YOUR 1991 RRSP AND }WHAT TO DO WITH IT Every year for the last 10 years we have taken it upon ourselves to 1 prepare a list of recommendations we think the most appropriate for your RRSP contribution. This year is no exception, except that we have added a number of, for us, brand new items. Our 1991 RRSP iS Kit includes all of the following: 1) Our premier Mutuai Fund choices in a Canadian market which, by some measurements, is at its most attractive levet in over 30 : years. A 2) If you prefer stocks to Mutual Funds, we have prepared a list especially suitable for your RRSP 3) Some investors prefer “guarantees” in their RRSP — we have prepared a report explaining the best of the “guaranteed” options. 4) January 1991 saw the initiation of a complete new set of “RRSP RULES". Many investors are still confused by the new contribu- tion limits, the $8,000 over-contribution allowance, the foreign con- tent limit, etc. We explain it all in our report entitled “The New RRSP ules.” 5) Finally in this package, a discussion on the merits of having your own Self-Administered RRSP. The advantages, the costs, the ser- vices, the statements of account are all explained in this report. For your “1991 RASP KIT" please call 844-5380 or 1-800-663-0706 (BC. Toll-Free). Fax this ad ta (604) 669-6392 or complete and return the coupon below. CHRIS TIDD/ANDREW EISENBOCK ODLUM BROWN LIMITED 1800-609 Granville St., Vancouver, BC. V7Y tA3 TEL: 844-5380 (24 Hours) or | 106 (BC. Toll-Free) NSN Spend an entertaining evening with DAVID CHILTON Author of The Canadian Bestseller & ‘The Wealthy Barber A witty and sensible look at personal finance! Wednesday, February 12th, 1992 7:00 p.m. til 9:00 p.m. - At The Hyatt Regency Hotel, Regency East End Centre 655 Burrard Street, Vancouver B.C. $8.00 per person or $15.00 per couple {Bring a friend, relative or business associate) Please make cheques payable to ScotiaMcLeod R.S.V.P Ken Gordon 661-7449 or Tom Porteous 661-7410 kkk The Reviews «xxix “Hometown advice for the folks on Main Street and Bay Street. For those who have doped for simple and sexsibie answers ta the complicated world af manex, this sory is the bese value you'll find anywhere.” Evereti Banning, Host of TV's Cunada Business Week “If the normai “how to” financial planning books don's do anything for you, you'll find Chilton’s “navet” approach more palacable — and effective”, Mike Grenby Vancouver Courier NEWS photo Terry Paters PLANNING FOF: your retirement should be done early enough ao that when you are ready, the only advice you will need is on how to spend your retirement income. : Plan ahead for your retirement income WHAT WILL you live on when you retire? ‘‘The more planning you do well before you retire, the more control you will have over your money ... and the more money you will have to control,’’ said a certified general accountani (CGA) who recently made a study of financial planning for retire- ment. Let’s say from age 18 through age 25 you put $1,000 a year into an RRSP earning 10%. Then you make no further contributions. At age 65, you will have about half a million dollars. But if you wait to age 25 to start your $1,000 contributions, you will have to keep contributing until 65 to end up with the same total. That means you will need to invest $40,000. instead of only $7,000. “*Few people have the money, discipline or even desire to start saving for retirement at age 18,”’ said the CGA. ‘In your early working life, you tend to spend money on housing, holidays and home improvements before you begin to think about retirement. And investing in a new bedroom suite or a family trip to Disneyland in most cases should be a higher priority than a retire- ment savings plan. “Yet unless you plan to die be- fore you retire, you wiil need to make some financial plans to pro- vide retirement incorae. Arriving at age 60 or 65 with 15 to 20 years to live and never enough money can be a dismal prospect.’” Canada Pension Plan ~ and/or Old Age Security plus the Guar- anteed Income Supplement will not provide enough income for most people to enjoy a cumforta- ble retirement, warned the CGA. “Even a private pension might fall -short, especially if it is small or not indexed to infiation.’’ There is no one right way to build a retirement nest egg, so the CGA suggested you might con- sider some or all of the following choices. @® The RRSP — registered retirement savings plan — gives you both a tax break now. and tax-sheltered growth of your in- vestrnent. ‘“You will pay tax on the money when you get it back but in most cases you will still be ahead,”’ the CGA said. If you can’t contribute early each year for the current tax year (rather than for the preceding year, the way most people do), at least start an automatic monthly contribu- tion program. . @ Paying off non-deductibie’ debts, including your mortgage, is the same as earning 12% io 33% on your money — after tax _ “and it’s hard to beat that,’’ said - the CGA. When your debts: “are gone, redirect those monthly payments to a savings/investment program. Or get the best of both worlds: zontribute to an RRSP and use your tax savings te pay down debts. @ Invest in the stock market for tax-free capital gains. (if you still have your capital gains ex- . emption). ‘’But, realize the risks — what happens if you.end up with ~ capital losses instead?’’ said the CGA, : @ Pur time, effort and. ‘Money _ into your own business. ‘‘Again,”” said the CGA, “‘there is cisk, but - there is also the chance-of. even greater tax-free capital gains. as well as other tax-saving oppor- tunities. You could invest money in both your own business and 2n RRSP or possibly in- one of the new shareholder pension _ plans allowed under RRSP and pension teform.”’ Pr, YOUR LOCAL POLICE SOLICITOR GENERAL OICBC