Hi Ginny CA, How much did your stock grow in 2004? The base number is the amount at the end of 2003. To find growth in 2004, subtract number at end of 2003 from number at end of 2004. To find growth percentage, divide the growth number by number at end of 2003, multiply by 100. Here in Canada, amounts contributed to our voluntary Registered Retirement Savings Plans are deductible (with certain fairly liberal limits) in that year and growth is not counted during the years that the account runs, but every dollar cashed out is added to income in the year of cash out. As dividends that are paid by Canadian stocks are tax-advantaged and capital gain that stocks develop are taxed at regular rate on only half of the amount of growth, I'm less than enthused about RRSPs, but most financial advisors say that *every* taxpayer should have them. Also - I saved 26% on the amounts that I contributed - and now pay 38% on withdrawals from my RRSPs (which were transferred, as required) to a Registered Retirement Income Fund (RRIF) at age 69, with a requirement that I withdraw certain percentages of the total fund annually (increasing percentages annually till 20% annually at age 90 and up). I suggest that most folks prepare their own tax return, unless it is a very complicated one, for it gives one some ideas about changes of plans which might be implemented in order to reduce the tax load in later years. Of course, a good accontant can make such suggestions, as well. I've asked several local tax preparers if people ask them, after their tax return is completed, what suggestions the preparer may have in order that the taxpayer may reduce his/her tax load in subsequent years. Was astonished that they almost all said that only a very rare person asks such a question. And most of us will claim that we are interested in a variety of ways to make out money work harder, and pay less income tax. Tax evasion, a crime, is not recommended - but tax avoidance should be practised by every taxpayer, it seems to me. Good wishes for a happy tax season - think of all the benefits that your taxes provide you and yours - and the society as a whole. ole joyful

After I'd bought some equity-based mutual funds, for that fabled "diversification", I decided that I didn't like the fees that I was paying to the managers - darn near as high as the income tax that I paid on on the average rate of gain (but some of the growth was deferred until I sold, of course). By the way ... when you own mutual funds that produce capital gain, in a regular account (not one of the tax-deferred retirement account ones) you must keep track of not only what you paid in the first place, but add all of those payiouts that they reported to you from time to time, usually annually, as the years went along, as they were reinvested. When you sell, your "cost" (for calculating capital gain) wasn't just the amount of your original investment, but included all of those distributions, that were reinvested. If you don't add those (usually annual) reinvested amounts ... you'll be paying tax on them twice - if they're outside of a tax-deferred retirement account! I decided some time ago that I prefer to buy individual stocks myself. On some of the stocks that I own, I used to be taxed at a low rate on dividends, and that rate was reduced even farther, recently. If I earn those dividends in a tax-deferred retirement account, I have no tax liability on the dividends currently, an advantage. But ... when I cash out, I pay tax at regular rate on every dollar ... so I lose the tax advantage that I would currently enjoy if they were taxable now. When I borrow to invest, for solid stocks, aiming at the long term - to fund that retirement - I use the current dividends that the stocks bought with the borrowed funds produce, plus some of the ones earned by the shares that I'd bought with my cash, to pay the interest on the loan ... and that interest is deductible. So I end up paying next to no tax on those dividends, or even gain a bit. When I take money our of my retirement account - taxed on every dollar, at full rate. When I sell some of my regular stocks (the non-tax-deferred-retirement-account ones), I deduct the amount that I invested originally (plus the reinvested dividends, if I have been using a dividend-reinvestment plan) anddeduct that from the amount of the proceeds of sale to find tha capital gain. I pay at regular rate on half of that capital gain ... but I get half of it free of tax. It makes sense, in this country, to keep bonds, GICs, etc. where the number of dollars originally invested won't grow, and the regular earnings are interest, that's taxed at top rate, in those tax-deferred retirement avccounts. Not equities, and certainly not Canadian equities. I'm nearing 80 years of age, and I have about 80% of my assets in equity-based investments ... and that suits me well. Good wishes to you for increasingly wise use of your income ... plus assets. ole joyful

mrs_mack, I'm pretty sure that you did not pay any sales tax on your pool. Sales tax is always noted as a specific line item in any sales contract I have entered into that is not considered a home capital improvement. The reason why the company that you used for your cover is suggesting that you fill the form out is because they are not in a business that typically does "capital improvements". The reason why you may be able to gain an exemption on the 7% sales tax on the cover is because is is a custom cover for the pool, which itself was the capital improvement (you can't move it)....trust me, though, the state, county, municipality and your school district(s) (we're in NJ, right....more school districts than most any other state....many towns have 2) are getting their share each year through your increased property taxes. One way or the other the "leaders" of this state get their take for the bloated state pension funds. (sorry for the rant....schools opened late here due to delays in a new school building that led to a $1000 property tax increase in addition to the increase from my pool)

Hi again Jimbg, I imagine that you've had some interesting thoughts regarding your retirement nest egg during the last half year or so. I hope that you have not been so smitten with fear of the stock market that you've decided to stay out of it. There are losses suffered from time to time, which can be substantial ... but over the long term, carefully chosen stocks, ETFs, etc. have produced well for their owners. As have mutual funds ... but, despite their substaial claims to superior performance, about 85% of mutual fund managers are unable to produce a higher rate of return than their chosen portion of the market. As you encourage your friends to start a retirement plan, you can follow a savings plan that's specifically geared to setting up a payout system during one's retirement, but many choose to carry investment accounts that are not geared toward retirement, as well. If one chooses to build a regular investment program, with a view to having it available to fund one's retirement, though unwilling to be tied up with the restrictions that govern retirement accounts, there's an extra benefit that can be used during one's lifetime. When I own a number of stocks or mutual funds, I can have the certificates issued to use as collateral when I make loans, often allowing me to pay a much lower rate of interest that if I must use other kinds of collateral. For example, if I want to buy a car and use the car as collateral, if the lender wants to repossess it in case of my delinquency, there's a hassle to collect it, then advertise it for sle, or go through a brokerage, which charges fees, etc. and they must wait for their money ... plus, if I didn't take good care of the car, they may not be able to collect all of the amount owing, plus costs. So they usually charge high interest rates on such loans. If, however, one has some stocks or mutual fund certiicates to use as collateral and isn't able to pay, it's fast and easy to liquidate the stock or mutual fund collateral, so the borrower almost always enjoys a much lower rate of interest on the loan. Should one have an emergency, it is a great help to one's financial and emotional well-being if one has some assets on hand to either liquidate or, perhaps more frequently, use as collateral to make a loan to cover the need, and the interest rate will be advantageous. Such a cushion helps a great deal in case one suffers long-term layoff, as many have experienced in the past few years. When one uses money that one had planned for retiremen for either an emergency, or to fund one's living during long-term layoff, one should make a strong effort to replace the money withdrawn, plus allowance for inflation, when one's financial stability is restored. Good wishes as you proceed with your plans ... and encourage others to do the same. On the day that you began work, you had brains and hands at work ... but no money. On the day that you retire, you have brains and money at work ... and no hands. If you've set aside a substantial amount regularly over the years, and learned how to manage it for a reasonable rate of return, plus some tax savings, you may well have developed enough assets in order to provide you with sufficient money to retire early. Good wishes for increasing skill in managing your income and assets. ole joyful