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WhItby Fme Prusa, Wecesday. Jaoy 6, 199W. Page 17 .... .. .......V... ... ... . . . . . . . .p u u . . . . . . . . . . .. . . .... . .... Delay ini RRSP contribution not likely to be good strategy By Joanne Pocley, CA Ini the coming weeks, Canadian taxpayers will be hearing from Revenue Canada. If thàt sounds hair-raising, relax. Remeniber that, in 1990, the government changed the rubes g ovrning limite for RRSP (ReistredRtirement Savinge Plan) contributions, allowing arnounts net contributad in one year te be carried forward inte following years. Since the new rules and related calculations are complex, Revenue Canada now lts evéry individual txPyor. know juat how much contribution «roon' is available in hie or lier ERS? each year. For example, if pour contribution lrit for 1992 je $6,000 and you contribute only $2,000, you wiil have Up te seven Myot make Up the remnaining $4,00contribution. ecuethe new ruees ailow this carry forward or catch-up period, some taxpayers Wonder whether there ar an y tex advantages te defrring their contributioný. If yoei are in a bow marginal tex brackot, say 27 per cent, but expect te soon jump inte a higlier brackot, you mxght consider poeI3onin ~ur contribution un yu'e en your stop up se that< u receive a bigger tex In order for this strategy te work, however, your move inte the higlier tex brackot muet be iminent. Every year you delay your RRSP contribution, you reduce the amount of time your invostment compeunds' tax-free. Ini the meantime, investmonts or saiings outeide your RRSP earn interest that je subjeet to tax. Another much-talked-about stratogy is te use the funde that you normâïly would contribute to your RRSP te leverage an investment boan. That je, if you were going te centribute $4,000 te, your RRSP, use those funds instead as coilateral on, for exampe, a $40,000 loan. 1As long as the loan is used te generate investment income -- for instance, you buy units in a mutual fund or purchase stocks or bonds with the proceeds -- the interestet nse on the boan is tax dedutibe. You would then use your after-tax profits te make the catch-u RRSP contribution. The probem with this strategy ie that it fale short if your investment doesn't produce sufficient profits te inake up for ail the RRSP contribution room available te you. In today's markete,ý poor performance is a very. real concern. And, if performance je abysmal, you are still on the hook for your $40,000 boan. University~< ai Durham College Spring Session: 1 February - 27 April 1111rid u(tr t ti ir%-% a rt i toti i%i e ,vivînIfgsr%v vtk (Mo n Wvd mi i tits1li trsi): " EngIi%h 111: M.iv% 1 itt In liiî tranit " Hiidtrv 120): vs'î1 irit> n l îtir " P%vc htdogv 1:loi: tîri t icipsvc iiiit " Soi ilkgy i100: 1 n tnt ù i(a 411~ ~ t S i i br i l ii gitr a bim itirt t al (4 16)72.19747 oir (703) 748-1229. There je aloo another scenario in which p1aing catch-Up with you RRSP caa be a recipe for disaster. If you die without having contributed te your limait, and you are eurvived by a spouse, ho or she has onby 60 days in which te znake up your contribution, thus SEE PAGE 27 Wthyspove arin, di vidualized instruction, students find their grades and self-confidence soaring. Cali today to learn how we cari help your child. Kondalwood Park Plaza 1801 Dundas St. East Unit 26, Whftby 404-10-18 Sylvan SLearning meCentre, 'Mbe Sylvan Guarantee: Ytiur chtld will improve alitast one ful grade c equivai o> store in basic math or readtng skil r afke3 r s ofi h i n t ructionittr we'il provde up 7. > 12 mtore lhour. ai otfurtiter ct. ' Ylvan for ti mpiettcguarantee dt.tailq - MCTEAGUE Ajax resident Dan McTeague wibl be the Liberal candidate te Ontario Riding in the next federal election. McTéague, who works fer Toyota Canada, defeated WhÎitbyis Brian MeKinnon and Chaitanya Kalevar of Toronto. McTeague was criticized for net knowing the riding -- he recently meved te Aax from Oshawa - but said he's quite faziliar with the riding. PBIEST BIMTREPORT In the fall, an egyJim Priest tebd councib are n noise and vandalism probbeme problems V1 residents living near èal "ryPark«i% full of crap." Despite Priest's arguments, council approved the report, which. called for meetings bet- ween residenta and police and fire officiais, regular clean-upe of the area and the Town paing haif the cost of a $30,00 fonce between open space adjacent te the park and residenti? homes. SULLIVAN AND SMT Former Metro plice officer Don Sullivan wilr carry the Reformn Party banner in Ontario Riding in. the neit federal ebec- tien. 7%e Ajax resident beat eut Whitby's Andrew Davies and Bill Foden of Pickering for the nomination at the p artysý nomination meeting in Septem- ber. Ian Smyth of Courtice will be the Reform candidate in Durhamn riding. The 24-year-old computer con- sultent béat eut a field of six candidates, includingz former Newcastle councillor Ann Cow- man and Brooklin resident Harry