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Saving by borrowing CEOs Message Radical New Year


2 0 05

      Are you an RSP Radical?                                                              The ING DIRECT RSP GIC lets you get all the
      Take this quick quiz and find out.                                                    tax benefits of contributing to an RSP while
      1 I believe my RSPs should grow.                                                      you earn amongst the highest interest
      ❐ AGREE               ❐ DISAGREE                                                      rates in the marketplace.
      2 My RSP decisions shouldn’t be
      driven by the March 1st deadline.
      ❐ AGREE               ❐ DISAGREE                                               With an ING DIRECT Registered Investment
                                                                            Savings Account, you’re never locked in. You can
      3 I want an RSP without fees or
      service charges.                                                 contribute as much or as little as you want to your RSP,
      ❐AGREE               ❐ DISAGREE                                  whenever you want. That means, if and when you decide
                                                                       you’d like to move your contribution (say when the markets
      If you answered “Agree” to all of                                recover or at least stabilize), you can. Just like that. No fees or
      these questions, you’re an RSP
      Radical. That’s a good thing. Really,                                         penalties. And you’ll get all the tax benefits of contributing
      it’s something you already know                                                  to your RSP while still earning high interest.
      quite a bit about. After all, you’ve
      rejected fees and service charges
      and stood up for higher interest
      when you became an ING DIRECT                                                          When you choose RSP Mutual Funds (sold through our
      client. Now it’s much the same,
      instead this time you’re standing                                                      wholly owned subsidiary ING Direct Funds Limited),
      up for your RSP.                                                                      you’ll never pay sales commissions or account fees,
                                                                                          and you don’t need thousands to invest.

                                                                                              CEO’s Message:
                                                                                              Radical New Year.
  Saving by borrowing:                                                                        2004 was a big year for savings. That is to say, a big year
                                                                                              for you, our clients.
  Why an RSP Loan makes sense.                                                                Remember when you were tired of paying service charges,
                                                                                              fed up with earning little or no interest on your savings and
  You know that the more you contribute to your RSP, the less income tax you’ll pay.          did something about it? You weren’t alone. Over one million
  But what if you don’t have enough money right now to maximize your RSP                      Canadians decided to open an Investment Savings Account.
  contribution? Take out an RSP Loan.                                                         Because of these decisions, we’ve reached and surpassed
  At first, borrowing money to save money sounds strange. But after you break                 a savings milestone.
  down the numbers you’ll see how it can work out in your favour.                             Our interest clock keeps track of how much interest Canadians
  Here’s how saving by borrowing works. Assume you have contribution room of                  have earned from ING DIRECT. On July 21st, the clock hit the
  $5,000, and borrowed the entire amount from an ING DIRECT RSP Loan at 4.25%                 $1 Billion mark. We consider it an accomplishment to have helped
  (our current rate) repayable in 12 monthly installments. At the end of the year,            Canadians earn over $1 Billion in interest while the amount of
  you would have repaid $5,115.85.                                                            service charges they have paid to ING DIRECT remains at $0.00.
  Your cost of borrowing is $115.85.                                                          And now we’re looking forward to 2005.
  With the loan, if you purchased a five-year ING DIRECT RSP GIC, at our current              This year we want to help Canadians by offering them an RSP
  rate of 4.00%, you will earn $200.00 in interest by the end of the first year.              solution that actually grows. Yes. An RSP that grows. Now that’s a
  So now you are already ahead by $84.15.                                                     radical thought.
  Let’s not forget your income tax refund. If you are at a marginal tax rate of 35%,          Happy New Year from all of us at ING DIRECT.
  you could be eligible to receive a tax refund of $1,750.                                    Save your money.
  So, when it is all said and done, you have just paid yourself $1,834.15 in one year’s                                                 Johanne Brossard
  time. That savings you can put towards your RSP for next year or other investments.                                                   President & CEO
  Rates current as of December 9, 2004 and are for example use only.                                                                    ING DIRECT

When will I receive my tax receipts?
T5                                           Statement of investment income                                                 March 1, 2005
RL3                                          Statement of income for Quebec residents                                       February 28, 2005
2004 RSP Balance of Year                     Statement of contributions from March 2nd to December 31st, 2004               March 1, 2005
RL2                                          Statement of RSP Account income for Quebec residents                           February 28, 2005
T4RSP                                        Income from RSP Account including HBP and LLP                                  March 1, 2005
NR4s                                         Statement of amounts paid or credited to non residents                         March 31, 2005
Receipts for RSP contributions made in the first 60 days of 2005 will be mailed bi-weekly starting March 1, 2005.
                                                                                                                                               LET’S GO DUTCH
    Tax Receipts: FAQ                                                                                                                                Facts and trivia from the Netherlands.

