ý.'PAGE 20, WH1TBYt k EPRS. 3NSl cm~TAT~ 1 ýX 'TIME TAX TIM TAX TIME TAX TIE TAX TIME TAX TIME TAX Track Exp enses withafamiy ude Wbaïdtber wC&re spurred bv an 0jerlodo(1 redit. card or the cosi. Of !l nmajOiorne repaiir, most of us -are' fbrced to con- f ,ront the stiate of otur finances at sonie point each year. Mi-ore often than not, our ;~?ei, S a shake of the head c-irl3 <'ý mumbling amazenreiît about where ail the rnoney wvent. This year, why not find out? By deciding to do 'so you'il be taking con trol of your finances instead of letting them control you. Start with a family budget. The objective is to establish your family's fnancial goals and define the position you'd like to beý in at a certain point in th é future. While one goal might be to *have $5,000 more -in the bank this time next year, only by taking the next step and going through the budgeting process can you certi1fr whether your goal is a reasonable one. The process begins with an accurate assessment of your family income.- that means income in after-tax dollars - and expenditures. Expendi- tures generally can be broken down into four main cate- gories; home; transportation; living; and loan repayrnent and savings. 1Eaeh category is then broken down further. Home expendi- tures, for example, include rentai or m ortgage payments, utilities, maintenance, in- I Can Help. It takes solid financial planning ro reach your financial goals. 1 can help you with: > Mutual Funds > Guaranteed lnvestment Certificates > Registered Retirement Savings Plans SRegistered Educaion Sav ings Plan > Life and Disability Insurance > Annuities CALL 686-8627 to find out more. Jim Crichton EN Imestaprs Building futures Gmoup since 1940. w; j. ~y~I i ê *~ a 5 * s s a I S I 5 I I q 4 41 S 4I59 4 f 6 f IS I4 î î ~ ~ *ss$ss surance, telephone, property taxes and s0 on. Banks and trust companies are usually happy to provide customers with budgeting bookiets con- taining such breakdowns, along with budget worksheets, on request. Estlmate dlscretlonary expenses too You'll also have to estimate as best you can your discretionary expenses. Be realistic about the amounts you use for cloth- ing, entertainment, holidays and spending money. And don't be tempted to change your spen ding habits on paper just New Investment company wiII save you taxes By Scott Laurie If you are the type of person who would like to see a reduction in your tax payments, then per- haps you should talk to one of the tax planners at TPA Invest- ments in Whitby. Just in turne for incorne tax season, TPA Investinents opened a Whitby location at 122 Athol St. on Jan. 1 of this year. TPA's head office is located in Yorkdale and has been serving the public for over 12 years. Accordîing to James Schofield, a TPA investment 'planner, the conmpany handles investinent funds, terni life insurance, group plans, guaranteed investinent certificates, RRSPs. and disability income. «We are an independent com- pany that deals with over 200 other companies. We shop the market in order to give our clients the best price," he says. «Through tax p lanning, we help plan a year mn advance so people caa little or no tai by way of RRP,through civi- dends, capital ains and various tax shelters. The expression we use is 'People don't plan to fail the fail to plan,"' says Sehofielci with achuckle. .According to Schofield, "We urge our clients to s'it down with our planners in order to reduce tax payments.» -ire paid annually or on a less t1hain mo iith ly ba s is. Next, tote up ail costs. If your expenses exceed your income, review the nu mbers. Maybe you've been too generouý some- where and you can eut costs without undue pain. If not, then the family has some tough decisions to make. Will it be new hockey equip- ment, or a family camper? New drapes or a holidlay trip? When deciding among alternatives, be sure the choices are of equal value. Some things, such as fixing a hole in the roof, just aren't optional. They'e rmusts., Finally, although it!s admir- able to budget, resist overzeal- ousness. Drastie cutbacks or tedious tracking of every dollar spent can be counter-produe- tive. They can lead to frustra- tion and, in turn, to the demise of the whole budget attempt. Peter Morgan is a member of the faculty of George Brown College, retirement with RRSPs Because tMe Caniada Penision Plan and Old Age Security providc you wvith onily tlhe îost bLo.ic inconeien retirenlent, you siould take steps