BUSINESS. eiece. 0.22 5055572 4B Financial planning must continue in the Have you made plans for what you will do after you retire? If you think you might try some part-time consulting or other self-employed activity, tax plan. ning now could prove profitable even before you retire. Many people find playing golf, gardening and travelling aren't enough to occupy them- Selves fully after the initial peri- od of retirement. They miss being productive, being needed - especially if they really enjoyed the work they did before retire- ment How about you? Might you be happier, personally as well as financially, if you were to contin- ue to work a little after you retire? Ideally, you would work when you felt like it, so you could still golf, garden and travel when you wanted to. Most people eam their highest incomes, and pay the most income tax, in their final years before retirement. Yet they prob- ably don't feel comfortable putting money into tax shelters Silver Rattle Antiques 301-11 Ave. Castlegar: (in Tulips Building) 365-5191 HIGHEST TERM DEPOSIT & RRSP Rates * Year.....7 7/8% Year.....8 3/8% Anne Mann FINANCIAL 30 Days....7 1/4% ADVISOR Check & Compare Rates! * Subject to change without notice 428-2231 (Creston) 365-81 88 (Castlegar) PLA NVEST SUCCESSFUL MONEY STRATEGIES SEMINAR sponsored by Selkirk College LEARN HOW TO ¢ Manage your money —® Structure your investments © Reduce your taxes © Reduce your insurance costs * Save and Invest more Retire financially independent A THREE PART SERIES conducted at each campus on the following dates Trail Campus April 21 & 28, May 5 e Castlegar Campus April 22 & 29, May 6 Nelson Campus because of the risks and long term investment horizon involved. Even if you aren't planning to Mike Grenby Syndicated Columnist retire for a while, or you don't plan to work after retirement, some of the following steps could still save you tax if you have - or could have - a self- employed sideline. Let's say you are married, with a spouse who isn't working outside the home or otherwise is in a lower tax bracket than you. You pay your spouse to do the research and other work required to set up your post-retirement consulting or other self employed business. It might take three to five years to build up your business to the point of profit, so when you retire everything will be in place During these startup years, you might start out earning, for example, $5,000 a year from your new business. You might pay your spouse $10,000 a year for the work involved in getting the business under way. Pay reasonably but aggressively: it's productivity that counts. If your spouse is twice as productive as somebody else you would hire, pay your spouse twice the going rate You could also pay other fami- ly members in a lower tax brack- et - perhaps children who could then pay their own education and other expenses, or even a parent who could then support him/her- self more instead of relying on your (after-tax) help. * If you claim a $5,000 loss, which you then deduct from your other (employment and invest- ment) income, you save more than $2,000 tax a year if yoyare in the higher tax brackets. Your spouse has to declare this income. Depending on whether your spouse already has other income, the family could easily reduce its total tax bill by around $1,000 a year. If you also pay two children $2,000 a year each, you could save close to another $2,000 a year. Preparing for your post-retire- ment business could involve travel. You might tag on some holiday travel to the trip. Deduct a reasonable amount of the expenses - those relating to the business part of the trip - for even more tax savings. However - and this is the key - you must have a “reasonable expectation of profit.” Ottawa allows you to deduct your losses because one day it hopes to tax your profits: So you must draw up a busi- ness plan to demonstrate this “reasonable expectation of prof- it.” The plan should show what you hope to accomplish, why you feel you will make money, your marketing plans, and so on. Ask Revenue Canada for its Business and Professional Income Tax Guide which lists many of the deductions you may claim. Ask the Royal Bank for its two free Your Business Matters guides - one to