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TKEHEHALDOUTLOOK Novembers lMt Paget Outlook on Business A well kept secret For some reason or other profes sional adviser be they tax plan neri financial writers accountants lawyers bankers etc have never latched onto the secret that Is available through Investment funds Why It is a secret I don know We have been proclaiming It and sharing it with people fir over years and people have been enjoy Ins the results for GO years It called a withdrawal plan As the name Implies It Is a withdrawal of assets usually on a monthly basis giving you a monthly Income that Is virtually tax free Furthermore you can have any it come you desire per month and you con increase or decrease the amount paid to you any time you wish or extract a lump sum In addition any time you wish In other words Us completely flexible and can be tailored to your Immediate and alio unknown future The withdrawal plan gives almost completely fax free Income whereas Interest Income from a savings Institution or mortgage comes completely taxable Hopefully all of us save or the future and that future is called retirement In retirement we want a monthly Income That is what a withdrawal plan provides How docs It work Let look at a comparable exam ple Suppose you decided to pur chase a IX acre farm It was valued at per acre therefore Its total cost was 000 But land values continued to rise and you soon discovered your farm was worth too per acre thus the value was OUR LANGUAGE by Jeffrey McQoain A word etymon Is the earlier term from which that word Is derived The etymon of tratk comes from Old En glish and that the Sharp pangs or hard struggles in volve throes pronounced like throws Don struggle with throes which is a good word to toss around A Greenmatl involves buying large amounts of a companys stock so the company to avoid being taken over must buy back the stock at a higher price The green of may re fer to money but make no mistake- The word is based blackmail now HO But you needed money so you decided to sell off nine acres This you 100 equals to with as you liked Now ask yourself the question How much of that BOO would be taxable It funny but 99 per cent of people asked give us a wrong answer Let examine The Is con as return of principal After all you used after tax dollars to buy the farm and you paid per acre so there Is no tax on getting value by per acre so you have a capital gains of Only twothirds of capital gains arc taxable In this case It means 23 equals subject to in come tax if you were in the maximum per cent tax bracket the tax payable would be Where else could you receive and pay a maximum or less tax of tin If you earned interest of 900 and were In the per cent tax bracket your tax payable would be M45S Finally the value of your form before the sale was You sold off worth so what you have left is worth 100 which Is slightly more than your original In You have money In your pocket and still have your original value Here an exact example of what has happened during the past years on a withdrawal plan in Templeton Growth Fund Assuming an Investment of 100 on January 1 1968 or move the comma over and make It and you wanted a one per cent per month which Is II per cent per year Income from that Investment At the end of years you would have received cheques of per month and lhal income would have com with little taxation because It was derived by wiling off shares acres The of your mvraime farm left is And If now decided you wanted one per cent per month on the present value you would be get ling per month which Is annual with very you know the For a free pamphlet withdrawal plans contact Peter C Cleaning up Clutters celebrated with an embroidered cloth Store the opening or Heir third In owners centre and Saturday Major her husband Waal now roar Miller right there to in the Hills area draw winner left Herald photo Mai Georgetown IPs Or phone 7216 Paul J Rocket is author of the best seller Why im est in Mutual Funds and president of Regal Capital Planners Ltd Balloons Party Supplies Christmas Balloon Arrangements Christmas Window Wall Decorations Gift Wrap Bows PteAerifo 124 MAIN ST SOUTH GEORGETOWN a table Soon CAROL BOOK Contains the words to all of your favourites Great for use in classroom church groups or for Christ mas parties etc Call before Decem ber 2nd and reserve your extra copies with compliments of the season from the HERALD Home of Hallon Hills Established