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Page 20 THE HERALD Wednesday December 19 1990 Money Matters RRSP a good choice for most Canadians If you have a job you should have an That may sound like a bold statement but I believe an RRSP is a good choice for most Cana We discuss alternatives in a future column I was amazed to read recently that only 20 of taxpayers con tribute to an RRSP Why Maybe some people don realize that there are significant tax savings Let look at the ef feet in the three tax brackets At the lowest tax rate of a contribution will result in a tax refund so that your net cost is In the next bracket of your net cost is At the highest rate your net cost is approximately the highest bracket ranges from to 48 People have said to me well if I save the tax now 1 just have to pay it when I take the money out at retirement Absolutely true What these folks fail to tand is that this money com pounds TAX FREE inside of the RRSP until they start to take an income from it at retirement The money will not come out all at once but monthly as a replace ment for a pay cheque and the tax bracket will likely be lower There are frequent articles magazines and newspapers with tables and charts that illustrate the advantage of tax free com pounding in an RRSP Unfortunately today many retired seniors are living at or near the poverty line Over of retirees must have some form of government assistance to vive Pension experts question whether the Canada Pension Plan will be able to provide for the baby boomers who will start to retire in 20 years or so Obviously the government thinks so too or they wouldn make RRSP tax deductions available The years of retirement should be the best years Younger people should do everything possible to see that this objective comes true This includes saving now in order to maintain the income needed in retirement Other people say to me that they can t save money period let alone for an I usually find out that they seem to be able to pay for everything else but when it comes to paying themselves their name is at the bottom of the list I say Pay Yourself First This means setting up a monthly preauthonzed cheque from your bank into the savings cle that you choose You 11 be prised just how painless it is Recently I pointed out that most Canadians financial assets house car pension and life surance have been acquired by systematic monthly payments This is the strongest argument that I know of to recommend sav for the time that you will need Money at Work because you are no longer person at Work There are some workers who can contribute to an those employees with pension plans where the combined employer and employee tion is 500 per year or more Revenue Canada says that they are not permitted to contribute to an this year Next year the rules change The limits increase to SI 1 or M JUST A FEW WEEKS the magical season Christmas will be with us is the season when souls review the past several months their living and make an effort to put aside trivial differences between them selves and others It is also the me to share with others less fortunate People soften and like magic they show the peace and compassion that has always been in their hearts even If they ditto t know it was there Christmas makes possible the most incredible gift you can give yourself at MOUNTAINVIEW PLAZA 10 MCHJMTAINVIEW RD S GEORGETOWN ONT 6879 The Staff of WISH YOU A SAFE AND JOYOUS HOLIDAY SEASON 130DGUELPH STREET GEORGETOWN 8774919 YOUR MONEY Rocket make sure that you can do it next year For free information on savings plans contact Peter MBA Regal Capital Planners Ltd Drive Georgetown Ontario or phone Paul J is the author of the best seller Why I Invest in Mutual Funds and President of Regal Capital Planners Ltd 18 of eligible income Those with employer sponsored pension plans will be subject to a Pen Adjustment Those with ex plans at work not be able to contribute as much or maybe not at all Those with meagre plain may be able to con more Notice that 18 limit This means that those with lower in tomes may not be able to con tnbute as much to their There is another catch that Revenue Canada has laid on us That is that your limit in any year will be based on your previous years income This may be good or bad A real plus however is that starting in you can carry unused contributions for up to seven years If haven t saved enough to make your maximum tion this year now is the time to Hey Love why don you phone tonight reserve our movie for Friday at y the same time order a Pizza we get the movie FREE 8776767 8772254 THE CORPORATION OF THE Town of Halton Hills 1 Holton H lis O Box HALTON HILLS Georgetown Onlor 5G2 2600 CHRISTMAS NEW YEARS REFUSE COLLECTION SCHEDULE Refuse normally picked up on Christmas Day Tuesday December 990 will be picked up on MONDAY DECEMBER 24 1990 Refuse normally collected on Boxing Day Wednesday December 990 will be collected on THUflSDAV DECEMBER Thursdays normal route will remain the same Refuse normally picked up on New 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