help you start and run a self-employed business (it includes a sample business plan) and one to provide sources of further information. Buy or borrow Home Inc., by Douglas and Diana Gray (McGraw-Hill), which provides information on running a small business out of your home. (Note that you may not use home office expenses to create or increase a loss, although in this case the expenses may be carried forward for possible use the following year.) Keep all receipts and careful records. Have a small log book in your car. Have business cards and letterhead printed. Open a separate account for your busi- ness You can operate as a sole pro- prietorship - in fact, that's the best way to operate if you expect Startup losses. Later, it might ‘golden years’ make sense to incorporate, depending on your income and tax situation. Wednesday, April 15, 1992 The Castlegar Sun Page 5B oe b ‘4 SUBMITTED Record claims costs and falling interest rates combines to produce a $98 million loss for the Insurance Corporation of BC for the year ending December 31, 1991. Details were released April 2 when the Honourable Moe Sihota, Minister responsible for ICBC, tabled the Corporation's May Kanigan of Castlegar has won the 1991 Lieu- tenant-Governor's Silver Medal presented by the Open Learning Agency. The award is given annually to a student in a one-year college-level certificate pro- gram. Kanigan is a graduate of the dental assisting program and was recognized for both her academic excellence and significant contributions to the commu- nity. The presentation was made by OLA Vice-presi- dent Dick Scales at a special reception hosted by the Agency at the BC Dental Meeting in Vancouver 19th Annual Report in the BC Legislature. BC motorists reported a record 864,000 claims last year, 33,000 more than in 1990. The value of claims incurred totalled $1,535 million in 1991, a 13 per cent increase over 1990. Injury related claims amounted to $903 million and damage related claims $632 million. ICBC’s 1991 premium income of $1,535 million was nine per cent higher than in 1990. Howev- er, total claims costs exceeded this income with the Corporation paying out $1.10 in claims for ing expenses. Each dollar eamed lowers motorists’ premiums. The Corporation's investment Portfolio averaged $2.7 billion in 1991 and yielded an income of $316 million or 10.7 per cent This was off $16 million for 1990's earnings and the savings per policy fell to $142 from the 1990 average of $153. The factors had a major impacts on the Corporation's reserves. Between 1984 and 1990, ICBC used net earnings to build up reserves which protect motorists from sudden premium increases resulting from catas- trophic mishaps or years when and 1990 level by 1996 Commenting on the year just ended, ICBC President Tom Holmes drew attention to the cause and effect relationship between claims and premiums. “ICBC remains committed to Providing BC motorists with ICBC annual report released high-quality insurance protection at cost. If, in spite of our many traffic safety and loss prevention campaigns we still end up with more mishaps, more crimes and higher claims costs, the only pos- sible result will be higher premi- ums,” Holmes said. Your business Is our We’d like to hear about your business news. total costs P investment income. At the end of 1990, these reserves and ICBC's unappropriated surplus totalled $335 million. In 1991, the Corporation drew $98 million from these reserves to cover the year-end loss and a further $82 million to bolster the every $1 in motorists’ p eamed. Falling interest rates in 1991 also contributed to the year-end loss. ICBC invests cash reserves, unearned motorist premiums and the fund for unsettled claims and uses the income to offset operat- This Castlegar shopper looks for a bargain during the first sidewalk sale of 1992, held at Eremenko's Fit Rite Shoes, downtown Castlegar, last weekend. West Kootenay Power releases annual report electricity. Business Glance New Faces New Places — Norm Clark has joined Castlegar Realty as their new sales agent. Originally from Kelowna, Norm has been in the Castlegar area for the last year. Sign of the times — The South Centre Mall, to be located on Columbia Avenue across