TAR sehen ot ste ny iT qubinesianews? 205879 There is no ‘correct way’ tos If you spend all your money on your home and never go out, you could be justias “normal” as somebody who lives in a bare bones place and Spends every- There is no correct way to Spend your money, Still, it is interesting to know how “aver- age” people spend, just to give yous idea of how you compare, ing census and other thing on clothes, amounts (remember, these are averages) shown, below, follow- ing the description of each (a) personal income tax, (b) food from stores, (c) food from restay- suns Canada i Tetrad Computer Applications Limited analyzes how 47 differ- ent groups of Lay toh rad spend their We have chosen a cross-sec- tion of the groups - last week we looked at Old Money and Estab- lishment Wealth, Affluence and Achievement, and Upscale with Immigrant Roots - and nine spending categories. Here is the key to those cate- gories, with the annual spending ed a letter from the Minister of Na- tional Revenue. It tells you, now, Precisely what you can contribute to you want them to wait until later, like some of us did? The best RRSP advice Is to invest as much as you can as early as you can. For old time's sake, here is the story $f Semythieal triplets who each in- vested $2,000 a year and achieved ‘an average return of 10%. + Alice started at 19, saved $2,000 SF a rrere ont ares pte another penny. By age 65, her $16,000 parye ae to $1,035,160. + Bill spent all his money in his youth, got married, smartened up, and from Se 27 10 65, he invested $2,000 2 year for 39-years. His $78,000 grew to only $883,185. - Charlie was an ‘4 | Roped de pe i 7. Use spousal contributions - Try to else. (in 1991) but one income of $50,000 Bf PLANVest FINANCIAL CORPORATION retirement. $5.00 a day (3.50 after tax) or $150 a month for 30 years at 12% will grow to $525,000. 6. Borrow the money - If necessary, use an RRSP loan to ensure that you make the maximum contribution Not only will it build your retirement fund faster but will significantly reduce your tax. It's not that expen- sive now that RRSP loans are available at the prime rate of 8.5%. arrive at your retirement date with equal income coming to you and your spouse. Two incomes of $25,000 each wil! pay tax of $9,892 in more affordable” have insurance and credit ean and have most of their Savings in liquid assets. (a) $12,571, (b) $4,422; (c) $2,052; (d) $3,158; (e) $1,589; (f) $956; (g) $620; (h) $1,028; (i) $542, + Golden Years Affluence. These are largely couples at or near + Very well edu- rants, (d) Operating car/truck, (ec) women's wear, (f) men's wear, (g) home entertainment ¢ uip- ment and. service, (h) and (i) interest on personal, loans; + Young Professional Familics in Transition. These families tend to be in the formative stages of their life cycle, often moving from rental to status, Most are very well educated; their children are in the pre-teens and educational planning for the children is paramount. More than two-thirds of the wives are im the workforce, These families have relatively high dis- posable incomes, having settled cated with incomes more than 50 per cent above the national aver- age. Their children have left for or are graduating from college. They like to travel, especially outside Canada, and buy luxury cars. (a) $13,177; (b) $4, 148; (c) $2,009; (4) $2,937; €€)'$1,596; (9) $725: (g) $582; (h) $978; (i) + Maturing and Empty Nest Homeowners. Household income is average, with most wage eam- ers in a broad range of technical and service occupations. Those few children still living at home are in their late teens, either in the work force or preparing to enter it. These families watch consider- able TV. (a) $8,344; (b) $4,073; (c) Kiwanis Club ‘Citizen of the Year’ Nominations will be received until Feb. 29, 1992 Send to: Castlegar Kiwanis Club P.O. Box 3665, Castlegar, B.C., VIN 3W4 ion and background pays $14,470. A spousal from one spouse, who claims the tax year in your retirement years. 8. Name your spouse as the beneficiary of your RRSP - This gives the spouse the option at your death of taking all the funds as income or of transferring them, without tax, to their own RRSP or RRIF. 9. Plan for rollovers - If you have a Periodic pension income, $6,000 of it may be rolied into a spousal RRSP. This is.onty available until 1994, 10. Consider a non-deductible over- contribution - Starting in 1991 you can make excess contributions to your RRSP of up to $8,000 without incurring a penalty. The overcon- tribution will not be currently deduc- tible but presents an interesting plan- ‘and thew the value of steady saving. From 19 to 65 he put $2,000 a year away (94,000) and when he and Bill and Alice got together on their bir- thday his pile was $1,918,345. . The moral of the story is to start ear- ly and do it often! RRSP tips for 1991/92 1. Plan ahead - RRSP contribution limits are increasing dramatically in the next few years, so plan ahead to ensure that you can maximize your contributions. The 1991 limit is $11,500 and this increases to $12,500 in 1992. 