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a ---- meme er et etree -------------- 20 -- PORT PERRY STAR -- Tuesday, February 23, 1988 Local artist at the library Utica and Area News by Vera Brown Euchre winners on Friday even- ing were Ladies - Marie Geer, Margaret Gall and Vera Brown; Men - Grant Bright, Bruce Houghland and Murray Geer. Frecze-out winners were Bruce Houghland and Grant Bright with Margaret Gall and Rachel Harper sccond. Draw prizes were won by Rachel Harper, Ken Elson and Bill Brown. There will be anoth- er euchre in two weeks. Our local artist, Mr. Doug Bou- tilier has informed me that he has sct up an art show which runs un- til March 11th at the Port Perr Public Library. On March 30 he will be opening another show at the McLaughlin Gallery in Oshawa. A reminder of the Open House to be held at the Daycare Centre on Wednesday, March 2nd, start- ing at 7:30 p.m. Everyone is in- vited to attend, ask questions and view the facilities." Refreshments will be served. The Epsom 4-H Club will be holding the first meeting of the new project, "Encounter the Out- doors" on Thursday, March 10th, at 7:00 p.m. at Gail Kerry's. This unit includes topics such as pre- paring campsites, cooking out- doors, outdoor photography, con- servation, first-aid, weather watch, and will involve outdoor activi- tics. Depending on weather near the end of the project, the wishes of the group and the stamina of the*leaders, we hope to have an overnight campout. The project is open to all boys and girls aged 12 by January 1st, 1988 to 21 years of age. There will be six micetings over a three month peri- od and interesting home assign- ments. For more information or to enroll, call Gail Kerry (985- 7792) or Cathy Acerra (985- 3466). This Saturday at 8 p.m., the So- cial Club will hold a Leap Year Party in Epsom Church with the men of the community participat- ing in a competition to determine who can come up with the best dessert. For more information contact hosts, the Fred Vanudens or the Bill McKays. Church and Sunday School will be held at Epsom this week at the usual hour of 11:15 a.m. Rev. Bill McKay will be in charge of the scrvice which allows Rev. Waterman to spend a cold weekend with the Youth Group. Environmental risks aren't only Acid Rain or Industrial Toxic Wastes. Each one of us in his or her own way has a daily impact on the quality of the environment. Or the washday detergent. The cleaners and polishes in the and solvents in the basement. It may be cigarette smoking. kitchen cupboards or the paints Each family home, regardless of how safe and cozy it appears, contains chemicals which should be carefully controlled. Make sure you're doing your best to control household hazardous wastes: ® Become aware of the chemicals you use and dispose of every day. ® Educate your children as to the ® Buy only those products which ® Buy pesticides and other ® Help to organize special refuse e Discourage overuse of plastics ® Encourage the use of re-usable That way we'll all benefit. hazardous products in your home and store those products safely. can be used and disposed of safely. household chemicals only in quantities that you can actually use. collections for hazardous materials. and styrofoam. materials. Do your part to make surc the world is safer for yourself. i~i Canada Environment Environnement Canada Canada It Makes Cents by Robert Wearing Over the past 30 years, we have come to recognize that RRSP's (registered retirement savings plans) are good for our financial health. What most Canadians don't realize, however, is that they might actually be penalized if they choose not to contribute to an RRSP this year. Let's go back to the source of your RRSP contribution -- your salary or wages or business income ---- and let the numbers speak for themselves. Say that you earn $1,000.00 and your tax rate is 40 per cent. In 1988, this is the middle tax bracket. Income above $27,500 will be taxed at about 40 per cent depending on the province where you live. The majority of those likely to contribute to an RRSP are inthis bracket. After paying tax of $400.00 (40 per cent of $1,000.) you have $600 left over to devote towards your savings. Say you invest it in a GIC that pays 10 per cent for one year. Therefore, you earn interest income of $60 (10 per cent of $600), and you have a total of $660 at the end of the year ($600 plus $60). Alternatively, you can contribute to an RRSP. Remember, that the money you put into RRSP is tax deductible, so you are contributing pre-tax dollars. In other words, you can con- tribute the full $1,000 that you earn to your RRSP. With this $1,000 contribution-and a tax rate of 40 per cent, you will get a tax refund of $400 (40 per cent of $1,000). Thus, only $600 of your $1,000 RRSP contribution comes out of your pocket. This $600 is referred to as your net investment in the RRSP, or what you would have available to invest outside an RRSP, such as in the GIC. The other $400 represents taxes not paid. The Government is actually helping you to contribute to your RRSP. What other low-risk investment can make this claim? Let's say that the RRSP also earns interest at 10 per cent, so it is worth $1100 after one year ($1,000 contributed plus $100 of interest earned at 10 per cent). You can cancel the RRSP at this time (definitely not recommended) so you must pay tax on the whole $1,100. This leaves you with $660, after paying tax of $440 (40 per cent of $1,100). Is there any difference between the RRSP and the GIC? In 1988, many tax payers will come to realize that there is a major difference. While the whole $660 from the RRSP goes straight into your pocket, the Government still has a claim on lI aportion of your GIC. You must pay tax on the interest income of $60 earned on the $600 that you invested. first $1,000 of Canadian interest you earned was tax free. This year it isn't! That $60 of interest shrinks to $36 after paying | $24 tax (40 per cent of $60), leaving you with a total of only | $636 ($600 plus after-tax interest of $36). You are better off with the RRSP ---- $660 versus $636. And the longer you keep your RRSP intact, the greater the benefit will be. You undoubtedly noticed that the same amount is ac- cumulated with the RRSP after-tax as with the GIC before tax ---- $660 in both cases. In other words, the RRSP effectively eliminated tax on the income earned on the net amount you contributed. You effectively earned $60 of the interest on your net contribution of $600 (the same amount invested in the GIC) and ended up with the full $660. oo The conclusion is inescapable -- maximize your RRSP contributions before you consider investing your savings anywhere else. You'll lower your tax bill, and you will have a lot more left over when it's time to use the small fortune that you have accumulated. 3 | : Last year, this income may have escaped tax because the I GALLEY FISH & CHIPS CLOSED from Sunday, February 28th until further notice (DUE TO RENOVATIONS) Watch this paper for re-opening. GUARANTEED INVESTMENT CERTIFICATES Annual Rates Monthly Rates 91/4% 91/2% 9 3/4% 9 3/4% 3 YEARS 4 YEARS 10 1/2% 5 YEARS 10 1/2% RRSP - 5 Year ... 10 3/18% SCUGOG FINANCIAL SERVICES 250 QUEEN STREET -- PORT PERRY PHONE 985-3832 All Members of Canada Deposit Insurance Corporation 10 1/8% Rates subject to change without notice a.