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

no - war Hunt) tLHnoMcLa - Wednesdav February ll was - own: will ',1”‘ililll(i;~5i4o.‘3 it)» MMNGSM momma-519 5354215 , w, ,e,,, m , , 7 inventor V Sometimes it m Ites SENSE ‘ ' ' to IIOI‘I‘UW lfll‘ your RRSP 3.1 i edlthy people often l trihutton room is provtdetl on , borrow to invest [hey \I \l\! \ ‘ the Nollt’t' oi Assessment you t, , (all [his ”leveraging" or ‘ , , , received from the Lanada Rel ‘ ._’.-,,_ ‘n ”leveraged investing," but what N] ( )\ l\ enue Agency after filing your w‘. ll really boils down to is using a Q, tax return last year 1 a; .“ ‘3fl ‘1 someone else‘s money in nittltt- l a?" ’ Depending on your («1X ",~ ~ ~ “‘“ your own investments. F. " bracket, a $3,000 contribution . _:"_f ‘ You don‘t have to he rlt‘l] ll] i '. , A could net you nearly 51500111 â€"-‘â€" - . . benefit from the value of lever~ '. 4 “ fl ’ l tax savings at the time you file ' , \ _ 6 months 00/0 |nterest financ’ng aging. ‘ f ,- * your not return in the form Ufa ' ' ' - . . _ , In fact. you may be able to ‘ A ‘ larger tax refund. while also . - - . . . (03d on everyth|ng "l the store! take advantage ofa leveraging potentially adding $30.188ro rs . ' strategy right now that could g l ;, your retirement plan over 30 _r t A. help you save on taxes and g years (on a preâ€"tax basis, at an 1. "1 re a could increase your potential l i annual compound rate ofeight "1 “ retirement income at the same per cent). . - . . . ' ' 0 Mi time. l_,_ m a, , , And. that's forlust a single . . . A , ‘ _ g‘l Q.” ”you‘re like most (anadians, contribution t)l$3,()00. ‘L rm . ' ‘ I!“ “ your Registered Retirement Savings Plans The government allows you to accumu~ if " “ ; , ”hr" (RRSPs) will be an important source of late and carry forward all your unused RRSP 7,- ; L _. Mud.“ income during your retirement years. Contribution room from previous years back , , ”a And, if you're like most Canadians (a [0 1991- - "f i" u e whopping 78 per cent in the 2003 tax year, You can make up the unused RRSP con- ;c‘ 3 f.” according to Statistics (Anadal, you proba- tribution room at any time. but sooner is I... H f, bly have unused Contribution room in your better because you'll have more money “if M; f j e a S RRSPs, growing on a tax~sheltered basis inside your . .g' -. r ' , t’ To make the most ofthe potential tax» RRSPs. saving and income-building advantages of The issues to consider from a leveraging your RRSPs. you should fill up every bit of strategy are these: Borrowing at a low inter- O n C u a 6 your unused contribution room as quickly est rate and paying off the loan quickly, oth- as you can â€" and leveraging can be an erwise the cost of borrowing can diminish effective way to do just that, your potential tax savings and investment M o s I CA L IN STR u M E N T8 at. sorrow order ro rr rrrrs-rr \ RRSPs could pay off in two ways. Financial institutions often offer RRSP w w w _ I o n g â€" m c q u a d e , c O m First. you'll increase the size ofyour tax loans (which are really loans meant only for refund, Second. you'll have more money the purpose ofcontributing to your RRSPs) a. w, 7 growing inside your tax-deferred retirement at prime rate or lower. For tap-up loans. - rt “ â€". - lan. limit the payback schedule to one or two \ > p , ' he, ...- www.waterloochronicle.ca Here's an example: assume that your years _ . 71“! r r . ' a; »‘:_ ‘ RRSP contribution limit is $3,000 this tax The rate of return is used only to illus- ' a ' 'M/ ' ’ j , tapas; m,ti_tl.»l,.r= ‘ ‘ year. (The actual amount ofyour RRSP con» Continued onpage22 is a rtris-rir'tréf ,‘- ' -‘. F str’ 1; ‘ ' =5 f if; if??? ~ 1: , is 3.35???" '. t“ ' f f ea» "i -- r , N _ t , ca s _,,s 51 { ”Geri-5“ 4 r‘::-'.é‘j,""'a" Y“ x _; . as“ r gs; MANTEL AND msrm . v "- ‘ 4 ‘ rat‘iisâ€" ‘j " $ 99 - A y 933?" 1:52; ' xv? : - _._.__'__.__"____""___ ...... .. A ‘ macaw-mound ‘ 6 MONTHS - “MM SAVE - ”w x 11.1 card it Homec $300 ~ HURRY IN‘ a: s See our was; r ,. ”tag, - new 2009 stoclc arriving weekly! , KICcIlQnAlcl' - BOSCH Wm ~ LG IFRIGIDAIRE w . m rw EARN f f A“, unit Milt; 0h.- urm ore .