Winnipeg Free Press

Winnipeg Free Press (Newspaper) - January 21, 1991, Winnipeg, Manitoba Winnipeg free january 17 for new by Wally Dennison make a new years Resolution today that could turn out to be the most rewarding one of your life get a personal financial plan on track if you have never had but even if one is working for resolve to take a fresh approach to your entire planning in this month is about the Tim Eliest Opportunity Ever to under take both fresh or new according to financial that because of the new resp system that kicked in with the Start of the 91 tax not Only have contribution Levels changed to higher allowable Maxi but also new is a seven year carry Forward provision which allows you to add any unused portion of your allowable resp contribution to a subsequent years other important changes d calculation of contribution room for any Given tax year will be based on the previous years 1990 income does double duty in the transition period because it is used to calculate 1990 and 1991 resp 1991 in come will set 1992 resp and d Revenue Canada will allow individuals lifetime Over contributions of up to without imposing a pen Alty tax of one per cent per for if you put into an resp Early in 1991 but discover late in the year that your limit was resp you can claim a deduction on Only but you need not with draw the other from the while difficult to the new resp rules add up to a fairer system for tax deductible retire ment says Tom Toronto based spokesman for the Consumers association of he says the system provides enormous flexibility for individuals to plan their retirement savings from year to year to suit their per Sonal financial the flexibility and fairness Are indeed Welcome but a major problem lingers nonetheless Many canadians will continue missing out on income building opportunities because they have no financial plan and have no idea of How rasps my guess is that 95 per cent of people dont use rasps says Dianne president of the Manitoba chapter of the Canadian association of financial Lyle president of Independent financial counsellors guesses from audience responses at the seminars he has led that 80 per cent of the Public still Doest under stand the nature of the resp invest i will ask 150 in a for to raise their hands if they have guaranteed investment certificates in their resp portfolios and i then see 20 hands go i know that 90 per cent of the people in that room have Gic but dont know that they have when i ask someone what kind of an resp he he often Well i have one at the and that about All he can Tell two great plans to choose from variable rate plan ensures that the growth of your savings keeps Pace with current interest rate fixed rate plan guarantees the rate for four or five the no fee fully guaranteed no entry feet no Salei comm non compare these features no termination fee at maturity no Graniter feet no hidden Cotta no strings attached Assi Hoim Raj credit Union your Community tout co of strength 200 main 260o Pembina 1033 road2532655 2211 Mcphall Lupi 5930 Roblin boulevard8952825 655 Wendenon 233 Kennedy street9470376 2585 Portage at moray8326922 savings and deposits Are protected by the credit Union stabilization fund announcement free seminar on Grifs presented by annuity planners of Canada speaker Dennis Cale in depth discussion on the various types of Grifs designing Grifs to your personal needs this information will be vital for anyone planning on retiring in the near this seminar for the evening on 23rd is by invitation to receive your invitation please Call our Winnipeg office at 9449131 of annuity a financial planner with Summit securities contends that anyone in his mid40s should have a formal by that she Points a couple usually has paid Down most or All of the Mort Gage on the family Home and per haps sent the kids off to they now have or More years left during which they Are much Freer to pile up sizable retirement Szelag Points out that some clients who come to her for advice often Haven factored into their retirement dreams certain costs critical to realizing those for one Man who had spent 35 years on the Road in the construction Industry failed to calculate How the Purchase and expenses of a camper trailer would affect the travelling lifestyles which he and his wife intended to another Man accustomed to hav ing private use of a company car throughout his career forgot to consider that he would now have to buy his own vehicle to continue enjoying the mobility he had prior to medical insurance costs Are another expense often Over looked particularly by those who intend to reside outside professionals Are there to take these kinds of considerations into says her own advice is custom tailored to the an Swers supplied by clients to a questionnaire covering virtually every aspect of their financial and person Al total portfolio the average individual should take a look at his or her total portfolio resp and otherwise heres Why we sell More reps than any other Bank the answer is highly competitive interest lots of solid Asp including term deposits and Roy fund Mutual Asp specialists in every Royal Bank Asp Loans at our lowest posted personal loan put them All together and Royal Bank becomes the logical Choice for your Asp for More Call Tollfree 18006611502 today and avoid the Canadas leading Asp Royal Bank available by Royal Bank Mutual fund services through Royal Bank branches in Roy fund securities Are offered by prospectus Only copies May be obtained at any Branch of Royal Bank in and then consult a professional for some direction on the Type of resp Purchase most suitable at this and look at that resp Purchase As a step in your retirement and not strictly As a tax the new resp system should prompt everyone including employers to take an entirely new look at their Overall pension adds Tom president of Rice financial group1 and National president of the federation of inde pendent Deposit employers should review their existing plans to make sure there in tune with today realities and that their employees Are getting accountable they probably can lower their own pension plan costs while morally and financially assisting their workers to reap higher Money returns on their con new wrinkles As for the he or she undoubtedly would Benefit from get Ting some professional tax planning advice because of the new wrinkles in the resp if youre in a company pension you should go to the personnel department of your employer emphasizes Wayne manager of corporate retire ment planning for Rice financial group question the people in personnel and get All possible information on the plan exactly what it is designed to the nature of its and exactly what kind of benefits you can expect at your Normal retirement the staff in personnel should Tell you about sick pay and any other ancillary if after gathering this you can then go much More confidently to a financial counsellor or adds John Vic president of retirement planning at Rice Finan Cial group How Are you going to plan if you dont even know whats happening in your own company pension most people who come to us Are unfamiliar with what there entitled to from their employer at people should be More cautious this Pollon he suggests All resp recommendations be thoroughly get opinions from at least two or three you wont have to pay for these and ask More questions than the new system and the economic slump makes knowledge of every eligible resp investment All the More adds who was interviewed Early this year prior to a Bond Market decline Trig gered by pessimism Over peace i have made More Money in my own portfolio in the past two months than in the past two he said pointing out that government Bonds had earned 10 to 12 per cent during the two months while govern ment coupons had risen by 20 per cent during the same Gold stocks and certain other stocks have done Well recently and All Are eligible for resp they certainly dont be Long in the Lousy investment Cli mate about which people Are com seminars summarizing his resp Atkins go to talk to and know and exam Ine All your he discounts Toronto accountant Doug Mccullohs worry about peo ple placing self directed rasps with brokerage where Mcculloch claims dealers Are motivated to steer their clients Money into Equi ties since Stock trades Are the source of their fattest brokers Are no worse than Trust company and Mutual fund sales people All of whom can put you into a losing says an Independent he Points out that a Good broker has Access to All of the eligible resp investments offered by financial plus More government and corporate and Treasury while most people have their resp holdings in the most common plans of term deposits and Atkins says those plans Are the least flexible and represent the most work for their owners since the rasps Likely Are scattered with institutions throughout the in he says Sel adminis tired plans Are the Best and Mutual fund plans the second est since they Are the Are far More flexible and offer greater Best yields of the Mutual Atkins Points out that Money Market funds t Bills Are the easiest and usually have the Best Short term yields while mortgage funds Are Safe and of High although Money Market funds Are not insured by the Deposit insurance he says indirectly guaranteed by the government to unlimited unlike other Atkins is not so sure a record res buying vol ume will result from people trying to take cover from the he Points out tha a lot of big Money rasps will no longer be in the National Pool because of the Elimina Tion in the 90 tax year of the Opportunity to Transfer periodic pen Sion including old age Secu Rity and Canada pension plan pay into ;