends on your individual a careful examination of your personal circumstances and the options available will guide you in making the right Michel Desbiens is a disability insurance specialist with the greatest life Assurance Compa if you get real returns Over five to six per you Are getting into pretty High Rice predicted interest rates will Start to decline gradually later this year and Early next he said that rather than taking advantage of the exceptionally Good oneyear investors looking for income investments should spread their Money around in one to five year they cant go wrong with a bad and they cant make a bad guess that Rice dont try to Call the people should be playing the averages rather than looking for retirement Calls for advanced planning by Brian Taylor Good retirement income planning just Doest financial plan Ning for your retirement years re quires Advance planning during and after the retirement pro it also takes a Little bit of Effort to ensure your financial affairs will be arranged carefully and the Best place to Start is to figure out where your income will come from and then to estimate the amount of Money you need when you need in a there Are four sources that will provide you with your retirement you should know where you stand now in order to accurately plan the later Steps of retirement the government plans such As old age and the guaranteed income supplement will provide a Basic source of in to get an estimate of current monthly payments that you would be entitled Contact the income Secu Rity program of the Federal govern ments department of health and you May also be eligible for some provincial if you Are one of almost half of All canadians who Are members of employer sponsored registered pension Check your state ment of benefits normally provided by your you May have a locked in resp which typically provides an annuity upon your dont forget any deferred profit sharing plan benefits if determine the current value of your resp while youre at Check out the maturity dates of your plans since this May affect the timing of future resp maturity Good handle the Broad category of non registered investments include assets that May provide income above and beyond the first three sources of retirement do an investment portfolio valuation to Tell you specifically your annual income assume you will earn 10 per cent per year on guaranteed less per Sonal income once you have a Good handle on analysing your resources and Esti mating your income decisions become real Deci Sions like when to convert your resp to a Trif will be based on whether your income from the government pension plans and no registered investments is Suffi you May find that you dont need Trif or annuity income just yet in which Case your resp will continue to compound Brian Taylor is a Winnipeg in vestment broker with a major Ca Nadian investment ;