Credit Union Launches Deposit Campaign We’ve been blessed with terrific loan demand. In 2008, loans increased almost 19% led by strong growth in residential mortgages and loans to charitable organizations. Deposits also grew, to a lesser extent, by just over 10%. In order to increase deposits to match loan growth, Christian Credit Union has launched a deposit campaign. The campaign, which runs through October, emphasizes the following: ❖ All deposits are covered by 100% deposit guarantee by Credit Union Deposit Guarantee Corporation of Alberta, a crown corporation of the Alberta government. ❖ All deposits are eligible for Profit $haring and bonus rates are available for larger deposits. ❖ Deposits help fund growing loan demand to Kingdom causes in the Reformed Christian community such as churches and schools. Currently, Christian Credit Union has $24.7 million in loans and commitments to Kingdom causes. ❖ It’s easy to SWITCH and bank at Christian Credit Union. How do we hope to achieve goals? With your help! Kindly consider the following: ❖ Business Marketing – tying into Credit Union’s national initiative, Business is Banking @ Canada’s Credit Unions, commercial account officers are contacting businesses in the Reformed Christian community that currently do not bank at Christian Credit Union and inviting them to bank, borrow and invest.
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Community Builder Mortgage – supporters and members of non-profit organizations seeking a mortgage at Christian Credit Union can take advantage of a .1% donation to their charity’s project if they place new money on deposits in nonredeemable term deposits and registered investments. NEW Tax Free Savings Account (‘TFSA’) – effective January 2009 taxpayers can contribute up to $5,000 to a TFSA – where income earned is non-taxable (refer Planner’s Corner on back page for more information). RRSP Campaign – still one of the best ways to save for retirement. Christian Credit Union will now reimburse members up to $50 for transfer fees from other Financial Institutions. Encourage new and existing members to do their day-to-day banking with Christian Credit Union Effective January 1, 2009, Internet and TeleService® inquiry and transfer fees on all accounts will be eliminated. Members in Service Plans will also benefit as the elimination of these fee-based transactions will effectively increase the number of transactions covered. Encourage members to SWITCH their banking to Christian Credit Union. We’ll help transfer all Automated Funds Transfers (‘AFT’) such as Canada Pension Plan and Child Tax Benefit and even reimburse up to $50 on account close out fees. It’s easy to bank with us: in person, by telephone, fax, email, internet, ATM, Direct Payment®. Personal contact with members that have large deposits.
If you would like to know more about our deposit campaign, please give us a call.
Annual Meetings We are thankful that the Lord has blessed us with another great year. Please join us in sharing the results at the following meetings: Lethbridge Information Meeting Friday, January 30, 2009 Coalhurst Community Centre Coalhurst 6:30 pm Banquet 8:00 pm Business Meeting
Annual General Meeting Friday, February 6, 2009 Italian Cultural Centre 14230 – 133 Avenue NW, Edmonton 6:30 pm Banquet 8:00 pm Annual General Meeting
On January 5, 2009 tickets ($10) for both banquets will be available on a first-come, first-serve basis from the branch offices. ❖ ❖ ❖ ❖ ❖ ❖ ❖
Deposit Campaign Annual Meetings Emmanuel Home Visits CEO’s Message Record Profit $haring $761,957 Staff Profile: Jeanette Vooys Board of Director & Lethbridge Advisory Committee Nominees
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Election Dates and Procedures Bylaw Changes Financial Abuse Netherlands Reformed Congregation of Fort Macleod Edmonton Society for Christian Education Community Involvement Planner’s Corner: Tax Free Savings Accounts
Our fiscal year ended on October 31 and it is my pleasure to report that your credit union had another year of solid financial results. Our total assets have increased from $133 million to over $146 million. The loan portfolio grew by 19% to $116 million and our deposits increased by 10% to $137 million. Our Lethbridge branch made a significant contribution to these financial results. The loans at the Lethbridge branch total over $24 million and the deposits are approximately $16 million. You can see that the loans are considerably higher than the deposits. We would like to close this gap so we would appreciate any support from members or potential members in the Lethbridge area. Nevertheless, after some initial losses and breaking even last year, for the first time the Lethbridge branch realized a profit of $274,000 this year! Thank you to the staff in the Lethbridge branch for all