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oD ROBERT J. GO 434-7156 or Robert SNe A 1-800-267-1522 RICHARDSON GREENSHIELDS Investment advisors to Canadian "Have Your Say" Ud CHT | A CR OR GENT Ng 111 Simcoe St. N., Oshawa, Ont. L1G 4S4 enterprise and enterprising Canadians PLEASE 2] Jeo) do] NW --§ THIS NEWSPAPER F) rr 4:3 7) : oo SS os od By Christopher J. Garland Are you seeking an at- tractive alternative to guaranteed investment certificates (GICs) or con- ventional bonds for your self-directed RRSP this year? Strip bonds may be what you're looking for. Strips are created when an investment dealer sep- arates, or strips, a bond, usually a government is- sue, into two components: interest payments (cou- pons), and the principal portion (residual). The in- FORTUNE LOE FINANCIAL Don't Get Lost in the Maze of Mutual Funds! bi E Ei ES & I Es E PE EL AN | Marilyn Goodhand, CIM || Independent Investment Advisor : rt Marilyn Goodhand. Put your best stategy in place TODAY by calling Marilyn Goodhand for a complimentary investment consultation at (905) 665-1651 or 1-800-252-8563 Are you having a challenging time deciding which equity fund is right for you? Are you concerned about interest rates and whether or not you should be in a bond fund at this time? Have you considered moving some of your investments outside of Canada? Ours. MR. NO JO. Attractive dividual principal amount and interest payments are then sold separately. Strip bonds do not pay regular interest; rather, they are sold at a discount to ma- ture at par value. Strips offer several ad- vantages. When you in- vest in strip bonds your original purchase yield is your true yield - to maturi- ty, unlike conventional bonds which require rein- vestment of periodic inter- est payments, usually semi-annually, at the pre- vailing market rate. With LN J 3 HN 7: en Sd MY =». VD x2 2.7 ternatives strip bonds there is no risk that interest payments may be reinvested at a lower rate. Provided that you hold your strip bonds until maturity, the rate of return is guaranteed! For example, a $21,450 invest- ment in a 20 year strip bond priced to yield 8 per cent would mature at $100,000. With strip bonds, the built-in compounding of interest simplifies the management of a self- directed RRSP account and eliminates the cost of CIBC SPECIAL RRSP EDITION Five strategies for making your RRSP a winner Here are five strategies to help you manage your retirement plan dlectivdy. : 1-PLAN FOR YOUR RETIREMENT. Many people contribute 10 an RRSP without giving much thought to how much income theyll need when they reare. With the CIBC Retirement Calculator, your Personal Banker can help determine how much income you'll need and how much you need to save each year to reach that goal 2-DIVERSITY. While RRSP GICs should be your core holding, your RRSP will benefit from diversification into other types of investments, such as international and domestic mutual funds, stocks and bonds. Your CIBC Personal Banker can help you develop a well-balanced RRSP plan, using the CIBC Investment Portfolio Planner. 3 - STAGGER YOUR RRSP GLC MATURITIES. RRSP GICs provide a combination of saftey and good returns for your retirement plans. To protect yourself against interest rate votility, stagger your RRSP GIC maturities. The best way to do this is to have 20% of your RRSP GIC assets maturing every year over a five year period. As each RRSP GIC comes due, reinvest it for a new five-year term. That way you'll awa bendit from the five year rate (usually the her offered) and never have all your assets rolling over at a ume when rates are low. 4 - MARE USE OF FOREIGN CONTENT. You're allowed to hold up to 20% of the book value of your RRSP in foreign content. You should consider making full use of this allowance. By adding foreign content to your plan, you are participating in the high growth potential associated with economies in other parts of the world, including the U.S., Europe, and the Far East. Additionally, you gain exposure to some of the world's strongest currenaes. The CIBC Mutual Fund RRSP Foreign Content Plan monitors your intemational holdings on a regular basis to ensure you don't exceed the allowable limit. If that should happen, we will automatically rebalance your bortfolio by purchasing units of the digible Canadian CIBC Mutual Fund of your choice so that you aren't penalized. S- SET UP A SPOUSAL PLAN. _In many cases, it makes good financial sense to 3h retirement income between spouces. This will often result in a lower combined tax bill, especially in situations where one spouse would normally receive little or no income in retirement (for example, in families where only one spouse has been in the workforce). A spousal plan doesn' increase your allowable RRSP contribution, but it enables you to shift some future retirement payments into the hands of the lower-income spouse. CALL ONE OF OUR PERSONAL BANKERS TODAY AND ASK ABOUT OUR CIBC ADVANTAGE RATE RRSP GIC, CIBC 17 MTH FLEXRATE Local News, Personal Views Entertainment, Special Features You will find all this and more in The Port Perry Star 1868 Mary St., Port Perry 985-7383 - Van Camp & Keller Chartered Accountants Income tax planning and return preparation. Personal tax returns electronically filed. Preparation of government returns (1-4's, '1-5's) Financial, estate and retirement planning. Telephone: (905) 985-9725 204 Casimir St., Port Perry Toll Free: 1-800-215-3852 So vour retirement ervices providing the security of a fixed rate Monthly Deposits: ementS Mavarmize the tir terest cared by casy monthly deposits Re Let us help your RRSP grow ramdhy over the years For a Smarter Tomorrow: 1 we vourself now with a Credit Union RRSP and we ll take care J] the rest. A guarantee of a solid retin to provide a secure hfe syle for A Credit Union RRSP offers Investment Options: abi ka pian gang you the current competitive rates. or a fived Rate Plan, Mariposa Community Credit Union DKmg SCSCTTTTTE BRITAIN (705786 3514 pe Sed os y SR 2, Lr J, ov CORR? » A 0 GICs interest reinvestment. Strips, unlike GICs, are available in maturities from 30 days to 30 years and trade in an active sec- 'ondary market. Because strip bonds trade in a large and active market they can be easily bought or sold, which means that, unlike guaranteed invest- mgt certificates, your in- vestment is not locked-in until maturity. The great- er choice of maturity dates allows you to match ma- turities with significant dates in the future, such as retirement. Strip bonds are ideal for Registered Retirement Savings Plans (RRSPs), Registered Retirement In- come Funds (RRIFs) and Registered Education Savings Plans (RESPs) be- cause they are extremely safe, can be purchased for a small initial amount and can compound tax-free un- til maturity. If, in the un- likely event that you need to collapse your plan, you can rest assured that you can sell your strip bonds at any time. Investors who are inter- ested in purchasing strip bonds should consult a fi- nancial advisor to discuss how strip bonds can com- prise a valuable compo- nent of their investment portfolio. Christopher J. Garland is a Financial Consultant and Retirement Specialist with Wood Gundy Private Client Investments in To- ronto. HOW & WHEN TO GET SMART Mariposa RRSPs CreditUnion | J