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The Citizen, 1996-05-29, Page 7Honourable occasion Members of Blyth Royal Canadian Legion Branch held a special evening on Friday to celebrate 50 years of community service. Ralph McCrea, followed by other Legion members, ceremoniously paraded into the Memorial Hall to begin the evening with a dignity worthy of the auspicious occasion. Huron CAS hosts underground tour For a taste of something different mine. while helping to send a child to The limited offer, available to camp, the Children's Aid Society of just 120 people over the age of 18, Huron County is organizing tours will raise funds to send Huron of the largest underground mine in County children to the Sifto Sum- North America. mer Camp for Kids. Anyone wishing to arrange a tour Just $50 includes dinner and an may call 524-7356 or 1-800-265- opportunity to win a port-to-port 5198, Monday to Friday from 9 trip on a Great Lakes salt carrier a.m. until 4:30 p.m. Offer closes and a tour of the Goderich salt June 28. THE BABY BOOMERS From Spenders to Investors By Linda Henhoeffer Financial Advisor Canada, the United States and New Zealand experienced a 'baby boom' after World War II. Of the 27 million citizens of Canada today, there are 9 million 'baby boomers'. That's one-third of the Canadian population! Because of their huge numbers, whatever the baby boomers do has a huge impact on the Canadian economy. In the 1960s, new schools had to be built and lots of teachers had to be hired to accommodate their learning needs. Then in the 1970s, new houses were built as the Boomers married and started having children. Boomers were large consumers of everything: cars, clothes, vacations, toys and sports for their children. The Boomers were spenders! This consumer craze created a big demand for borrowed money. The pressure on interest rates caused them to go higher and higher. Spend! Spend! Spend! The health of the Canadian economy was measured by the number of new houses under construction, sales of new cars and retail sales of furniture, appliances and clothing. Real estate prices went up and up as the Boomers insisted on buying larger and more expensive houses. 'Save' was a dirty word to the Boomers. Their parents, who survived the 1930s depression, shook their heads at this 'shop til you drop' attitude. Real Estate Market Collapses All this is changing as the Baby Boomers reach their 50s. Most of them have empty nests now as their children go off to university or college. Their huge houses are too big for just Mom and Dad, but there are few buyers. With little demand, housing prices have dropped significantly. Boomers can not plan on selling their homes to give them a nest egg for retirement. Canada Pension Plan in Trouble The other bad news for the Boomers is the federal government's talk of concerns with the future of government pension plans. The Canada Pension Plan was set up in 1966 as a 'flow through' pension system. Workers and their employers paid into the plan so those already retired could collect. This was fine in the 1960s when there were many more workers than retirees. What happens when the Boomers retire and the ratio of workers to retirees is greatly reduced? Shifting from Consuming to Investing The Baby Boomers have stopped shopping and are starting to save for their retirement. Historically, as people reach middle age and family responsibilities lessen, they start to save more. Baby Boomers have never done anything in a small way. Now that their attention is on creating a nest egg for their retirement, Boomers are saving in a serious way! They are not satisfied with just putting their retirement funds in a savings account. Boomers are investing. The sales of mutual funds go up each month. Low Interest Rates, Low Inflation Rates With little demand for borrowed money and with lots of savings needing to be invested, interest rates will continue to be low. With less consumption by the Boomers, inflation will continue to be low. With Boomers wanting to invest in stocks (equity mutual funds), stock prices will increase. As the Baby Boomers reach their middle years, they continue to do what they have always done to the Canadian economy. That is, the Baby Boomers because of their huge numbers shape the reality of our finances. With the Boomers investing instead of spending, Canadians can expect low interest rates, low inflation rates and rising equity prices in the coming years. THE CITIZEN, WEDNESDAY, MAY 29, 1996 PAGE 7. WO" Your KNECHTEL B SCRIMGEOUR'S Blyth G local FOOD 523-4551 SAVINGS store with MARKET Fresh Boneless & Skinless Schneider's Chicken Breasts Fillet removed 8.36 kg "Famours For Beef Steakettes Quality" 454 g Pkg. 79 3lb. 79 Lean Ground Beef 3.95 kg Schneider's Red Hots Wieners "Famours For Quality" Dutch Treet, Regular, Dinner Franks 450 g Pkg. 79 lb. Fresh Baked Knechtel "Golden" Apple Crusty Juice Rolls 1.36 6/ u eit Litre 129 1 79 Humpty Pure Dumpty Potato Chips Assorted Varieties Tin 170 g Bag .99 Breyers Classic Ice Cream 2 99 Assorted Varieties 2 Litre Tub Bruce Brand Hot House Product of Ontario Canada #1 2.18 kg Tomatoes 9 . • Ragu Old World Pasta Sauce Assorted Varieties 750 ml Jar • 99 Heinz White Vinegar 4 Litre Jug Minute Maid Punch or Nestea Iced Tea Assorted Varieties Frozen 355 ml Tin Sunlight Laundry Detergent Assorted Varieties 8 Litre or Ultra 4 Litre Box (9 2/ 1 00 499 Knechtel Cheese Spread or Cheese 89 Slices 500 g Pkg/Jar Pepsi or 7UP Soft Drinks Assorted Varieties 750 ml Bottle 6......._ + Deposit Ti4ri: n7tVrice 9U Unit Price 69 8.2/100ml 9.2/100 ml 0 Values Effective: Monday, May 27 - SUnday, June 2, 1996