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p 1 q weekender fjebrtfyryjb 1995 i everyone needs a financial plan not everyone has the time to manage one at ross dixon financial services we know what it takes to understand investment strategies design a plan and maintain your portfolio so wc invest our resources in monitoring the financial markets acquiring stateoftheart technology and enhancing the talents of our account executives and we invest our time developing a relationship with you you get the benefit of full time advisors who manage your portfolio 52 weeks a year so you can spend your time enjoying your investments gics rrsps mutual funds life insurance annuities rrips tax preparation mortgages ess 4712311 137 markham financial services invest with people who invest in you has emerged as one of canadas toppeiformihg the ruuncul p januire i 1 theyre hot dynamic has six of its funds listed as top performers in a recently published guide to mutual funds and investment opportunities but what about this coming year whats changed and where arc the new opportunities let a consultant at private- investors management take you behind the headlines at dynamic how dynamic funds performed last year is a matter of public record how theyll perform next year is a matter of private opinion at private investors we listen and build our relationships based on a personal evaluation of your individual needs and goals then we develop customized strategies for you using a full range of financial tools including gics mutual funds and selfdirected rrsps please call drew nesbitt atl80o5570629 3242277 to arrange a personal appointment or to receive our complimentary newsletter our offices are located at 30 st clair avenue westtoronto t private investors management inc financial intelligence and personal portfolio management gics an interesting strategy with the rrsp deadline fast approaching many peo ple are now allocating time to look at their investment options finding the most suitable financial vehicle is a key component of success ful investing some guaran teed investment certifi cates gics are currently featuring attractive returns the objective of the gic investor is to generate maximum returns while incurring minimal risk and this is resulting in a great deal of attention from investors the objective of the gic investor is to generate max imum returns while incur ring minimal risk most pur chasers of gics experience an uneasy feeling when time comes to choose a term longer term certificates such as five years pay high er interest than do short- term certificates this higher interest com pensates the longterm investor who sacrifices shortterm liquidity nobody wants their funds locked up and inaccessible if rates rise nor do they want to rollover a maturing invest ment when rates are low while hindsight is always 2020 it is impossible to accurately and consistently forecast the direction of interest rates there is however a strate gy that combines the higher rates offered through long- term certificates and the liq uidity that comes with shortterm certificates in addition this strategy will eliminate the guesswork of interest rate timing and sta bilize your return during interest rate fluctuations all of this can be accom plished by staggering your gic portfolio suppose yon have 100000 and you wish to employ this strategy for all of the above reasons divide the funds into five equal portions of 20000 and invest those portions for a one two three four and fiveyear term at the end of the first year the portion invested for a oneyear term matures at this time you roll it into the highest yielding fiveyear term at the end of the sec ond year you do the same and so on after four years you will have the entire gic portfolio invested at five- year terms with 20 per cent coming due each year you continue this as long as you like by renewing maturing fiveyear certificates for an additional fiveyear term investors who are just starting a portfolio can still employ this strategy they simply make their annual rrsp contribution to a gic with a fiveyear term they repeat this purchase every year the portfolio will develop automatically to a series of staggered maturity dates this strategy is appealing because when interest rates fall only a portion of your money is affected regard less of what rates do in the future you can rest assured you did receive the highest rate possible every time finally you have 20 per cent of your money matur ing and therefore becoming liquid every year in the event of an emergency or opportunity this strategy is simple to set up and easy to administer particularly in a selfdirected rrsp to maximize your returns invest as early as possible in the year and shop around as gic rates vary significantly between institutions by eliminating the guesswork of interest rate timing it ensures more enjoyable and profitable gic investing this article is courtesy of robert smith an asso ciate of ross dixon financial services 137 main street n markham for more information call him at 9054712311 four bank rrsp tax tips elizabeth ritchie manager toronto dominion bank 7200 maricham rd at denison st contributing to an rsp might seem confusing with the fluny of activity and information coming at you at this lime of year here arc a few tips to focus on when considering your rsp investment strategy monthly contributions to a rsp will earn you more set up a preauthorized payment plan to contribute to your rsp on a regular basis rather than waiting until the last minute to make a onceaycar lumpsum contribution by making preaulhorizcd monthly contributions to a rsp you can earn more for your retirement as your investment starts earning tax- sheltered interest right away and keeps compounding month after month contributing monthly is also an easier way to reach your annual rrsp contribution limit without borrowing why wait for your tax refund when you can have it now if you make automatic regular contributions to your rsp you can ask revenue canada to reduce the amount of income lax deducted from your pay cheque this way you can have more money in your hands right away simply sec your financial institution for assistance even more taxsheltered income if you have made your maximum rrsp contribution every year since the 1991 tax year and still have extra cash for investing you should know that revenue canada allows a lifetime rrsp overcontribulion of up to 8000 with no penally although its not tax deductible all interest earned will be taxsheltered while it remains in the plan and if need be you can covert the overcontribulion into a tax deductable contribution in a later year take an extra tax deduction of up to 6000 if youre receiving pension income from a registered pension plan or deferred profit sharing plan dont wait this is the lasl year you can take advantage of the pension income transfer of up to 6000 to your spouses rrsp however keep in mind that canada pension plan quebec pension plan and old age security dont qualify for this spousal income transfer recover lost ax deductions if you havent contributed the allowable maximum amounts to your rrsp dont worry you can use any missed rrsp contributions for the years after 1990 for up lo seven years the notice of assessment you received from revenue canada upon filing your lax return shows your current years contribution limit plus any amount carried forward if you have extra cash you can make up the missed contributions in addition lo your regular limits without penalty as well as the additional immediate tax savings youll also enjoy a more comfortable retirement for more information call tds rrsp hotline at 1800668rrsp 7777 or any markham td bank branch