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For instance, Vickers cites the example of two investors who make $2,000 contributions to their RRSPs â€" one at the beginâ€" ning of the year, and one at the end. At the end of 25 years of ‘meny Canadians, says Brian Vickers, Viceâ€"President of Midâ€" land Walwyn Kitchener, treat their RRSPs and their cars a lot alike. They buy them to get where they want to go and reguâ€" larly fuel them. Unfortunately, however, they don‘t always make the effort to get optimum perâ€" formance out of them. Vickers says there are a numâ€" ber of ways to get more out of your RRSP that are often ignored. Like many basic car maintenance jobs, they aren‘t hard to do â€" once you know how. First, don‘t wait to the last minute to make your annual RRSP contribution, as most peoâ€" ple do. Even putting some money into your plan in advance can hgye major payoffs. | N M Mdie " e ntmmmmmmmmtemmmmemmmmmmmcemee A+iists0000 1000 ad CIAIJ -’,XI:"“ * x: s iD PLANNER 01 Come and talk to the experts. Get more out of your RRSPs * Brightside Financial Services * Canada Trust (Location in the Centre) * Central Guaranty Trust * H.J.M. Insurance Brokers Inc. * Investors Group * Manulife Financial * Midland Walwyn Capital Inc. * Money Concepts * The Mutual Group * Prudential Assurance * Royal Bank (on the mall and bank location in the Centre) * Walkers Investments Inc. y ‘92 FINANCIAL & PLANNING SHOW â€" 3 and Friday 9:30 a.m. to 9:00 p.m. As well, under the new RRSP rules, you can carry forward . e on be able to remove income at a lower tax rate than it would have been initially taxed at. As a dependent on your spouse‘s tax form, you can withdraw some money vY‘ithoug paying any tax. At times, you may want to remove money from your RRSP, says Vickers. If your job income Sropsl-,lfor instance, you will likely earning 10 per cent annually, the early investor has almost $20,000 more in his plan, thanks to the effect of compounding. As well, Vickers says you may be able to take advantage of spousal plans. Under such plans, spouses can contribute to each other‘s RRSPs. By income splitâ€" ting with your spouse, you may drop into a lower tax bracket. As well, when you retire, you‘ll have two streams of income â€" and you‘ll pay less tax in total on both 9! tllz_e;m than if it was all from one etiagre scb en n memalliniinuage 2 unused contribution capacity for use in later years. Of course, you should keep in mind that if you remove money or defer payments, it can significantly reduce your investment earnings. There are some things you can do to make better use of your RRSPs that depend on your indiâ€" vidual â€" circumstances, Vickers says. For instance, you may wish to put your home mortgage into a selfâ€"direct RRSP. Your own mortâ€" gage is generally a safe investâ€" ment with a high return â€" and you‘ll be paying yourself the interest. In some cases it makes sense to borrow money to put into your RRSP, Vickers notes. The earnâ€" ings on the investment and tax refund can cover the repayment of the loan, depending on your tax rate and interest rates. To see how you can benefit from innovative uses of your RRSP, it‘s wise to discuss them with an investment â€" professional. Member Ontario Share and Deposit Insurance Corporation Waterioo Kitchener Cambridge 168 King St. S. 1336 WeberSt. E. 1315 Bishop St. 579â€"1860 8949700 622â€"3377 WATERLOO REGIONAL CREDIT UNION "Rate subject to change. Monthly interest available with mi $5,000 at the annual rate of 8 25% CE3Y dn CThek 1A . eol $ BA NS NY WY W * (x. .A 1.00,. t ar i Mlmmm.m-.m-p.n RUHNStrrrmmmmmmmmmmmmmmmmmmmmmemmmenmmmmmmes t 22 °LCts C 5 YEARS â€" $500 Minimum Deposit Interest Paid Annually or Annual Compounding 18% GIC State Farm Fire and Casuaity Company Canadian Head Office: Scarborough, Ontano that‘s why State Farm insures more homes than anyone else. 99 Like a good neighbor State Farm is there 66 More value for your money... 886â€"4470 nimum deposit of Edwin R. Wetwoo¢ Insurance Agency Li 132 Weber St. N CALL ME.