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UPDATE EDITOR: WILMA BLOKHUIS Forward announcements of non-profit and free events for Community Update to Wilma Blokhuis, Oakville Beaver, 467 Speers Rd., Oakville, ON, L6K 3S4; e-mail blokhuis@haltonsearch.com or call 905845-3824 Ext. 250. Free. Oakville Marlins, a Special Olympics competitive swim team, is looking for volunteer coaches. The Update Community team practices every Tuesday from 7:30 ­8:30 p.m. at White Oaks Pool, 1330 Montclair. Call club manager Linda Hickson at 905-827-5359 or head coach Bernie Cuzzolino at 905257-5114. Fareshare Foodbank is looking for high school students to help with a variety of activities related to its annual Thanksgiving Food Drive (Sept. 30-Oct. 15). Time spent volunteering can be applied to their required community service hours. www.oakvillebeaver.com Phone 905-845-3824 (ext. 250) Fax 905-337-5567 email blokhuis@haltonsearch.com · FRIDAY, SEPTEMBER 27, 2006 Please call 905-845-8014. Support Group for Recent Survivors of Automobile Accidents, every Tuesday night 7-8:30 p.m., starting Oct. 10 for eight weeks, Oakville Library Branch (to be determined). Support and advocacy for those suffering from physical and emotional trauma of an automobile accident. A place to vent feeling, exchange reactions and give mutual validation and support. Leader is a community member who has experienced the personal trauma herself and wishes to help others avoid needless suffering. Call Elizabeth, 905-849-0169, and leave confidential message. Donations to cover costs only. Mary Mother of God Parish 10th Anniversary Dinner Dance Fundraiser, Oct. 14: Mary Mother of God Parish, 2745 North Ridge Trail, Mass at 5 p.m., celebrated by Bishop Anthony Tonnos. Following Mass, dinner dance fundraiser at Holy Trinity Croatian Church Hall. Doors open at 6:30 p.m., dinner at 7:30 p.m. Silent auction, raffles, prizes, cash bar. Tickets $55 per person or $440 for a table of eight. (Ticket price includes sit-down dinner with wine at each table). For tickets call parish office, 905-3372184 or contact Brigitte, 905-849-7310 or Audrey, 905-842-5403. WEDNESDAY SEPTEMBER 27 Oakville African Violet Society, 7:30 p.m., Horticulture Room, White Oaks School ­ North Campus, 1055 McCraney, use west side entrance north of greenhouse. Visitors welcome. Call Barb Post, 905-8451550. Osteoarthritis and Rheumatoid Arthritis, free seminar with Dr. Elaine Soucy, rheumatologist, LeDome Banquet Hall, 1173 North Service E., presented by Halton Healthcare services in partnership with The Arthritis Society. Please call 905338-4379 to reserve a seat for this free event. Halton Multicultural Council AGM, 7 ­ 9 p.m., Bay Area Learning Centre, 860 Harrington, Burlington. Speaker: Khalil Ramal, Parliamentary Assistant to Mike Cole, Minister of Citizenship and Immigration and video highlighting HMC's Diversity Training. Call Halima Omar, 905842-2486 ext. 21. CARP: Canada's Association for the 50 Plus, 7:30 p.m., Burlington Seniors Centre, 2285 New, Central Park, Burlington. Speaker: Cam Jackson, MPP Burlington, who is listening to `seasoned' citizens? Refreshments. Call Harry, 905-335-5717. HAPPEN ­ Linking People and Opportunities networking support group for business professionals in career transition, 8 a.m., Burlington Art Centre. Speaker: Judy Suke, creating a powerful infomercial. Members $10, non-members $15. Call 905339-0268 or www.happen.ca. THURSDAY SEPTEMBER 28 VON Halton is starting a 10-week Hospice orientation program Sept. 28 - Nov. 30, 6 -9 p.m., for those who want to become new VON Hospice volunteers. Volunteers provide emotional support and friendship, outings, caregiver relief for family members, crisis support and bereavement follow-up support. Training is free of charge and open to both men and women. Call VON Halton, 905-827-8800 ext. 2312 or 2313. Register for Alpha Course by calling Mary Mother of God church at 905-3372184. Alpha ideal opportunity for anyone and everyone to explore the Christian faith in a relaxed setting over 10 thought-provoking weekly sessions. Alpha Introductory Dinner, 6:30 p.m. Weekly sessions run Wednesdays beginning Oct. 4 from 7-9 p.m. Ghost Walks, Thursdays Sept. 28, Oct. 5, 12, 19, and 26, and Saturdays Oct 6, 21 and 28 at 7 p.m., and 8 p.m., at Oakville Historical Society, 110 King. Cost: $12 adults, $6 children. Reservations recommended, call 905-844-2695. Apprenticeship Information Session, Skills Training Centre, 407 Iroquois Shore Rd., Room A13. Please call 905-845-9430 ext 8160 to register. 