your hard work. We used our assets to generate $1.95 million in profit before taxes. Out of this profit the Board approved Profit $haring of approximately $762,000 and we were able to increase our equity by just under $1 million. As a result we have increased our asset to equity ratio from 5.87% to 6.2%. Our credit union has a good equity position but we would like to continue the trend of increasing our equity ratio to allow us to better weather whatever economic storms may come our way. We have definitely witnessed considerable economic and political turmoil during the past few months. We may be impacted by these events but our credit union is certainly not in the financial crisis that is being hyped in the media. We are less affected because we don’t borrow money directly from the Bank of Canada and we don’t receive any of the direct aid paid out by the government. We are less affected because we did not deviate from our core competencies. We did not participate in sub-prime lending. We did not purchase any asset-backed commercial paper. We do not own any derivatives. We are focused on providing high quality banking services to our members and returning benefits to the charitable organizations in our Reformed Christian community. This year we have furthered our goal of providing tangible benefits to charitable organizations in the Reformed Christian community by increasing our loans and commitments to charitable organizations by 20% to $25 million. Most charitable organizations receive a 0.5% discount on their interest rate and most receive free account service fees in addition to cash donations and promotional items. The proposed bylaw change you can find elsewhere in this newsletter will help clarify our commitment to serve the Reformed Christian community while allowing us to reach out to those around us at the same time. I encourage you to support this important change. It is only by the grace of God that we have been blessed with positive financial results and may all thanks and praise be given to Him. I hope that this Christmas season has served to strengthen your faith in Jesus Christ and I wish you the Lord’s blessings in 2009. John Veldkamp, CEO
Staff Profile: Jeanette Vooys
Staff Notables
After 14 years as an instructor and instructor-trainer at St. John’s Ambulance, Jeanette joined Edmonton branch as a part-time Member Service Representative on November 13, 2007. Jeanette indicates that she appreciates the supportive working environment at Christian Credit Union and flexible work hours.
Edmonton branch
Jeanette and her husband Jack have three children and celebrated their 30th anniversary in summer 2008. Recently they became grandparents for the first time. Jeanette enjoys family suppers and music. She sings in The King’s University College Community Chorus and she sings in Witness, a worship team at church. She and her husband Jack attend West End Christian Reformed Church where they are active volunteers. Jeanette helps coordinate and nurture Fellowship Groups. Often Jeanette is the first voice you hear when calling Edmonton branch and members have commented that Jeanette exemplifies professionalism. We appreciate your efforts and hard work and dedication, Jeanette!
Did you know? Tired of receiving pre-approved credit card applications in the mail? Concerned the application may end up in the wrong hands? You can opt out of pre-approved credit card applications by calling 1-888-567-8688. The opt-out provision is good for a five-year period.
We celebrated two staff members who reached long-term service milestones. Susanna Kleefman, Loans Administrator, celebrated 10 years of service on November 1. Jackie Rudyk, Personal Loans Manager, celebrated 20 years of service on December 1. Thank you Susanna and Jackie for your commitment and service. Kim Sommerville, part-time Business Development Officer, has returned from maternity leave. Kim works from her home in Calgary and serves members in the Calgary area. In the next year, Kim will be conducting a feasibility study on setting up an agency or branch in the Calgary area. John Veldkamp, CEO and wife Evelyn, were blessed with a baby boy, Micah Cornelis on October 18. Micah joins brothers Noah, Matthew, Daniel and Thomas at the busy Veldkamp household. Congratulations! Lethbridge branch David Klingenberg has been granted the Fellow of the Credit Union Institute of Canada designation. David earned the designation by completing the necessary course work and experience. With the outstanding growth of the Lethbridge branch, David has been promoted from Loans Manager to Branch Manager. Congratulations David on your designation and promotion! In recognition of her efforts and abilities, Kari DeRaaf, has been promoted from Member Service Representative to Senior Member Service Representative. Congratulations!
