Pre-retirel DGLLARS AND SENSE THE MAIN advantage to retizement pianning ‘‘is you find you still have time to do soniething to improve your situation.’’ That, said Brian Bagley, is one of the most frequent comments he gets at the weekend seminars he puts on for employees of BC Tel — a project which is part of his own retirement plan. * “The other is, ‘Hf only we could have done this a few years ago we'd be able to do even more.’ Those are usually the people whu want to interest their adult children in retirement planning,’ said Bagley, 68, who spent 37 years with the company before - retiring in 1985 as employee resources manager. : * He took over the retirement ~ ‘planning program in 1983. Al Prentice, BC Tel’s compen- sation manager, said the nine or 10 seminars held each year are usually over-subscribed. ‘‘They - are offered free to any employee 45 or older and partner, °° ‘We provide this benefit “because employees often don’t have the opportunity to get finan- cial advice and other pre-retire- ment counselling,’ said Prentice. In his seminar, Bagley, of West Vancouver, says we have to plan for our retirement because we are living longer, we have to adjust to less income and if we know ahead ' af time about the choices we’ll have io make before and after retirement, we can choose more wisely.. . “While it’s never too late to get started, the sooner you act the ~more effective your retirement fi- nancial plan will be,"' he said. “That plan must (a) provide a comfortable retirement income and a budget that works for you, (b) minimize income tax, (c) maximize investment income and (d) formalize your estate plan- ning.’ Start with your present financial situation: how much you own and owe, how much you carn and spend. ‘Do these expenses give you the quality of life you expect? How much are you putting toward lowering debt and/or increasing ~ investments?"’ Then set goals for the future, both before and after retirement. ‘Does your present lifestyle use dollars important for those fucure goals? Try to save as much as possible without seriously affec- ting your present lifestyle.” You need to go through these steps before you can answer the all-important question: ‘Will you have sufficient income to mee your retirement needs?” Using your current budget as a base, estimate your expenses at retirement. As a guideline, retirees need 60-70% of their last working year's income — ‘but this will vary widely depending on your housing situation, lifestyle, inter- ests, travel plans and so on,” Bagley said. Your pension(s) and both RRSP | and non-registered investments | INTERESTED IN SAFE | ALTERHATIVES ? Please Call: The North Shore’s only . Full Service lrivesiment Firm 981-6600 RBC DOMINION SECURITIES MEMBER OF ROYAL HANK GitOUP- 201-250 15th St., West Vancouver Real Estate Marketirig Person for Smaili Whistier Project Fax resume in confidence to: 739- ‘9494 When it comes to IBM computers, we truly do. Sales ° Service * Repairs TRUE DATA Computers Ltd. #101- 125 West end St., N. Van Think Pads in stock * portable office specialisi * home office systems *CD ROM's, SCSI, Scanners, LANs, Communication * Novell Tues. - Sat. 9:00-5:00 FAX 988-8271 988-8235 § EOC will provide the income. ‘af there’s a shortfall, see where you can cut costs (now, so you can save and invest more, or after retirement), or perhaps you (or your spouse) can work part-time or full time after your retire- ment,” said Bagley. He suggested four key invest- ment objectives on the way to retirement: (1) Own your home, mortgage free. (2) Pay off other non-deductible debt. (3) Shelter investment income from tax through pension plans and RRSPs. Aim to equalize in- comes to minimize tax. (4) luvest for growth rather than immediate income, Within your risk tolerance, aim for tax-favored ent planning help dividends and capital gains rather than fully taxed interest. “Lack of planning is the single most serious investment mistake”* Bagley said. “Only you can decide between spending and saving. “Then get the facts so you can make logical and realistic assump- tions about the investment, act decisively and stick to your long-range plan — while still be- ing flexible enough to deal with changing circumstances.” Count on inflation, and invest to counter its effects. If you retire at age $5 with an income of $20,000, even with an annual in- flation rate of only four per cent you'll need more than $40,000 by ape 75 just to maintain your standard of living. “Finally, remember estate plan- S to set goals ning, which is simply what you do before you die to make sure the things and people you care about are taken care of after death,” Bagley said. Have financial vecords, a cur- rent will, power of attorney, perhaps life insurance and a plan to minimize any income tax at death (for example, spouse named as beneficiary for RRSP, a-final spousal RRSP contribution fol- lowing death, jointly held assets). Mike Grenby is a North Shore based columnist and independent financial adviser who works with individuals; he will answer your questions as space allows — write to him c/o The North Shore News, 1139 Lonsdale, North Vancouver V7M 2H4, you set up an “Autematic Delivery Account” with MR, Smith Limited. We're Here When You Need Us! MLR. Smith Limited has heen a leading Imperial Oil agent for 12 years and has the largest fleet of radio dispatched trucks to deliver your furnace oil in the Lower Mainland. We provide fast delivery, economical equipment service and quality ESSO products. You'll Never Run Out! ae : ‘_ . . . : a pe ee W Enjoy peace of mind with our automatic delivery “Keep Full Account We'r we'll reward you with 400 litres free. Fair Price and a Payment Option Thai's Best for You. We guarantee fair and competitive prices and you can pick the payment plan that meets your needs. Choose from cash, cheque, Visa, Mastercard or our equal monthly payment plan, sat your service 24 hours a day, 7 days a week. [you ever run out You’re on your way with Esso.