Winnipeg Free Press

Winnipeg Free Press (Newspaper) - January 6, 1991, Winnipeg, Manitoba D the easiest Way to pay your Bills Winnipeg free press january 1991 pages 920 Philip business editor m a managing your Money fee in the right part of the country by Paul Samyn enough of All this recessionary doom and time for some Good news canadians it seems Are setting new income statistics Canada reports that the average family income in 1989 exceeded for the first to be the figure of is per cent higher than in 1988 on an inflation adjusted and whats millionaires in this country Are apparently now a dime a according to Ernst Youngs there were households in the country that had assets of at least million at the end of that per cent of All Canadian we Are certainly getting Richer As a says Colin principal of Ernst Youngs marketing consulting the wealth of Canadian households increases every even greater than the rate of stats cans figures seem to income report since the Start of the latest upward trend in real income Rose Over 11 per reads stats cans income distributions by size in Canada 1989 released in to put this pay hike in historical Sta scan says that Between 1951 and family incomes increased More than per cent in real mind per cent of that total increase occurred Between 1951 and Ray stats cans director general of labor and household says it should be noted that the income report shows Only one segment of wealth and does not include other aspects such As pensions and fringe Manitoba average family income of was fourth nationally in Ontario led the Way at with Prince Edward Island bringing up the rear at Sta scan also reports things Are getting better for those at the Bottom end of the pay the trend in the proportion and number of persons below stats cans Low income cutoff continued downward for the sixth consecutive year falling to per cent from per cent in in the proportion was 17 per stats cans Low income cutoff Point varies depending on How Large the family is and where they for single people in cities with a population Over the figure for 1989 was because Sta scan Only collected its data from roughly households last these figures dont reflect the recessions temporary setback All the influences of the recession will have to wait until the next Survey results to see what happens to Ryan but Ernst Youngs Survey seems to have even More Good news in that while estimating the recession May have knocked Back the number of millionaires by 10 per it says that setback is Only the Outlook for the 1990s is actually just Well off average family income Ontario Alberta British Columbia Manitoba Quebec Nova Scotia Saskatchewan new Brunswick Newfoundland Prince Edward Island very encouraging and we anticipate much of the coming decade will be a period of steady economic average net wealth Ernst Youngs a first of sorts because previous reports have looked primarily at not shows the average net wealth of All Canadian households in 1989 was a 125 per cent increase since the end of the last Manitoba average household wealth of was fifth among All Ontario was the big Winner registering a High of Newfoundland was last at and just in Case you were Revenue Canada figures show that the average income for All returns filed for the 1988 tax year in Manitoba was Winnipeg average was higher at perhaps the most interesting Titbit to come from the Ernst Young report is that Canadas millionaires Arent exactly the types worthy of a segment on lifestyles of the Rich and in fact a million dollars in net assets is not that unusual any More and often does not qualify a household As being Ernst and Young certainly Many of these households do not consider themselves wealthy just Well and for Good according to the for most of those qualifying for millionaire status do so As a result of their ownership of a Home that has appreciated substantially Over the past 20 years rather than because of substantial liquid Oday the qualifications for i becoming a millionaire Are not that difficult to if you Al live in the right part of the someone who is 55 to 65 years lives in Toronto or has worked for an organization with a pension plan for 20 or More reached a salary level of to in 1989 and bought a House 20 to 25 years ago in a Nice area but one that was affordable on the salary they were then probably now Falls in the Over million net assets typically these households would have 75 per cent of their wealth in no liquid assets such As their pension plans and household All of which causes a lot of the allure surrounding millionaire status to it used to be that a million dollars used to be equated with someone Deane perhaps the fact that million aint quite what it used to be is most apparent Over at the Western Canada lottery John spokesman for the says lotto the Only ticket with a Jackpot Over accounts for 52 per cent of All its lottery and despite having the worst Odds 1 in Matheson says the million Dollar plus payout is the main reason it has been such a big hit since it was in million was incredibly Matheson pretty but that was then and this is Matheson says million hardly seems Worth it to ticket buyers these Matheson says it is Only when the Jackpot grows to million or More that some excitement is sales really take off when we Are in double digits Matheson adding there can be As much As a 100 per cent increase in despite losing some of its membership in the millionaire club still has its i think having million is still pretty Wayne investors group senior Vic president of