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

p6 weekender saturday october 4 1997 business and finance dont wait until house is paid off before starting rrsps many of my clients face a dilem ma during their peak earning years they know they should maxi mize their rrsps but they are also bankruptcy why f m it done call murray kideckel trustee in bankruptcy personal business bankruptcies personal proposals richmond hill 9058822436 30wertheimcrt downtown 4169716396 27corhonsl scarborough 4167577535 oshflwa 9055761926 brampton 9054536881 barrie 7057226398 highly motivated to repay their mortgage i tell them not to wait until the house is totally paid off before starting their rrsps you will lose so many years of potential savings it will be virtually impossi ble to catch up let me prove this with the following example bill jones not his real name is 30 years old and is in the 40 per cent tax bracket he has a 150000 mortgage which hes repaying at 1170 monthly based on a 25- year amortization period and eight per cent inter est he is able to save 3500 annually and opts to put this entire sum into his mortgage he plans to start contributing to his rrsp once his pat robinson cir free initial consultation trustee in bankruptcy call for a free personal discussion help with creditor problems proposal to creditors personal business bankruptcy financial counselling 9555yongest401 15139 yonge st at weidrick richmond hill church aurora 9055089493 9057272577 email patpatrobinsoncom web wwwpatrobinsoncom liifiet editor carpveiis icjftiwv- wwanttdto know about tybut were too young to vidtaflers 50vius 4jae if an invitation to join us for a special presentation converting your rrsp to secure retirement income featuring david tafler if you are turning 69 70 or 71 in 1997 you must select an rrsp maturity option before december 31 1 997- i ft fact if you are 65 or older now is the time to receive professional advice about rrsp maturity options some of the important topics to be covered converting your rrsp to a rrif or annuity the three stages of retirement income planning the world of annuities beware take care in choosing your life insuranceannuity provider finding a financial advisor winwin investment strategy improving returns reducing risk estate planning taxes and rrifs date wednesday october22 1997 700pm place le pare highway 7 and leslie markham on rsvp 905 3056603 midland walwyn ilue chir thinking sponsored in part by building financial independence blue chip thinking is a registered trademak of midland walwyn capital he midland walwyn is a member canadian investor protection fund creating retirement income with your rrsp for professional financial advice about your retirement income options please call 905 3056603 to arrange an appointment with a midland walwyn financial advisor or mail this coupon today for your free guide on rrsp maturity options mail or fax to midland walwyn capital inc 33 the bridle trail markham on l3r 4e7 tel 905 3056603 or 1 800 6444480 fax 905 3056625 please reserve seats for me name address city province postal code telephone business residence house is paid off mary smith starts off in the exact same posi tion she too is 30 and her 150000 mortgage has the same terms and repayment schedule as bills but she opts to put her annual savings of 3500 into her rrsp instead of prepaying her mortgage in her 40 per cent tax bracket this rrsp contri bution entitles her to a 1400 tax refund which she does put against her mortgage over the years her rrsp return averages 12 per cent annually heres how their deci sions play out over time bill will pay down his mortgage in 16 years ecause he didnt get a deduction for rrsp contributions over that 16year period he will have paid 22400 in taxes that- mary voided at age 46 he is finally ready to start his rrsp he will replace his month ly 1170 mortgage repayment with a monthly 1170 rrsp contribu tion which will maximize his annual contribution at this point in time mary is also 46 she owes almost 47000 on her house and is four years away from discharging her mortgage her rrsp has grown to almost 170000 she plans to continue her annual 3500 rrsp contribu tion for the next four years and continue apply ing her 1400 tax refund against her mortgage at that point she too will replace her 1170 monthly mortgage repay ment with a monthly 1170 rrsp contribu tion now lets see where theyre at when they turn 65 both of them have paidoff homes of equiva lent value but bills rrsp is worth about 765000 while mary has a plan worth almost 35 mil lion marys 16year jump- start has paid off with almost three million dol lars more in her pocket for most people marys strategy is the ideal answer to the mortgage are you between the ages of15to30 do you want to starta business our business program can help you inclass instruction mentorship support computer facility resource centre oneonone consultation candidates must be unemployed between 15 to 30 years old qualifying candidates may be eligible for fulfy paid training an allowance -entr- fr jfjmn cm i human resource cektres canada nmvuarkmt richmond mu call vaughantec 905 7387211 or rrsp ques tion a welldiver sified rrsp portfolio could provide earn ings consider ably higher than the advantage of prepaying your mortgage however there are shades of grey in any scenario if you accelerate your mortgage repayment schedule and housing prices really take off for instance you could enjoy a real financial windfall consider this those who opt to postpone their rrsp con- trib utions assume that the government will stick to todays rrsp rules but what the tax man gives the tax man can take away a new govern ment could choose to lower the rrsp lim its or repeal todays carry forward provi sions if youve postponed rrsp contribu tions until your mortgage is completely paid off youll be out of luck and fur ther away from retirement secu rity than ever this article was submitted by richard box financial advisor with td evergreen investment services income tax has made more liars out of canadians than golf wil rogers for wise financial advice call richard box at 4164874708 id evergreen wealth management w trademark of the toronto dominion bank td securities inc tdsp a subsidiary is a licensed user tdsimember cipf before we invest your hardearned money we invest our time at trimark before we invest in a company we meet with the companys principals employees suppliers and even its customers to learn everything we can through this extensive research we find those investments that will help your money grow over time for more information contact your investment advisor atrimark mutual funds we manage to outperform your unit value and investment return will fluctuate important information about any mutual fund is contained in its simplified prospectus which should be read carefully before investing you can obtain one from ihe financial adviser listed above or farm trimark investment management inc registered trademark of trimark investment management he designed and sponsored in part vy trimark investment management inc