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Home My WebLink AboutHuron Expositor, 2002-02-13, Page 6 (3)t} -THE HUNON EXPOSITOR, PEARUAMY 13, 20(EZ i Allan Carter, Broker • Home • Auto • Commercial • Farm 522-0399 Seaforth 1-800-265-0959 Strathroy RRSPs can m Let's start with an obvious but important question. What is an RRSP? You may know that RRSP stands for Registered Retirement Savings Plan. But it's easy to be confused about what that really means. If you think you buy an RRSP, you wouldn't be the first person to make that mistake. Actually, you buy investments -mutual funds, stocks, bonds, guaranteed investment certificates, annuities, etc. -and register them with the federal SEAFORTH INSURANCE • BROKER LTD. 527-1610 • Home • Commercial , *Auto • Farm • Out of Province Travel Insurance 41 Main St. S. Seaforth Christa Leonhardt, Lynn Pletsch, Ken Canino, Barb Watt and Joanne Williamson Brian E. Wightman Certified General Accountant 64 Main St., Seaforth (519)527-1331 Brian Wightman • Accounting & Bookkeeping • Personal & Corporate Tax • Farm, Business & Indvidual Tax Planning Call for a free consultation at my office, your home or business. 527-1331 government. retire, you'll be the money that the investments Is it a good in an RRSP? The simple Many people money in they've be reduce the tax they "Okay, I savings my tax overall F e ake a few dollars o a long wa When you able to use comes from idea to invest answer is yes. are putting their RRSPs because en told they can amount of income pay. They think, 'm getting this tax very year. It reduces able income, so my taxes aren't going to be as high." For a lot of people, that's a good enough reason to contribute to an RRSP. Paying less income tax has always been a good idea. If you're self-employed, you have another reason to invest in an RRSP. It may be the only way to save for retirement, since you probably aren't working at a company that sets up pension plans for its employees. Whatever your reasons, the most important thing you can do as far as investing in RRSPs is concerned is to start contributing regularly as early as possible. When you start early, you give your money more time to grow. Perhaps you're thinking that you don't have $100 to put away every month. Try investing in small doses by setting up a plan where your contributions flow directly from your bank account to your RRSP on the day you're paid. A few dollars now will go a long way later. You'll be surprised at how quickly your RRSP will grow --if you contribute regularly! Nobody's financial situation will be exactly the same as yours. That's why your financial strategy should reflect your needs, desires, and goals. Professional money managers can help because they understand the complexities of the market. Don't be afraid to ask for help from the pros! financial advisors can help you save nough for an enjoyable retirement As the March 1 deadline to buy investments for your Registered Retirement Savings Plan approaches, you can expect to be awash in a flood of advertisements aimed at making you feel badly that you haven't prepared for your retirement. You'll see smiling couples relaxing on sandy beaches, with warm southern waters tickling their feet. You'll see energetic grandparents hugging their grandchildren, celebrating life, often in some kind of expensive theme park. You might well find yourself asking, "How can I ensure that I will have enough money to enjoy my retirement years like these people?" The first thing you should do is to arrange a meeting with a financial advisor. Advisors are trained in helping clients sort through the many investment options available and to identify those investment products that are best suited to your long-term or retirement objectives. Investment products come in many different forms. Today, let's talk about one specific category: guaranteed products. These are often recommended by financial advisors whether you are starting a financial retirement plan or just adding to one because there is virtually no risk you will lose At% FARM Mf7TC1Ar. FINANCIAL SERVICES INC GIC's 5 05% ■ Rates Subject to Change BARB WORDEN GIC/RRSP/ MUTUAL FUNDS/ UFE/DISABILITY 345-2777 FARM & TOWN RNANCIAL SERVICES INC. STAFFA DID YOU KNOW we think retirement should be fu n At Clinton Community Credit Union, we have trained investment professionals to help you save money for your future. RRSP loans at prime. Each RRSP is insured individually up to $ 100,000. Visit us to discuss how we can help you reach your financial goals. 48 Ontario St, Clinton Tel. (S 19) 482-3466 Mon.-Thurs. 9 am -S pm Fri. 9 am -8 pm 118 Main St. N., Exeter Tel. (S 19) 235-0640 Mon.-Thurs. 9 am -S pm Fri. 9 am -8 pm www clinton.on.cu A different way of banking." • your money. On the other hand, they don't always pay the highest rate of return. It's the balance between risks and return that individuals must decide upon as they go about building an investment portfolio. Guaranteed products include Guaranteed Investment Certificates (GIC) and Accumulation Annuities (AA). Many highly respected financial institutions offer them. These products guarantee that when you invest money, the interest rate you receive on that money remains unchanged from the day you deposit the cash until the end of the term, or when the guaranteed product matures, in one to five years. A balanced portfolio includes a cross-section of investment products and various levels of risk. You should ask yourself what level of risk are you prepared to take: low, medium or high, and how long do you want to invest? Based on your answers, you and your financial advisor can decide where to put your money, helping you to build your investment portfolio through a financial strategy that will ensure that when your retirement does come, you can look forward to dipping your toes in the warm waters of some tropical isle. Investors need a financial strategy While trying to figure out your investments, you may have read about something called a "volatile market." In a bull market, stock prices rise. In a bear market, stock prices fall. When stock prices change quickly, and sometimes move in both directions all in the same day, we have a volatile market. Before you start accumulating investments in a volatile market, you should have an overall financial strategy. It is critical that you talk to an advisor. Once you've worked with your advisor, through dialogue, you make the tight choices, you build that plan, and you stick to it. Your investment strategy may call for you to place your investments in an RRSP. At this time of year, banks, insurance companies, and other financial institutions remind us to think about our futures by encouraging us to contribute Call LYNDA VINCENT at 527-2204 or toll free 1-888-269-0377 to our Registered Retirement Savings Plan. One strategy to combat market uncertainty involves diversifying your RRSP investments to help reduce your risk and get the most out of your money. You can balance your portfolio by including low risk bonds and guaranteed investment certificates with higher risk choices like mutual funds. Exactly how much risk you're willing to take is entirely up to you. If you can put your money away for 20 to 40 years in an RRSP, you can likely handle more risk. Don't be afraid to invest in the markets when they're " on a roller coaster ride. Just make sure you get some professional advice first! And buckle up! hooking for a Good Investment? Help your customers reach their financial goals by investing your advertising in our financial pages Reach new customers by participating in Feb. 20, and 27th Cali Bernie or Tom today! 11 Main St. Seaforth 5271.0240