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PROVEN PERFORMANCE SOLD 877-5165 874-3040 833-9714 879-0655 MARTHA SUMMERS Sales Representative reamed bik trplace, ‘staircase to full lower level with walkout. Ceramics in Kitchen and bathrooms. Shows beaut 92-2-420 RACES 260’ oniage. Wakout fom maser bedroom to ge deck. Solarium Kitchen, vaulted celings, pine foors. VEROORS RELOCATING 92.2-281 Ati tLe Wr a Custom home privately saa A ts miele tant acer, recs, 4 oo ty a =P Ne WoL. We 04 ACRE SEVERANCE S80 arr ‘ACRES south of Vilage. 5 stall barn, 3 lage lite - Country living, spacious | with main floor family room, stone fireplace in ling room, huge 2 pus car garage, lovely fot 922-440 County kitchen with brick replace, A must to rs am vacagl acres. cer buildi ith good access to 401. $150, 92-2-509 fryer pretwioos Subdivision on Hwy. #2¢ st Line East, 5 49 eee wath proposal for ees sion. $1 -2-390 Located south of Erin Vilage on paved road 8 bdms, ra country kitchen, fin- [shed rec. room, 24x40 Conand country. 10 ACRES. Saad Recentty renovated with bleached oak kitchen, bath- room with aege! sink, finished loft with dormer, hardwood and spacious on 2 ae Erin - custom esin nepiakebs chery ‘torng posous acres er stream, bush g Pes he 329,000. 92-2-548 Look at this garage. lami home has full inlaw suite on lower level wainscoting, custom pine kit. Private front & rear yards, 92.2-526 By George Perdue, B. Se. P. Eng. So, you are going to retire and let the Government take care of you. After all, you are entitled to Old Age Security (OAS) and the You did pay in, right? Well, with the turn of the cal- endar year the "clawback" of the OAS benefit jumped to its maxi- mum rate of 15 cents for each dollar of net income in excess of $53,215 up to the aperatimate, $4,000 maximum OAS you could collect. Last year the ae was 10 cents on the dollar. How did that 50% tax increase feel? Since inflation occurs, the threshold at which the clawback occurs is at an increasingly lower level of income or buying power. This happens even though the income threshold is partly indexed. So eventually even fairly modest income earn- ers will lose their benefits - either OAS or family allowance. In order to minimize the effect of the clawback it is important to maximize registered retire- Canada Pension Plan (CPP). ment savings plan (RRSP) earn- ings and to level out future RRSP income through spousal RRSP contributions. This is a form of tax deferred income splitting. What is happening with the CPP? Well, if you look at your 1998 pay stub you will see that the CPP deduction increased again. In fact, it has gone from 2.1% of earnings of each the employee and the employer - a total of 4.2% - in 1989 to project- ed total of 10.1% in the year 2016! This is a staggering per- centage increase far in excess of the current inflation rate or gains in your personal income rate. This is another example of how that tax burden is increased at a faster rate than most people's incomes. Yes, CPP is a form of tax. In this case your tax money is being-used to pay for a pro- gram that you may, if you are eae be able to benefit in the future. I say "may’ bbeatine these dollars are not being set aside to pay for your retirement, rather they are being used to pay today's Planner, Business Consultant, retirees. In 1986 Canada's chief actuary said the CPP fund was short some $230 billion. With the aging of the population through the baby boom it doesn't take a rocket scientist to realize that more retirees per worker will put an even higher burden on the fund in the future. Hence the increased contributions. So you had better be providing some other form of retirement. Since pensions are fast becom- ing the sole domain of govern- ment and big business employ- ees, and government pension benefits are in jeopardy, RRSPs are an increasingly important cornerstone for providing retire- ment income. They provide both a tax deferral and tax sheltered investment compounding. This results in a dramatic increase in wealth compared to an invest- ment outside an RRSP that is subject to full taxation. George Perdue is a Financial and Partner in Money Concepts, Halton Hills. He can be contact- ed at (416) 873-1877. Real Estate This Week, Wednesday, January 6, 1993 —- Page 5 247 Guelph Street, Georgetown Let Larry Barnstaple* bring one million viewers to your home via Roger's Cable TV. 877-5165 874-3040 SasRanantie Toronto Res. 519-833-9578 3 bedroom bungalow in one of Erin's better neighbourhoods. Gleaming hardwood floors, very private well treed back yard, Sunny’ kitchen and finished rec room. Asking ‘$184,900. features ensuite, oom plis walkout to | On 89 acres, large bank barn, indoor riding arena, 38 stalls, stream, pond, 5 acres of bush. 92-2-485 pie porch, ie Frer, mah foot amy oom, de cr garage. Call any 874-3040 92-2516 $229,000 Asking - 3 bedroom bungalow on treed one acre lot. Stone fireplace, walkout to large deck, Hardwood Droadloa, 28 bats Akg $1600, 19.86 ha. Misty Wood sib sion in pare ‘thee with proposed pla fof subdivision. Close to Brampton, zener property. laveTvaval, 25 panoramic acres situated wel back off the #401 road in a secluded area. Three bedrooms, 4 and 3 pe. baths. Walkout basement with two | [Ml only 2 miles north of the 401. Roling land, tockad a beautiful forest, workable lands, fantastic ood road frontage. Call Larry 874- $89,900 only 10.6 beautiful acres, Great Views, trees, close to Hwy #9 and Airport Road. Power of Sale, allen Lany. Located in Halton 1 3/4 acres on paved road water, gas & sewers Asking $99,000 cre farm with bank bam 15 min to {Only 229,000 on 7 resort-like acres in Terra Cotta. Minutes to "GO* Train. 2-464 me, jane basement, oak kitchen, main floor peer feniy mom 82-2428 | Mi pon't miss this one! ‘with fireplace. Spacious three bedroom link home with k yard backing onto park land Finished rec room with eae in kitchen with patio and deck, floor to ceiling brick fireplace and three king 92-24 189,