2. Percentage of income - The calculation has been reduced to on- fy 18% in 1991 and beyond. This is calculated based on 1990 earned income. 3. Painless . There's no calculation Meeded to determine your RRSP con- tribution limit for 1991. It’s spelled @ut in Otto Jelinek's recent letter to each taxpayer. If you've lost the let- ter, phone 1-800-661-1734 and ask your friendly Revenue Canada employee for help. 4, Get your ta& back monthly - If you Contribute each month to your RRSP, Revenue Canada will allow your @mployer to reduce the amount of imcome tax withheld each pay period. Phone me for details. 5. Don't wait -Some people think that they can't afford an RRSP so they don't contribute. Every year they wait, oS ey reduces the @mount of money they enjoy in BULLOCK 81 3 Yr 4a Yr. for FUND 1 Yr, Return * To Dec. 31/91 * Sold by Prospectus On ning op; ity where you can shelter tax on the income earned on the extra $8,000. You can carry the overcontribution forward and simp- ly reduce a subsequent year’s con- tribution to utilize the advance contribution. 11. Carry forward unused limits - Starting in 1991 Revenue Canada allows you to carry forward unused RRSP contribution limits for a max- imum of 7 years. But don't use this provision as an ex- cuse to be lazy about your contribu- tions. Delays will cause you to lose the tax free compounding effects of Punctual contributions as well as ear- ly tax deterrals. 12. Take advantage of the foreign content allowance. In 1992 you can invest up to 16% of your RRSP’s book value in certain non Canadian securities such as international mutual funds. International investing can build greater stability through diversification and offers better potential for growth. 13. Make the most of a golden hand- shake - If you retire or are laid off, the tax laws allow you to transfer to an RRSP up to $2,000 a year in retire- ment allowances for each year you've worked for your employer - plus $1; 500 a year for each year y (Ow worked before 1989 and were not a member of a pension plan. So you can defer a substantial amount of tax if you transfer your retiring allowances to an RRSP in- stead of recieving it in cash. AMERICAN 9% ly 21.8% 10 Yr, 18,1 Content in BOX 2139 FERNIE, B.C. OUR NEW PRICES-ARE FOUR YEARS OLD. Get any Lindal Custom Home.at 4 March 20, 1992/This one-of-a-kinid ‘price roll-back will save you thou- sands of dollars on the home of your'dreams. But you need to call or stop by today - because these 1988 prices will soon be history again. 4ALindal Cedar Homes Independently distributed by: MOUNTAIN PROPERTIES 1988 price now through 1521-9TH AVENUE (604) 423-3331 "$1,566; (d) $2,715; %e) $1,156: (1) pat ‘te) $493; thy $853: (i) + Sibi Affluent Singles and Couples.’ These singles and coupley (mostly childless) are highly educated with above-aver- age incomes; many of the couples are two-income households. About two-thirds rent but those who own have valve proper- ty, They tend to live in the city core, buy luxury cars, work in fields, shop actively but generally stay out of debt. (a) $11,157; (0) $3,466; (c) $1,886; (d) $2,475; (e) $1,409; (f) hey (g) $537; (h) $890; (i) + Maturing Singles and Cou- pend money ples with Moderaté Ticomes. Of the couples (58 per tent of this group), fewer than half have any children at home and'most of these have completed’ sthooling and now are in the workplace. Most live in single detached dwellings, while 15 per cent live in high-rise apartments and con- dos, Many work in the health and... education fields. " (a) $7,964; (b) $3,795; (c) * $1,553; (d) $2,478; (e) $1,127; © $652; (g) $468; (h) $818; (i) $328. NEXT WEEK: Singles and with Moderate Young Professional Dwellers,” Pensioners, and Maturing Blue-Collar Workers. Why lengthen patent protection? FRASER INSTITUTE Recently, trade minister Michael Wilson announced that Canada would extend patent pro- tection for brand name drugs to 20 years. Since 1987, patents between seven and 10 years have been the law. Provincial health ministers Protested that this would cost the provinces many millions in high- er pharmaceutical costs, The drug companies argue that without longer patents they will not be able to perform needed research. It is difficult to take the claims of either side at face value because