CURRENT RATES SUBJECT TO CHANGE. 10.75 10.75% FOR BEST AVAILABLE RATES CALL — 383-1494 enous NESBITT THOMSON - SKILLAN’ S TOURS & SAFARIS & | SIDNEY TRAVEL SERVICE ; ~ “At the Emerald Isle” “Across from Safeway Tf it’s Sports | ‘Call the Review. 656-1151 You might arguc whether the chicken or the cgg came first. But when it comes to your own nest egg, there is no- argument: you must lay it before it can hatch. So get cracking, Five Years Before I scramble things any further, I’ll switch over to the approach taken by Doug Mac- donald, past chairman of the Canadian Association of Finan- cial Planners, in the first annual . planning School, a weekend retirement planning seminar put on by the CAFP Pacific chapter for its members. “When you think about build- ing up.a nest egg, you are planning for financial independ- ence — a time when you have enough moncy to do what you want even if you don’t work,” said Macdonald. “You might plan to reach that objective at any point, not only at the normal retirement age.” You must figure out how much money you will need to live on, once you-stop work. Subtract the pensions you expect to receive. |. That leaves you with the income your investments must produce for the rest of your life. Then add up your total invest- ‘ment assets now. Macdonald sug- ‘gests ignoring. the value of your Fisheries and Occans Minister Tom Siddon has announced. that an agreement has been reached . among.Canada, the. United States “and Japan on an obseryer program: . jin the 1989 Japanese ‘squid driftnet . ‘fishery i in the North Pacific Occan. « oo “T’am’ extremely. concerned: “about the use of driftncts by fore- © -Pacific,” said Siddon. if | “T believe the driftnets result in. _ the interception of large quantitics: of Canadian-origin salmon and-. destroy: vast numbers: of marine ** “mammals and other marine life.” ‘This unprecedented observer 8. program will quantify the problem ‘| and give dircction on solutions. . . . After an April 28. to May 2™ “meeting of the three countrics in Tokyo, Japan agreed to place observers on 32 Japanese. squid -drifinet fishing. vessels for the. 1989 fishing. scason. Fourteen of these vessels will also carry North - > American.:observers, including . five: Canadians, “Tn addition to the observer . \ unique line af nthe equity in you beens uh first fon an E sutly Actes 4 Morne. Only al rch Coast Savings. Available on one year term Pquily: Aver ty Tries t yay: only d -Pacitic Coast Savings SJ Credit Union . principal residence “because you ign fishing: fleets. in. the. North: ‘ : Pemberton Securities and Royal Bank Dominian Securities have merged to form the largest investment Dealer in Canada. Serving the Peninsula from Sidney. FULL TIME/FULL SERVICE — | 2475A BEACON AVE. will have to live somewhere.” Also exclude the value of per- sonal possessions. Using present and future value tables (or a calculator or com- puter) you can then find out how -much you must invest cach year to build your nest cgg. Added investment analyst Bill Wheeler: “If your original plan won’t work, you can always save more, lower your income demands or work longer.” Macdonald suggested some key factors to consider when you plan towards financial independ- ence. “‘In our calculations, we usually assume you are not plan- ning to leave an estate — although you can certainly add that option,” he said. -Inflation. Unless you want to base the calculations on another figure, Macdonald uses five per cent. -Rate of return. Macdonald is presently using a conservative eight per cent. “The inflation program, T have: instructed my - department to continue its rescarch work in the northeastern boundary of the Japanese squid driftnet fish- ery for the 1989 fishing season,” , said Siddon. ‘“‘Canada is also plac- . ‘ing a Canadian scientific/observer -on board a Japanese research ves~ _ Sel in-the same area: “International co- operation, na 2 “such ‘as: the agreement ‘onthe - observer. program, is an: important step in Canada’s concerted effort: ‘to control the use. of -high: seas. driftnets. Furthermore; we: are 2 looking forward to. co- operating - with the B.C: government in rais- ing. the awareness of the: impact which high scas driftnets have on : Pacific salmon, | ‘Canada has followed a syaieni: atic plan to raise the profile of high ' seas driftnet fishing and has been supported in its efforts by the Canadian fishing industry,” Sid- don continued. “There must be a political will - on the part of Pacific Rim nations. . to place a damper on the scape of the high seas driftnct fishery. This “agreement on the observer pro- gram signals a positive step in that direction, “When we decided to sell our home. rate and rate of return are less important than the gap between them,” he said. “The current spread of about six per cent (inflation is five per cent and you can casily get a guarantced return of 11 per cent) is high. The average spread is around three per cent; if you are conservative, use two per cent.” -Longevity. Use a life expec- tancy table and to be on the safe side, add five years. “If you are now 52 and want to retire at 60, usc 60 to estimate your longevity (another 18 years for a man, 23 years for a woman — plus five years). “That’s how long you will need your income. If you die ‘before age 60, then it won’t matter.” Saving capacity. This could be what you spend (or ‘used to spend) on mortgage and other debt repayment, Canada Savings Bond. payroll deduction, RRSP. _ contributions, child support and _ Canada opposes unconire 655-1303 possible additional regular savings. -Time frames. You must look at the periods between now and financial independence, and between financial independence and death. _--Income needed. This is based on what you spend now, minus employment expenses (clothing, lunches, possibly a second car) and regular savings (you won’t have to keep saving once you have retired) plus additional Ici- sure. costs. ‘‘While your expenses. will probably decline, err on the con- servative side and expect them to stay level,” said Macdonald. “And if cither one of a couple dies, most fixed costs won’t change.” -Kinds of dollars. It’s easier to work out how much you will need in terms of today’s dollars when you retire, The income needed to cover your expenses will be in after-tax dollars, so you must then calculate the before- tax figure to be produced by your pensions and investments. “These calculations. simply show you the situation at one point in time, ” Macdonald said. ‘‘Conditions change — your needs and wants, objectives and goals, relationships; tax: rules; investment outlook — so it’s important to aii your plan.” led driftnets - The Canadian. government has: implemented. regulations prohibit- ’ ing the importation of salmon ’ taken.from. the INPFC Convention . mon: form Taiwanese vessels iy the processing industries: of those countries,” continued Siddon: ‘Meanwhile, Canada is seeking ~ area ‘by fishing vessels other than “purchase of illegally caught sal- _to-have Japan, Taiwan: and ‘Korea. - /-put more. ‘Stringent squid. fleet” regulations i in place; Canada itself, after. a. pier experimental: driftnet fishery. for™ “squid: in: 1986 and/1987;. banned. © the ‘practice in Canadian’ wale: ..... “Finally, Canada is looking. into “Representations have also beer the legal options that are. available . ‘made in Singapore and Thailand to _ to'it.in order to place more control _faise Canadian concerns about the’. on. the high seas. squid. driftnet : een from Canada, the U.S.'and Japan: - Furthermore, Canada and. the ‘US. have negotiated an agreement —with Japan in-the INPFC to phase: -out.the Japanese ‘driftnet salmon ’ fishery i in the ‘Bering Sea by 1994, aoa we wanted results” : T hit’ ‘ why our Fealtor used the Multiple isting ‘Servic Wt. oe . 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