                                                                                                                                                           Every January the Dutch look forward to
    Some frequently asked Tax receipt related questions.                                                                                                   the possibility of an Elfstedentocht
                                                                                                                                                          (Eleven Cities Race). This grueling speed
    1. I earned less than $50 dollars in interest last year. Will I receive a T5?                                                                   skating marathon can only be held when ice
    No. That’s because the Canada Revenue Agency (CRA) does not require that financial institutions                                           freezes over a 200 km stretch of lakes and canals
    issue a T5 for account registrations where the total amount of interest reported for the year was less                                    that make up the track. The Elfstedentocht is such
    than $50. To find out how much interest you earned last year visit Login using your Client                                  a rare occurrence (the last one was in 1997) that its
    Number and PIN, and click on the "Go" button next to your account. You will see the interest earned                                       declaration creates excitement all over the country.
    in the previous year listed under your account number.                                                                                    It’s kind of like the excitement generated when a
                                                                                                                                              different kind of bank declares it has permanently
    2. If I have a joint account, who will receive the T5, and how will it appear?
                                                                                                                                              frozen fees and service charges at zero.
    The name of the individual who receives the account statements, or primary account holder, will
    receive the T5. The names of both the primary and secondary account holders will appear on the
    receipt. However only the SIN of the primary account holder will be shown on the T5.
    3. I have a Business Savings Account (BISA). Will I receive a T5?                                                                         Here’s another
    No. T5s are not required for business accounts. Please consult your accountant for tax
    planning advice.                                                                                                                          radical thought:
    4. I made a withdrawal from my ING DIRECT RSP under the Home Buyers’ Plan or                                                              RSPs are not just
    Lifelong Learning Plan. Will I receive a T4RSP receipt?
    You will be issued a T4RSP receipt for any type of withdrawal from an RSP plan, including a
                                                                                                                                              for retirement.
    withdrawal using the Home Buyers’ Plan (HBP) or Lifelong Learning Plan (LLP). Boxes 25 and                                                Most people put away their RSPs for the
    27 of the T4RSP will indicate which of these plans was used.                                                                              time they’re going to retire. Here are two
                                                                                                                                              other ways that your RSP can help you:
    5. Who receives the receipt for contributions to Spousal RSPs?                                                                            Planning on buying your first home? The
    The receipt will be issued in the name of the contributor. The annuitant (owner) of the Spousal                                           Home Buyers’ Plan (HBP) allows you to
    RSP will not receive an RSP receipt.                                                                                                      withdraw from your RSP tax-free to put
                                                                                                                                              towards the purchase or building of a home.
                                                                                                                                              You’ll have up to 15 years to repay your RSP.
                                                                                                                                              Going back to school? The Lifelong Learning
                                                                                                                                              Plan (LLP) allows you to withdraw from your
    Pa$&w3rDz (A quick word about                                                                                                                             RSP for full-time education
                                                                                                                                                              or training programs. The
    keeping passwords safe and secure.)                                                                                                                       Lifelong Learning Plan has
                                                                                                                                                               a 10-year repayment period.
   From voicemail to email, you’ll find          • Do not simply use a word that is                                                                    For more information about the
   passwords everywhere. This quarter we’d         followed or preceded by a number.                                                                 HBP and LLP visit
   like to share a few general tips to help keep • Change your password regularly
   the passwords you use safe and secure.          (i.e. every 6 months) and try not to
   • Do not use passwords that are easily          use the same password again.
      guessed such as date of birth, names
      of people or places, etc.
                                                 • Do not write your password down.                                                          Not sure how much
                                                 And while we’re on the topic of passwords
   • A secure password should consist of                            and safety, never respond to any email
                                                                                                                                             you can contribute?
     at least 6 characters and it should be                         message requesting your user name,                                       If you’re not sure how much you can
                                                                                                                                             contribute to your RSP, you can check your

     a combination of upper and lower case                          password, credit card number, or any
     letters, numbers and special symbols.                          other personal information. These are                                    2003 Notice of Assessment to confirm your
     Do not use spaces.                                                                                                                      available individual contribution limit. You can
                                                                    referred to as "phishing" scams.
                                                                                                                                             also get this from Canada Revenue Agency’s
   • Try to use a combination that you                              ING DIRECT may email you from time
                                                                                                                                             web site (
     can remember, but that is not                                  to time, but we will never require you to                                /tax/individuals/myaccount/menu-e.html).
     easily guessed.                                                reveal your personal information or enter
                                                                                                                                             Remember that you don’t have to wait until
                                                                    your client number or PIN after clicking
   • You can create a strong password by                                                                                                     the last minute to make your RSP contribution.
                                                                    on a link contained in an email.
     using the first letter of each word in a                                                                                                When you make an early contribution before
     phrase or sentence you can remember.                           If you ever receive questionable messages,                               the rush you’ll earn high interest from
                                                                    or find anything suspicious with your                                    ING DIRECT RSP ISAs or GICs.
   • If you use a common phrase, make sure
                                                                    transaction please call ING DIRECT
     to insert at least one number and/or
                                                                    immediately at 1-888-464-3232.
     symbol into the password.
                                                                                                                                                       Keep in touch.
                                                                                                                                                          If you have any comments


                                                                                                                                                        or suggestions, contact us by:
                                                                                     ING Direct Funds Limited                                    web site:
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*ON, BC, SK, NB, PI, NL and AB residents only.
Mutual funds are offered by ING Direct Funds Limited, a wholly-owned subsidiary of ING Bank of Canada. Commissions, trailing commissions, management fees and expenses
all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual fund securities are not covered by Canada Deposit Insurance Corporation or by any other
government deposit insurer, and are not guaranteed by ING Bank of Canada or any other Canadian financial institution. There can be no assurances that any mutual fund, including money market fund,
offered will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in the fund will be returned to you. Past performance may not be repeated.
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                                                                                                                              Total interest paid to ING DIRECT
                                                                                                                              customers as of December 3, 2004.

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