Involved In Our Community! Netherland Reformed Congregation of Fort Macleod Builds Manse In 2007, the Netherlands Reformed Congregation of Fort Macleod was able to purchase a lot that came for sale right beside their church. Members of the congregation, through paid and volunteer labour, built a manse which was completed in Fall 2008. Christian Credit Union was pleased to provide financing for this project. The Fort Macleod congregation has grown significantly in the past five years and now consists of 321 professing and baptized members. The Congregation is located in the historic town of Fort Macleod, located 30 minutes west of Lethbridge.
The Edmonton Society for Christian Education Purchases Buses Taking advantage of the high Canadian dollar versus United States dollar at the time, The Edmonton Society for Christian Education purchased two new buses for $168,000 in early fall 2008. The new buses upgraded the Society’s existing fleet, replacing buses that were over 15 years of age. Through members’ deposits, Christian Credit Union was pleased to provide financing for these purchases. The Edmonton Society for Christian Education operates Edmonton Christian Schools, an alternative Edmonton Public School program. Edmonton Christian Schools has three campuses and educates over 1,400 students from Kindergarten to grade 12.
Financial Abuse In a perfect world, we would not need to discuss financial abuse. Unfortunately we do not live in a perfect world. When someone misuses your money, financial resources or property without your consent or understanding, it is financial abuse. Abusers can be family members, caregivers or strangers who befriend you. Abuse can include manipulating you, pressuring or otherwise influencing you to give away your money, property or other valuables to the abuser. Motivations for the abuse include financial problems or greed. Abusers may take advantage of trust, discretion or power that has been given to them. They may have a false sense of entitlement or they may feel that you don’t need all of your money.
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Keep your money at Christian Credit Union and not at home. Automate regular deposits (e.g. Canada Pension Plan) and withdrawals. Keep a list of all property, bank accounts and belongings. Write a plan for the repayment of money before your lend it to a relative or friend. Stay in touch with your friends. Plan ahead. With a lawyer’s help, prepare a will, enduring power of attorney and personal directive for health care. Review these documents periodically to keep them up-to-date. Change them only under careful consideration. Ask a trusted friend or family member to review all documents before signing.
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Start by calling the police. The police can help you determine if the situation is criminal and can refer you to Victim Services and provide information on other community resources. If you are not sure, confide in someone you trust. Keep a record. Write down what is happening to you. This will serve as a record and may help others assist you. Don’t blame yourself. It’s not your fault. For more information about the help available in your community call the Alberta Family Violence Information Line toll free at 780/403-310-1818 or log on to www.albertaelderabuse.ca
Board of Director Nominees Four individuals have agreed to let their names stand as nominees for the Board of Directors of Christian Credit Union. Two positions are to be filled. Nominee profiles appear below: Johannes Bosch Johannes is a semi-retired business owner. Johannes and his wife Willa have two adult children and are active members of St. Albert Canadian Reformed Church. Johannes has served/continues to serve as elder, Parkland Immanuel Christian School volunteer and Big Brothers and Big Sisters volunteer. Johannes lists his strengths as being familiar with many aspects of the credit union system and having a strong but co-operative personality. Johannes enjoys working with the Credit Union as its focus is on providing financial services from a Christian perspective. A member of Christian Credit Union since 1970, Johannes is an incumbent nominee and currently serves as President of the Board of Directors. He previously served on the Board and Supervisory Committee and has completed the Credit Union Director Achievement Program.
Fred Johannesen Fred is a businessman and President of COBALT Business Systems. Fred and his wife Melanie have two children and are active members of West End Christian Reformed Church, Edmonton. At church, Fred has served/ continues to serve on/as Executive, Church Council, deacon, youth mentor and praise team. Fred has a gift for fundraising and has volunteered on The Edmonton Society Christian Education’s golf committee, Grey Cup breakfast and various other fundraising causes. Fred lists his strengths as general business acumen, good understanding of small/medium business needs and financial markets. Fred has a B.Sc. in Mathematics from University of Alberta. Fred has been a credit union member since 2003.
