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16 Mistakes can be avoided by careful planning ood news from Revenue Canada?Hard to believe, but Revenue Canada has revolutionized the way Ontario consumers can file their tax returns in ©‘93, according to local Chartered Accountant (CA) Susan Brown. The same thing happens when people try to figure how much money they will need when they retire. They may determine that they will need about $75,000 a year, but they forget that they will still have to pay taxes. To have $75,000 a year, they may need an income of more than $100,000 a year. Inflation is also a very serious matter which most people do not properly plan. As an example, most peoâ€" ple should start seriously planning for retirement about 15â€"20 years prior to the event. Even if inflation averâ€" aged 5% during this time and you needed $75,000 income after tax to retire properly, then you would need $225,000 after tax income upon retirement to provide $75,000 in todays dollars. 9. PROCRASTINATING Procrastination ranks high on the list of reasons why people do not achieve the financial independence they want. What escapes these people is that their procrastiâ€" nation should be viewed as a decision by default. It‘s a decision not to decide! Brown says the new electronic filing system, called "EFILE," is a change for the better. Whether through perceived lack of information, nonâ€" specific goals, or fear of making a wrong decision, proâ€" $70,000, and spend accordingly Computer age comes to tax returns with ‘EFILE! As of last month, Revenue lt would be ideal if you could contribute your maximum to your RSP. Your returns would be that much more. If you can‘t contribute your maximum, borrow ing to do so could make a Benefit of contributi big difference in years to come. $5,000 Royal Bank RSP Specialists can show you how borrowing for your RSP can bring about substantial advantages. In fact with a Royal Bank Preferredâ€"Rate RSP Loan, the income tax refund you get could pay off the loan interest and even some of the loan. They‘ll Show You How Maximizing Your RSP Contribution With Our Preferredâ€"Rate RSP Loan Pays Off. â€"â€"~â€"â€"â€"7]/A tss U #753°% Our RSP Specialists Can Make The Difference Between Just Retiring And Retiring Well. (Continued from page 15) More Canadians Choose Royal Bank For RSPs. Canada began permitting 95% of Canadians to file their tax returns through authorized EFILE tax preparers like Brown. When a tax return is submitted electronically, Revenue Canada has said it will be able to issue most refund cheques within two weeks. Because it allows for processing efficiencies, the system could also make access to tax professionals considerably more affordable for Royal Bank Preferredâ€"Rate RSP Loan Tax and deposit interest rates shown are for illustration purposes c This example is based on a $5,000 loan repaid in 12 equal monthl installments of principal plus interest. Tax savings Taxâ€"sheltered Total benefit income % rate of returr tax bracket crastination wastes time in which their money could be working to achieve the financial success they seek. In short, procrastination costs money. Every year of delay either dramatically reduces the size of the ultiâ€" mate accumulation goal, or makes in increasingly more difficult to achieve. Compounding is extremely powerâ€" ful and can be a major influence in reaching your finanâ€" cial goals, but only if you get it working for you today. 10. ABDICATING RESPONSIBILITY TO YOUR FINANCIAL ADVISOR Always know where your money is being invested. And never give another person total control over your finances, even if you think that person is absolutely trustworthy. You deserve to retire properly. Be smart, by being in the minority. Learn from other people‘s mistakes and avoid their pitfalls. By not doing these 10 Mistakes, you will be able to retire faster or with a lot more money to enjoy life. You will also have peace of mind while planning for your retirement. Merritt H. Goddard, B.A. (Hons.), FR.1., C.FP. is executive vice president, senior financial advisor, THE EQUION GROUP, Wealth Creation, Preservation & Management 390â€"6068. Call 1â€"800â€"668â€"9700. ROYAL BANK Net benefit $2,172.56 ,000 400 400 those who would like to hire chartered accountant. "EFILE represents a tremenâ€" dous advantage for thousands of people," Brown says. "Because it is such a fast, efficient method of filing tax returns, it could allow an accountant to complete and file a simple tax return for as little as $45 â€" or less." Brown says that obtaining proâ€" fessional tax advice will likely Interest cost (8.14% p.a.) Total cost There‘s even a 90 day noâ€"payment option. It pays to borrow to maximize your RSP contribution. And Royal Bank‘s Preferredâ€"Rate RSP Loan is just one way to help maximize your $5.000 RSP investment returns. Ne x \’Q*/\W/\’\\')\ MCY Eies J hk i $227.44 44 THE OAKVILLE BEAVER Your Royal Bank RSP Specialist can show you even more. If you‘re not getting this kind of attention for your RSPs, talk to the RSP Specialists at any