Winnipeg Free Press

Winnipeg Free Press (Newspaper) - April 29, 1990, Winnipeg, Manitoba 14 Witt Tieg free april sales swamp Grey panthers Royal Bank up photo taps Retiree resources by Brenda Galgush Toronto up Dennis Wilder was in the thick of the resp season this february when he came Down with viral pneuma other 62yearold retirees could have taken to their Beds and Wor ried about their Wilder went to bed and worried about his Wilder is a Grey part of an innovative new sales Force made up mainly of retired Bankers that the Royal Bank has built to sell its registered retirement in come fund Wilder joined the panthers in 1986 after he retired from a 33year career with the where his last Job was managing residential the Grey Panther program is based on the premise that no one understands the needs of retirees better than people of the same says Jacques manager of special sales programs in Montre you can have a 35yearold per son behind the counter in a Branch who understands the product but who the customers May not feel completely comfortable Gagne gets complicated its a bit like telling your mom and dad what to do with their he the clients appreciate hearing it from someone who really customers who Are not familiar with annuities and All their variations May find the products complicated and Branch staff often dont have time to answer All their he acting on the suggestion of a retired th6 Bank started the program in 1984 As an expert in one stroke the Bank met the need of its customers for reliable information on Grifs and fulfilled the desire of some retired employees for an additional source of the program has been so successful it won an International marketing award in 1986 and other Banks and Trust companies Are starting similar the service is popular enough with customers that the 150 pan thers across the country Are swamped with but a competing retirement specialist criticizes the Grey Panther program because its salespeople sell Only Royal Bank products in Royal Banks Jacques Gagne believes retirees Are trusted by senior Stead of offering a Range of com Peting some of which might offer better interest Tom a Toronto Finan Cial adviser who specializes in retirement says Consumers should shop for a Trif or annul Consumers should use who have product information from a number of rather than agents like the panthers who sell Only one institutions says who is an Trif and annuity broker its in the Best interests of con Sumers to have the widest possible Access to the says Delan who also advises the Consumers association of but Gagne says the Banks rates Are the Grey panthers Are paid by customers who buy a Trif from a Panther pay no More than they would if they bought it Over the counter at a Gagne the Bank has not advertised the program much because the salespeople have More than enough business just going through the Banks lists of clients who have registered retirement savings says Hugh a Mon Treal Panther who was Vic Epresi Dent of real estate resources before he retired in no hard sell although there paid by com Gagne insists the Grey panthers Arent hard sell Pitchman cruising the Banks client lists for elderly the Royal Bank turns its resp client lists Over to the Trif salespeople each Panther is responsible for the branches in an As signed District and the salespeople concentrate on customers who Are close to the age at which rasps must be col by Law there Are Only three ways to collapse an resp by taking it As a Lump sum on which income tax must be paid or by rolling it Over into an annuity or a which make regular payments Back to the customer for an agreed upon length of the main differences Between the two is that Grifs Are Struc tured to provide inflation protect they make smaller payments in the Early years of plan than an annuity but by the later years they Are making much big Ger annuities can Only be sold by insurance so Grey pan thers sell Only but Wilder says most resp holders who reach the age of 71 without needing to draw on their rasps usually find Grifs the most suitable Childs account raises tax issues a favorite was to split income am orig family Mem Bers involves the Deposit of family allowance receipts into a savings account in the Childs provided that the deposits to this account remain untainted that fid birthday Moftey or other gifts Are included then interest earned on these family allowance accounts Are reported As income by the this is the Only Way to avoid the attribution rules which otherwise apply on interest or dividends earned on amounts Given to a minor child by an that if a Parent or grandparent gifts to a child a for interest earned on that Bond must be reported by that Parent or grandparent until the child turns the family allowance accounts Are a Good Way to save Money for the child and also reduce or eliminate the tax that would otherwise be payable if the Parent in vested that Money and reported the some administrative issues arise for parents who try to open such especially for very Small in Trust for if one opens an account for a child who cannot sign a signature then the Parent must open the account in Trust for that if the funds can be withdrawn at any time by the the income tax act does require that a social insurance num Ber be supplied to the institution for that in if the Parent files a tax return for the child to report any resulting interest reve nue Canadas computers will Send out a letter requesting a social insurance number be Revenue Canadas recently released information circular 822r quotes an administrative practice that apparently will be continued in this and future that that individuals under 18 years of age Are not required