The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

"A Family Tradition for 127 Years" PORT PERRY STAR - Tuesday, January 25,1994 - 17 Choosing the right RRSP Choosing The Right RRSP Investments Many investors recognize the immediate tax benefits of con- tributing regularly to their RRSP. However, they often give less thought to how their RRSP 1s growing. With a little knowl- edge, you can help to make a big difference to the amount of cash you accumulate in your plan -- and to the quality of your retire- ment lifestyle. In fact, just an increase by a single percentage point in the average rate of return on your RRSP investments could in- crease your retirement income quite significantly. And that could apply for a lot of nice ex- tras when you retire. Improving RRSP Performance So how do you help increase the average rate of return of your RRSP investment? Start by looking at the investments you now hold inside your RRSP. Like many people, you may se- lect the same types of RRSP in- vestments every year -- without considering all the options available to you. For example, your RRSP portfolio may consist almost en- tirely of one-year investment certificates. A good choice? Cer- tainly these provide a high level of security and a respectable in- terest-rate return. But you could probably do better. One way is to diversify your holdings to include certificates with a wide range of maturity dates -- say, from six months to five years. Then, if interest rates decline in the future, your longer term certificates are locked into a higher rate. But if rates go up, your shorter term certificates will probably ma- ture quickly enough so that you'll still be able to capitalize on the higher rate. Mutual Funds As An RRSP Option History shows us that, at any given time, some investments will do better than others. In the mid-eighties, fixed term in- vestment certificates per- formed better than some of the mutual fund RRSP options. Yet in the past few years, the oppo- site was true. And that's why it may make sense for you to consider includ- ing mutual funds in your RRSP plan. But with so many types of mutual funds available for your RRSP, how do you choose among them? Often the choice comes down to how much risk you are prepared to tolerate and how close you are to your retire- ment. Weighing Risk Against Return If you are several years away from retirement, you may want to assume some risk in order to attempt to realize longer term growth. In this case, you could consider investing some of your RRSP dollars in an equity based mutual fund. Or, you may be closer to re- tirement and concerned with having a secure income. Under these circumstances, you may want to invest in a fund with se- curity, such as a mortgage or bond fund. And if you're an experienced investor with a larger portfolio, a self-directed RRSP can pro- vide you with the widest possi- ble selection of investment op- tions, including interest bearing certificates, 1nvest- ment funds, plus a wide variety of publicly traded Canadian stocks and bonds. You can even invest in yourown mortgage! So take a look at your RRSP portfolio. See if youre taking full advantage of all the invest- ment options available to you. Chances are you'll find that, by increasing the diversification of the investments in your RRSP, your prospects for a richer re- tirement may also increase. Courtesy of Kathy Bristow, Assistant Manager, Bank of Montreal, Port Perry Certificates DJ TAYLOR INSURANCE BROKERS LTD. 169 North St., Port Perry LOL 1B7 Guaranteed Investment (Rates Subject to Change without Notice) G.l.C. FIVE YEAR 5.5% PHONE 985-8416 Van Camp & Keller Chartered Accountants Income tax planning and return preparation. Preparation of government returns (T4's, TS's) Financial, estate and retirement planning Individuals, corporations, small businesses, farms 204 Casimir St., Port Perry, Ontario LOL 1137 Telephone (905) 985-9725 [SHEPHERD ¢ POWELL ! Chartered Accountants RR e Accounting for farms & small businesses e Tax return preparation e "E-filing" at no extra charge e Personal financial planning e Experienced staff e Personal, confidential service e New business planning and start-up FREE INITIAL CONSULTATION -- David R. Powell, B. Comm, MBA, C.A. Lynda Van Schaik, B.Comm., C.A. ------ 250 Queen Street, Port Perry 985-9791 CIBC has extended its hours just for you To make your RRSP contribution more convenient, we will be open until 9:00 p.m. on February 25, 28, and March 1 and until 4:00 p.m. on Saturday, February 26. Or you can deposit by phone, | simply by calling 1-800-465-CIBC. Secure Your Future with a CIBC RRSP To book your RRSP Review Interview call 985-4444 Get us working for you! {> CIBC