from the Biuetop Burger has their sign posted. G & H Food stores and The Metropoli- tan store are listed as two of the tenants. : Pool sharks — The Hi Arrow Motor Inn has installed new pool tables in Brew&kies Pub and has changed their format for the summer in regards to entertainment. What was. once known as a hard rockin’ house has now taken a country-rock approach to music. New faces, new places — Dennis Teeling ig the new Assistant Manager at Castlegar Savings Credit Union; Castlegar Brarich. With 30 years in the banking industry Dennis comes from Fairview, Alta, where he had been with the Bank of Commerce. Dennis Started work on April 14 and in July his wife and family will be joining him. Always an active member in the communities in which he has lived, Dennis is looking forward to golfing and curling and participating in the i Wel Dennis! fund for led claims to meet expected increases in settlement costs. This has reduced the Corpora- tions’ reserves to $155 million and has led the Board of Direc- tors to recommend that future premiums be set at rates that will restore these reserves to their DeC 2 Calerers Big or small, we cater to all 365-8369 N Schedule for Apr. 15, 16 & 17 Wed. 6:30 pm, Thurs. 9:00 am + West Kootenay Today - looks at upcoming programs. Wed. 7:00 pm, Thurs. 9:30 am * Job Talk (part 1) - Schoo! District #11 hosted this one day workshop for students and teachers on securing a Job. Wed. 8:00 pm, Thurs. 10:30 am * B.C. Mining, The Way It Is - 5 part series covers different aspects of the mining industry. Wed. 8:30 pm, Thurs. 11:00 am * Clearly Canadian J3 Provincial Championships (part 2) - 3 day event held at Red Mtn. March 16 - 18. Thurs. 6:00 pm, Fri., 9:00 am * Trail City Council - gavel to gavel coverage. Sunday, April 19 + 5:30 pm - West Kootenay Today - repeat from above. * 6:00 pm - Children's Development Centre Telethon. * 8:00 pm - Job Talk - repeat from above. * 9:00 pm - B.C. Mining, the Way It Is - repeat from above. Flower Box The City of Castlegar invites interested residences and Commercial Business along Columbia Avenue to Participate in our 1992 ‘Adopt A Flower Box’ program The City will provide the flower box (approximately 3 ft. x 5 ft.) complete with plants and soil. Participants will be required to provide plant maintenance and care The Flower Box will be placed in the location of choice but must be visible from the street. Applicants for this program will be available at City Hall (460 Columbia Avenue) from April 13th through April 24th. As Flower Boxes are limited in number we encourage participants to apply early. SUBMITTED TRAIL — West Kootenay Power has issued its 1991 Annual Report covering capital commit- ments, operating performance and audited financial results “Tt has been both a challenging and rewarding year, one that has set the tone for the rest of the decade,” said Joe Drennan, Presi- dent and Chief Executive Officer. Highlights of the year include + revenue of $86.6 million on sales of 2452 gigawatt hours of Sun Classifieds Sell April 23 & 30, May 7 WHAT YOU WILL RECEIVE 10 1/2 hours of Instruction - Three sessions are taught in on easytounderstand, and enjoyable classroom setting Seminar Werkbook - Contains 120 pages of practical information. It is a valuable reference tool after the seminar Personal Financial Data Form and Tape Helps you step-by- step develop a written summary of your finances Optional - You are entitled to a personal financial planning consultation after the conclusion of the seminar. This is your Opportunity to ask specific personal questions fegarding your financial future 100% MONEY BACK GUARANTEE There ore absolutely no hidden costs or obligations. This is not an inkoductory seminar nor an allempl to sell another seminar Our objective is educate you and help you wilh your financial futwe. We are concent you wll hind our seminar very worthetile However, if for any reason you are no! satished, simply retum your workbook and study materials at the final session. Y: I recerve an immediate and full refund. on JQ 149%. PRE REGISTRATION REQUIRED E LAST SERIES OFFERED BEFORE THE FALL SEMESTERIII Selkirk College Castlegar Campus 301 Frank Beinder Way, Castlegar, B.C. © 365-1208 Selkirk College Trail Campus 900 Helena St., Trail, B.C. © 368-8229 Selkirk College Nelson Campus 2001 Silver King Rd., Nelson, B.C. © 352.6601 ee Peat Moss $ 7.” 