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Page 8, Whitby Free Press, Wednesday, Septembor 29, 1993 DSC video nominated for award Your Financial Health De rek Dutka The 'secret' nobody seems to know about! For some reason or other, "professional advisers," be they tax planners, financial writers, accountants, l aeso bankers, have neyer latched onto the "secret" that la avilbe through investment funds. Wyiisa secret, I don't know. We have, been procliming it and sharing it with people for more than 50ers and people have been eqjoying the resuits foïr 50 years. IBss=e awithdrawal plan. As the name iniplies, it is a withdrawal of assets, usually on a mothy assgiving y ou a moatbly income that ila virtually tax free. Furtermreyou can h ave any income you desire per mon& and you can increase or decrease the monthl~y amount paid te you any time you wish, or extract a lump sum ini addition, any tirne you wish. In other words, it's completely flexible, and can be tailored te your immediate and also unkaown future needs. The witldrawal plan gives you almost completely tax-feme income, whereas interest-income from a savings institution or mortgage comes to you comnpletely taxable. Hopefully, ail of us save "for the future," and that future is called retirement. I retirement, we want a monthly income. That la what a "withdrawal plan" prvdes. How dnes it wok L£e' look at a comparable exaniple. Suppose you decided te purchase a 100-acre farta. IL was valued at $1,000 per acreýtherefore its total cost was $100,000. But land values coatinued te rise, and you soon discovered your farm was worth $1,100 per acre, thus the value la now *110,000. But you needed money, so you decided te seil off nine acres. This now gave you (9 x $1,1M) = $9,900 te do with as y ou llked. Now ask yourself the inestion: "IIow much of that $9,900 would be taxable?" It's funny, but eper cent of people asked, give us a wrong answer. Lets examine it. The $9,900 la considered a retura of principal. After al, you used after-tax dollars te buy thefam and you paid $1,000 per acre, se there la no tax on getting back the 9,000 you paid for the nine acres. But the land did increase ini value by $100 per acre, se you.have a capital gain of $900. Uner current laws, ail Canadians are eigible toe ara $100,000 of capital gains tax free. Aftér that only three quartera (75 per cent) of captalgan are taxable. In this case iL means ($900 x .75) = $675 la subject te incorne tax, and if you were ia the maximum 50 per cent tax bracket, the tax payable would be $337.50. Where else mouid you receive $9,900, and pay a maximum (or lese) tax of $337.50. If you earaed intereat of $9,900, and were in the 50 per cent tax bracket, your tax payable would be *4,950. Finally, the value of your fana before the sale was $110,000. You seld off $9,900 worth, se what you have left ia worth $100,100, which la sight1l more than your original mnvestrnt. You have "moaey ini your poktand stiil have your original value. Here's an exaniple of what has happened during the past 20 years on a withdrawal plan ia Templeten Growth Fuad.. Asunung an investment of *100,000 on January 1, 1973 (or move the comma over and make iL *10,000), and you wanted a 9-per-cent-per-year icorne from that investmeat. At the end of 20 years, you would have reoeived *180,000 in cheques of *750 per nxonth, and that income would have mome with very little taxation because it was derived by " eiing ff' aares (acres). The value ol' your investmeat (farm) left la*744,216 which is $644,216 more than you originally invested. And .... if you now dcded you wanted 9 per cent per year on the present value, you would ho getting $5,581 per moth, which la $6979 annual income, with very little tai liability. Now you know the "secret." stronger than anything yeu can put on film." His attitude changed when the video dimbed te number three on the MuchMusic 'Pewer 30' in j 1 Jul. houh'Wow, that'a the extent ofîit, that's all it's going te do,' and I was damned happy with it,» says Hunt. Wheh heard iL was nommna- ted, «I danced! IL wan a total sheck.» DSC Productions han done six rock videos te date and han another four coming up in the next couple of months. e secret te, their success han been aveid- ing cliques, says Dominic Deluca, wheo co-produced Disruption. «We try te, stray away from the obvieus... if you settie for the cliques, you won't attract an. much attention an y ou would if y ou renlly put a lot of effort ehind it and go hroubhas many idean an you can,' says Deluca. «'Ail of our videos have been different from the nein,» açres Hunt. "(The normal) doesn t do anything- it just becemes very boring... you have te start rede- finidng the way te make thein (and) expand the boundaries.» If you live on Interest Income then Today's Low Interest Rates are Bad News... THERE IS GO OD NEWS! LET ME SHOW YOU TH.E SOLUTIONS! Financial >t Securities Cali for your free meehing, today. You deserve it. 666-7777 FndaCoo ScuNiUS is a busuess style o gsbation awned by F.C.G. SOcwfitissCOrPOetion By Ma-ri Reesor A rock video made by a WVhitby resident and his partner han been neminated for a Canadian Music Video Award. The videe is of a song by Soulstream called 'Disruption,' and was produced by Andrew Hunt, who along withpartner Glen Keenan, run DSC Pioduc- tions. The partners will find out tomorrew whether they win a medal for their production -- the awards show will be telecast live on MuchMusic -- but Hunt says just being nominated ia fabulous enough. «We're up against some very big videes -- $65,000 videos - -ours was nowhere near that rag; and ene of the directors rZeup againat is Phil Kates, wh's ene of Canada's bigglet music videe and commercial directors. "We're kind ef like the under- dog The Crying Gaine of music Hunt says hie was confident the Disruption video would be their best te date because «the son g was very stronq and evoked a leot of interesting visuals» -- but felt a little let dewn after it was cernpleted. «You have a certain idea in normd and because this was aoerbudget video, we didn't have the money te make every- thing beceme a reality... I kind of became bummed eut once we finishedthe videe. «Your imagination is much Chamber awards dinner upcoming The annual dînner recogmizmg the business persen and cor- porate citizen of the year awards will be held by the Whiitby Chamber of Commerce on Thurs- day night, Oct. 28 at Heyden- shore Pavihion. .Guest speaker at this year's dinner will be Philip O7rien, chair of the Onnadian Chamber of Commerce. O'Brien ke president of Doyen- core ic., a service and invest- ment company ho founded in 1972. The chamber awards night begins with a reception at 6:15 p.m. Cost is $32 for members, $U3 fer non-members. DEREK DUTKA