Tuîbridge. SmtI,.qeç- ved 119 votes. CROUCH RETIRS Whtb's firet fub-time fire chef and firt fulI-time employee retired in July after almost 23 years of servce with the fire dapartment. Crouci was hired in Septem- ber, 1969 te coordinate the three volunteer fire departments of the day (Brooklin, Whitby and Gar- rard Rd.), and te hire other fuIl-time staff. The Whitb fire department now has 61 17ul-time employees and 55 volunteers. FINE FOR DUMPING Town council moved te figit illegal dumping in June, enact- ing a minimum $1 000 and maxi- mum $5 000 fine Ïer anyone ibIs- galycIumping garbage in The Town spent *105,900 ceaning up grbi1991, and had already epent $3000 on the problem by June, 1992. NEW SOHOOL Whitby'e newest echool, St. Mark the Evangeliet, execte o double its enrolment i the next three yeare. The echool, which opened its doore last Septembor, now has 307 etudenta -- it cen liandle 477, and was built te be easily expan- ded. The Durham separate board's planning committee estimatos it will have more than 700 stu- dents by 1996. UNITED WAY CUTBACK Barring a last minute outpeur- ing of generosity, United WayZ agencies w.11 have te, cut bac aanthis year. ThÈe campaign je $375 000 short of its $3,124,717 goal for 1993. The cernpaign liaicoreu short for the lait three years -- the '92 appeal was $126,500 short, forcing almeet haîf the inember agencies te ceut back on services. ~'N~ 4r,~hçaLip'Mhbybe' domhiltfo. - NEW HYBRO COMMISSIONER Don MacMaster became a Whitby Hydre Commissioner in July taking over from John HugLes, who had to resign ahier decaring personal bankruptcy. MacMiaster has worked in the utility business for 24 years, and je a partner in a Whitbye Manage- ment Consultant firm. lHe uneuc- cessfully ran for a seat in the latmncpal ebection. TAXES Whitby taxpayers had te dig a little deeper te support Town and r onal governinents. and the 0,boards. The Town of Whitby had the emalleet tecrease -- juet 2.3 per cent - but that was more tien offset by a hike of 14.1 per cent ,, c ol su p reswere faced with a 2.48 per cent hike. Separate echool ratepayere paid 2.51 per cent more. WIIITBYMAN MURDERED WelI-known Whitby denture therapist Dr. Dhian . a Tha- P ar was shot outside hie house in Februay the first murder oir the yeariurharn Region. Thapar, 49, wai a leader in the East Indian community, and pro- ducer of a TV ehow ca l1d 'Sounds of Asia.' NEW POLICE CHIIEF Durham Regional Police deputy chef Trevor McCagherty took ever from retiring chef David Edwards whe retired after 31 years oý police service, .nc1uding four years as Durhiam chief. McCagherty began his police cereer in 1965. COUNCIL'S RIEAT Public protesta and engry let- ters te, the editer weren't enough te stop Whitby councillors fremý headinig off te, Belleville in Mardi for a two-day retroat te discu s the 1992 bud-et. The $5,000 eretwouldn't have a "major» impact on the budget, and was neceseary te get away from the distractions of Town hall, claimed councillors. VES CAMPAIGNS The Yes campaigns in Ontario and Durham ridinge kicked off their caxnpaigns with a flourish in the faîl. Voting y os «monans you want Senators eected democratically... pood news for a change... (and) investers te invest in the coun- try," 'People's Yes Committee for Constitutional Reform' chair Henry Zaczek told the crowd at the openfing of the Committees Pickering Village office. Ontario riding voted 'Yes' by a niarizin of 46,078 te 40,314, but A proposa] te build 109 tewn- lieuses and two apartment build- NEW OPERATIONS CENTRE Cng on thle site of the former Whitby works department is iFoode cenning factory j getting a new operations centre stilI beteg reviewed by officiaL. tuis year.. The industrial zoning for the The *6-million project was property would have to be approved lait year and je due te chagedforthe development te ho completed by June. go ahead. The old centre was overcrow- Cobi liai had the plant on the ded, had plumbingand heating market for the lait four years, probleme and lacke roorn te but. a *d nbd wants it for store equiprin4n,.accodJ t V tý à 1 nobodyahcAsag.a. 0 A New Vear, B New Rules a New Options 0 New Producis 0 New Investmnent Environment Vos, your RRSP givesyou a tax doduction but t also is your private Pension Plan and your docisions are crucial in determining the sizo of your rotiromont income. To achieve maximum rosuits for your RRSP, you must give it rogular "check-ups". Speclal Offer Financial Concept Group off ors you a privato and confidential "check-up" of your RRSP. This "check-up" is strictly DEREK DUTKA conficlential and is a porsonalized, complimentary service of Canada's premier independont f inanclal planning f irm. Learn About: M The New RRSP Rules (cary forward, spousal, over contributions, higher limits) B "The RRSP with 40%Y more tax savingsl" M Todays Best Mutual Funds. " What to do now that interestratos aro low. " How RRSP's fit in your ovoraîl plan. " How asset allocation oan maximize your retums & minimizo nisk.