Affiliated with National Financial Insurance Agency Inc.

• Make an RESP contribution before year-end to get the Canada Education Savings Grant. (especially if your child is 15 or 16) See the link in the What’s New Section for the new Canada Learning Bond.
   
• If you are turning 69 in 2006, you must convert your RRSP to a RRIF. It is also the last year that you are eligible to make an RRSP contribution (or your spouse turns 69 – for spousal RRSP)
   
• Defer any sales of assets that would yield capital gains until 2007. That way, you will not have to pay income taxes on the gains until you file the 2007 return in 2008.
   
• Avoid investment in mutual funds in your non-registered account prior to year-end to avoid having to pay taxes on gains you haven’t benefited from.
   
• Donate stock instead of cash to a charity to get a special tax break. Normally, half of a capital gain is taxed as income, but under the new rules, a capital gain triggered by a donation of securities or mutual fund units to a charity is exempt from tax.

So what’s up with the new income-splitting announcement made by the Conservative Government? Why are experts saying not to give up on spousal plans? Seniors are now entitled to $2000 pension credit. Refer to the links section for more information.

As always we thank you for your trust & do appreciate your business.

Theresa Wever and the Money Concepts Team.