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

"Scugog's Community Newspaper of Choice" A timely service from Royal Bank. Royal Bank wants to be available when you are to discuss your retirement savings plan, so we are extending our hours. And a fully qualified RSP advisor is available to assist you with this important financial decision-making. ] 210 QUEEN STREET, PORT PERRY Wednesday, February 18 and Thursday, February 19 4:00 pm - 8:00 pm Saturday, February 21 9:00 am - 1:00 pm Wednesday, February 25 and Thursday, February 26 4:00 pm - 8:00 pm Saturday, February 28 9:00 am - 1:00 pm Monday, March 2 open until 6:00 pm Phone (905) 985-7316 for appointment 8 ROYAL BANK -- 3 To : A Poo 57.00 7 =< JY EY BV I I BE oll ' w-- Ln ---- Man RELAIS Sa $3 iv NE a DY ELLs A savings plan When one spouse earns more than the other, or both spouses earn the same amount but one has a pension plan at work and the other doesn't, an imbalance in the amount of income each spouse is saving for their retire- ment may result. If one spouse has accu- mulated significantly more money than the other, that spouse will be drawing a higher income at retirement and paying income tax at a higher rate. Reducing the family tax bill is simple: the higher income earner should have directed all or a portion of their RRSP contributions to an RRSP in their spouse's name. This is called income splitting using a spousal RRSP. The goal of income splitting is to ensure both spouses have an equal' amount of money to draw from at retirement. By shifting money from the higher income earner, you are reducing that spouse's tax rate and thus, paying less overall tax. The tax deduction for contributions made to a spousal RRSP is taken by the original spouse, but the RRSP is owned by the other spouse (the owner). Total RRSP contributions to a personal or spousal plan cannot exceed the contributor's annual limit. Hints and Tips * Common-law spouses (two people of*dpposite sex who have lived together longer than one year) can also take advan- tage of spousal plans ® You can still make a contribution to a spousal RRSP is you are over age 69 under two conditions: your spouse's age is less than 69 and you still have RRSP contribution room. * Your spouse does not have to earn any personal income in order to set up a spousal plan. ®* A spouse can have TOR € a vue Lu 4 lS ARS built for two two RRSPs -- personal and a spousal. Caution: . Tax Trouble Ahead If you are saving money in a spousal RRSP just so you can then with- draw it at your spouse's lower rate, be warned: You may be heading for tax trouble. If you con- tribute to a spousal plan in the year of the with- drawal or two years pre- ceding it, the contribu- tions you have deducted during those years are added back to your income and taxed in your name. Special rules apply on death, separation, or if the funds are used to pur- chase an annuity or transferred to a Registered Retirement Income Fund (RRIF). Brian J. Evans, Financial Services Phone (905) 852-3184 e-mail: bjevans@inter- hop.net 38 Toronto St. N., Uxbridge Choosing your RRSP beneficiary SHEPHERD & POWEL] __ CHARTERED ACCOUNTANTS ACCOUNTING, INCOME TAX, FINANCIAL and ESTATE PLANNING & CONSULTING SERVICES geared to INDIVIDUALS ~ SMALL BUSINESSES ~ FARMS TAX RETURNS PREPARED 'E-Filing' At No Extra Charge Assistance In Filing Government Forms & Returns New Business Planning & Startup Experienced, Courteous Staff Evening & Weekend Appointments Available FREE INITIAL CONSULTATION * PERSONAL, CONFIDENTIAL SERVICE DAVID R. POWELL, B.COMM., M.B.A., C.A. 250 Queen Street, Port Perry 985-3832 (next to Shoppers Drug Mart) LL -- SCUGOG FINANCIAL | -- SERVICES INC. GUARANTEED INVESTMENTS Annual Rates e -------------------------- a GIC 1YEAR......eeeeeeeri 2.85% 2 YEAR ......comrmerererennrssrsoosoons 5.05% 3 YEAR.......ereveereeerann..... 5.05% - 4 YEAR.........evrecvereeereennnnn.. 5.15% 5 YEAR........eeeeeeeerenn..... 5.30% 30 DAYCASHBLE ce rerenerneerecnnsnnsnnennn 8.30% Rates subject to change without notice "Serving Scugog For Over 15 Years" 250 Queen Street, Port Perry * 985-3832 (next to Shoppers Drug Mart) A Beneficial Decision Your choice of beneficiary actually dri- ves how your RRSP assets will be han- dled upon your death. Your spouse as beneficiary. RRSP assets can be transferred tax-free to your spouse's RRSP as long as your spouse is under age 69. If your spouse is over 69 the proceeds can be used to purchase an annuity or Registered Retirement Income Fund (RRIF) for your spouse. This applies to common-law spouses as well. Your estate or someone other than your spouse as beneficiary. Your RRSP will be included as taxable income in your last tax return, much as if you had cashed in your RRSP just prior to your death. Exceptions. Special rules apply if you do not have a spouse when you die and if your beneficiary is a child or grandchild who was financially dependent on you. Your RRSP with Great-West. If you name a person as beneficiary, proceeds from your Great-West RRSP, will be paid directly to that person without going through probate. This results in savings for your estate and more money for your loved ones. Courtesy of, Brian J. Evans Financial Services solutions that are ri for you! Call us now to arrange an appointment during our SPECIAL HOURS IIR. FOR RRSP SEASON We'll be open February 25 - 26 - 27 bY ! / Sat, Feb. 21 & Sat. Feb. 28 10:00am to 2:00pm J i TBC 145 Queen St, Port Perry ght Investment Se, Re. 9:30 till 8.00pm (905) 985-4444