Winnipeg Free Press

Winnipeg Free Press (Newspaper) - April 22, 1990, Winnipeg, Manitoba Go paperless pay your Bills by Tibuc Upton 9479300 a division of com chef services limited Winnipeg free press april 1990 pages 1930 Philip business editor my managing my your Money dont let higher inflation erode retirement fund savings by Kelly Taylor canadians Are most Likely to Cut Back on savings when they see their in come eroded by taxes or and that a financial planner i firmly believe savings Are the first thing to said Greg Bea a division manager at investors with new taxes in almost every Federal and provincial canadians have had plenty of experience coping with reduced All that experience Hast made Canada a nation of Beaton canadians generally save about eight per cent of their but in Consumers sock about 20 per cent Beaton recommends at least 10 per for that great until their income is tapped to the Point they feel they do that any when times Are he says Money is spent freely and for the most savings Are but when earnings drop either from taxes or reduced few people have the where withal to Cut spending lots of it Beaton said people who Cut Sav Ings now Are just spending their retirement whats the Point of retiring Early if you cant afford to do the things you want to retirement takes he lots of and if High interest rates Are due to by not cutting spending they Are prolonging the time it takes for the inflationary pressure which drove up the rates to soft Many people find it difficult to Cut Down their Standard of so they instead reduce their Sav Ings in proportion to the amount they lost in but in trimming excess spending to maintain a Safe level of savings can be relatively maybe All it takes is one less meal out each month to keep the savings he surely that cant be too unfortunately for he higher incomes become an excuse to increase but when that higher income drops spending usually and that highlights the need to keep realistic spending Pat terns in mind even when incomes go people tend to spend to the level of their among lower income a Cut in income can mean a boost to the repair says Jenny Hil Manitoba president of the Consumers association of Cana just speaking As an informed i would say people would Cut Back on big ticket like appliances or she rather than replacing an older car or people would instead get it repaired and try to make it last a Little she Hillard agreed savings Are among the first casualties during any attempt to Cope with reduced after discretionary Pur like new and new appliances Are the next line of said Gilles a spokesman for the conference Board of but its very difficult to say where the changes Are in spending he predicting spending patterns is since sometimes people spend Money because they not because they have it he no Choice sometimes they have to replace their car just when their income takes a then they have no he said from and the confusion Over what Hap pens when incomes drop has spilled Over to the retail despite the likelihood this is the sector hardest according to the retail Council of nobody has yet done a definitive study on How spending habits change when taxes Peter a vice president of the said retailers would Benefit greatly from that knowl since there Are Many unanswered questions when incomes budgeting simple for example do people buy less but of better Quality do they buy More of lesser or less of the same Quality the answers to those questions would help retailers determine what form their advertising must what products to and How Best to display he Beaton and Hillard both said few people would either be Able or be willing try and reduce their mandatory monthly like clothing and although substituting pork chops for veal cutlets May help the last Beaton said whether to handle a drop in effective income or just for yearly financial plan is quite figure out fixed monthly expenses he a hypothetical for could have transportation and miscellaneous costs come to a or a adding yearly bulk sex like aut Opac and property which for this couple come to brings their expenses to using beacons guideline of 10 per cent of Gross this Cou ple should put away of their family income of he that brings expenses to from they can then budget for their on which they Hope to spend about bringing their yearly expenses to now they must add which would roughly be bringing total expenses to to Cut they should go into each and find out where they can afford to spend As an he said they have Likely overestimated their needs under the miscellaneous things like or by cutting Back on they can get a handle on How much they really need and still maintain Sav they Likely wont miss it be cause they didst know where it was going in the first realistic look instead of the they now have he said they should try a saving and bringing them Back into a surplus if after their budget is they find higher taxes have bitten off their they should then try and find other fat to trim or take a More realistic look at their spending maybe they have to say they can Only spend on a vacation this Beaton prices following Are the prices for one litre of 2 Ink As of 28 Vancouver Edmonton Calgary Regina Winnipeg Toronto Ottawa Montreal Quebec City Johns Charlottetown Halifax source Mam Iotia milk prices review commission file quarterly payments Early by Ray Maruschak people who must pay quarterly income tax instalments largely retired people but also those with substantial