RRIF CHANGES A GO - MAYBE!

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  Remember Jim Flaherty's Economic Statement that set off the high drama in Ottawa? It has almost been forgotten that one of the announcements made by the Finance Minister was a one-time 25% reduction in the minimum withdrawal requirement for RRIFs for 2008.

When it appeared the Conservative government might fall, the Ottawa bureaucracy appeared to seize up. No one knew whether the RRIF reduction would stand and financial institutions received no official guidance.

Last week, after making several inquiries, I received confirmation from the Department of Finance that the 25% reduction is a go. But now there's another problem - some plan administrators can't handle it. For the whole story, go to http://www.buildingwealth.ca/News/Featuredetails.cfm?NewsletterID=3323

QUIZMAS TIME

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  It's the holiday season, which offers a great excuse to take our minds off the latest gloomy economic news and have a little fun for a change. With my daughter Deborah Kerbel, we have written three Christmas books that will add some extra pleasure to your celebrations and the good news is that they aren't expensive (everyone likes a bargain these days).

The original book, Quizmas, contains more than 700 multiple-choice seasonal trivia questions for both children and adults, along with suggestions for several family games you can play. In Family Quizmas, we retell seven classic Christmas stories for bedtime reading to young children, such as A Christmas Carol and The Nutcracker. The third book, Quizmas Carols, includes more than 400 trivia questions on Christmas music through the ages and 40 fascinating background stories on the songs and their composers.

All the books are available at 27% off the suggested retail price at http://astore.amazon.ca/buildicaquizm-20

You can try some of the questions and read some moving Christmas memories from readers by going to www.quizmas.net

TIME RUNNING OUT TO AVOID TAX TRAP

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  Last month I warned readers about a potential tax trap that could have mutual fund investors being socked with a hefty bill from the Canada Revenue Agency on top of the losses they have already experienced this year. Now we're getting specific information that confirms this is a real problem.

There's still time to avoid this double hit to your wallet but you only have a few days in which to act. By Dec. 15, it may be too late. Read the latest details at http://www.buildingwealth.ca/News/Featuredetails.cfm?NewsletterID=3320

TFSA WEBSITE LAUNCHED

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  We have just launched a new website that is exclusively devoted to information about the new Tax-Free Savings Accounts (TFSAs) that will become available on Jan. 1. You'll find it at www.TFSAbook.com

The site contains the latest news about TFSAs, a Q&A forum where I answer your questions about the new savings plans, excerpts from my new book, and more. You can also reserve your copy of the book, Tax-Free Savings Accounts: A Guide to TFSAs and How They Can Make You Rich, at a 27% discount to the suggested retail price. Check it out.

TFSA QUESTION

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  Here is one of the TFSA questions that we have answered on the new website.

Q - Ok, so, I'm all excited about contributing to a new TFSA (Tax-Free Savings Account) in January by transferring in an equity now held in my non-registered account. But wait, will the Canada Revenue Agency view this transfer as a deemed disposition of the stock and require me to pay capital gains on any profit made? - Eric M., Nanaimo, BC

A - Yes they will. The same rules apply as with RRSPs in this regard. And do not make the mistake of transferring a losing stock to a TFSA as the capital loss would not be allowed in that situation. Sell the stock first and contribute the cash. - G.P.

HOLIDAY SPECIAL

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  Would you like a free copy of my new book on TFSAs? We'll be happy to send you one. All you have to do is become a new member of our exclusive Internet Wealth Builder circle by taking out a one-year subscription. The price is $139.95 plus tax. We publish the IWB 44 times a year so that works out to slightly more than $3 a copy for the best investment advice in Canada. Want proof? We warned our readers in mid-June that the TSX was heading for a fall and repeated those warnings several times over the summer. Here's what our members have told us:

"Thank you also for the advice and guidance that you have provided during 2008 for what has been a tumultuous year for small investors to say the least." - Tony B.

"Thanks for your outstanding newsletters, and even more so, to the responsibility you take to ensure timely and personal responses to your subscribers." - S.G.

"Thanks so much for the great work you are doing in helping us to navigate these treacherous waters." - Lyle M.

"It makes me feel confident to get advice from someone that isn't trying to sell me something other then their expertise." - Matthew R.

If you join now, we'll also send you two valuable special reports: Six Financial Safety Zones and Tax-Free Savings Accounts: A Powerful New Way to Invest.

To take advantage of this one-time offer, call our toll-free Customer Service line at 1-888-287-8229 and mention the Investing Today special. Your free book will be sent early in the New Year, as soon as it is off the press. Please note: this offer is for new members only.

WINNING WHILE LOSING

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  Okay, so your mutual funds lost money this year. Join the club. As far as I can tell, not a single stock fund is in the black for 2008. But some funds fared much better than others, even though they lost ground. Read this article to learn about two funds that were winners, even while losing: http://www.buildingwealth.ca/News/Featuredetails.cfm?NewsletterID=3321

VISIT THE FUND LIBRARY

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  The Fund Library (TFL) is under new ownership, with Fundata, the major supplier of mutual fund data in Canada, now running the show. The new owners are determined to make TFL the go-to source for mutual fund information and are in the process of adding a range of new features and services. I am providing a weekly column, a Fund of the Week article, and a Q&A feature where I answer all your fund-related questions. If you are interested in mutual funds, you'll want to bookmark the page: www.fundlibrary.com

NEWS UPDATES AT BUILDINGWEALTH.CA

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  We have upgraded our investment news services at our main website, www.BuildingWealth.ca so add it to your bookmarks as well and check back frequently. You might want to read the latest article, Disinflation or Deflation?, for some insight as to what may lie ahead.

That brings us to the end of 2008 for Investing Today. I wish you the very best for the holiday season. Let's hope that 2009 will be kinder and gentler.

Best regards, Gordon Pape (Gordon.pape@buildingwealth.ca)

For subscription information: customer.service@buildingwealth.ca