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

p22 weekender february 121994 answers anna anana nnnna nnnn snaa annan aanaa nana aanna arana naaan ran nranna nnnan ana k i ini a s t r choir r e t 0 0 gal htma l i t r 0 s b a l c 0 v e fiddlers a e d e s looking ahead for the good life upon retirement years surely ifs that the federal require as much for clothing your money ana aaaaa aaann aan anna nnnra nnnnn brian costello authorized dealer consumi1scas almer ros heating and air condltiomifls 6 specializing in the installation and servicing of furnaces centralair conditioning boilers gas fireplaces duct designcleaning have you ever given any thought to how much money you will need to give you the good life when you retire most of us give it lip service we figure well be okay when it finally happens the company pension plan canada pension old age security benefits our rrsps and of course the fami ly house well i dont think its going to be that easy if theres one thing weve learned in the last few years surely ifs that the federal and provincial governments dont have the money anymore we just cannot count on auto matically receiving the benefits our friends and relatives took for granted why even the rrsp is threat ened if you believe the rumors out of ottawa it would pay to take a few minutes to rationally calculate what you might need come retirement time most financial planners sug gest you think along the lines of providing about 70percent of your salary for your retirement i have a problem with that their rationale is that you wont pay as much tax but anybody who is retiring today is in a far higher tax bracket now another thought is you dont keeprite quality you can count on serving markham surrounding areas low monthly payments available on your gas bill 4707563 7594537 e3 metro uc hi 251 something new for your valentine computerized bring some photos and we ll transform your sweetheart into unbelievable portraits wear em or hang em classmates international 1 14 main street north at robinson te 4728684 mm unionvtlle high school presents a chorus line at the markham theatre thursday feb 17 friday feb 18 saturday feb 19 800 rm saturday 830 jp j 5 uu plus service charge for tickets information please call 4 ls require as much for clothing transportation out of house meals etc when you are retired as you are home more if i were retired id like to think i could now spend a lot more time travelling and enjoy ing my hobbies but a substantial percentage of retirees have mortgages or cannot afford a house and wouldnt it be nice to help out the grandkids the trick is to look ahead you cant use todays income as a guage if you are going to retire some years down the road inflation will demand you earn more each year as a result ifs 70 per cent or what ever per cent you are prepared to accept of the income you will be earning when you retire how much will that be lets say you are 40 years of age and earning 50000 a year decide what level of inflation we will average between now and the time you want to retire the average over the last gener ation is six per cent however rates are lower today lets say they average four per cent you will need to double your salary every 18 years just to maintain your pre sent standard of living at age 58 you will need to earn 100000 a year just to keep up at retirement time it will be closer to 150000 if you want to retire on 70 per cent of that you will need more than 100000 a year the problem is you cant quit there thats what hurts so many retirees they set a fixed amount in their minds but they forget they still have to double that amount every once in a while during retirement this example is dangerous as it uses numbers above 53000 where old age security is clawed back however even if you set 30000 as your desired rate you would need 60000 in 18 years so dont count on old age security then we have our pensions fewer than half the country has a pension and the recession toll eliminated so many jobs that fewer will enjoy pension benefits the trick is to decide how much income you want when you retire ask your financial planner to calculate how much your pen sion will provide at that time is it indexed so it will rise in value offsetting the impact of infla tion subtract the monthly pen sion from the amount you need now you can see the shortfall you can also subtract your expected canada pension plan payments from the shortfall decide the rate of return you think you will be able to earn on your investments it would be nice to think dou ble digits however if you prefer interest bearing investments you should use todays lower rates if interest rates rise you will find things easier if they dont you wont feel a shortfall ifs a matter of being realistic the younger you are the more time is on your side the older you are the faster you have to react