both are competing with each other for resources controlled by the federal government. Do longer patent laws stifle competition or do they help con- sumers, as the drug companies claim? Patents are a form of property right. They establish a claim to an . idea or a design just as a deed cemtified the ownership of your house: Drag ‘compaities' spesid’ 102 to 12 years and about $200 mil- lion launching a new drug. It is doubtful that any company would take this sort of risk without a guarantee that its intellectual Property will be protected from theft by generic drug imitators. To get a feel for the force of this Bluetop Burger aioe $3 25 FRIES includes G.S.T. All beef patty with lettuce, pickle, tomato and onions. Served with homemade fries. ON! Y WHILE THEY LAST! Unique ‘Cut Corner” Spa ask y whether you would build a house knowing that on returning from work you might find anyone who pleased legally camped out in your living room. Bill C-22, adopted by Parlia- ment in 1987, strengthened patent Protection for brand name drugs. Since then, pharmaceutical research and development fund- ing of health research jumped 107 per cent, from $138 million a year in 1987, to $296 million a year in 1990. The Pharmaceutical Manu-fac- turers ‘Association of Canada Proudly states that it has achieved these results with only two per cent of its research and develop- ment funding coming from gov- ernment. But it fails to mention that drug companies make use of freely available medical findings due to research conducted or fund- ed by the federal government. In 1990 $303 million of public money was spent on such research. The presence of these indirect sub- sidies-weakéens, but does nor invAl- idate, the claim that stronger patent laws are needed to ensure. an ade- quate level of research. Provincial politicians oppose a stronger patent law because they claim that it will allow drug com- panies to raise their prices and increase the cost of provincial health care. So far, this has not happened. Since 1987 the cost of p d medicines has i by 3.1 per cent a year, whereas inflation has been 4.4 per cent. In real terms this price has FALL- EN. What the health ministers may really fear, is that by giving patients a choice of wider treat- ments, new drugs will increase what hospitals spend on health care. In medicine the most extreme example of new choices on cost, is the invention of istic ical h ig such as heart-lung-liver trans- plants, for previously inoperable conditions. In a state-run health system, where patients do not pay for their treatment, these miracu- lous inventions have become the bane of hospital administrators who must balance hospital bud- gets without denying anyone a new expensive treatment if it can be performed. Even though medicines are only four per cent of overall health costs, government finances are so strained that even such tiny percentages must be carefully watched. It is ironic that the state- run medical system, which was formed to improve the quality of health cage, should oppose advances if technology such as better drugs, to save on costs. PERMS $ 30° Elizabeth looks forward to being of service to'you MONDAY TO SATURDAY 8:30 a.m.-4:30 p.m. E g Hair Studio’& Consignments 9703 2nd Ave. * 364:2600 “Cliff -. The Castlegar Sun Wednesday, ata 12, 1992 Canadian ¢onsumers over- whelmingly prefer a made-in- Canada solution to the future airline that Canada would be better served by a single C it over a Canadian carrier. Air Canada’s chairman, Presi- dent and CEO, Claude I. Taylor has d ional carrier able to com- pete effectively with the mega- airlines being formed around the world, . Now, “Canada needs ‘an airline industry whose first focus is to take care of Canadians, not as an International by American Air- lines as being bad for the Canadi- an industry, and for Canada. control of the air- ducted on behalf of Air Canada yt er onanane Suey line could move to Dallas and support this as to having foreign take cal Canadian 13-year-olds fin- ished in the middle of a 20- nation sample of students in mathematics and science tests, and British Ci did bet- pope eyo several groups ranked before B.C. “were so close to ours,” Sa es nme he ie ter, but Ministry of Education officials are warning against invidious cor The 6,000 British Columbian students tested in 1991 as part of the International Assessment of Education Progress got average scores of 66 in mathematics and 72 in science, good enough for seventh and fifth rankings over- all, But EAEP administrators and B.C. officials warned against making such rankings, even though the Education Ministry Press release made them too. “It's a case of comparing apples