Roy Schouten Roy is a Construction Administration Manager for Barr Ryder Architects & Interior Designers. Roy and his wife Susan have three adult children and are active members of Maranatha Christian Reformed Church. At church, Roy has served/continues to serve as Sunday School teacher, catechism teacher, adult education leader, deacon, elder, treasurer, member of various committees, council chair and visioning committee chair. Roy’s community volunteerism includes The Edmonton Society for Christian Education (‘ESCE’) board member for six years (two years as chair) and has been a member or chair of every ESCE committee over the years. Roy has a Marketing Management degree from University of Western Ontario and is a Certified Management Accountant. He currently volunteers with Make Tax Time Pay which helps low income families complete their taxes. Roy lists his strengths as financial expertise and experience, understanding of the Reformed Christian community and experience of volunteer boards. He comments “I appreciate the fine work of the Christian Credit Union (‘CCU’) supporting many projects within the Reformed community – churches, schools, seniors’ homes and others. I also value the compassionate attitude of the CCU working with financially challenged families in our community. I would like to participate in inviting and convincing more of our community to join the CCU in the work of building God’s Kingdom.” Roy has been a credit union member since 1989. Will Woudstra Will is a Supervisor with Alberta Justice. Will and his wife Lola have four adult children and are active members of Trinity Christian Reformed Church. At church, Will served/ continues to serve as elder and deacon. In the past he has also been a board member of The Edmonton Society for Christian Education. Will lists his strengths as organization and time management skills and prior board experience. Will has been a credit union member since the 1960’s. Will has 18 years of previous Christian Credit Union experience including 6 years on Supervisory Committee and 12 years on the Board where he has served in various roles including Chair.
Lethbridge Advisory Committee Nominees Four individuals have agreed to let their names stand as nominees for Lethbridge Local Advisory Committee. Two positions are to be filled. Nominee profiles appear below: Liesbeth Fieret Liesbeth is a homemaker and payroll clerk for her husband’s business L F Collision Repair Centre. Liesbeth and her husband Leon immigrated to Canada in 1998 and have seven children. The Fieret family are active members of Bethel Free Reformed Church of Monarch where Liesbeth served/continues to serve as nursery coordinator, shower volunteer and youth group leader. She also helps out with the Army Cadets annual poppy drive. Liesbeth has a Bachelor Degree in Nursing. Liesbeth has been a credit union member since 2003, soon after the Lethbridge branch was opened.
Helen Leffers Helen Leffers is a homemaker and retired farmer. She and her husband Andrew have five adult children, fifteen grandchildren (16th on the way) and are active members of Coaldale Canadian Reformed Church. Helen keeps busy volunteering at Bible for Mission Thrift Store and with church activities. She previously served on the Coaldale Christian School Board. Helen has been a member of Christian Credit Union since 1998, before the Lethbridge branch was opened! She is an incumbent nominee, having previously served three years.
George Lubberts George is a self-employed Certified Crop Consultant and Professional Agrologist. George and wife Wilma have three children and are active members of Nobleford Christian Reformed Church. At church, George has served several terms as deacon and elder. He currently serves as a board member of Christian Reformed World Relief Committee and Canadian Food Grains Bank. George’s broader community involvment include treasurer of Alberta Institute of Agrologists, Lethbridge branch, soccer referee and coach, and AgExpo Seed Fair Committee member. George has a Bachelor of Science degree in Agriculture from University of Guelph and a Diploma in Business Administration from Wilfred Laurier University. George lists his strengths as many years of service on boards, passion for social justice and experience working for one of the largest and smallest agricultural companies. George has been a credit union member since 2007. Theo VanEe Theo is the sales manager and part-owner of Westco Construction. Westco Construction completed Lethbridge branch renovations in 2007. Theo and wife, Alie, have 14 children and 5 grandchildren and are active members of Reformed Congregation of North America located in Monarch where Theo serves on the building committee. Theo also volunteers with the Canadian Cancer Society. Theo is a Civil Engineer with an Iron Workers ticket. A family member describes Theo as ambitious, hard working and persuasive. Theo has been a credit union member since February 2008.
