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men - NEWER. AM-FM Stereo. 50 "att' MS as charms ma H4 WW. germ-automatic End 6828 cam-doe MtttSKm mo SPEAKERS. MttNttmrtrSPEAKErts, my: to9SO0. KHtast, cat assume. AM JVC R-KIO RECEIVER. AM-FM Stereo. 25 watts RMS Del channd r JVC Lato WARE. 'erm-automate: nth JVC magnum canndge JVC KD-DIO CASSETTE DECK. metal ready, Dolby N R JVC K0030 CASSETTE DECK, Dom C, mum-peak M03101 JVC 80-505. CASSETTE PORTABLE. AWFU Stereo. 3 short wave mason 70 SPEAKERS. PM Um. can boosts! amp-net. 20 units per t9tqrtrtqt MEN 13-006. cm wankers 6x9 three my: 40 watts - MEI! sumac. cassette Donate Aha-FM M a.” “RITA”. tnstrrshutott ben- tttttsq, tMthurtt-tntttte ‘5“. u. t. a _ um, 57””. Savings for the long term. This is money you‘re saving to buy capital items - a cottage. investments. start a business, etc. Make this your top budget priority. Before allocating any money for spending, plan to set aside 10% of your total net income every month as long term savings. You‘ll probably want to put some of your long term savings into some- thing liquid so that they are available in case of emergency - savings accounts, Canada Savings Bonds, short-term deposits. What you do with the balance will depend on factors such as your ability to take risks, need for liquidity, tax treatment of different kinds of investments. etc. A basic rule is to put your savings where they will grow. I usually suggest the following as the top ttve savings priorities: 0 'ttrut - one of the government approved tax-deductible plans such as a Registered Retirement Savings Plan (RESP). Contribu- tions are deductible from your taxable income. and income earned within the plan accumulates tax-free. Tax is paid when money is withdrawn, but, if you’ve planned well. this won't happen until you‘ve retired and your taxable income and tax rate are savings - those for current exbenses and those for the long term. . [ . Savhga ter current expenses are amounts set aside each month so that money is there to cover bulges in your spending pattern _ vacations, municipal taxes, club dues _ the bigger items that occur infrequently during the year. Last week I suggested that savings accounts be used to gather these savings. It's useful to think of two different kinds of na n " '100 ’18 Em FIE] C-90UD Caspftttflapes Our $599 system has a Ponce: 3x420 receiver. a clean 35 watts per channel. The turntable vs the Pioneer PL-4 With auto-shutoff and Excel ES28 canndoe Plus a pan of Pro-Tech V-310 10" 3-way speakers In- cludes 3 5 10 Year Extend- edWarranty RE " for maxell a Fifth. Look for opportunities to earn capital gains, as only 50% of the gain is taxed. Capital gains usually result from a rise in value of such assets as stocks and real estate. But bear in mind that the risks are greater than with the earlier-mentioned savings' plans. lower. . Song-d. Your first 31.0.. ot “taxable" interest. dividends and capital gains from Canadian sources is tax-free. To mun that 81.00 is earned each yen it's best to invest in savings accounts. G.1.C's, bonds " any high dividend or interest producing puns. q Fourth. Tax-deferred plans such as cash value lite isurance. certain mutual funds and real estate funds. Income accumulates tax- free and, on dispositiom. you can often arrange for it to he taxed at a preferred rate. Bob Copland is a chartered accountant and personal nnrtgte1at planning consultant with Executive Compensation Consultants. Kitch- ener. Your spouse is also eligible for SI.“ tax-free. If necessary you can lend him or her the money, interest-free. against a bone tide promissory note. q Third. Because the mortgage interest on your home is (usually) not taxdeductible. it makes sense to pay off the mortgage as quickly as possible. As the interest saved is not taxed, it is equivalent to tax-free in. come. Next week .... Year~end tax planning. Your mgney .' $3495