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pT "Scugog's Community Newspaper of Choice" Don't count on government in old age Do Canadians put their sav- ings into RRSPs for the immedi- ate tax benefit or for the pur- pose: of building up a tax deferred nest egg for their re- tirement? Regardless of the rea- son, the number contributing is worrisome. Approximately 30 per cent of Canadians in the workplace have RRSPs, and, of the critical age group from 50 to 59,just 45 per cent contribute.to RRSPs. The concern centres around the 70 per cent of working Cana- dians who have never contribut- ed to an RRSP. Are we to as- sume that the government will care for them in their old age? This simply cannot happen. * Financial Planning * RRSP Advice o Tax Preparation e GST DUNWOODY WARD MALLETTE Chartered Accountants e Payroll services including T4's, T5's, WCB, EHT e Accounting for small businesses * New business planning & start up If we can be of assistance please drop by our office or give us a call. 38 Toronto St. N. Uxbridge 852-9714 4 PLAN REGISTERED RETIREMENT SAVINGS BEST RATE available. During the past year, interest rates and the inflation rate have declined. Today, interest rates are still proportionate to the inflation rate. Take advantage of increased deductibility limits. Invest today in GIC/RRSP for your tomorrow. 8% Information on RRIF's and other investments SCUGOG FINANCIAL SERVICES 250 QUEEN STREET PORT PERRY, ONTARIO LIL 1M8 (416) 985-3832 Fax: (416) 985-4103 Consider that one third of our population are "Baby Boomers" and this group of Canadians will start reaching retirement age in approximately 20 years. As this country is financially strained to meet the demands of todays social programs, it is ap- parent that universality as we have come to expect will not be possible in the year 2010. In order to reduce Canadian's dependency on "hand-outs," the government in 1989 instituted a claw-back of Old Age Pension payments to those with incomes in excess of $50,000.00. No doubt as a result of our rapidly aging population, our govern- ment, regardless of its ideologi- cal stripes, will have no choice but to continue to reduce per capita spending on social pro- grams. Seniors, who have not planned for retirement, will be hit very hard. In future years, rather than government pensions, the pri- mary source of income for retir- ees will be private pension plans and funds provided by ac- cumulated RRSP investments. We will become a country of two classes of seniors; those who have utilized RRSPs to provide for the "good life," upon retiring, and those who have not used RRSPs and struggle to meet day to day living needs. Which will you be? Many people are of the im- pression that RRSPs are com- plicated and only for the sophis- ticated investor. In fact, starting an RRSP is probably one of the simplest investments available, no more difficult than opening a Savings Account at your local bank. Furthermore, every bank can get you started on your RRSP. After only a few years of RRSP investing, you will be sur- prised at how fast your savings grow as a result of interest com- pounding tax free. As an exam- ple, at 10 per cent, an RRSP doubles approximately every 'seven years. This means that 2,000.00 will. grow to 4,000.00 in seven ' years, $8,000.00 'in 14 years, $16,000.00 in 21 years, etc. Just think how much would be accu- mulated if you put $2,000.00 annually into an RRSP averag- ing 10 per cent from age 19 to age 65-$1,918,345.00. Don't be misled by politicians talking about all Canadians be- ing entitled to a decent stan- dard of living and instituting a Social Charter within our Con- stitution. Everyone of them who has taken the time to consider the demographics of this great country knows that govern- ment cannot provide for our fu- ture needs. We must do it our- selves by starting an RRSP now. article courtesy of Laurentian Bank of Canada 0 more on RRSPs at Laurentian Bank In the race for the best rates, Laurentian Bank once again wins hands down. And we guarantee it! We'll better the best posted rates of the five major banks* by 1/2% on 1 year and 18 month term GIC RRSPs. We'll also top .them by 1/4% on terms of 2 to 5 years. What's more, for transfers from other financial institutions, we'll guarantee this rate for up to 60 days and we'll also pay up to $50 of the transfer fees. So drop by today and let our RRSP experts help plan your retirement... and beat the rate race! This bonus offer applies to direct business only for new contributions or transfers from other institutions, cannot be combined with any other offer, and is subject to certain other terms and conditions. Offer expires February 29th, 1992. *Royal Bank, CIBC, Bank of Montreal, Scotiabank and Toronto Dominion Bank. For more information, contact Laurentian Bank of Canada, 165 Queen Street, Port Perry, 985-8435 LAURENTIAN BANK OF CANADA SINCE 1846