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Page SECTION TUEHERAU Wednesday February IKS New tax rules sure to alter savers plans ByJohnWlthrowCA Have you thought about how for tax Canada will your retirement planning That just one of questions being asked about Mr Wilson June 18 While Paper proposal but Income contribution so for older taxpayers here is little thai can be done The interest and dividend ii a more fruitful area for tax planning ltprobablyapplicstomany of us and it may be to range to receive income to take full advantage of the ded ion for the Types eligible for RRSPs Only after we have teen the revised tax fomu and details of the sales tax changes the second phase of the Minister s ambiuoui reform package will we be able to make a final on how successful his have been It Is not too soon however to be able to assess how the changes In individual taxes will affect your re planning First there are no major changes for the 1987 taxation year so there is one more tax return to Tile under the Since two deductions will appear at the end of this year how ever you may wish to arrange financial affairs to take full advantage The two deduction being dropped are the employment expense tion maximum and the inter est and dividend deduction a mam mum 000 The employment expense deduc tion applies only to people who are still working whether full time or SAME DAY TAX RETURNS mi 8772217 use the deduction fully but have Canada Savings Bonds of the type where the interest compounds instead of being paid each year youmaywish to report the interest for to use the SI 000 deduction fully If you will be retiring shortly Registered Retirement Savings Plans may be a major factor in For 1987 and the current maximum contributions still apply But in the contribution limit under present proposals will be changed from per cent of earned income a maximum to 1 8 per cent maximum for people without employer pensions The maximum contribution of originally scheduled to be phased in by has now been postponed until at least 1995 advice on TV see Your Wealth available on broadcast chan in Ontario and on satellite across Canada Money in the Bank on your community cable channel Moncycarc is general financial advice by Canadas chartered at John Is retired and living in Toronto Registered Retirement Plana are perhaps the moat widely known and utilized tax inciter ft la important that everyone be aware of be contribu tion limits and of those sources of In come which qualify u a contribution Contributions to an qualify you for an income tax deduction You may deduct the lesser of the following three amount If as a consequence of your cur rent employment you are or may become entitled to benefits under a pension plan your limit la less your current and post service tributlotta to the plan Your limit Is in a deferred profit sharing In any other case the leaser in and per cent of your earned income Theemountoflhecantribution For purposes of contributions the expression earned income has a specific meaning It includes the following 1 Net salary and wages basics ly the earnings from employment box C of your slip minus the employment expense deduction unemployment Insurance premiums and union dues Contributions to the Canada Pension Plan the Quebec Pension Plan or company pension plan do not reduce net salary or wages that can be included as earn Income Taxable fringe benefits and tips should be Included in Net selfemployment Income In eluding copyright and patent royalties recaptured capital cost allowance and Inventory revaluation adjustments Net rental income from real pro perty including recaptured capital cost allowance ESS- JACK SOT Superannuation or pension benefits Including Old Age Security Canada Pension Plan and Quebec Pension Plan benefits Alimony or maintenance payments Retiring allowances Death benefits B Income from a deferred profit sharing plan Courtesy MuImI of Canada Y seminars offer investment tips The is presenting two Investment seminars in February and March The first one is called Understanding The Stock Market and It will be held Feb 29 at 7 at the cultural centre in Georgetown The second seminar begins March 7 at 7 at St Josephs Separate School in Acton The topic is Investment Strategies The cost is per seminar or for both ses sions Call Ac ton or Georgetown for more information The guest speaker Is Stephen Fagyas who works at Prudential Securities He is a stock broker with the multinational brokerage house He has years of investment experience in addition to senior executive positions in the private and public sector His associate Is Steve who has over seven years experience as a senior geologist with Amoco Canada Petroleum Company in both domestic and international oil industry His combined personal and business investment ex perience culminated in a full time application of his knowledge in the securities business He has provided in teresting and informative seminars to the petroleum in and more recently to interested investors Mr has attained senior management experience as a CEO in several parts of Canada complementing many years of investment experience The seminar Feb 29 will talk about understanding the stock market especially since Oct Topics to be covered will include how to develop an investment port folio and how to select common and preferred stocks bonds and debentures etc The seminar leader will also discuss how to read stock quotes financial reports and how to select a broker The value of discount brokers versus full service brokers will also be a topic of discussion The Investment Strategies seminar March 7 will cover the difference between saving and investing and how to compare investments Participants will learn the risk- reward analysis and how to safeguard against inflation and deflation Also discussed will be the different investment in struments and their various features UNDERSTAND IT DONTSIGN1X At Investors we work closely with vou to put together a plan tailored especially to suit your financial goals and needs Youll know exactly what you got If you need advice on anything from tax savings to investment oppor tunities to retirement planning 1 can help Call me today DICKRIDDALL 8773697 Investors DICKRIDDALL