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10 THE GEORGETOWN GEMINI ¢® YOUR FINANCIAL HEALTH ¢ » WEDNESDAY, JANUARY 22, 1997 Taking care of business -- retirement planning With the day-to-day chal- lenges of growing a business, many entrepreneurs and owner-managers have little time for personal retirement planning. It's easy to put off the future when thepresent is so busy -- and so promising! But it is possible -- and im- portant -- to grow both your business and your retirement assets. So, why aren't you using an RRSP? I'm building my assets within my business. A successful business will guarantee a comfortable re- tirement, right? Maybe, but what happens if a change in economic circumstances brings about a financial change for your business? Your personal liability would be limited (if you were incor- porated), but your retirement plan would also be wiped out. Using an RRSP outside your business, and tax sheltering assets inside your business makes more sense than an all or nothing approach. I don't draw enough in- come to makean RRSP con- tribution. Many small busi- ness owners choose to take little or no salary from their business in an effort to mini- mize their taxes. When they do take money, it's often in the form ofadividend(which --[}onthly Investments of $100 compounded to age 65 doesn't qualify as earned in- If a ae come for RRSP purposes). you ount Accumulate However, almost everyone Start Total If you earn has some income that will At Age Investment 9% 12% et * $42,000 $296,385 $649,527 ion. While the $13,500 maxi- ? Es > mum contribution may be out £5 36,000 184,447 352,991 of your reach, every contri- 40 30,000 112,953 189,764 bution counts. With as little 45 24.000 67.290 99.915 as $50 or $100 a month, con- s . : tributed regularly and in- 5 18,000 38,124 50,458 Continued on next page 12,000 19,497 23,234 Figure 1 ~ ABILITY 120. BUTE DAA HE PP ERR Se Fase 1evesTENT OPTIONS She wants choices for her retirement. And providing solid investment options is how Royal Bank Financial Group lets her build the strongest RSP possible. Like Royal Bank's RSP-Matic to automat- ically move funds from her account into her RSP each month. Mutual funds from Royal Mutual Funds. Ora self-directed RSP from ACTION DIRECT to make investment decisions herself. And she can arrange her RSP GICs or get investment planning advice from Royal Bank, Royal Trust or RBC Dominion Securities. Drop in to see us. ae ROYAL BANK Royal Bank of Canada, Royal Trust Corporation of Canada and The Royal Trust Company, Royal Bank Action Direct Inc., and RBC Dominion Securities are separate corporate entities which are affiliated. RRSP? Check with State Farm © Competitive Rates on RRSP. © Guaranteed Lifetime Income. © Waiver of Premium for Disability Option for Deferred Life Annuity. e "Good Neighbor" Service. STATE FARM --| & Like a good neighbor, INSURANCE 9 State Farm is there.® State Farm Life Insurance Company Canadian Head Office: Scarborough, Ontario N Lora Greene 72B Main St. N., Georgetown Phone: (905) 873-1615 pein your goals and reaching financial security depends on the successful management of your invest- ments and the protection of the income which allows you to invest. I believe successful management is characterized by expertise, honesty and a commitment of time. W over 30 years of business experience as a financial advisor and Corporate Manager, I approach our client's individual needs with a high degree of pro- fessionalism We t b, and care. the lime Investments and Insurance When it's your money .... TRUST T&KES TIME EDMUND FRY & CO. / FORTUNE INVESTMENT CORP. 3 Tweedle Street, Glen Williams, Ontario L7G 384 Tel: (905) 873-2534 Fax: (905) 873-7526 W: recognize each investor's needs as being unique and deserving of personal planning and attention. We invite you to call and learn about our services. we litle Hoss Edmund A.C. Fry, CFP, CLU, CH.EC. Serving Halton Hills Since 1985 Bringing Independent Consulting to Business & Individuals Co TAT RE