18 Oil and Gas Tax-Preferred Investments It All Flows Through Five key risks to manage for successful retirement income planning. The concept of a flow-through share can be difficult to understand. To promote the development of oil and gas and other natural resources, the government of Canada allows Canadian natural resource companies to fully deduct specific exploration expenses, known as Canadian Exploration Expense (CEE). Many of these companies issue flow-through shares to raise capital, and in turn renounce CEE to shareholders. Investors can buy units in a partnership that in turn buys shares in the companies, party to an agreement for this CEE sale. Some flow-through structures include shares in privately held production and exploration firms not available on the market. The tax credits are realized by the unitholder, writing off up to 100 per cent of the total in the original year of investment, and in some cases, additional benefits can be available in the second and following years. Once these up-front tax benefits are exhausted, one option is to roll the holdings in the limited partnership into a mutual fund, with no immediate tax consequences to the investor. Since the investor enjoyed a full tax deduction over the two-year hold period, the units of the mutual fund carry an adjusted cost base of $0. If these mutual funds are sold, the investor would face capital gains on the entire balance, because of that $0 cost base. At current marginal tax rates, Ontario-based investors will likely pay approximately $0.23 on the dollar. There are many ways of using flow-through investments in your portfolio. The chief benefits are tax deferral and the ability to turn income from any source ­ personal or business ­ into capital gains, which are taxed at a much lower rate than earned or interest income. Tim Trian, CFA - Portfolio Manager Laura Trian, C.A., CFP CIM - Investment Advisor , 200-2908 South Sheridan Way, Oakville Tel: 905-829-0600 Visit us at http://teamtrian.dundeewealth.com Anthony Spadafora yp Mortgage Specialist Call Me for the Best Mortgage Rates! Direct 416 895 8610 Office ­ 905-828-1122 anthony@assuredmortgage.ca www.bestmortgage4you.ca 6509-C Mississauga Road, Mississauga, ON L5N 1A6 Rates are based upon approved credit and can change without notification. 5 year 5.29 % 7 year 5.43% Peace of Mind ... ... the most Valuable Service we Provide Here are four examples of how flowthrough investments can be used to benefit investors: EXAMPLE 1: Putting capital losses to use. Anton Tucker CFP, FMA, FCSI 905.330.7448 anton@tridelta.ca www.tridelta.ca OAKVILLE NORTH YORK MISSISSAUGA THORNHILL An investment in a flow-through limited partnership turns current income into future capital gains, which can be used to offset any caputal losses realized and or unrealized. It's a way to put any capital losses you may have to use by offsetting those capital gains incurred on the flow-through investment. Here's a simple example. Consider an investor who puts $100,000 into an equity that subsequently lost 75 per cent of its value. that holding is worth $25,000, and the capital loss is $75,000. A $100,000 investment in a flowthrough limited partnership reduces income in that first year (see example). 2), providing an immediate tax saving (assuming they have taxable income greater than $100,000). After two years, the flow-through investment will likely mature into a mutual fund, which can be sold. At that point, the ACB is zero, and the mutual fund holdings could be worth more or less than $100,000, depending on the performance of the partnership holdings. For simplicity, let's assume it's still worth $100,000. The sale of those funds will result in a capital gain of $100,000, of which $75,000 can be offset by using the carried forward capital loss. That results in a net capital gain of $25,000, a taxable capital gain of about $12,500 and tax payable of about $5,800 (using a typical marginal tax rate of 46.4%). Adding it all up, the $100,000 flow-through investment has resulted in an investment worth $100,000, first-year tax savings of $46,400 and a tax bill of about $5,800. OAS payments are clawed back, for example. In this situation, some people opt to withdraw or de-register a portion of their registered accounts to collapse the size of the account and avoid future income. This means they have to take the amount withdrawn into income in that year and pay the required amount of income tax. If the investor were to take these funds and purchase shares in a flow-through investment, they would enjoy the tax deduction and hence turn this withdrawn and realized income into capital gains. Another similar scenario may occur for investors who already take income from a Registered Retirement Income Fund or annuity. If the income is not needed to preserve a lifestyle or provide life essentials, again the income can be invested in flow-through products to offset the taxes. EXAMPLE 4: As a cash-on-cash generatin machine. The power of flow-through investing can be compounded to generate freeflowing cash for years from a simple investment made over a two-year period. Many investors follow a simple plan of liquidating the mutual fund securities held after the partnership is closed and investing those proceeds in another limited partnership. there will be capital gains taxes to be paid, but there should also be a very attractive after-tax return available for reinvestment, and further benefits. These are but a few tax and investment management strategies made possible by using flow-through shares. There are a number of risks associated with these investments and of course it goes without saying that the informed investor will always review and read carefully the information contained in the offering memorandum or prospectus of any flow through offering before investing. Potential investors are also advised to consult their tax advisors before investing. For more information on flow-through investing please feel free to contact Tim Trian, CFA Portfolio