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"A Family Tradition for 126 Years" In a recent Canadian poll, half the respondents expected to retire on 75 per cent of their pre-retirement income, While that should be enough to re- place working salary, many people fall short. In the same poll, only 42 per cent belonged to a company pension plan and 46 per cent had an RSP. The sta- tistics may not paint a rosy pic- ture, but an early start at sav- ing for retirement will go a long way to ensure a satisfying re- . tirement. While most young wage- earners can understand the merits of budgeting and saving, many may not realize the bene- fits of getting an early start on saving for their retirement. For them, the need to save for re- tirement seems very far off, es- pecially since there's no short- age of things to spend paycheques on now. But accord- ing to personal finance experts, there's no better time to estab- lish good savings habits than when starting a first job. The RSP Answer In addition to getting into company-sponsored pension plans, young wage-earners can do no better in terms of retire- ment saving than putting their money into a registered retire- ment savings plan (RSP). And, the sooner one gets going, the longer the RSP has to grow. It pays to start the RSP savings habit early in life Contributions to RSPs are tax deductible and the income is tax-free until the plan is cashed in. An RSP can be cashed in at anytime -- subject to income tax and depending on the invest- ment chosen -- but by waiting until retirement RSP holders can reap the maximum benefits and pay less tax because gener- ally they are taxed at a lower rate than if the money was tak- en out prior to retirement. In your early working years, coming up with an annual lump sum RSP contribution can be hard. But putting aside a little at a time can be much less pain- ful to the pocketbook. "It's very easy," explains Marva Collins, Royal Bank, "All you have to do is decide how much you want to save, when you want to make your contributions and the in- vestment option you prefer. We do the rest by setting up an RSP-MATIC Savings Plan in your name." "The advantage of the RSP- MATIC Savings Plan is that contributions start to earn tax- sheltered income right away," continued Charlotte Nevin. "If you save the money outside the RSP to make a lump sum contri- bution, you may have to pay tax on theincomeit earns." It Just Takes A Little If you start early and are con- sistent, it just takes a little HEATHER ASHTON 190 Medd Rd., R.R..#1 ASHTON BOOKKEEPING Small Business Specialist Computerized or Manual Bookkeeping, Accounting & Tax Services Port Perry, Ontario LOL 1B2 (416) 852-3273 TEE, AAA AAA HANH aaa eee ae "Personal, | ROGER B. MOASE Chartered Accountant 238 Queen Street Port Perry, Ontario LOL 1B9 985-8893 Fax: 985-4944 985-7225 TAX RETURN PREPARATION Confidential, Service" PORT PERRY STAR - Tuesday, February 2, 1993 - 17 » OO) . an AMOOOOOOOO0 NT $000 |HOOOOO .e OCC) COCOOOTITDOOOSOONISDS | | SRN INCOME TAX PROBLEMS? money at a time to build up a LET ME HELP! EI : sizeable retirement nest egg. | hit | Saye bane 985-9077 contribution earning six' : RIE FN per cent compounded annually, Call Betty or Dianne : TakartoRd starting at age 25 and contin- : A a pA, ued to age 65, would grow to Rk Ad TE $191,750. ; Another option is to borrow a lump sum to make your contri- bution. "Paying off this kind of loan is similar to making regu- lar | monthly contributions," Charlotte Nevin, Royal He AE at DUNWOODY ductible, the tax-deferred in. WARD MALLETTE come earned by the RSP should more than offset the cost of the Chartered Accountants loan. ¢ Financial Planning e RRSP Advice Tax Preparation | o Payroll services including T4's, T5's, WCB, EHT * Accounting for small businesses * New business planning & start up ¢ GST | If we can be of assistance please drop by our office or give us a call. Never Too Late Even if you put off starting an RSP until you're closer to mid- dle-age, the growth of com- 'pounding, tax-sheltered income still makes RSPs the best way to save for retirement. If some- - one, age 40, starts contributing $3,600 to an RSP which earns six per cent, compounded annu- ally, and continues until age 65, the retirement savings will grow to $203,647 -- over twice the value of contributions. With a little planning and by starting the RSP saving habit early in life, you can take re- sponsibility for your long-term financial fitness and avoid the financial hardship facing those less well prepared for retire- ment. ~ 38 Toronto St. N. Uxbridge 852-9714 Courtesy of Royal Bank, Port Perry NOW IS RSP TIME... EXTENDED BANKING HOURS FOR RSP SEASON This year's deadline for RSP contributions is March 1, 1993. To make it easy and convenient for you to make your RSP contribution in time, this Royal Bank branch will be open: Thursday, February 18................... 9:30am to 8:00pm Thursday, February 25................... 9:30am to 8:00pm Friday, February 26........................ 9:30am to 8:00pm Saturday, February 27................... 9:30am to 4:00pm Monday, March 1................. erreneans 9:30am to 7:00pm Take advantage of our extended banking hours to call or visit an RSP Specialist at Royal Bank. You won't find a better place for your AS 210 Queen Street, Port Perry 985-7316 *Please note any extended hours are for RSP Sales ONLY. "ou, 0 More Canadians Choose Royal Bank for RSP's nr Xo Nid L A, N ' ' I rf el