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wu -- 14 - "WEEKEND STAR" A DREAM Is a Gift We Give Ourselves TO ACHIEVE YOUR | The RRSP was created RETIREMENT to provide a means for DREAM, | most Canadirs oor YOU NEED deferred basis. Over the A years, the RRSP has PLAN become, next to the princi- : pal residence, the largest Life Insurance - An Efficient Way to Fund a Tax Liability single asset in an estate. Therefore, most part, it is taxed at the tered plan. highest marginal tax rate in the respective province. Revenue However, this asset is Canada is the silent benefi- taxed as income in the year ciary for the RRSP and/or of death (for a couple upon RIF, taking on average half the second death). For the of the value of the regis- We dream of enjoying a wonderful retirement filled with family, friends and the chance to do exactly as we please. But to get there you need a plan; a plan for seeing beyond today's RRSP contribution to your total retirement plan. Balancing today's cash flow with tomorrow's need for a retirement nest egg sometimes seems like an impossible task. But it doesn't have to be if you take it one small step at a time. Putting away a little now for the future is a part of that plan. Revenue So is making sure your investments are working as hard as possible for you. Canada And you'll want to protect that nest-egg by ensuring your plan aims to Tax minimize taxes when the time comes to Payable pass those investments on to your loved-ones. 1% At Canadian Imperial Bank of Commerce we can help with expert advice & innovative products. RSP/RIF Distribution: Revenue Canada and the Heirs Heirs Value 49% ( IBC 145 QUEEN STREET, PORT PERRY 985-4444 I B( 49 BROCK ST.W., UXBRIDGE ; 852-3347 TM - Trademark of CIBC "*_ CIBC Trust is a member of the CIBC Group of Companies What comes after e-commerce? Biotech ew : shelton I01ecC unas «Enjoy up to 35% tax credits (maximum $1,750) e Canada's newest labour sponsored investment funds e Tap the growth potential of biotech * Minimize risks associated with drug-discovery, by focusing on the high tech segment of biotech ® 100% capital repayment option ® 100% RRSP eligible For more information, please contact: RR ANIC Paul Svana, Investment Advisor, Oshawa Branch SECURITIES tel (905) 434-7510 « toll-free 1-800-267-1522 Personal Wealth Management™ Only available in Ontario. Tax credits include 15% federal and 15% TR | AX or 20% Ontario tax credits. Important information about the Funds ~-- is contained in their prospectuses. Please obtain a copy from a licensed dealer and read it carefully before investing. Commissions, trailing commissions, management fees and expenses all may be associated with these investments. These Funds are not guaranteed and their values chalige frequently and past performance may not be repeated. Investment must be held for eight years to keep tax credits. RBC DS is a member of CIPF. John Walhout, CMA, CFP Certified Financial Planner "For all your family's savings, investment, retirement and life insurance needs" 258 Union Avenue P.O. Box 3294 Prince Albert, Ont. LIL 1C2 (905) 985-2363 We handle both kinds of returns. Regular and extra-strength. We do more complex tax returns than any tax preparation company in Canada. So bring yours in. We're ready. H&R BLOCK 174 Perry St., Port Perry (905) 985-9803 FRIDAY, FEBRUARY 16, 2001 Life Insurance is most cost- oh ne method of compensating for 'these taxes. The RSP/RIF Tax Protector is ideal for individuals who consider their RSP/RIF funds to be an estate asset as well as an income asset. The lump sum of cash (equal to the tax bill) pro- vided by the RSP/RIF Tax Protector can be purchased at an annual cost of | to 2 per cent of the average RSP/RIF account balance. The RSP/RIF Tax Protector will deliver the lump sum of cash at death to the desired beneficiary on a tax-free basis without generating accounting, legal, or probate fees in the estate of the plan hold- er. Tax protection provides replacement of the estate value lost at death on the RSP/RIF asset. RSP/RIF Tax 4 Ways to Fund the Tax Liability on a $2 million RSP/RIF There are four ways to settle this type of tax prob- lem. |. Liquidate - In this case, the RSP or RIF is col- lapsed and the assets are sold. The proceeds flow to the estate after the tax is paid. The residue value flows to your named beneficiar- ies. a) Minimum cost $1,000,000 - plus. b) It may be the wrong time to liquidate assets. 2. Borrow - Your estate or trustees may borrow funds to pay this tax bill. Usually the RSP or RIF is liquid and borrowing may not be necessary. 3. Save and Invest - You may wish to save annual- ly in anticipation of your future tax liability. The difficult part is to deter- mine the amount to be saved annually, how long will you have to save, and what rates of return you may expect on your savings. 4. Insurance A vehicle that will pay only on death and at the very Send us your story ideas! (905) 985-7383