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"A Family Tradition for 126 Years" Don't count on government in old a ~ Do Canadians put their sav- ings into RRSPs for the immedi- ate tax benefit or for the pur- pose of building up a tax deferred nest egg for their re- tirement? Regardless of the rea- son, the number contributing is worrisome. Approximately 30 per cent of Canadians in the workplace have RRSPs, and, of the critical age group from 50 to 59, just 45 per cent contrihute to RRSPs. The concern centres around the 70 per cent of working Cana- dians who have never contribut- ed to an RRSP. Are we to as- sume that the government will care for them in their old age? This simply cannot happen. Consider that one third of our population are "Baby Boomers" and this group of Canadians will start reaching retirement REGISTERED RETIREMENT SAVINGS PLAN BEST RATE available, During the past year, interest rates and the inflation rate have declined. Today, interest rates are still proportionate to the inflation rate. Take advantage of increased deductibility limits. Invest today in GIC/RRSP for your tomorrow. Information on RRIF's and other investments SCUGOG FINANCIAL SERVICES 250 Queen St., Port Perry, Ontario LOL 189 65% (416) 985-3832 Fax: (416) 985-4103 H&R Block keeps up the changes. wit We know the income tax laws and the forms inside and out. That's our business. H3R BLOCK Canada's Tax Team. Put us to work for you! 174 Perry St., Port Perry » 985-9803 age in approximately 20 years. As this country is financially strained to meet the demands of todays social programs, it is ap- ° parent that universality as we have come to expect will not be possiblein thé year 2010. In order to reduce Canadian's dependency on "hand-outs," the government in 1989 instituted a claw-back of Old Age Pension" payments to those with incomes in excess of $50,000.00. No doubt as a result of our rapidly aging population, our govern- ment, regardless of its ideologi- cal stripes, will have no choice but to continue to reduce per capita spending on social pro- grams. Seniors, who have not planned for retirement, will be hit very hard. In future years, rather than government pensions, the pri- mary source of income for retir- ees will be private pension plans and funds provided by ac- cumulated RRSP investments. We will become a country of two classes of seniors; those who have utilized RRSPs to provide for the "good life," upon retiring, and those who have not used RRSPs and struggle to meet day to day living needs. Which will you be? Many people are of the im- pression that RRSPs are com- plicated and only for the sophis- ticated investor. In fact, starting an RRSP is probably one of the simplest investments available, no more difficult than opening a Savings Account at your local bank. Furthermore, every bank can get you started PORT PERRY STAR - Tuesday, January 26, 1993 - 19 on your RRSP. After only a few years of RRSP investing, you will be sur- prised at how fast yoursavings grow as a result of interest com- . pounding tax free. As an exam- ple, at 10 per cent, an RRSP ~ doubles approximately every . seven years. This means that Bnet will grow to ,000.000 in seven years, $8,000.00 in 14 years, $16,000.00 in 21 years, etc. Just think how much would be accu- mulated if you. put $2,000.00 annually into an RRSP averag- ing 10 per cent from age 19 to age 65-$1,918,345.00. RESIDENTIAL 1st Mortgages eam from RRSP MORTGAGE INVESTMENTS 20% # Seeking a Greater Retum? ® Looking for a Balanced Portion? GET ALL THE ANSWERS BEFORE YOU LOCK IN ! PROFESSIONAL MORTGAGE BROKERS INC. Kenneth P. Reinhardt ~ Brenda Harrison 204 Casimir St. (at Perry St), Port Perry 985-4029 "Don't be misled by politicians talking about all Canadians be- ing entitled to a decent stan-' dard of living and instituting a -Social Charter within our Con- "stitution. Everyone of them who has taken the time to consider the demographics of this great country ows that govern- ment cannot provide for our fu- . ture needs. We must do it our- selves by starting an RRSP now. | courtesy of Will Davidson, Manager, Laurentian Bank of Canada, : Port Perry a Paid to you monthly. Registered in your name. 985-9725 CHARTERED ACCOUNTANT Income Tax Planning & Preparation Financial, Estate & Retirement Planning Preparation of Government Returns (T-4, T-5, etc.) CORPORATIONS, FARMS, INDIVIDUAL ESTATES & SMALL BUSINESSES RANDY KELLER, CPA, CA, Associate ) 204 Casimir St., Port Perry Ontario LOL 1B7