HomeMy WebLinkAboutHuron 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
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Brian E. Wightman
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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
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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!
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