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i i s v is in i fi v r i i t j weekender february 15 1997 p15 1 time is on the side of young investors if youre fresh out of univer sity or college and in your first job youre in a great posi tion to ensure that you remain financially independent in retire ment most financial planners will tell you that youve got time on your side and you can make it pay off in a big way through a regis tered retirement savings plan for the previous year youll receive a notice of assessment from revenue canada that review your rsp port folio and make sure your investments provide a rea sonable rate of return if theyre not consider some changes ror the price or a cup of coffee a day have jac c u rri u i a t e d more than tbb6bb0bbb m w benefits investing of there are two big benefits to rsps they reduce the amount of income tax you pay today and allow the earn ings produced to accumulate taxfree until withdrawn preferably when youre retired and in a lower tax bracket by starting early the process of sav ing for your retirement can be virtually pain less since you have many incomeproduc ing years ahead of you you can make the most of the power of compound growth this is simply the process by which money when continu ously reinvest ed makes more money lets say you contribute 360 at the end of the year into an rsp that earns a compound growth rate of eight per cent for the price of a cup of coffee a day youll have accumulat ed more than 100000 at the end of 40 years chances are youll be able to contribute much more over your lifetime after you file your tax return ith so many options avail able gics mutual funds stocks bonds and so on you can create a bal anced portfolio that provides a healthy return and is safe and stable if you have used up all your deduction limit and can invest outside your rsp you should do so consider holding inter estearning investments in your rsp to shelter the income earned hold divi dendpaying investments outside your rsp because of the favorable tax treat ment given to dividends and capital gains this article was sub mitted by the royal bank financial group reports your current rsp contribution limit this way youll know how much you can put in each year jl i ou can make life easier by breaking your contributions down into small er amounts automatic contribution plans many financial institutions have automatic monthly contri bution plans that deduct a set amount from your savings or chequing account and place it directly- into your rsp some rsp tips for investors investment insight last year i contributed 5000 to a working ventures fund and received 2000 in federal and provincial tax credits over and above my regular rrsp tax savings of 2500 total 4500 i have been told that the last budget capped these venture funds can you confirm this please when you say working ventures fund you are describing a brand name labour sponsored fund in fact there are over 15 labour funds in ontario offering generous tax credits to investors if you invest 3500 in an rrsp not only will you get your regular rsp tax deduction but you will also be granted 1050 in additional tax credits last year the credits were 40 on a 5000 investment this year they are 30 on a 3500 investment finally working ventures canadian fund has temporarily halted sales but there are many other very good labour funds available to you including the vengrowth fund ci covington and canadian medical discoveries to name a few you can fax your questions to investment insight at 2948880 or call dan galszechy or john niekraszewicz of fortune financial corp markham 2941200 i hi mi markville shopping centre 5131770 contact lenses 0 iran qjljeyj 2 pair m compute busses insuu from our red tag selection includes single vision lenses quality crafted eyewear nrltttion may vuy hysiorc i roin i srwiil mktitoh cmnoi ijcwmbincil wtihin oiha oiler sotik riirkihms apply coninvu tleiuu inmoa olutvmkminh8 w 3m your investment and retirement needs plus our personal investment managers equal a wellplanned financial future eddy tsoi 9059403110 scotiabank personal investment managers like eddy tsoi are focused solely on your investment and retirement needs we would be pleased to sit down with you help you analyze your current investment and retirement plans and advise you on what options are available to you to help secure your future please call us to arrange for an appointment scotidbank save 30 in taxes plus get the benefit of- altamira management after taxes a 350 investment niaycost as little as 598 income tax savings per 3500 contributed to rrsp taxable investment rrsp lsif total after tax cost income tax savings tax credits tax savings of investment 29591 3500 1447 1050 2497 1003 50934 3500 1549 1050 2599 901 66104 3500 1852 1050 2902 598 1 taxable income mean gross income less income tax deduction allowed in law in various province 2 rrsp lax savings means tax savings allribnlahle to an rrsp eligible investment assuming the marginal rale applies lo the full amount of the deduction based upon 1996 tax rales rrsp lax- savings are available on any rrsp eligible investment and lax is patable on all amounts withdrawn from rrsps m isif lax credits include i5m federal and 15 ontario lax credits for information please call 416 3622930 ext 246 18004070287 ext 246 important information about triax growth fund inc is contained in its prospectus obtain a copy from a dealer duly qualified and licensed to distribute these securities and read it carefully before investing share value and investment return will fluctuate