4cuft./ Fruit Trees 2 yr. old bare roots Reg $13.00/NOW $9.°* 3-4-5 yr. old in container Reg $18.00/ NOW $15.°° Junipers - 2 galion size Reg $13.00/ NOW $9.** ORDER NOW FOR EASTER Easter Lilies & Bouquets Teleflora - World Wide Delivery FERTILIZER SPECIALS 120468 Lawn - 20 kg 60806 All Purpose 20 kg Weed & Feed 9kg Reg 12” NOW $g.°° Cominco Fertilizer 13¢1610 25 kg sg. Sale dates: April 8 - 19 0 Teleflora Garden Lime 20kg / s 2.*° Steer Manure 10kg/ $ 1.° Landscaping White Rocks $2.” Bark Mulch Pick-up truck load $ 20.” Chang’s Nursery. 2 tocctions MPLETE LAN) APIN 9th Ave. & 4 columbia Ave 365-7312 or 365-6676 Sn cr cnnatab ieee eee ane SERVICE © FREE ESTIMATES * OPEN 7 DAYS A W * income, property and water taxes of $18.4 million, 21 per cent of revenue. + $16.2 million (34 per cent increase over 1990) in new capi- tal investment to maintain system reliability and extend the system to new customers. + 2900 new-customers, the highest in a decade, resulting in 110,725 customers served at year end. * cumulative energy savings of 15.7 gigawatt hours through Pow- erSmart * agreements negotiated with Cominco and, in principle, with BC Hydro for firm power at firm rates over the next 15 to 20 years. * a successful tax appeal on behalf of customers in the Federal Court of Canada. As a result, $1.8 million will be used to reduce customers rates over the next five years. “When a utility can pay out 21 per cent of its revenue in taxes, fulfil its responsibilities to gov- emment regulators, satisfy its shareholders and keep its cus- tomers’ lights on at prices well below the North American aver- age, then the company has met every important test of its perfor- mance on behalf of its cus- tomers,” said Drennan. The forests for the next few years is for capital expenditures of $25.5 million in 1992 and $35.1 million in 1993, primarily in new transmission and substa- tion additions to supply growing customer needs and maintain reli- ability of service to the cus- tomers. ROBSO N MECHANICAL ° HEAVY DUTY AUTOMOTIVE AUTOMATIC TRANSMISSION . GENE WADDINGTON 365-7006 More sign of the times — Sign-Tech services, located on Highway 3A at Thrums behind Moore's Garage, is a lot easier to find now that their own new sign is erected. As well as sales and service for illuminated signs, Sign-Tech is doing commercial and residen- tial awnings, custom neon signs, town revitalization. entire Kootenays. ing mai we and high py ing. They received he contract to recover the existing awning at the Gem Theatre in Grand Forks and re-do the marquee to compliment the rest of the Grand Forks down- power wash- Ready to serve - Anything & Awnings, located in Thrums, is now open to serve the SPRING BREAK | ON 1993 Model SAVE UP TO $700.00 On Qualifying 1993 Model Sleds Before May 1, 1992 Open Soon, but call us NOW for Details | = PRODUCTS | IN SOUTH SLOCAN NEXT TO BILL'S HEAVY DUTY ENTERPRISES LTD. PHONE 359-7066 - Fax 359-7244 | SEQ-200 ————) Your business is our business. We'd like to hear about your business news. Call Simply good Excellence in Service Award Presented to: Colleen McKinley Chicken Time This award will be presented every week to someone in Castlegar who shows extraordinary service to his/her customers or clients. Sharlene at 365-5266. value Clean, quiet rooms. Free movies & morning coffee. Most with pools, saunas & restaurants...starting at $39.95 a night, plus tax* NN) The Castlegar Sun KAS Slumber Lodge Inns and Motels 14 Locations across B.C. Call 1-800-663-2831 Castlegar * Offer good until May 1, 1992. Bed & Breakfast not included. Not valid in Terrace or Kamloops. Some locations may sell for less. The recipients will receive an award plaque to keep courtesy of Kats Trophys and a lunch for 2, value to $20.00, courtesy of the Fireside Dining Room. We'd like everyone in Castlegar to know there is an "Excellence in Service” in their community, and to congratulate each of them personally. If you know of someone that offers "Excellence in Service,” call me, Jon Jarrett at 365-5266, or drop a letter at the Castlegar Sun with your suggestion.