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© _ MARK PRICE 842â€"7000 _ @ o o o o o o 0 o o 0o 0 o o o o P J Power of Sale â€" $159,200. NO CONDO FEES, large living â€" sep. dining, family @ _ size kitchen, 3 BR‘s, 2 baths, main floor _ A EL. t re re L /N ICFE Historically, many would put a little extra money aside to prepare for interest rates. Time to reâ€"think retirement planning OI;lEJN HOUSE aa6h Wentire Drive "PICTURE PERFECT" $199,9200 3+1 bdrm., new kit., fin. bsmnt., lovely decor. GAIL MOREAU Sales Rep. 338â€"6550 Countrywide Town Centre Realty Inc. fere has to be a major shift in the way you think about retirement planning. And the reason for this is the falling retirement. Then during retirement, that money would be invested, and you would live off the interest. Now your new challenge is to manage your portfolio for long term growth and to live off the capital. The obvious question that arises is that if you spend your capital, you will deplete your resources and then have nothing. In fact, it is as different as night and day. And until you completely adjust to The key word here is interest. And the key problem today is that the level of interest rates are so low that you cannot make ends meet. It is this reality that is forcing you to change your thinking. The answer is to grow your assets so you can continue to spend throughout your retirement years. And though this might seem logical, it is a completely different way of thinking. FRIDAY, FEBRUARY 4, 1994 Page 24 Real Estate News Gets esults! Beaver Every Wednesday The contrasts of interest versus growth investing are significant. Interest income provides a predictable and steady flow of cash, but it does not give you the opportunity for longer term growth. Investing in equities can provide the long term growth, but in the short term, the unpredictable normal market volatility can scare the typical investor. It comes down to a compromise of your short term comfort level and your long term needs. Retirement planning is generally done assuming that you live until age 90. What that means is that you have to take a long term approach. A long term approach would favor including some growth investments. But investing for growth means you will be subject to normal market volatility and your retirement is not the time that you would welcome too much volatility. There are some things that you can do to prepare yourself for growth investments. Being mentally prepared is a good start. Anticipating the inevitable market swings helps put them in a more appropriate longer term context. Many investors have turned to the trained expertise of professional managers that are available with mutual funds. Using an experienced mutual fund manager is more conservative than attempting to pick your own stocks. Regardless of how well you are in preparing for growth investments, they are completely different from interest income investments. Diversification is critical. This tends to balance the market ups and downs by having several different investments. Foreign investing can help by spreading your investments throughout various parts of the world. the differences of investing for interest income versus long term growth, it will be hard to change your ways. Peter Watson, MBA, CFP, RFP is the president of Peter Watson Investments Limited â€" and Oakville tirm specializing in retirement planning, RRSPs, and investment planning. He can be reached at 842â€" 7602. Looking for