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

February 10. 199 By MIKE PRATT Special to the Beaver “ .rour RRSP can grow to a value of several hundred thousand dollars or more over your working life, but only if you handle your money effectively. Here are our Eight Winning Tips for managing your RRSP successfully. Stick with them, and you‘ll never go far wrong. . Make your maximum allowable contribution. The majority of Canadians who have RRSPs fail to take full advantage of their available deduction room each year. That‘s the most costly RRSP mistake you can You lose more than your tax deduction for the amount not conâ€" tributed. You also lose the years of taxâ€"deferred compounding your missed contribution would have added to the plan. n idea which has really come Aof age lately for Canadians is to invest outside of Canada. But for many Canadians â€" their investments are often limited with their R.R.S.P. â€" which cannot conâ€" tain more than 18% foreign content. This creates a problem because a lot of investors these days are anxious about the future of our economy. Consider increasing RRSP foreign content Our dollar has been extremely weak of late and our deficits continâ€" ue to soar. So, if you really are conâ€" cerned about having your assets stuck in Canada (or Canadian Dollars), how can you get around the 18% foreign content rules? THE BEST RRSP RATES + DAILY + GUARANTEED At Syd A. Vince Financial Services, we monitor more than 900 rates on G.1.C.s, shortâ€"term deposits aond guaranteed RRSPs â€" every day â€" from more than forty tust companies and chartered banks. What‘s more, we assist you to get the best insured rates and the best terms at no charge to you. Call us A it ATAMA _Sy_(! A' 60 REbecca St. Today, reaching the summit of business &smgmmmmsw to get you to the top... ifi'“rfi;io?fiktdhdmeriglamommgfinh: one that‘s i helj make those dedisions that mmwdlequpped p you tough At BDO Dunwooady Ward Mallette, we‘re more than your accountant, m’reyoubxflmsadvisor.Wemnamdfifiufltta%&us.tadcb microcomputer problems and respond to complicated finandal When it comes to planning for business success, we‘ve got what it takes Some things never change. Just like we did last year and the three years before, we‘re offering an RRSP rate higher than the 5 major financial institutions in Canada.* Find a higher posted rate, and we‘ll beat it. It‘s that simple. Consistently higher rates, consistently better service. Let‘s tals, and we‘ll show you innovative ways to help that steep dimb a What Do You Do After You‘ve Given The Highest RRSP Rate®* 4 Years In A Row? 845â€"9793 BDO Dunwoody Ward Mallette has oner 100 offices across Canada dedicated to "Helping Clients Succeed" ight tips to make your RRSP a winner h Hongkong Bank of Canada Do It Again. those postec ind T.D. Bar Now, what can we do for vou? Vince Financial Services TRUSTEE IN BANKRUPTCY 151 Randall St., Oakville BDO DUNWOODY WARD MALLETTE INC (416) 849â€"4149 10 Dorval Drive 845â€"7 164 R B If you‘re unsure how much you‘re allowed to contribute, check the Notice of Assessment you received from Revenue Canada for your 1991 tax return. You‘ll find your 1992 deduction limit there. Deadline for contributions for the 1992 tax year is March 1, 1993. Contribute early. Most Canadians will be making their 1992 RRSP conâ€" tribution in the next few weeks. But a few smart ones will be making all or a part of their 1993 contribution. Getting money into your RRSP early in the year can add thousands of dollars in extra earnings to your plan over the years. And the greater your annual contribution, the more that early payments will work to your advantage. Your 1993 deduction limit will be based on your 1992 eamed income. If you‘re unsure how much you‘re allowed, make a partial contribution Well, here are a few suggestions If you don‘t like stocks in your RR.S.P., you can buy foreign curâ€" rency bonds of Canada governâ€" ments and companies. You can buy different maturity dates in several different currencies and, hence, have your R.R.S.P. funds 100% invested in foreign content. The & \ |Michael D. ) BUTCHER CIBC B it (corner of Wilson and Rebecca) x of Montreal RRSPs. Oakville ibank now. Put the rest of the money in the plan once you receive notification of your 1993 deduction limit. Try to avoid the carryâ€"forward. Any delay in contributing to your RRSP will reduce the effect of taxâ€" deferred compounding over time. That means less money in your plan when you want to start drawing income. The younger you are, the more costly the carryâ€"forward will prove to be, because of lost interest. For a 30â€" yearâ€"old who plans to retire at age 65, using the carryâ€"forward to delay a $5,000 contribution for three years will cost more than $15,000 in lost interest, assuming 8% annual growth. It‘s