Royal Bank branch. Or call. It could make the difference between just retiring and retiring well. a result in even greater tax advanâ€" tages for many people, given that accountants are highly trained professionals who have an extenâ€" sive understanding of tax regulaâ€" tions. "People jokingly refer to Aside from giving more con accountants as ‘bean counters‘," _ sumers access to professional t: Brown says. "But when it‘s their _ assistance, EFILE will: beans we‘re counting â€" and savâ€" * allow for faster refunds ing â€" they generally sit up and * reduceâ€"filing errors becau: take note. We know where to look _ information is only keypunch« for tax advantages and what quesâ€" _ once, at the tax preparer‘s office tions to ask to maximize the * the tax preparer‘s office deductions. It‘s fine to do your * reduce postage costs tax return yourself ... but EFILE will mean more people can afford to benefit from topâ€"notch profesâ€" RRSP l 6 sional advice that could save exp an‘ them significant amounts of n RRSP, or a Register money over the long run." I\ cial Kind of tax free In addition, says Brown, that people tend to build up a relationâ€" ship of trust with their accounâ€" tant. "CAs tend to stay in the busiâ€" ness for years," she says. "We get to know what‘s going on in our clients‘ lives and what the tax implications will be of almost everything that happens to them â€" from moving to take a new job to educating their children; a spouse going back to work will have an affect as will a family illness. We‘ve got the inside track on savâ€" ing them money." Revenue Canada has already tested the EFILE program in many centres across the country. What started out as a pilot project in Manitoba in 1990 has grown to incorporate all provinces for the 1993 tax season. Aside from giving more conâ€" sumers access to professional tax assistance, EFILE will: * allow for faster refunds * reduceâ€"filing errors because information is only keypunched Who can buy an RRSP? Any person can purchase an RRSP with employment earnings, income from a business, alimony, or rental income. However, some types of income such as pension and deferred profit sharing plan income, investment income, capital gains, and retirement income cannot be used to purchase RRSPs. ’- n RRSP, or a Registered Retirement Savings Plan, is a speâ€" cial kind of tax free savings plan. When you contribute money to an RRSP, you are investing part of what you earn today, before tax, for your use in the future. What is the purpose of an RRSP? An RRSP is a tax shelter that allows you to postpone, or defer, paying income tax on the money that you contribute to the plan. An RRSP is also a means of encourâ€" aging you to save money for your retirement, when you expect your income to be lower. Where you can purchase an RRSP? You can purchase RRSPs from Trust Companies, Banks, Insurance Companies, certain Stock Brokers and Mutual Fund Companies, Credit Unions and Caisses Populaires. f Can I take my money out before retirement if I need it? RRSPs can usually be cashed in at any time you wish, but funds withdraw:i will be taxable in the year that withdrawal occurs. In order to take full advantage of all the tax benefits, you should only withdraw the funds when you absolutely require the money, when you require retirement income, or in the year you turn 71. To avoid paying the deferred income tax on your RRSP, you must transfer the money into another plan such as annuities or Registered Retirement Income Funds (RRIFs). RRSP explanation made simple This article was prepared by the Trust Companies Association of Canada. If you have any questions about assessment, if you wish to meet with an assessor, or if you want to know how to appeal your assessment, please call the Regional Assessment Office. The telephone number is in the Blue Pages under Government of Ontario â€" Ministry of Revenue â€" Property Assessment Information. Attention Property Owners and Tenants in the Regional Municipality of Halton The 1992 assessment roll, which lists the assessed value of each property in your municipality, will be delivered to your municipal clerk on February 23, 1993. Your 1993 municipal and school taxes will be based on this value. Drop in and see us, the coffee is always on. i. â€" AND, WE‘LL PAY THE PARKING. 1992 PROPERTY ASSESSMENT GIC, RRSP & RRIF 146 Lakeshore Rd. E. (at Navy St.) Oakville The final date for appealing your 1992 assessment is March 16, 1993. ) Ontario RATES SUBJECT TO CHANGE WITHOUT NOTICE DOMINION TRUST Member of Canada Deposit Insurance Corporation MATURITY OCT. /97 71.15% 338â€"1 113 Minimum $1,000 * save on paper * allow taxpayers to select direct deposit of refunds into their own bank accounts, thus eliminatâ€" ing the wait for cheques to arrive in the mail Revenue Canada has noted its future plans for EFILE include allowing automated payments by bank card, the processing of other types of returns (eg. corporate and trust returns and other filing options such as transmission sites in public offices and through home computers. ® February 199