The Canadian Mutual Fund
Adviser newsletter suggests choos-
ing funds with relatively low volatil-
ity — that is, those with steady
growth rather than wild fluctuations.
If you put money regularly into a
fund and have a bad year near the
start of your investment program, it
has a minor impact, said the
newsletter, but “if the bad year
_ comes near the end of your pro-
gram, the impact can be devastat-

ing.

More and more people are
putting money into mutual funds.

Yet too few pay attention to their
investments. While fund managers
decide which ‘securities to buy and
sell, you must still choose the funds.
In his latest quarterly, Mutual
' Fund Advisory, long-time’ fund pro-
ponent Chris Tidd, of Odlum

~ Brown, lists the 20 best and worst
major funds in Canada.

. ~ Interestingly, you find companies .

-- with both some of the best perform-

‘ers — and also some of the worst.
So picking a company with winners
doesn’t guarantee all its funds will
do well. .

For example, Ti Tidd shows BPI
American Equity Growth as 4 win-
~ ner while BPI Canadian Equity and -
BPI Balanced are among the losers.

to: “. 20/20 American Tactical is a winner,
N ‘20/20 World and 20/20 income are’
among the worst performers, ;

‘Dynamic Income ranks at the top
"of the bond funds, Dynamic Europe
at the bottom of the international,

HEY ~ WHAT'S
WRONG ? IT'S
SMOOM SAILING...

THIS CRUISE 1S MY
REWARD FOR ewe

CAREFULLY:

and sense

¢ worrying than if your fund is falling of $100, and saved $40." he report
is one of the best, Greenline Blue while the group remains stable or ed,
Chip and Greenline Balanced rises.
Income are two of the worst. AGF . eae
Canadian Bond A scores high, AGF ~
Japan scores low. ,

You get the picture.

Make sure your funds remain in
the top 25% to 50% of their group.
If the whole group drops, that’s less

“THE MATH just doesn’t equities. Greenline Canadian Bond
seem fair. when you look at
investment gains and losses.

‘Tf your iivestment drops 50%,
_ you will then have to manage a
return of 100% just to break even.
~.. Example: Your $15,000 investment
loses 50%, leaving you $7,500. It.
must then gain 100% to bring you, ;
back to $15,000."
“Now let's say you choose anoth:
er investment which goes up 100%. :
‘Then, only a 50% drop will wipe: -
out your gain. Example: Your”
“$15,000 jumps 100% to $30,009.
“You then need to suffer a loss of,
“only 50% ‘and you are back, ye
$15,000. 08
So the first rule of i investing is is
Protect your capital. ~
: “The second rule i is to make i its

Mike Grenby is a North Shore-
based columnist and independent
financial adviser who works with
individuals; he will answer your
questions in this column as space
allows — write to him c/o 2444 *.
Haywood Avenue, West Vancouver,
BC.V7VIYI.

Reader and financial planner
Don Pooley points out increasing
your insurance deductible can maké
sense — and dollars: “I chose a ©

~ $200 deductible for my car instead

“computer for"
_ consignment =
-No appointment

2748 Wi. Gth Ave.

_-732- 7816

on. to Thurs 13 - 6; Fit. ta 9; Sit. 40 5:30

dollars off y your i mortgage

‘By Karen Cote

ein support of Hal Hay

If-you_ anc’ the average Canadien home-
owner with a mortgage of $100,000.00, you
could now save over $20,000.00 in interest.
“Two local financial planners, Javier Aragon
and Doug Canning have developed ‘a num-"

bes of financial strategies that can save you 3
fortune in interest, °

$100,000.00 mortgage at 10% :amortized
“over 25. years, you'll pay over $268,000;
* that’ 's over $168,000 in interes

people ‘don't consider anothe! tor, you "re

. paying with after-tax dollars. Hf you are inthe :

40% marginal tax bracket, which means you

~ earn more than $30,000.00 per year, you'll |
have to earn close to $450,000.00 over. 25°”

” years to beable to pay for your home.

“When you look at the total cost of your’ -

mortgage, it's pretty easy to save'a client

$20,000.00 in’ interest: and taxes." claims .
Doug Canning. “After being a financial plan-.

© ner for a number of years, Javier and { were
comparing nutes on cur clients, We noticed
“one of the most common goals of most of our
clients was to pay off their mortgages early
OF save interest. So we decided to work
«together (0 come up with some clever ways
far better than bi-weekly or occasional lump
. SUM payments to reduce the cost of a murt-
2 gage und add more money to tl
tom line. That was about_a year ago, and we
shaven't been stumped yet.” os
‘Javier and Doug are qui
ed about their new strategies and are only
mane about one things: they claim they

“Look | at. the figures." If. you have ‘a:

Ven Worse, .

lients” bot-":

modest when -

rl with a Financial planner, accountant, sbank |

manager or mortgage broker; no one else in

1 :
the Lower Mainland appears to ‘be. using
© these Strategies that save home owners thou-

si yids of dotlass.
After following ine

66 ... no one else in the
Lower Mainland appears to be
_using these strategies that: .
"save home owners thousands’
“of dollars...99

around for afew days, it ‘pecat
‘clear no two clients are the Same, so they
need to review the. client's circumstance,

“which can usually be done in about one hour.
Then they team up and review ‘the client’s
data, form a plan of attack & then go 10 work
on the computer. Currently, it's a fittle cum-
bersome for them to do. us they use parts of
five different computer software packages. ;
One day, they'd like to write & program and .

“sell it, The end result is every ‘client saves a
fortune in interest, income

| davier and Doug's strategi

“home owners with a mortgage or clear litle
anda combined family income of $50,000.00
or more per year. The more income you carn,
the higher the potential for savings in taxes oF

these interest and tax saving strategies, call ..
473-0369 - |, i :

abundantly | °

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