to provide a social insurance number if their total income for the year is or social insurance which were instituted in 1964 As identifiers of contributions made and benefits paid under the Canada pension plan and unemployment insurance have since had their usage in they were first used As identifiers for the Feder Al tax and under the tax Reform Laws passed use of sin numbers was further now anyone preparing information slips must obtain sin the reasons Given by Revenue Canada for these requirements in clude the improvement of equity within the tax enhancement Evelyn jacks of future compliance by taxpayers and a Way for Revenue Canada to More easily administer the income tax failure to provide a social insurance number can result in a Fine of for each such sins can be applied for at the Canada employment As the use of sins is protected under the privacy act and the confidentiality provisions of the income tax any person who allows the communication of a sin for other than administrative Pur poses commits an offence in which a Fine of up to or prison term of up to 12 months can in some both Fine and imprisonment May Evelyn jacks in director of Edu Caton at u r tax place May House get protest Vancouver up the Federal government is renting office space and hiring staff to collect the new seven per cent goods and services so some critics say there planning to rent some space of their own to raise the roof during an Antist rally july we want to rent the dome at place Brian chairman of slog spend less or said Calder said the govern ments admission that 350 staff Are being added to the current 150 is just the tip of the the tax is scheduled to take effect tax offices will be located in Downton Prince George and Whitehorse in the Lloyd regional director of the Federal excise Branch in British Columbia and the said about 500 workers of them new staff the he confirmed Square metres of space has been leased in tills offer risk free returns by Brian Taylor with a High interest rate Environ Treasury Bills have become a very popular investment vehicle for Many they Are Ideal in vestments to Park surplus Cash for Short periods of Treasury Bills Are Short term debt securities issued by the Bank of Canada on behalf of the Federal or by one of several provincial govern ment of Canada tills Are the most and the ones offered most commonly to individual Federal tills Are auctioned and Are sold to chartered Money Market dealers and the Bank of these whole Sale purchasers then resell the Bills to other buyers both Large institutional users As Well As individual weekly issues have Origi Nal terms to maturity of one two three months and one tills Are unlike other they do not have an interest they Are sold at a discount below Par and mature at 100 per cent of the face the differ ence Between Issue Price and Par at maturity represents the lenders in come in lieu of treated As interest for this income is treated for tax purposes As inter Here Are their advantages Treasury Bills issued by the government of Canada Are a direct obligation of the Federal govern and Are therefore they Are the focal Point of the Canadian Money and Are actively traded every business Day of the your Bill Purchase can be readily resold at any time or the Price received will depend on prevailing Market conditions As Well As the the current term of your Treasury Bills offer a High rate of return that compare extremely favourably with Bank savings term deposits or similar invest ments of up to one year current rates for on month Bills Are per three month Bills Are per cent and six month Bills Are per Brian Taylor is a financial consultant with Wood Gundy retirement annuities and Grifs As of april 1990 annuities and Grifs Are available from certain Trust and Banks licensed in availability is subject to Federal legislation individual corporate policies among those the following table illustrates the monthly income that of registered funds will provide at certain Trif Deposit rates Are also certain minimums May apply and All rates Are subject to change without age at life annuity guaranteed 10year ule annuity guaranteed 10year certain to age to age 90 first year income Only or formula current Trif Deposit year year year year year to 90 1 1 based on Purchase at age 71 note All monthly income shown commences one month after Purchase As rates Are affected by interest rate the rates Are subject to change at any rates represent the highest yielding plans at the time of source Rice financial croup inc Winnipeg free press current resp Deposit Trust Aetna Canada Trust Central guaranty Trust citizens guaranty Trust Coop Rativo Trust confederation Trust counsel first City first Lino City household line Inland investors group 1 metropolitan group Montreal Mutual National North West Pacific Western West peace Hills Western Peoples Hills Presnor 1 Royal Saskatchewan Standard Sun life Wellington life Banks Bank of Bank Canadian Western of Western Hon Kong National 1 1 Royal Bank of Scotia Bank of Toronto Dominion Dominion life companies companies american Canada Crown great West West manufacturers maritime metropolitan 1 1 1 in North american american Royal 1 1 Seaboard Standard Sun Tran Samerica 1 other Assiniboine credit credit Calisse de de Security Home Narl certain Man mums May apply to both and rates subject to change without Lor Home Are compound annual interest and May include special 1 1 1 1 1 on resp and interest on Are term certain minimums May 79 Days the majority Are compound not annual and will or prior to maturity with a Market value not All Days Anies offer both registered and quoted As of april source Rice financial Kiaup Winnipeg free ;