and ares ” said Dou- glas H Nor is om ‘eek validity in comparing British Columbia Taiwan, Korea, the Russian- speaking schools in the old Soviet Union, China, Switzer- land and Hungary. Mr. Hodgkinson commented that cultural attitudes to educa- tion and /or tests may restraints to overcome, accord- ing to Mr. Hodgki: The blip ommendation, apart from sup- porting the need for control of break of the civil war. Israeli finished both, but under Mozambiquans didn’t write the Science test because of an out- the threat of scud missile attack. Enviros foresee NDP backdown STERLING NEWS SERVICE The Valhalla Society clai its inherent advantage of: - Basy access to most of Cana- da's population - The network efficiencies of their major hubs ~ The benefits of U.S. Customs da,” said Taylor. “It could well = lead to the end of the aifline industry in Canada as we know it today and cause Air Canada to re-assess its own strategies to compete effectively.” and I favouring U.S. carriers over carriers “All of these, combined with a potential takeover of Canadian by American, would pose a formidable obstacle to Air Cana- Sun classifieds sell fast! Call now 365-7848 seeael HAG 3 & 4 Year.....8 1/4% 5 Year.........8 5/8% 30 Days.......6 1/2% Cheok Cand and Compare Rates! We Have Loans Fer RASPs at 7¥:% 428-2231 (creston) 365-81 88 (castiogar) Anne Mann FINANCIAL ADVISOR i Uf PLANVEST PIA NIALCOMPORATION Friday that secret government a some of edge. When one of the American examiners visited a Korean school, the students have di that the New Democratic government is nning to p applauded those picked to take the tests. These in turn thanked director of the palate Ss Own testing branch. Chinese 13-year- olds, for example, placed first in mathematics with an average of 80, but the sample group repre- the A for the privilege. “I don't think we'd see that hap- pen in a Canadian school,” said Mr. Hodgkinson. Some students who did poor- ly had more than cultural sign. Seer -pienonhnaiinte Business Glance More signs of the times — the Saintpibar mcesl ‘Treit ef Park, at the Pelee ot rete: 3m ii Conega d rather than biol diverse forests as a way of keep- ing election promises. The New Denver-based con- servation accused the gov- ernment of “: ” the forest industry with the pick of the remaining old growth forests, while parks are made out of “alpine rock and ince, marshes and muskeg, or low-grade forests.” Anne Sherrod, a director of the society, said areas it had proposed for parkland, on the basis of input Unemployment rate reflects corporate squeeze Canada’s unemployment rate rose to 10.4 percent in January from 10.3 percent a month earlier, the government said Friday, and Instead, the list is being bol- stered with suggestions from the Forests Ministry of areas unde- sireable as logging sites. “If we can’t even save this much old growth forest,” said Colleen McCrory, another direc- tor, “then the public has almost been totally robbed of its rightful share of the forests.” In a related incident, Forests Minister Dan Miller made the claim on a Wednesday night cable TV show, Voice of the Province, that the NDP’s other election Promise to “log around con- tentious areas,” only applied to such areas within the Walbran Valley. The promise, made often by Premier Mike Harcourt, was widely understood to refer to con- tentious areas throughout B.C. However, when the govern- ment announced its plan to deal with contentious land use disputes with a new Commission on Resources and Environmem, log- ging was banned in only a half the disputed areas considered. double-digit unemployment rate reflects a flat economy and a severe ‘Squeeze on corporate profits. Government agency Statistics Canada said the number of official- ly unemployed in January was vir- tually unchanged at 1,429,000, but that the number of people working fell by 13,000 to 12,304,000. Canada’s unemployment rate rose sharply as the country went into recession in early 1990. Ana- lysts expect the number of jobless to remain high for at least the first two quarters of 1992. “We are seeing severe cost a presentam um ENSINO VOLUNTARIO DO PROGRAMA Teleflora — VALENTINE BOUQUET Valentine's Day (s Priday, February 14 preet Vers 50% off World Wide Delivery — ORDER NOW! Tropical Plants 20 - 50% off ™ CHANG’S NURSERY & FLORIST 2601 - 9th Ave., Castlegar 365-7312 Presented to: or clients. Tony Sandrin Dairy Queen This award will be presented every week to someone in Castlegar who shows extraordinary service to his/her customers 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. Si ky The Castings IWS r Sun Excellence in Service Award 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.