tocay to plan yoir financial ftuLre. l'o mnaintaini a respectable stiîdard Of liv- i ng during rctirenent. Registercd Retirenient Sa.vinigs Plans <RRSPî or other types of retiiemient ani ijnvest- mlent incomie arc ilow es-sential. What is a RRSP?1 RRSPs were iintroduced by the Canadin governnîient to lhelp Ca- nzidhins suppleinetthelir retirenient incoine, By pultingio moiîey into an RRSP, <)u acctiînutlate ftunds for i*et jcielet, lo\wei, vsur taxable ilneomle and taix shielter ilie earniings of' your plan. RRSP contihrit tioîîs iin a cailenidar year nîlust be clainlc(l against inCeoile earn-fed il nftîmat veaui. Contriliuifions mladec within 6() days aOc, te year enîd cani, ho\v\eci, lie claimied aigainist ilicolli t hé ii tli I'i Ls or 'cuITIt vear. Can you luave more <han one RRSP1? Yes. YoLt au htiv a différent RRSP front difilerent sources evervycar but you ilitLIt kecep iniind yn uiivto manamge thlese planls clkctivély and the mlaxiiiitni aimi t von i i clo(wed Mail) inclividuals take advantage Of Ie Csponsal contr1ibu.Ltion option. Under <is strategy. youn make your conltlril)tiOils 1ta1an RRSl igîtCee ini y' mi sî use's ninie. 1 lowvei,ilime Co11liliCd totld Ofy0I ir coul IilIbu- The "Richard S. Prielef '40 R1-eiP CETRE"a Fortune Financial Group Tel: 433-1508 683-7755 Fax:-,1-649-5151 I * ~ . i * - -j I o l redyow M a l un s a fo copeetr 1 erpromac nls 4 *f *f 6* +4 * f * t4 e4 4 ta s tions to you' mil RRSP and Io your, SIX)I5S un ust îlot exceed your omil pernîissible mlaximuml. l'o niaintain the t ax deduction advantage, how- ever. tlie contribution imust îlot lîe ren<)ve(t fÉon yotir 5poLIse's plant for at least thiree years. If yourspouse's taxable incomie will be less than yours at retirenient then this approaéh beconies a-distinct advatitage Mien Planning your hlousehlold *s ct i renient inconlie. Are RRSPs protectcd from credlitors? Ini the event of bankrupicy, rnoýst -RRSPs are collapsed and the funds distributed amiong creditors.,'The exception to, this rule is an RRS Ppur- chased fromi a life insurance coli- pany. Life insurance RRSPs offer <bis protection, provided the beneficiaries namied in tlie policy arc- your spouse or dependant, rather than an estat. Whcnrnust I use the RRSP income? By the end of the year in which you reachi age 71I you miust cithier cash ini your RRSP or convert it into a Regis- tered Ret irenient Inconie Fund (RR IF) or an annuity. These retire- nient incoie vehicles allow you te reduce tlie taxes of "caslîing-in* your. RRSP. '(0f course, because your RRSP wvas conipletely lax sheltered, <lie incomie froni the RRIF or annuity is taxable.) A RRIF can previde you witlî itlc<nie uintil age 90. It pays you anl incomie, based on ait l flocation oft(le funds you accumulated iii your RRSPs.,A life annuity guarantees you a nioîîth ly inconie as long-as you live and nîay be set up to iiiclude a guaran- tee(l paynîent period sucli as 15 or 20 years. Under the guaranteed annuity. if you die before the end of tlie -guarantee, period. annu ity payients continue to your spouse. beneficiary or estate Liitil tlle colitract is fuilfilled. Anl annuity t( age 90. as Ille naie suggests. inakes pay'nicnts until you tuini 90. If. voul ie before <lien. <lie payvnîents go ta your beiieficiary or estate. 'l'le cailier, voti stail your RRSP. the more yotil put inito it'and <lie hetter off youIl Lie iii retirenient. By the tinte you reach your late 30s you slioild try teiake the nmaximnum animal contribution. WVhere caîî you purchase RRSI>s? A broad range of institutions effet RRSP3s, including lifié insurance coin- Ixiniies. trust Collpaniies. batiks, credit unions and varions inivestiment coin- paillies. Il vozi ive questionzs about RRSP.v coffla<I i/w.ij LIfeUlerss'rjrcrs Asso- ciati0)o iad.41 L'suilI Romd, Don A111/s. Ontai<>. i4131 3, or ~Y)jg) 1<>cu1 lj'/è m1uîI'rirrcrs ass>- because iLtlooks Detter. ___________________ Wlîen accounting for basic ex-__________________ penditures, pro-rate on a nionthly basis any buils that :Getting a head start on GALLERY TAX & ACCOUNTING SERVICES Whitby Professional Court 420 Green Street Whitby, Ontario LIN 8R1 430-3550. GALLERY TAX & ACCOUNTING SERVICES SPECIA LIZES IN HELPING SMALL BUSINESS: Tax Preparation & Filing Monthly/Annual Financial Statements Bookkeeping & Accounting (Manual or Computerized) Payrolls Bank Reconciliations Bank Liaison Government Aid Programs Business Incorporations Individual Tax Returns 1 L