invest ment income should be aware that they must get their payments in earlier starting this year to avoid an interest in previous instalments have been due on the last Days of september and de starting in they Are due on March june 15 and the interest penalty for late instalments has been increased to 15 per up from the previous 13 per you Are required to make quarterly instalment payments if income tax is not deducted at source on at least 75 per cent of your income and if your actual 1989 and estimated 1990 Federal tax in Federal tax in each of the current year and the immediately preceding tax is not deducted at source on income such As dividends and capital in no deduction at source is made on old age Security and the Canadian pen Sion plan retirement Benefit except at the individuals you can choose to base your instalments on either last years actual tax or on this years the current year estimate can be made using Revenue Canada form instalment guide for i Dividu you Are Safe to base your instal ments on last years if you estimate this years taxes the underpayment May attract inter if you discover your taxes actually will be lower this you can your my the instalments Are considered to be received on the Date they Are mailed if you use firs class mail or the including courier it is advisable to use registered mail so that you have proof of the Date of mailing in Case of you can pay at your instalments Are consid ered paid when the Bank receives and you will have a receipt in Case of if you overpay on your you do not earn interest on the Howe if you miscalculate your income tax due on the annual april 30 tax filing Date and pay too there is some Comfort in knowing that you will earn interest at two per cent Over the average 90day Bill rate in Bay Maruschak is a chartered accountant with Eloitte Tou Patrick m Fellows pension Clayback expect the worst i thought the Clayback of old age pension bad enough but after doing my taxes i realize How disgusting it really Correct me if in wrong but people receiving Oas Are really paying capital gains tax out of their capital gains have to be included on line the Clayback is on line 235 and the capital gains deduction is on line Revenue Canada could have had the decency to put the Clayback on line 260 after the capital gains Deduc this is absolute discrimination against people receiving Montreal persons who Are claiming the Cap ital gains deduction cannot be pay ing tax on those gains because line 254 removes the gains from the calculation of taxable the gains Are included in net in come and help carry the total to the threshold at which the claw Back becomes you might grumble about but if it were would it not be discrimination against those who do not have any tax free capital gains would it not be a on sided advantage to you to have a chunk of income on which you pay no tax and that does not impinge on your old age Security the real inequity about the claw Back would seem to be the inadequate indexing of the trigger if its not fully the Clayback could Cut in in future years at much lower Points in terms of purchasing and since the government already practises this kind of Money grab in not fully indexing personal exempt pensioners can expect the Odd Are there any restrictions on Tak ing Money out of Canada this would be the proceeds from the Sale of my House and Are there any restrictions on taking Money into the my wife and i receive company can i buy her a spousal resp and can she buy to one there Are no Exchange controls that would prevent you from taking your capital assets out of Canada and into the you of be taxed if you Cash in your if you do this before leaving Cana you will be taxed at your person Al if you do it after you become a there will be 25 per cent withholding since you and your wife have company you May make transfers of up to each to spousal but would this serve any purpose if youre going to col lapse them possibly it would if you do it As Nan thank you for answering my letter about Grifs and spousal but in still in my wife has been taking More than minimum payments from her Trif purchased with a spousal there has been no income attribution to me because i made no contributions since but for 1989 i made a pension Transfer to a new spousal plan and you say i will be taxable on the 1989 excess amount my wife Drew from her since i May have to revise my 1989 could i have your source for this information the resp pension and tax guide Page 29 deals Only with a Trif receiving property from a spousal Toronto double he the Pas Sage you quote says that if your Trif addressing your wife received property from a spousal resp and your spouse you made deductible contributions to any spousal resp in 1989 or in either of the two preceding All or part of the excess amount paid from the Trif in 1989 May have to be included As your spouses your wife Trif obviously did receive a property from a spousal resp Money or securities when the conversion was and you made a contribution to the resp in therefore you Are taxable on All or part of the excess amount withdrawn in it Doest Hurt to repeat this be cause some people with spousal Grifs in operation will have opened new spousal rasps to use the Transfer from a company and doing so will bring them Back into the attribution net if the Trif has been paying out More than the required questions on Money and invest ment problems May be sent to Patrick Winnipeg free Leflon Lostal ;