The Goderich Signal-Star, 1987-02-18, Page 10PAGE 10--GODERICH SIGNAL=STAR, WEDNESDAY, FEBRUARY 18, 1987
MO( y9 ur retsremnt
come true tI
wit
a London Lif
RS
London
Life
FINANCIAL PLANS MARKET FUNDS
RRSP LIFE INSURANCE
ANNUITY'S BUSINESS INSURANCE
RRIF'S EMPLOYER BENEFITS
287 Larnbton St.,
Kincardine,
EVENING APPOINTMENTS 396-3874
DAVID A. SHEWFELT
If you currently have an RRSP,
or are thinking about opening
one, do you know what the
limitations and benefits are for
income tax purposes?
Find out from the income tax
specialists at H&R Block.
We could save you time and
money on your tax return. Let
'us show youw the RRSP
could benefit you in your tax
situation.
Come into your nearest
H&R Block office before
March 2nd, 1987 or call today
for an appointment.
You could get
more than y
bargained for at
THE INCOME TAX SPECIALISTS
60 EAST ST., GODERICH
524-8658
OPEN
Mon. -Fri. 9:00 AM - 8:00 PM
Saturdays 9:00 AM - 4:00 PM
R
-------- ---Credit-Union -
Registered
Retirernent
Savings
Plan
i
I1t m
Fl..S.P.
39 ST. DAVID STREET, GODERICH
PHONE 524-8366
'Wombs, Onrerlo Shale and bspovlf insuranto Corporefion
* leo Charges
* No Withdrawal Fee
* Interest Calculated
Semi -Annually
* INSTANT
RECEIPT
m
u ri s
A pers.nal b s d 4 et eon
hel.l trees a handle on
expenses and Savin„:. s
liBUIRMEMBERIERIEM
AFICE HOURS;
Mon. to Thins. 9 30 a m to,5 15 p rn
TM - Fridays 9:30 a.m. to 6:00,:.m.
e Helping People Saturday 9.30 am 12 noon
GODERICH PeoplCOMMUNITY
CREDIT uNION
RRSP
We'll pay you to put
your future first.
250%
TRANSFER BONUS
This year, more than any C(1MPOt LADED ANNUALLY
other, it pays you to conso1'-
date your RRSPinvestments
with First City Trust. For every RRSP
worth -$2,500 or more transferred to First
City Trust before March 2, 1987 and
invested in a 3,4 or 5 year term deposit,
we'II pay a bonus of up to 1% of the
transferred funds. -
That's $25 on a $2,500 transfer! And
the bonus will be paid directly into your
RRSP account to grow, tax free, until
your RRSP is paid out!
3 YEAR RRSP
GUARANTEED INTEREST RATE
As a special service to our client,
we provide full interest rate protection for
217 Dundas Street
London, Ontatio N6A 1 H 1
(5o19) 672-7790
Rate Subject to, Change
45 days from the date of our
transfer request. And, if the
posted rate is higher when
your funds arrive, the new,
higher rate will apply. Should
you wish to increase your RRSP con-'
tribution for the 1986 tax year, we offer
RRSP loans at the Prime Rate.
CONVENIENCE & DIVERSITY
By consolidating your RRSP invest-
ments with First City Trust you .and your
money will benefit in many ways - seryice,
convenience, expertise and return on
your investment.
It's your future. Don't put it off. Talk
with your First City Trust authorized agent
today. Deadline for RRSP contributions
is March 2,1987.
EniiitCriv Titust
4,
,✓
Let's set the scene:, Yuur washing
machine has just broken down and you
'have no idea Where you're going to get the
money to repair or replace it.
Familiar? If so, don't despair: you've
just discovered one great reason for draw-
ing up and living by,a good family budget.
• Budgeting is a bad word for many peo-
ple, but without it, sudden expenses, such
as a washing machine that decides to quit,
can leave you down and out financially.
With a budget, you can plan to put a little
away over the weeks and months so, when
a minor emergency comes along, you'll
have the cash in the bank to take care of
the expense.
Still, it's probably going to take a lot of
sweet talking to get most people -to start a
budget. Here are some of the most com-
mon excuses for not budgeting and reasons -
why you should reconsider if y.ou'r•e. using
any of them:
I'm not an accountant and you have to he
an accountant to do a budget properly.
"ice try, but you don't need to be a Fiilan-
' L•ral expert to draw up and stick to a simple
budget.
1 don't haveathe time. Rea11i`? ,It doesn't
take much time to set up a family budget
and even Tess time to administer it. And
you can get your family involved to lighten
the load and they will be even more coin-
mitted to helping; make the budget work.
!1y finances are.riot static. Budgets are, so
they're self-defeating. True, you•r•finances
aren't static, but neither does your budget'
have to he; it. can be as flexible as your -
finances.
• Budgets don't work; 1 spend just as much
when I'm.on a budget as when I'm not
While this argument .has Borne. Merit, it ig-
. notes the fact that the role of the budget is
not to reduce expenditures; it's primarily'
a financial planning tool that shows which
expenditures are being made, to what ex=
tentthey're being made and' when they're
being made.