usually better to borrow to make your maximum contribution rather than use the carryâ€"forward, as long as the long is repaid within a same thing can be done for shorter term notes, daily money market rates, or even preferred shares of major Canadian corporations. This way â€" if the Canadian dollar drops in value relative to the other currenâ€" cies that you own (i.e. U.S.) â€" you stand to make a capital gain as well as the interest income from the bonds you own. To make the transactions even simpler, you can now invest with Royal Trust offers primeâ€"rate lnvesting in RSPs used to be simple. People normally bought Term Deposits and never gave them a second thought. Today people are reâ€"thinking their needs and looking for other ways to maximize their returns. Well, Royal Bank Term Deposits do give you an advantage that could help you retire richer. It‘s called "staggered maturity dates? If you vary your Term Deposit maturity dates monthly or yearly, you‘ll always have money available to take advantage of a rise in interest rates. They‘ll Show You RSP Investment Options That Can Make The Difference Between Just Retiring And Retiring Well. Our RSP Specialists Can Show You Different Ways To Achieve A Richer Retirement. (See ‘RRSP page 16) But that‘s only one option. Royal Bank RSP Specialists THE OAKVILLE BEAVER More Canadians Choose Royal Bank For RSPs. RRSP loans; ask for information at your branch. Diversify internationally. In 1993, you‘re allowed to hold up to 18% of the book value of your RRSP in forâ€" eign property. Take advantage of this rule. Adding more foreign content to your selfâ€"directed plan reduces your expoâ€" sure to the volatile Canadian dollar, increases your potential for growth, and reduces risk through diversificaâ€" tion. Set up a spousal plan. You won‘t get any immediate special advantage, because the money you put into a spousal plan has the same value for taxâ€"deduction purposes as a contribuâ€" tion to your own plan. But as a taxâ€"planning technique for future years, this is one of the best around. The government has made it increasingly difficult for spouses to split income to reduce taxes. Using a spousal plan is a safe and legal way to achieve exactly that goal. Use the pension rollover. There are only two years left (1993 and 1994) for this special government offer to taxâ€"shelter certain types of pension income. Make the most of it if you‘re drawing a pension now, because you can‘t carry this forward. If you don‘t take the opportunity, it‘s lost. You‘re allowed to roll up to $6,000 a year of periodic pension income from a registered pension plan or deferred profit sharing plan into a spousal RRSP. Unfortunately, Canada Pension Plan and Old Age Security Royal Bank RSP Investment Options Offered by prospectus only by Royal Bank Mutual Fund Services Inc Call 1â€"800â€"668â€"9700. ROYAL BANK payments don‘t qualify Manage your money to stay on track. One of the biggest mistakes people make is to forget about their RRSP dollars once the money is in their plan. Avoid that trap. Proper manageâ€" ment of your RRSP funds can add many thousands of dollars to the end value of your plan. Remember that because of the power of compound income over time, adding just one perâ€" centage point to your plan‘s annual Talk to them. Explain the kind of RSP returns you‘re looking for. They will show you Term Deposits, Savings Deposits, 10 noâ€"load RoyFund mutual funds* and Selfâ€" Directed RSPs that meet your needs and satisfy your goal of a richer retirement. _ If you‘re not getting options like these for your RSP portfolio, talk to the RSP Specialist at any Royal Bank branch. Or call. It could mean the difference between just retiring and retiring well. know what a well planned RSP portfolio can do for you. Where: Oakville Public Library 120 Navy St., Oakville Thurs., Feb. 11/93 7:30 p.m. Executive Vice President, Senior Financial Advisor Direct Line 340â€"6068 t Advanced Financial Concepts Mernitt H. Goddurd, HBA, ERIL, CEP. _ THE EQUION GROUP How To Solve The Problem of Low Interest Rates n»/ Thurs., Feb. 18/93 7:30 p.m. PAY LESS TAX EE SEMIN / Sponsored by A.F.C. DO YOU HAVE THE TIME AND KNOWLEDGE TO MANAGE YOUR RSPs? If not, create an‘RSP plan to maximize returns, wfiile lowering risk. Call for your complimentary consultation! return will make a huge difference Use â€" Retiring _ Allowance Rollovers. If you leave your job, whether voluntarily or not, and receive a lumpâ€"sum payment as a result, you may be able to roll part of the money into an RRSP and reduce the immediate tax bite. WEALTH CREATION, PRESERVATION & MANAGEMENT A special formula is used to calcuâ€" late the eligible amount. Be sure to check with your employer. Mike Pratt is the branch managing partner at Royal Trust on Lakeshore Road, Oakvilie. \/ *R 15