PACE Newsletter Winter 2015

Well beyond a bank.
FEBRUARY 2015
INVESTING IN AN RRSP EARLY
FAMILY TAX CUT
8TH ANNUAL GOLF TOURNAMENT
PACESETTER
GETTING
From Your
more
%*
SAVINGS
*3 year term with a minimum of $5,000 new deposits
A limited time offer, some restrictions may apply.
Save more
for your dreams:
Get more
from PACE.
SOUNDS GOOD?
VISIT YOUR
BRANCH TODAY!
pacecu.com
The importance of investing in an RRSP early
Investors are often caught up in the moment and worry about short term fluctuations in the market. In my experience the reasons behind
having a certain asset allocation or own a particular investment product seldom change overnight. Positive long-term results are usually the
product of a disciplined and diligent approach to maintaining a portfolio.
If you want peace of mind about your future retirement and the security of your family we suggest you meet with one our investment
advisors as soon as possible. They will discuss your goals and work with you to develop a savings and investment plan to meet those goals.
Given the power of compounding returns it is important to do this as soon as possible.
For example if you have 25 years to retirement and invest $100,000 now in a broad based equity portfolio you could reasonably expect to
earn 7% per year on average. This would give you approximately $684,847 with which to fund your retirement. If you wait 10 years the
expected amount declines to $275,903. As you can see investing early will make an enormous difference in what retirement choices are
available to you.
Please contact me to arrange an appointment with one our investment advisors.
Happy New Year!
Joe Thomson, President & CEO
PACE Securities Corp.
THE SIMPLE WAY
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Interac e-Transfer®
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www.pacecu.com
Holiday Hours
Family day- Feb.16-closed
Good Friday- April 3-closed
Victoria day May 18- closed
SAVE THE DATE:
8th Annual PACE Golf
Tournament is Monday August
10, 2015 at Silver Lakes Golf &
Conference Centre
in support of the
PACE Bursary
Award Program.
The Family Tax Cut: A New Way for Families to Save
The Family Tax Cut (FTC) is a new way for families with children to save on income tax. Starting in the 2014 tax year, families
that qualify will be able to claim this non-refundable tax credit. Couples with children under the age of 18 can transfer up
to $50,000 of income. The breadwinner of the family can shift taxable income to their lower-earning spouse to lower the
family’s overall tax bill for a tax savings up to $2,000 per year.
Since income splitting is a non-refundable tax credit, middle to upper-income couples will benefit the most. The wider the
income gap between the higher earning spouse and the lower earning spouse, the larger the tax credit you’ll receive. For
example, if John has taxable income of $150,000 and Mary has taxable income of $50,000, the couple will receive a FTC
near the maximum, worth $1,920. Couples where one parent decides to stay at home and raise the children, also look to
benefit.
How couples use the tax savings from the FTC is up to them. One way is to set up a Registered Education Savings Plan
(RESP). RESP contributions grows tax-free and may be eligible for government grants.
A word of caution – whether the FTC is around come 2016 remains to be seen. A lot hinges on the 2015 federal election.
While the Conservative are committed to the FTC, the NDP plan to scrap it in favour of a national child care program.
The Universal Child Care Benefit
The universal child care benefit (UCCB) is receiving a boost starting in 2015. The UCCB is increasing by $60 to $160 per
month for couples with kids under the age of six. In addition, a new benefit worth $60 per month will be paid to qualifying
couples for children between the ages of 6 and 17. If your family qualifies, you’ll receive cheques starting in July 2015.
Thank you for choosing PACE.
Larry Smith, Chief Executive Officer
Administrative Office
8111 Jane Street, Unit 1
Vaughan, Ontario L4K 4L7
tel: 905.738.8900
PACESETTER is a publication of PACE Credit Union Ltd. and the content in this newsletter is intended as a summary
of information only. All suggestions should be sent to the Editor, Administrative Office, PACE Credit Union.