unless you plan on winning uie lotto Jackpot which has paid out 23 jackpots in Manitoba Worth a total of million your path to riches will probably be the same one followed by those in the Ernst Young Bear in that this is not Toronto and and our housing prices Arent going to help you strike it the number of millionaires Here is lower because no one becomes a millionaire through owning a House in says Deane suggests the Best course of action is to Start buy a House that will appreciate and save for your retirement through a resp or a Winnipeg financial planner Lyle Atkins says you should put away at least five per cent of your income toward retirement and 10 per cent if you have no company those savings and the appreciation of your House should allow you to reach your financial but he says you should really aim higher than for Young million wont accomplish a hell of a lot for Atkins in 20 or thirty years you had better be a millionaire when you retire or you Damn Well wont have anything to live use of capital gains exemption Best route to follow let me Start the new year right As i dig into the pile of Reader mail on my desk to dig out answers to questions on capital the pension income Severance rests i have a capital loss on one of my How do i use it you May claim a capital loss Only against capital you May no longer claim up to of the loss against other income As you could before if you have no capital gains in the current tax year against which to claim the you May go Back up to three tax years to apply the loss against capital gains you realized in those if that still Doest use up the then you May carry Forward the loss to apply against capital gains in future v if you have the option of claiming either the capital gains exemption or net capital loss carry forwards to eliminate or re Duce realized net capital con Sider claiming the since the loss carry Forward rules May outlive the advises Ernst chartered account in managing your personal ongoing Mike Grenby in other use up your capital gains exemption while its still what do you need to do to take advantage of the pension income you May claim this credit on the first of private pension income typically the monthly pension you receive from a former employer if you have no private starting at age 65 you May create your own private pension income a convert enough of your resp to an annuity or Trif to produce income a or b use non resp funds to buy a qualifying annuity whose interest income provides the you most life insurance companies and Many other financial institutions offer such qualifying an look into creating this pension income As Early As possible in the year you turn when i was Laid off i took Legal action which resulted in a larger Severance can i claim my Legal fees As a tax Deduc but Only against the taxable part of the Severance you mentioned in your letter that you were advised to Roll Over All your sever Ance pay to your that Means while you will declare the Severance pay on one part of your you will then claim an offsetting Deduc Tion for your resp rollover Contri leaving no taxable Severance in this you would have no taxable Severance pay against which to claim your Legal partial rollover for if you received Severance pay and had Legal you should Roll Over Only to your resp even if you were eligible to Roll Over All then you would claim the Legal expenses against the remaining taxable Severance my Trust company insists on Tak ing the administration fee for my resp right out of my i feel they should Bill me so they dont disturb the monies in the what say i but not Only for that when you pay the fee be you May deduct it As a carrying charge and so save there Are so Many ways to save for a Childs pos secondary Educa Tion that it gets can you in almost every Start out by putting the Childs family allowance into an account in the Childs name or in your name in Trust for the As the amount rein Vest in term Canada Sav Ings Bonds and if you have at least a 10year investment perhaps some balanced Mutual the profits will belong to the child for tax if the child Doest go on to higher the funds can be used for his or her other the structured rests registered education savings plans like the Canadian scholarship Trust foun Dation and University scholarships of Canada Are worthwhile Only if the child goes on to higher education in most completes four years of a less structured resp can provide More you receive no deduction with an but the Money grows tax free and this growth is taxed Only when the student gets you could invest ideally to produce capital gains so you could use your capital gains you would then control How the funds were if you have a self employed Busi Ness or Revenue pay the child to work for you and make sure that Money is retirement annuities and annuities and Grifs Art available from certain life insurance Trust companies and Banks licensed in availability is subject to Federal legislation and individual corporate policies among those offering such try following Ute ill strike monthly Tocoma that of registered funds will provide certain Trif i Post rites also listed certain Manl Nim May apply and All ram Art 61 62 63 64 65 66 67 68 69 70 71 51548 Lowr Fanala 50657 4 Tomato 49522 4ywr Watt in Matoo Ramala Inco Nonty minimum formula Teim to based on Purchase at age 71 m of Milf to cow comm Nat do month Turpu Ihetu Ai taut by taint tit m no try Mafra a Dit not u any Rait Nett stir on Alq Huttt Abutog Plant Ai tin o sont hit of time amp to a Monipeo free press ;