USINESS

Adjust your financial goals
for an enjoyable retirement

SO FAR, the 1990s haven’t
been anything like the
1980s.

By L.J. Sandy Weistein
. Contributing Writer

“The economy is growing ata
‘snail’s pace. Personal incomes are
‘barely keeping up with inflation.
- And rates of return on guaranteed
investments such as GICs, are at
-. 30-year lows.

‘The result is that many Cana-

-,dians’ - financial plans are jin
_ disarray. Taking action is the only
way , to ensure . an enjoyable
retirement.” with a solid financial
‘base.
» Nothing on the horizon suggests
” the good times will return, su as
any chartered accountant will tell
you,. it’s important to adjust and
refocus.if you are going to achieve
‘your. financial goals for retire-
mient. —

The place to start is with the

“2y four. significant numbers on which
your. - retirement - planning: should
be based... -
_1.. What are you. truly ‘spending
“after-tax dollars . today?’ This

means “every ‘expenditure, in-
mortgage pay- |

cluding - savings, |
ments,:food and clothing, even the .
newspaper, ”
What ‘will you be: spending -
when you’ retire? This means ‘ad-

justing the first number by taking

out such: items as retirement sav-
ings, mortgage payments. (assum-
ing you have paid off. your mort-
gage), education’ ‘expenses, etc.
You.also may wish to add a few
expenses,” such as more travel or

3.-How. much . must you’ have
‘Saved | by the time you retire, over
‘gad ‘above what.you have saved
already, .to finance your’ retirement
expenditures: as calculated above?
This will: include RRSPs, pension
“plans, « investments, even ‘your
equity in your principal residence
“and vacation home which could be

“used to. generate retirement: in- .
es COMe, |

“14. How much do you have to
- put away: each year to achieve the
third: number? ‘This involves
“Making. certain’ investment

assumptions, including what rate

‘of return you can expect on your |

‘investments, ‘and the anticipated ”

_ tate of inflation:..:

*; At is this last. calculation that

people are having a difficult time

‘coming to > Brips with.

INTERESTED IN SAFE |
ALTERNATIVES?

Please Call:
The North Shore’s only
Full Service Investment Fir

98 1-6600

RBC
DOMINION
SECURES

The 10% to 15% returns of the
1980s are now in the 4% to 8%
range.

That means you must save a
much larger amount each year in
order to ensure you arrive at the
third number by retirement.

For most Canadians, that means
making | significant adjustments,
which they are finding difficult,
but on which attaining financial
independence depend.

First, to put more into savings,
you must spend less, perhaps as
much as 15% or 20% less than at
the present time.

This means cutting back on
everything or, in the extreme, it
might mean trading your large
home for a smaller one in order to
keep costs in line with the realities
of the 1990s.

Second, you'll save more if you
work longer.

If you were pianning on retizing
at age 55, you can always consider
working a few. more years until
you’ve saved the appropriate

If you were planning on retiring
at age 65, you may have more
difficulty extending your career
beyond that age.

Third, you can lower your
retirement expectations and adjust
your plans for retirement activities
and lifestyle.

Most people will have to com-
bine the three approaches — cut
expenditures, work a little longer,
and lower their expectations a tri-
fle.

The important point is to do
something.

Look on your financial planning
as a recovering patient still at risk.

If you continue on as before, -

you'll
trauma,

But if you make a few adjust-
ments, none of which wifl seem
that dramatic over time, you can
look forward to a healthy future
in spite of current economics.

likely experience further

Sandy Wetstein is a partner with
KPMG Peat Marwick Thorne
chartered accountants.

Phone books can find
new life as newsprint

RESIDENTS OF the Lower
Mainland deserve a pat on the
back, according to the Greater
Vancouver Regional District
(GVRD).

. Due to their efforts and the
efforts’ of BC, Tel and the
Recycling Hotline, the GVRD
has recycled a record number
of white and yellow page
directories this year.

Almost every municipality in
the GVRD had a recycling pro-
gram to collect old phone
books.

The combined total of phone
-books from the residential col-
lection and the industrial,
‘commercial. and institutional
sector have kept over 1,000
tonnes of phone books out of

local landfills.

Phone books can be recycled
because they are now printed
using vegetable-based ink and
water soluble glue. Prior to the
BC Tel recycling. program,
most books would end up be-
ing buried or burned.

Telephone books, along with
newspapers, used to make up a
major component of our local
landfill.

Now, the phone books. will
be de-inked and the recycled
pulp will be used in making
newsprint. |.

In 1992, BC Tel used 10%
tecycled content in their. direc-
tories, and in 1994 have plans
to increase the recycled content
to 20%.

~ ADVANCED INDUSTRIAL
COMPUTING

A 12 week course designed for Electrical or Industrial

. Instrumentation Journeymen. wishing te enhance their
employment potential in the resource, manufacturing,
electrical maintenance and service industries.

4 Learn the latest Computer/PLC and Automation
3 Technology using state-of-the-art lab equipment.

THERE IS A GROWING DEMAND FOR WORKERS
SKILLED IN THIS CONTROL TECHNOLOGY.

GOURSE STARTS JANUARY 31!

Contact your local Canada Employment Centre office for
information on financial assistance.

If you are a Journeyman and interested in this course,
send your resume to E. Anderson, School of Electrical
and Electronic Technology, BCIT, Building SE1, 3700
Willingdon Avenue, Burnaby, B.C. V5G 3H2.

For more pleads please call 432-8637 or 451-6739.

BRITISH COLUMBIA
- INSTITUTE OF TECHNOLOGY

Sunday, December 12, 1893 - North Shore News - se

Real Estate Marketing Person
for. small Whistler Project
Fax resume in confidence

to: 739-9494 |

When it comes to IBM computers, we truly do.

Think Pads in stock :

* portable office specialist §

* home office systems

* CD ROM’s, SCSI,
Scanners, LANs,
Communication

° Novell

Sales * Service * Repairs | Tues. - Sat.

TRUE DATA comauters Ltd. 9:00-5:00

#101- 125 West 2nd St. N. Va FAX 988- 8271 988- 8235 7

GEOL) Rate Wate
... THE RETIREMENT SPECIALISTS —__
MONTHLY INCOME ON $50,000 INVESTMENT

“RAL. Minimum .
| ase [ens| won| aren] we
ou ena]

[71 [acs] ono] seve |

*Rates subjed to eange without notice

Simply getting competitive rates is like a 3 x5 snapshot ate
Bur inestng with a strategy is like a 10 x 13 portrait. .
Get the big picture.

~ For ano fee second (er first) opinion on your strategy, call

925-3101

Ste. 401, Kapflano 100 _
Park Royal South,. West Vancouver

SOLGUARD FINANCIAL LTD.
Consuleants & Brokers since 1974

NATIONAL TRUST RR. SP’S|
TALK WITH AN EXPERT

When choosing an RRSP, take your time,
make the right choice. Contact your
National Trust RRSP expert to discuss
your options.

- Fixed Term Guaranteed Plans
- Flexible, Convertible Plans
- 7 different Mutual Funds

National Trust Your RRSP Centers are located:

955 Park Royal Shopping Mall
West Vancouver, B.C.
V7T IAL

1407 Lonsdale Avenue
North Vancouver, B.C.
V7M 2H9

Phone 922-9191
Fax 922-5583

Phone 980-5714
Fax §83-3180