Manager, Dundee Securities Corporation, Member CIPF at 905-829-0600. This article was prepared by Tim Trian who is a Portfoilo Manager with Dundee Securities Corporation, a Dundee Wealth Management company. This is not an official publication of Dundee Securities and the veiws (including any recommendations) expressed in this article are those of the author alone, and they have not been approved by and are not necessary those of Dundee Securities Corporation. EXAMPLE 2: Lower taxes for high-income earners. An individual in the highest tax brackets will enjoy the benefits of an investment in flow-through shares as the deductions created on any income source effectively turns earned income into capital gains. Only 50 per cent of capital gains are taxed, so an investment using after-tax dollars allows the investor a chance to write off 100 per cent of the amount of the investment over two years and "get back" half. Consider a case of an investor earning $200,000, who receives the income in four equal quarterly payments of $50,000. These payments require a matching tax installment payment of $23,200. If the individual were to purchase $50,000 in flow-through shares, they would be entitled to write off the entire amount, effectively wiping out the taxes due. That is an extreme example, but any amount purchased will offset some degree of the taxes payable. Members of professional partnerships who may be forced to include previously realized and deferred income may be interested in the income offsetting tax deduction. This situation would also apply to retirees, who receive income from pensions, annuities and registered accounts where an income stream has already been realized. Column Provided by EXAMPLE 3: Control the taxes on income from registered accounts. Investors who have a very large registered plan may look for methods to reduce their income prior to retirement. One practical consideration is that these investors may want to ensure that their income stays below a level at which The opinions expressed in this column are those of the author and do not necessarily represent the views of this newspaper. Job Shop, intensive, results focused, free service for unemployed adults can help you find work. Information session at 465 Morden, Unit 109, 9:30 - 11:30 a.m. Call Centre for Skills Development & Training at 905-845-1157 ext. 101 or visit www.thecentre.on.ca. FRIDAY SEPTEMBER 29 Optimists 25th Annual Shrimpfest, at Le Dome. All-you-can eat (shrimp or roast beef) event with live music for listening and dancing starting at 6:30 p.m. Tickets, $50 for dinner and dance. Door prizes. Call 905-8499824. Volley Ball every Friday night, Glen Abbey Recreation Centre, 8 ­ 10 p.m. Call Ilze, 905-845-8953 or Kristina, 905-8494864. SATURDAY SEPTEMBER 30 Oakville Ukrainian Festival at St. Joseph's Ukrainian Catholic Church, 262 Maple Grove, 11 a.m. ­ 5 p.m. Ukrainian dancers Barvinok, children's entertainers Barabolya, children's village, Ukrainian food, beer garden, raffles, silent auction and more. Contact Oksana, 905-469-1113 or see www.tserkva.ca. 2nd annual Historic Pioneer Church Tour: Follow the steps of the saddlebag preachers of the early 1800s, 10 a.m. ­ 4 p.m. Churches include Bethel, Lowville, Nelson, St. John's (Burlington), St. Luke's, Palermo and Knox 16. For tickets, $15 single or $20 couple (children free), call 905-335-0911 or 905-632-7076, or pick them up at Bookers, 172 Lakeshore E., or at churches. Canadian Red Cross Standard First Aid & CPR Course, two-day course, Sept. 30, and Oct. 14, 9 a.m. ­ 4 p.m., Adult Learning Centre,171 Speers, Unit 1. Cost: $130 (includes First Aid Vital Link Manual and certification card). Full CPR certification course, includes infant, child and adult CPR level C, conscious and unconscious choking. Mandatory attendance required. Registration is on a first come first serve basis. Call Shawn Spalding to register, 905632-5858. SUNDAY OCTOBER 1 Open Doors: The Kensington, Trafalgar Lodge and Churchill Place Retirement Residences open their doors, 11 a.m. - 4 p.m., for open house and fundraising events in support of Heart and Stroke Foundation. The Kensington, 25 Lakeshore, a Westernthemed Fall Fair, featuring caricaturist, fiddlers, a clown, popcorn and other refreshments and appearance by Walter Gretzky, Trafalgar Lodge, 199 Randall, Renovations workshop with presentations by Sue Warden and Churchill Place, 345 Churchill, presents Taste of Churchill Place, including music from the Oakville Jazz Ensemble, wine tasting and hors d'oeuvres. Oakville Historical Society presents its guided Historical Walking Tour of the Main Street of Old Oakville, 2 p.m. This will be the last walk of the 2006 season. The tour covers the original business district with many buildings from the early to late 19th century. Cost is $12 each or $6 for children, including refreshments and tour booklet. Reservations requested, call 905-844-2695. For more information call by telephone or visit www.oakvillehistory.org. All creatures great and small are invited to a Blessing of Animals service at St Cuthbert's Anglican Church, Maple Grove and Oakhill, 1 p.m. Donations to the Oakville Humane Society gratefully received. Open House, Garage Sale and hot dogs, 10 a.m. ­ noon, Wyndham Manor, 291 Reynolds.