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Page THE HERALD OUTLOOK Saturday February 18 1889 Monthly saving on is the way to go Jim John and Jerry our mythical friends have been sav ing per year into their RSPs for the past years are now about to retire and looking forward to the day with glee They each prtttod themselves as they should on having the foresight to have saved that per year into their True each of them had saved over 33 per cent per year in taxes 800 per year so the true cost was only 1600 per year 33 per month Just imagine Jim we now have the time to look after our house repairs do the things weve always wanted with our time and to travel and see the world And replied Jerry we now have the income to do all those things again thanks to those savings I expect to take 3 500 per month from my Registered Retire ment Income Fund RRIF and ex to have the dollars grow besides That 000 in my sure looks great 3500001 shout both Jim and John We dont have that amount in our RSPs And so they discussed how they had saved their 2400 per year It was discovered JIM had saved his 2400 per year in a savings institution where he had averaged per cent over the 20year period JOHN had put 2400 per year in to a mutual fund that had averaged 15 per cent per year JERRY had put 200 per month per year into the same mutual fund as John had used averaging per cent per year JIM was worth 151200 savings institution JOHN was worth mutual fund JERRY was worth same mutual fund All had invested exactly the same amount 48000 over the 20 years But they had different dollar amounts available now for Power of the past Archaeology and Industry Ex ploring Haltons Powerful Past is the theme of a Heritage Day celebration at the Halton Region Museum on Monday Feb 20 at 7 30 p As part of its ongoing research into Haltons industrial history the Museum will host two speakers For more information call San Lues Halton Regior Museum Milton Ontario CAH Why wait for your tax refund when you could Set Cash Back fast If you qualify and are eligible for a Federal refund of 200 or more you can get a cheque for of the first 300 of your Federal tax refund and of he rest Plus your Federal tax return will be accurately prepared at no extra charge So why wait for the refund cheque to arrive by mail Ask about Cash Back at Block and get your refund fast Main St North Moor Parte Plaza Georgetown 8776733 Mill St Em Acton 8531771 ITS YOUR MONEY Paul J Rockel their retirement Jim had saved his 2400 per year and his important objective each year was to reduce his taxes He gave little or no thought to what his savings were growing at and so left it at the savings institution figuring a 10 per cent average was pretty good it is But both John and Jerry while interested in the tax savings also looked for ways to achieve a better rate of return and found that most good mutual funds have averages of 15 per cent and better per year if you look at 10year results and longer But both of them used the same mutual fund and invested the same amount of monies each year Why does Jerry have over 50000 more than John The answer is obvious They both earned the same but John put in 2400 per year each February whereas Jerry contributed PER MONTH using a pre authorized cheque plan whereby it automatically was invested for him each month Lets use our calculator for a bit 2 400 per year x per cent Jim years equals JOHN 2400 per year x per cent 20 years equals JERRY 200 per month per cent 25 per cent per month 20 years months equals Even the calculator tells us that Jerry monthly mutual fund saver has double the amount of Jim Institutional saver and that he has 20000 more than John who saved in the same mutual fund The reason is that Jerry saved MONTHLY But by using equity funds Jerry ends up with even more gain because something called dollar- cost averaging was working for him By investing regularly during both the uds and downs of the equi ty funds he was sometimes buying bargains which gave him an average better rate of return than 15 per cent despite the fact the fund averaged 15 per cent Would you like more in retire ment Maybe you should consider investing monthly rather than just once a year as so many of us do Start next years monthly RSP contributions NOW For a free brochure on mutual lands ask for Why Doesnt Everyone contact Peter Ma sot 10 Fagan Drive Georgetown Ont Or phone Paul J Rockel Is the author of the best seller Why I Invest in Mutual Funds and President of Regal Capital Planners Ltd III DtALAPRO A Directory of Services Offered in Our Community ADVERTISING SPECIALTIES ACCOUNTING BOOKKEEPING INCOME TAX BOB YOUNG 21 Acton Ontario 8534534 PENS CALENDARS CAPS MATCHES BUSINESS CARDS ETC ADVERTISING SPECIALTIES PRINTING GEORGETOWN ONTARIO If By Accident CALL US GET THE JOB DONE UPTOWN COLLISION APPLIANCE SERVICE JGS Appliance Service 8778448 Home Service Calls To All Major Appliances Moat makes and models Hour Answering Sarvica Evening calls upon request CRITERION CARPET Ltd Serving Georgetown First tor 22 Years 8771012 12SGueiph Street Georgetown Will Batten Greg Marsh Fork Lift Trucks Rough Terrain Maasey ft Mast King2811 Lift BARRIS EQUIPMENT 416 SALES RENTAL SERVICE CONSTRUCTION SOLID OAK CONSTRUCTION INC Homa CooMwrctal Dock CALL GEORGETOWN Ian Falls Phil McLaughlin 8775775 8774902 RT CONSTRUCTION CUSTOM DESBN HOMES Your Plane or Ours MrrcoNsmucnoN WINDSHIELD REPAIRS WE HANDLE ALL INSURANCE CLAIMS AUTO UPHOLSTERY SUNROOFS VINYL TOPS HO tXTHA CHHCrMOeK 8731655 300OUELPH8T UNIT GEORGETOWN MACHINE SERVICE WHILE YOU WAIT Jot you Ml it too SMALL WciMllydon GEORGETOWN RENTALL SS Sinclair Ave 8770157 WE CUT THE BULL You Win It Don And Don CASH Free Estimates Guarantee Building Renovator CUSTOM BUILT REPLACEMENT WINDOWS PATIO DOORS A Able Arts ffQ Masonry Ltd Custom Muonry Attentions Renovation On DEEPWELL i Lid Pump Troubles 8784484 Main St Unit Milton mum MEL TAYLOR ALUMINUM LTD 8776772 SEPTIC TANK PUMPING DRAIN CLEANING LTD Emergency Service JJ ELECTRONICS Raparra to AH TV Model on Ml 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