The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

- A « AT pe { * Rh PO py Re SE SS --, r 4 WEDNESDAY. AUGUST 9, 1995 FARM & RURAL LIFE New event for young farmers Autumn Profile dairy and beef show to be held in Markham The 1995 Junior Farm- er Autumn Profile, a dairy and beef heifer show, will be held Oct. 28 at the Markham Fairgrounds in Markham. This new show is open to Junior Farmer members 15 to 29 years of age and Junior Farmer Alumni members. The goal of the competition is to encour- age participation by young agricultural enthusiast. Profile '95 will feature conformation classes for nine beef breeds and five dairy breeds. The competi- tion is open to heifers of the following breeds: An- gus, Blonde A'quaitaine, Charolais, Hereford, Lim- ousin, Maine Anjou, Sim- mental, Shorthorn and Beef Crossbred heifers as well as Ayrshire, Brown Swiss, Guernsey, Holstein and Jersey. Showmanship classes will also be offered for both beef and dairy and will be divided into two age cate- gories. Junior and Senior Showmanship will include competitors aged 15 to 21 and 22 to 29 respectively. Competitors with less ex- perience may enter the Novice Showmanship class. As an added attrac- tion, an Alumni Show- manship class will be open to members of the JFAO Alumni. Held in conjunction with Profile '95 will be the JFAO Provincial Judging Competition on Friday AUTO ELECTRIC )) Marine * Industrial * Farm Sales and Service 2. Starters /, Generators 4Alternators / Regulators Hwy. 36 Auto Plaza, R.R. #3 (705) OAKWOOD ELEVATOR DIVISION OF SUNDERLAND CO-OPERATIVE offers: (red & white) OAKWOOD 705-953-9660 SUNDERLAND 705-357-3491 1-800-668-2626 e Complete Elevator Facilities (drying and conditioning) e Grain Marketing (including forward contracts) e Handling: Oats, Barley, Soybean, Corn & Canola e Agents for Ontario Wheat e Off Farm Grain Marketing e Also Feed & Farm Supplies HARVEST HOURS AT HARVEST TIME! Before you buy - give us a try Lindsay 878-3701 co-op) evening, Oct. 27. The judg- ing competition 18 open to 4-H and Junior Farmer members and past Junior Farmer members. Com- petitors will judge classes on a variety of agricultural commodities including livestock and field crops. Both competitions will conclude on Saturday eve- ning with a banquet and dance. If you would like to par- ticipate in this exciting new livestock show or judging competition, please contact either Jen- nifer Barton at 613-678- 3101 or Craig Steven at 519-786-5453 for entry forms or for more informa- tion. Deadline for entries for the livestock show 1s Sept. 15, 1995. Anyone who is not a Junior Farm- er or JFAO Alumni mem- ber and wishes to partici- pate may join, contact Robyn Garlough at 519- 767-3269. The Junior Farmers' As- sociation of Ontario 1s an organization for youth 15 to 29 years of age, with the mission of "Building Fu- ture Rural Leaders through Self Help and Community Betterment." CR( pL 5 [o1V]; Service Available through clo inle NEN elo] [SH=E 5 OLS a F=17-TO [o] SEC =] a To] a [INSISTS THC § ard Authorized Dealer AGRIMETAL ¢ BADGER ee SMALE ee RISSLER ~ THE PORT PERRY STAR By Bob Brozina A monthly column on Financial Planning for Farmers THE POOR MAN'S ESTATE Mention the word "Estate," and most people picture the wealth of Howard Hughes or Aristotle Onasis. The redistribution of so much money will obviously have profound impact on many lives. People naturally accept that anything so important should be guided by a carefully crafted estate plan...and it often is. However, when it comes to our own estates, many of us assume that our assets are too few to plan for or that planning would be too expensive. Nothing could be further from the truth. In most cases it is the lack of planning that becomes expensive. The average man loves his family no less than the millionaire. His dreams are no less important. In fact, it is probably more important for a poor man to allocate his few resources carefully than for a man with money to spare. The good news is that, with proper planning, most people can afford estates that can meet their obligations, complete their dreams and even provide ongoing income for the surviving family. Do an estimate of your own estate's cash needs. This is the money your executor will have to spend right away. Estimate an Immediate Money Fund (about 50 per cent of your annual income is average). This should cover burial expenses, probate costs, income tax, executor's and lawyer's fees. Add the full amount of any outstanding, uninsured debts, loans, bills and notes. The cheapest way to house a family is usually in a paid-up home. Include the cost of a home or the outstanding balance of your mortgage. Add money for an emergency fund for unexpected bills and to leave your family with the cushion of a bank account. If you have children and expect your spouse to work after your death, add the cost of child care while your children are young. If education after high school is important, budget for the cost. University and residence can range from $10,000 to $15,000 per year per child! The Total Cash Needs above should cover the executor's initial spending, but you have not yet provided for the family's income. Determine the annual income your family would need without you. Take away any income your spouse is expected to earn and any income that would continue from other sources (e.g. CPP survivor pensions). The remaining income, iF any, will have to be provided from investment of your estate. By dividing this figure by a reasonable rate of interest, you end up with the amount of capital that your family will need to invest to meet income expectations. For example, if you determine an income shortfall of $10,000 per year and feel that your widow could earn 6 per cent on investment, you would have to leave her $166,666 to invest to make up the shortfall. The total of the cash needs and the capital required for investment comprise the total estate capital requirement. Subtract from this the market value of all your assets that can be turned into cash for use by the estate. Include all cash, investments and equity. Do not include the value of any assets that are to be given away or that are to be kept intact by your heirs (e.g. the equity in a house that is to be kept by the family). Typically you may find that your estate may need far more money than you ever expect to be able to save. This is where Life Insurance can be useful. For a cost of a few cents on the dollar, life insurance guarantees the cash needed by the estate immediately when it is needed. By using the Life Insurance Company's money to protect your estate, the balance of your income is free to be invested in RRSPs, mortgages, groceries and Nintendo. We may never live like Onasis but it is very possible for most of us to live knowing that our obligations will be met and that our families will enjoy a lifestyle we have assured for them. If you have any specific questions or suggestions for future "CA$H CROP" topics, please send them to Bob Brozina, c/o The Port Perry Star, 188 Mary St., Port Perry, Ont. LSL 1B7. Bob Brozina is a practicing Insurance Agent with North American Life in Oshawa. He is a Chartered Life Underwriter, a Chartered Financial Consultant and Director of Training with NALACO for Central Ontario.