Election Dates and Procedures Elections will be conducted at Edmonton and Lethbridge branches from January 2 – January 28, 2009. Edmonton branch members are eligible to vote for Board of Director nominees and Lethbridge branch members are eligible to vote for both Board of Directors and Lethbridge Advisory Committee nominees. If you are unable to vote ‘in branch’, a mail ballot must be requested in writing with your name, account number and signature, no later than January 8, 2009. Mail ballots must be received no later than January 28, 2009. Results will be shared at Annual Meetings on January 30 & February 6, 2009.
Proposed Amendment to Bylaws
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As part of its strategic planning work, the Board of Directors has identified a number of inconsistencies in our membership requirements. Therefore the Board is proposing some changes to our bylaws that will allow our credit union to maintain its primary focus on serving the Reformed Christian community and also allow us to serve people connected to our community through the use of a sponsorship model together with a Statement of Faith. The Board of Directors of Christian Credit Union Ltd. recommends that the following three changes to the bylaws be approved by the membership at the Annual General Meeting on February 6, 2009: Firstly, that the current section 2.1 be deleted and replaced with a new section 2.1 as follows: CURRENT BYLAW 2.1: 2.1
Qualification for Membership Membership in the Credit Union is subject to approval by the Board or its designate and shall be open to:
2.1.1 (a) Individuals who express agreement with the Basis and Purpose, as expressed in section 1.1 and are members of a church with a Reformed confession; (b) Individuals who are members of a non-profit society or charitable organization which is a member of the Credit Union; (c) Individuals who are part owners of a business partnership or corporate entity which is a member of the Credit Union; and (d) Individuals who are either: parents, or; children under the age of eighteen (18), of persons who are members of the Credit Union or are eligible for membership under the criteria outlined in subsections 2.1.1(a), (b) and (c). (2) Societies and organizations that have at least fifty percent (50%) of the members of the organization who are members of a church with a Reformed confession as defined in subsection 2.1.1(a) above. (3) Business corporations or partnerships of which at least fifty percent (50%) of the shareholders or partners, as applicable, are members of a church with a Reformed confession as defined in subsection 2.1.1(a) above.
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2.1.2 Societies and organizations that have at least fifty percent (50%) of the members of the organization who are members of a church with a Reformed confession as defined in subsection 2.1.1(a) above. The Board of Directors may also give special approval for membership to a society or organization that is connected to the Reformed Christian community but either does not have or it is difficult to determine that at least fifty percent (50%) of the members of the society or organization are members of a church with a Reformed confession as defined in subsection 2.1.1(a) above. 2.1.3 Business corporations or partnerships where at least fifty percent (50%) of the shareholders or partners, as applicable, are members of the Credit Union. Secondly, that the following be added as a new section 1.2 to the bylaws: 1.2
PROPOSED BYLAW 2.1: 2.1
Qualification for Membership Membership in the Credit Union is subject to approval by the Board or its designate and shall be open to:
2.1.1 Individuals who express agreement with the Statement of Faith as expressed in section 1.2 and who are either: (a) Members of a church with a Reformed confession (the Belgic Confession, the Heidelberg Catechism, the Canons of Dordt or the Westminster Confession);
Students of a non-profit Christian school society providing education to students in Kindergarten to Grade 12 (or some portion of those grades) which is a member of the Credit Union; or Individuals who have been sponsored for membership by an existing member of the credit union, provided that the existing member is currently in good standing and meets the criteria established by the Board.