A.budget will also show you which ex-
penditures are necessary and which- you
can postpone; thus --helping to improve
your financial planning.
And that's the key to a budget; it helps
you plan your finances and that's the main
reason why you should be willing to do the
little bit of work it takes to draw up a fami-
ly budget and make it work.
Basically, a budget represents all your
income sources less all your expenditures.
If. you have cash left over at the end of the
month, it can be added to next month's
pool of capital; if yoti run short, you're pro-
bably looking at a loan to get you through
ora cutback in some of those discretionary
expenditures. t -
Lrlcorne includes money coming in from
all sources: employment, dividends; in-
terest, family allowances and any other in-
come the family can anticipate.
Expenditures include things like rent,
food, heat, electricity, car payments and
the like but should also include the usually
forgotten items such as medical and dental
bills,
l'ottery tickets, cigarettes,
magazines, • credit card fees, pay TV
charges, gifts,. dry cleaning, charitable
donations, taxes and vacations.
And don't forget the taxes that may be
payable on income sources other than your
piny' •
To make sure your budget has :+ chance
of working, you have to include all the ex-
penditures you are likely to make each
month. Leave something off. and you're on-
ly fooling yourself.
To 'save time, budgeting and make the
.process"easier,consider, using a personal
eornp.uter. There • is budget software
'available for most popular computers to-.
day and these can not only simplify the
• budgeting process but save you time enter-
ing data.,, They'll also produce more com-
prehensive and useful budget statements
than you would probably draw up by hand.
What's in a budget for you? The benefits
are numerous. First, a budget will guide
you to making'.planned expenditures at the
right time; in contrast with impulse'expen-
ditu"res, which never seem to -crop up when
money is available.
akin a comitment
....
For many people who haY•e not yet started to save -for, their retirement, the profusion of
' RRSP advertisements at this time of year is akin to having'a nagging toothache. •
'Such individuals berate themselves f.or not having taken preventative action earlier to
aVoid their 'Current discomfort. - ,
•Yet, jtist'as a trip to the dentist should deaden the pain of a throbbing tooth, so•will a firm
m -n
decirion to co it -money to an RRSP ease the worry of. having. no funds set aside for
retirement..
--111-ISS THrBOAT
There are tremendous financial benefits in starting an RBS_ P• early on, but it is by no
•
means a necessity- in attaining retirement security.
For example, a person with.25 working years left, who does not participate in a company
pension plan, couldhave an•RRSP worth approximately $490,000 by retirement if he or she
was able tb inv„st•$5,000.annually 4 an average interest -'rate' of 10 per cent..
Upon -turning 65. that individual could then use those savings to purchase a post-RRSP
prcxluct,'such as term to 90 annuity and receive a monthly incomein excess of $5,000 for't;he
•neiet•25 years '– based again on •an average interest rate of 10 per cent,. ..
• SIMPLIFIED SCENARIO .
Of course, this is.a simplified scenario which does not take into account such important in •
-
vestment considerations as annual cash flow needs, alternative sources of retirement in-
come, 'and a desire for varying income throughout 'one's retirement years.
There is no question that.' an annual commitment of $5,000 would •cut heavily into many.
people's resources. However, even if you were to rriake'a yearly contribution of dust $1;500
for the next 25 years, your RRSP would still be worth more than •$160,000.
If that money was subsequently used to buy a term to 90 annuity, uttering a 10 per cent
rate, it would produce a monthly payment; of $1,425 and be a healthy supplement to, other
sources of retirement. income, . '
Obviously, the longer you put off Starting an RRSP, the larger your annual contributions ,
will have to.be to achieve your retirement savings goals.
The person who_accumulated$490,000 over 25 years through annual payment& of $5,000
'could have achieved the same result with yearly contributions of just $2,000 if he or she had
begun nine years earlier.
The
no acquisition fee
RASP
with more!
Frons the nlanag('r of Indu,tnal Growth Fund— Canada's long-
term leader In' RRti1' InV('.tnUtnts -- C erne, all PK( E'1)t') 1 new,
pruritic t: Induqrlal Fiuriinn Fund. -
1n(1u,trral, llcirii )n otter,' the ,,arae, proven prote,,sic)nal
managen)ent...the ,,aril(' high Iev('I Of per onaf tiervice from one
of the trill\ qualiiit'd, independent representativ('...yet charas'~
no ,u clul'ltiOn tee ",O all Ot your RRSP inVe,tnTenl can he v'ork-
nlg for vnu from clay coir.
Br(>,+d('n,your RR`,I) ‘ I`ta,.. ('all or y%ritcsfifi)r more•intornlanon
#)n Incluqrral 1lorl/ n Fund, today!
Industrial
Fuad
Hcrizon
•
Please send me more information on an Industrial Horizon Fund RRSP
NAME _.
ADDRESS
"CITY
PHONE
PROV.
POSTAL
CODE
(BUSINESS)
. / �FkiOMEi SS)
1/1 Queens Ave., Suite 610, tondos, Ontario. N6A 517 (519) 672-6660
TOLL FREE 519 AREA
1-800-265®5908