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the HERALD MONEY MANAGEMENT 86 Dont forget the guaranteed RRSP Overlooked by tome Investors and misunderstood by others guaranteed plana do have important puce ev ery Although guaranteed plana may not offer be upside potential of some other of such equ ity do they expose In addition guaranteed plans alter same unique advantage over of be other highly publicized alternatives to another registered investment or transfer the funds to an at an other If you draw cash out of your you win trigger a tax liabil ity that could lake a bite out Term deposits or guaranteed invest- Preventive action needed certificate RRSPi require that you commit your funds for a period but the financial Institution guar- In advance the rate of Interest to be paid for the term Usually the terms run between one and five years having only one type of Investment To achieve a properly balanced divert fled portfolio you wad a solid base upon which you can depend as well as a mix of potentially hlsb performing In vestments A blend of guaranteed term investments with differing maturity dates should be employed bo build this base This will provide a solid return that Is not battered by market down turns or failure to perform up to expec tations Another frequent use savings ac count type guaranteed RRSPs by he j part funds while awaiting Investment opportuni ties The funds that are parked re main tax sheltered yet the plan pro vides the ability to access them at any time for alternative Investments This Is frequently used by those waiting for the market or Interest ratea to turn as well as by loose waiting tor a specific investment opportunity to open up Ills also widely used by those re tirement as an Ideal place to bold funds while deciding the timing and tying down the details annuity purchases When looking tor an appropriate account lo use as a holding account It Is Important to check out In rates paid terms of withdrawal and fees Savings rales can vary csnlly from Institution to Institution and fees Also as an Individual approaches re tirement It becomes more and more Important lo have Ibe majority of funds and preferably the follo Invested In guaranteed This is esentltl to ensure you able gain access to ail of your pal with a reasonable return and nit be exposed to wide fluctuation losses of the more volatile aher natives It could create a substantial re duction In your retirement Income your holdings are In stocks or mutual funds thai are suffering from a down market at the time you want to use your funds to purchase an annuity When reviewing your strategy take a good look at guaranteed plans They are guaranteed to work for every investor SAME DAY TAX RETURNS 8772217 like a toothache refusion of advertisements at time of year Is akin to having a nag- Individuals berate laving taken preven tive action earlier to avoid their current discomfort Yet Just as a trip to the dentist should deaden the pain of a throbbing tooth so will a firm decision lo commit money to an ease the worry of having no funds set aside for retirement Im amaied at the number of people particularly in their mid to late Me who think they missed the boat com by not starting an at age said Michael Sommers dent of corporate planning and devel lor First City Trust Company There are tremendous financial ben efits In starting an RRSP early on but It is by no means a necessity In attaining retirement security be said For example a person with IS work log years left who does not participate In a company pension plan could have an worth approximately by retirement If be or ahe was able to In vest the current annual of al an average Interest rate of per cent Upon turning that Individ ual could then use those savings to pur chase a post product such as First City Trust Term to Annul and receive a monthly Income In excess of for the next years based again on an average Interest rate of 10 percent Of course this Is a simplified scenario which does not take Into account such Important Investment considerations as annual cash flow needs alternative sources of retirement Income and a de sire for carrying Income throughout ones retirement yean There Is no question that an annual of fcH0 would cut heavily Sommers lo make a yearly contribution of Just 500 for the next IS years your would still be worth more than If that money was subsequently used to buy a Term to 90 Annuity of f a l SAME DAY TAX RETURNS per cent rate it would produce a monthly payment of and be a healthy supplement to other sources retirement Income Obviously the longer you put off starting an the larger your an contributions will have to be to achieve your retlrment savings goals said The Individual who accumulated over IS years through annual OS the coopetatois million policyholders torn to coast 8770131 333 STREET 8772217 Not all are creditor proof Is yours Ours arel If you would like more information give me a call BRIAN GOODLET Georgetown 8774515 Mutual For a limited timeyou can earn Bonus Interest on all Guaranteed Fund Term Deposits of 1 lo years Interest compound ed annually at quoted rale Minimum Special Term August 19S8 maturities No Fees Receipts RRSP Loans Ask about our Flexible Deposit Section where a competitive interest rate isavaitable Rates are subject to change and include the A Bonus RRSP Term Deposits Ourbonus is worth IT Centrallhist Canada Deposit In Brampton Tel 1460