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Statement of Faith We believe the Bible, consisting of all of the books of the Old and New Testaments, to be the inspired, the only infallible, authoritative Word of God. We believe that there is one God, eternally existent in three persons: Father, Son and Holy Spirit. We believe in the deity of our Lord Jesus Christ, His virgin birth, His sinless life, His miracles, His vicarious and atoning death through His shed blood, His bodily resurrection, His ascension to the right hand of the Father, and His personal return in power and glory to judge all people. We believe that for the salvation of lost and sinful people, regeneration by the Holy Spirit is absolutely essential. We believe in the present ministry of the Holy Spirit by whose indwelling the Christian is enabled to live a godly life. We believe in the bodily resurrection of the dead and that those who believe in Jesus Christ as their Saviour will be blessed with eternal life. Accordingly, the existing bylaw sections 1.2 through 1.5 will be renumbered to 1.3 through 1.6. Basis & Purpose Thirdly, that the phrase “providing mutual aid as a concrete expression of man’s God-given obligation to love his neighbor” in section 1.1(2) be deleted and replaced with the phrase “providing mutual aid as a concrete expression of our God-given obligation to love our neighbour”.
Respectfully submitted on behalf of the Board of Directors, John W. Veldkamp, CEO
Record Profit $haring $761,957 Christian Credit Union has been blessed with outstanding financial results for the year ended October 31, 2008. One of the things that sets Christian Credit Union apart from other financial institutions is Profit $haring. This year, the Board of Directors has approved Profit $haring of $761,957. This is how profits were shared: ❖ ❖ ❖ ❖
5% dividend on common shares 7.5% rebate on interest paid by members 7.5% bonus on interest paid to members 10% rebate on service fees
In addition, 1.25% interest was paid on Participating Savings, Fat Cat® and Headstart® accounts on October 31, 2008. Allowable common shares per membership have increased from 800 to 900 this year. Check your year-end bank statement to find out your common share balance. The amount of profits shared with Christian Credit Union members and organizations since 1990 has increased to $6.25 million.
2008 RRSP deadline - Monday, March 2, 2009 Check out the different RRSP options available through Christian Credit Union. Don’t have the money to contribute to an RRSP? We have the solution…you are automatically approved for a $5,000 RRSP CreditLine to purchase an RRSP. Some terms and conditions apply and larger RRSP CreditLines are available subject to approval.
Community Involvement November 1, 2007 – October 31, 2008 These organizations and groups benefited from cash donations or promotional items: Bethel Free Reformed Church Bethesda Care Home Society Calgary Christian Schools Calvin Christian School Canadian Cancer Society Canadian Food Grains Bank Cardus formerly Work Research Foundation Christian Educators Association Christian Labour Association of Canada Christian Reformed World Missions Christian Reformed World Relief Committee City of Lethbridge Coaldale Canadian Reformed Church Coaldale Christian School Come Over and Help Covenant Christian Reformed Church Cornerstone Counseling Centre Crossroads Counseling Centre Edmonton Christian Male Choir Edmonton Christian Schools Edmonton Dream Centre Edmonton Pro-Life Emmanuel Home Hope Mission Immanuel Christian Schools Iron Springs Christian Reformed Church
Lethbridge & District Pro-Life Lethbridge Firefighter’s Charity Lethbridge Christian Male Choir Lethbridge Regional Hospital Mission Aviation Fellowship Parkland Immanuel Christian School Premier’s Prayer Breakfast Providence Canadian Reformed Church Providence Christian School Realtor’s Community Foundation Rehoboth Christian Ministries Ruth Mission Guild Salvation Army Sea to Sea Bike Tour Teen Challenge The Back Porch The Lantern Community Church The King’s University College The River Community Church Trinity Christian School Trinity Reformed Church Tyndale Christian School West End Christian Reformed Church Young Life Youth Emergency Shelter Society
In addition, Christian Credit Union provides mortgages to charities at 0.50% below current mortgage rates and loans to individuals for donations to charities at 2% below current personal loan rates.
