26 — Sunday, February 3, 1991 — North Shore News

“This year we're asking, ‘Wh
Next year we'll ask, “When

If you don't know the a

66 For years, everybody’s been telling you to
buy RRSPs, it’s the smart thing to do.
Maybe. For some people. But for others,
RRSPs should wait. Hello, ’'m Keith Sanders
and I’d like you to consider the following
before rushing in to make a contribution. 99

“RRSPs are a good
financial planning
tool, but they’re only
one of many.

For instance, if you
have a large mortgage —
who doesn’t? — I'd suggest
you take this year’s RRSP
contribution and pay the
mortgage down. Reducing
your mortgage now will
save you thousands more
in interest later, savings
that can then be popped
into an RRSP.

Bothered about losing

66 The popular
wisdom? Always
buy an RRSP
The truth? Not

necessarily. 99

your tax deferral this year?
Don’t be. The money you
would have saved in taxes
with an RRSP contribution
is likely less than the
money you'll save in
interest on your mortgage.

You could also have the
added bonus of retiring
your mortgage early,
making your truly a home-
owner, not just a home-
borrower. Keep in mind,
that owning your own
home can be a key support
to a sensibie retirement
plan. After all, locally the

' value of property has

increased quite

dramatically over the last
10 years, certainly at a
much faster rate than
RRSP savings compound.

Obviously, the above
is a generalization.
What I’m really
saying is, keep the big
picture in view.

RRSPs are only one
piece of the puzzle —a key
piece, without doubt, but
the pieces have to fit
before they'll complete
your personal financial
puzzle. That’s the idea of
‘planning’ a retirement, of
making a long term plan
that will leave you, in the
end, debt free and with a
comfortable income.

That’s what we do in
the Trust Services
department:
retirement planning.
We can heip you put
a plan together.

For years the accepted
wisdom has been to buy

an RRSP each year. Truth
is, for somie people, this
isn't wise. We're not trying
to confuse you when we
say this,.we’re trying to
help. If that means telling
you to forget RRSPs this
year and put your money
somewhere else, so be it.
You have to remember,
our philosophy at North
Shore Credit Union is to
be of service to our members,
not just to ourselves.
Certainly, every
individual's financial
situation is somewhat
different. That’s why we
have a retirement planning
department to help people
draw up a personal
retirement plan. Don't be
afraid to pick-up the
phone and make an
appointment. It’s free, and
given the way we challenge
popular wisdoms, it could
be very illuminating. Call
986-4321 for an
appointment.

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