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11 THE HERALD February do it right to reap best rewards ITS YOUR MONEY Paul J Rockel Jim John and Jerry our mythical friends have been sav ing per year into their RSPs for the past years They are now about to retire and looking forward to the day with glee They each themselves as they should on having the foresight to have saved that per year into their RSPs True each of them had saved an average of over per cent per year in taxes 800 per year so the TRUE COST was only per year 133 33 per month Just imagine said 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 per month from my Registered Retire ment Income Fund RRIP and ex to have the dollars grow besides That 300000 in my sure looks great 300000 shout both Jim and John We dont have that amount in our RSPs And so they discussed how they had saved their per year It was discovered Jim had saved his per year in a savings institution where he had averaged per cent over the 20year period John had put per year into a mutual fund that had averaged per cent per year Jerry had put per month 2400 per year into the same mutual funds as John had used averaging 15 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 over the 20 years But they had different dollar amounts available now for their retirement Jim had saved his 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 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 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 50 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 Let use our financial calculator to get the compounded growth 2400 per year 10 per cent Jim x 20 years equals John 400 per year per cent x 20 years equals 245864 Jerry per month x 15 per cent 1 25 per cent per month x 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 500 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 ups 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 per cent Would you like more in retir merit Maybe you should consider investing monthly rather than just once a year as so many of us do Start next year s monthly contributions NOW For information ask for RRSP Brochures and contact Peter C 10 Drive Georgetown or phone 8777216 Paul J Rockel is the author of the best seller Why Invest in Mutual Funds and President of Regal Capital Planners Ltd Money for books The Ladles Auxiliary or the Royal Canadian Legion in Georgetown presented a cheque to the Library to be used for talk Ing books for the blind A number of people braved terrible weather conditions Feb 15 to be at the cheque presentation Some of the people who were there are from left to right Jean Rled ladies auxiliary secretary Russ Miller mayor of Hills Marjorle ladles auxiliary president Monica ladies auxiliary treasurer Margaret the representative from the library Hank Russell president of Legion Branch 120 and Graham Payne a Legion member The money was raised during the recent Robbie Burns Din ner Herald photo Bridal show If you are a bridetobe then you are invited to attend the Welcome Wagons ninth Annual Bridal Party Sunday March The bridal party will be held at the Halton Hills Cultural Centre John Elliott Theatre Poors open 12 30 p The show starts 1 30 pm Ab in the past Welcome Wagon has designed an exciting program of events for Sunday afternoon including special displays exciting gifts for every bride numerous door prizes and of special interest a fashion show featuring lingerie and tuxedos dresses bridesmaid dresses and bridal gowns Admittance is free but by in vitation only To obtain your per invitation for yourself and your mother or guest please give Welcome Wagon Hostess Debbie Butler a call at RECYCLING It only If we all do our pari Please Remember to Recycle This Newspaper Exploring New Horizons I was looking for a career change and returning to University has been good for me in terms of increasing my knowl edge and making me more marketable Nancy Smitten SPRINGINTERSESSION1990 Weston Ontano April 30 August 10 including exams Launer offers courses both through classroom lectures and at a distance through Telecollege Were here to help you achieve your educational goals Classes are available for parttime students at Brampton Centennial Secondary School and at Hewlett- Packard Were sure that youll find classes to suit your interests career and location Join us at our Information Session Youll have an opportunity to get answers to questions meet with staff and fellow parttime students Bnng a fnend Thursday March 8 1990 Brampton Public Library Main Four Corners Branch Queen Street East Auditorium 730 900 pm Topics to be Discussed admission and registration procedures academic counselling career and personal counselling library and other student services For a complimentary copy of the SpnngSummer Parttime Studies Course Calendar or for personal assistance just call 519 8841970 Ext OFFICE OF PARTTIME STUDIES AND CONTINUING EDUCATION WILFRID LAURIER UNIVERSITY 75 University Avenue West Waterloo Ontario 3C5 for Business RAPERSMAIF correction White Each Colours Green Goktervod Ivory Grey fluff laager Groan Pink Telephone Message Pads Convenient pads for recording telephone messages Pink paper with black Ink per box SRP 50 Box Keep magazine and fie folders neat and accessible Grey colour 1100431 W13T2WH Each RoaStoi Standi Desk tide organize documents FE compartment SRP4M OFFICE SUPPLIES SECRETARIAL SERVICES 8772282 348 St Unit DelrexBlvd Hwy Georgetown 8466947 EST