Emmanuel Home Visits
In November 2008, several residents of Emmanuel Home, a Christian seniors’ home, visited our Edmonton branch. These seniors, some of whom have banked at Christian Credit Union for over 50 years, were treated to home-made soup and buns and other goodies. After lunch, the visitors could learn more about the Credit Union including performing ‘tasks’ such as counting money and faxing documents. The visit was well received by both the residents and staff and we look forward to doing it again next year.
On June 18, 2008 the federal government passed its 2008 budget bill into law creating the TFSA effective January 2009. This is the most significant tax savings and investment vehicle Canadians have seen in some time.
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TFSA are available to Canadian residents, 18 years or older with a Social Insurance Number. Contributions to the account are not tax deductible. Allows taxpayers to earn investment income tax-free. Withdrawal of contributions and earnings from the account are not taxable and can be done anytime (subject to restrictions of the underlying investment). TFSA Dollar limit - $5,000 per taxpayer. The limit will be indexed to inflation and rounded up/down to the nearest $500 on a yearly basis. Canada Revenue Agency (‘CRA’) will determine the TFSA Contribution Room for each individual who files a tax return. TFSA contribution room will be listed on each individual’s CRA Notice of Assessment. TFSA must be held individually. A beneficiary(s) can be named. It is anticipated that in the event of death, the beneficary designation will result in a tax-free rollover (spouse) or tax-free inheritance (non-spouse) and will bypass probate. Unused contribution room may be carried forward to future years with no maximum carry-forward. A withdrawal of contributions will create additional TFSA room in future years. The penalty for excess contributions will be subject to a 1% per month penalty tax until withdrawn. Qualified investments that can be held in a TFSA are similar to RRSP and range from savings accounts to stocks.
Differences between TFSA & Registered Retirement Savings Plan (‘RRSP’) TFSA is intended to save and invest for anything – emergency fund, vacation, car, house, etc. An RRSP is intended for retirement and can also be used to purchase your first home (Home Buyers Plan) and used to finance full-time post-secondary education (Lifelong Learning Plan). ❖ Use after-tax dollars to contribute to a TFSA; pre-tax dollars for an RRSP. ❖ No tax on withdrawals from TFSA; pay tax on withdrawals from RRSP. ❖ TFSA withdrawals do not impact eligibility for federal income-tested benefits and credits such as Child Tax Benefit or Old Age Security; RRSP withdraws may offset these benefits. ❖ TFSA don’t have to be rolled over to another type of plan at age 71 and there are no forced withdrawals. An RRSP does – into a Registered Retirement Income Fund (‘RRIF’) or annuity, and once that occurs, annual withdrawals are required. ❖
Some strategies: If you’re going to save money for a short term goal (such as an emergency fund, vacation, car) you should contribute to a TFSA. If you’re married, the higher income spouse should maximize TFSA first as his/her marginal tax rate is usually higher. Use TFSA or RRSP to save for retirement? In an ideal world, you should try to maximize and contribute to both. If you cannot and your income is less than $38,000 or so you should contribute to a TFSA first. If your income is greater than $38,000 you should contribute to an RRSP first. This analysis is based on your current marginal tax rate vs. your probable marginal tax rate in retirement.
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What TFSA accounts will be available at Christian Credit Union? High interest savings account. Members can deposit and withdraw anytime. 1-year non-redeemable term deposit or GIC. Members can ‘lock in’ the money for 1-year to earn a higher return. Bonus rates are available for members with larger deposits. Both accounts may be eligible for Profit $haring. ❖ Through our system partners, long term GICs, mutual funds and discount brokerage will also be available. ❖ ❖
Fall 2008 Difference Corrections Scholarship Winners: pictures of Calvin Christian School’s winner Elizabeth Van Essen and Coaldale Christian School’s winner Kaelee Bultena were inadvertently switched. Student Banking Program Contest Winners: Alana Bos’ school was incorrectly indentified; correct school is Parkland Immanuel Christian School. We sincerely apologize and regret these errors.
