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10 - PORT PERRY STAR - Tuesday, February 16, 1993 Hundreds bowl to raise money for Big Brothers t Scugog Fire Department was represented at the annual Bow! for Millions by a group o firefighters from Hall 1 In Port Perry who raised $200 for the organization. Pictured are (from left to right) Steve Armstrong, Bob Hoare, Dale Lown, John Foster, Stuart Houthuys, Paul Dick and Irv Gibson. KELLY LOWN/PORT PERRY STAR ) 8 --_ J Gary Bennett, a little brother waiting for a big brother, and A group of Port Perry realtors participated in the Big Brothers/Big Sisters Bowl! for Mil- Rob Newcomb, a big brother, show the approach to bowling lions on Saturday. Pictured are realtors fiom Re/Max; Ridge North and Frank Re | Estate: ) at Saturday's Big Brothers/Big Sisters of North Durham Bowl Mark Smith, Chuck Willes, Al Bertrand, Guy Latrielle, Delibie Taylor, Jennifer Taylor, Chris for Millions. © Duff, John Tate, John Wolters, Diane Runcieman and Ron Smith. - BG a SEE SS Ap LES Si. at Systematic Withdrawal Plans ~~ 7 When people retire, they are frequently advised to put their money into a term deposit or a guaranteed investment certificate and live off the interest. At first glance, this may seem to be a wise decision because the income from the interest initially appears to be sufficient to meet their needs. Over the years, however, the income received decreases in real value because of the effects of inflation and the taxes paid on interest income. One alternative that can counteract the effects of taxes and outstrip inflation is a Systematic Withdrawal Plan. Available through many mutual fund companies, Systematic Withdrawal Plans are extremely flexible and can provide an opportunity for your invested capital to grow while you withdraw an income at the same time. For example, suppose you had invested $100,000 on September 1, 1981 in Trimark Fund, at its inception, and decided to withdraw a regular income of $825 a month beginning October 1, 1981. By December 31, 1982, you would have withdrawn $12,375 and your account would have grown to $122,827, assuming you reinvested all distributions. And over ten years later, on September 30, 1992, you would have withdrawn over $108,000 and still have $299,026 left in your account. On the other hand, suppose you had chosen to invest your $100,000 in a security earning 10 percent interest and had withdrawn $825 a month. Your investment would still be worth $100,000 after 15 withdrawals, but your $12,375 in payments from the plan would have been taxed at your highest marginal rate. And today, your plan would only be worth about $94,000. Systematic Withdrawal Plans in the right mutual funds, therefore, have two significant advantages over other investments: a rate of return that usually exceeds traditional interest-bearing investments over the long term, as well as favourable tax treatment. You get better tax treatment from Revenue Canada because your income consists of more than just interest - which is fully taxable. With a Systematic Withdrawal Plan, it consists of interest, dividends, capital gains and return of your initial mvestment. To open a Systematic Withdrawal Plan such as Trimark's, you need only deposit $5,000 in one of the Trimark family of mutual funds. Then , you choose how much you should withdraw from your account on a monthly, bi-monthly, quarterly, semi- annual or annual basis. This amount will be transferred to your bank, trust company or credit union account, or to any person you choose to designate as recipient. If your withdrawals from your account exceed the total return of the fund, the money needed to meet your requested payment will be deducted from your original capital investment. But since Systematic Withdrawal Plans are flexible, you are not locked in to a fixed payment schedule. You can increase or decrease your payments to suit your specific needs as they change. As an investor, you should be aware that the plan's value will increase or decrease, depending on the value of the investments in the Fund. Many well managed funds have eamed an average annual return of 15 percent over the long term. Some have eamed even greater returns during periods of strong economic growth. It is this consistency and ability to outperform that have led thousands of Canadians to put their money into mutual funds. Mutual funds have proven time and again that they are the perfect vehicle for providing investors with a solid income while allowing their original investment to grow. a How DO YOU MANAGE TO CHOOSE THE RIGHT RSP INVESTMENT? . wile WE MANAGE. TO OUTPERFORM. Your unit value and investment return will fluctuate. Important information about any mutual fund is contained in its simplified prospectus. Read your prospectus carefully before investing. You can obtain one from: : ROBERT GOW Richardson Greenshields 111 Simcoe St. N., Oshawa 434-6161 RICHARDSON GREENSHIELDS A i eS LC MAE ae pr Investment advisors to Canadian enterprise and enterprising Canadians Designed by Trimark Investment Management Inc. °