42 - Wednesday, October 18, 1989 - North Shore News BUSINESS CSBs a good way to save, not invest From page 40 As the annual CSB season reaches its peak, review the follow- ing guidelines to help you decide whether to buy or keep these tradi- tional savings instruments. CSBs will give you: © Safety. What timing! On Fri- day Oct. 13, Ottawa announced the new CSB issue and all out- standing issucs would pay a mini- mum return of 10.5 per cent guaranteed for a year — which certainly louked good as the stock markets plunged. e Flexibility. You can get your money at any time and will carn interest to the end of the previous month (so always cash CSBs on the first of the month). With the new issue, however, you musi wait until Feb. 1, 1990, to get any in- terest. *Forced saving. The CSB payrol) savings plan offered by many employers is one of the best ways to make yourself put aside some monev painlessly. Some 40 per cent of the 3.7 million individ- uals who bought CSBs last year did so through payroll savings. {And you may deduct the interest you pay on this plan.) But CSBs will not always give Earn money with home computer From page 41 ACCORDING TO Statistics Canada figures, on average, 54 workers out of every 1,000 are in- jured each year. Men are more than three times as likely as women to be injured on the job (77 males per 1,000 workers against 23 fe- males per 1,000). The highest rates of serious work injuries occurred in the for- estry, construction and manufac- turing industries. Forestry and logging caused the most injuries for male workers; machining and processing operations caused the most injuries for females. waeanne NORTH SHORE Continuing Buy a Jenn-Air Grill-Range OR Education has prepared a six-hour evening course on How To Earn Money With Your Home Com- puter. The instructor for the course, Buzz Bezanson, is a home-based computer entrepreneur, businessman, instructor and author of three books designed to assist home-based business en- trepreneurs. Four of the key topics to be covered include Getting Ready, The Top 10 Home-based Computer Businesses, Proven Way To Financial Freedom, and How To Save On Taxes. All participants receive a copy of a book written by Bezanson. The course will be held in two sessions at Sutherland Secondary, 1860 Sutherland in North Vancouver, 7 p.m. to 10 p.m., Nov. 16 and 23. For more information or to pre- register call 986-8888. ese eee SUN LIFE Assurance Company of Canada acquired ownership of Coronet Trust Company earlier this year. Coronet Trust assets are currently in excess of $625 million. Through seven branch offices and close to 800 agent representatives across the country, Coronet Trust offers GICs, RRSPs, RRIFs, commercial and residential mor- tgage lending. The B.C. branch is located in West Vancouver at 1735 Marine Grive. For more informa- tion call 925-3112, $200 REBATE Buy a Jenn-Air Grill-Range or Cooktop and Wall Oven Plus a Jenn-Air Refrigerator Cooktop and Wall Oven $300 REBATE Buy a Jenn-Air Grill-Ranye or Cooktop and Wall Oven PLus a Jenn-Air Refrigerator and a Jenn-Air Dishwasher AMPLE FREE PARKING OR a Jenn-Air Dishwasher $400 REBATE* Buy a Jenn-Air Grill-Range or Cooktop and Wall Oven PLus a Jenn-Air Refrigerator, a Jenn-Air Dishwasher and a Jenn-Air Compactor *Avulable on special models only. Available at this participating dealer: OPEN EVERYDAY FRI 9-9. SUN 12-4 COLONY HOME FURNISHINGS 1075 ROOSEVELT CRES.. (2 btks behind the Avajon Hotes 985-8738 you the best return for your money. As the name says, they are a ‘“‘savings”’ instrument, not an in- vestment. If you have taxable income of more than $28,000, you will earn only about six per cent after tax on the money you put into CSBs. With inflation about five per cent, CSBs are no short cut to wealth. You can get equal safety al- though not quite as much flexibili- ty if you buy Treasury bills, which — unless the stock markets con- tinue to fall and interest rates go (and stay) down — usually pay at least one per cent more than CSBs. Term deposits with staggering maturity dates could also yield a higher return. Another safe, simple and far more profitable ‘‘investment’”’ is debt reduction. Pay off an out- standing credit card balance, for example, and earn up to 32.9 per cent — after tax. Contribute to an RRSP and you earn an immediate return of be- tween about 26 and 46 per cent — which represents the tax you save. You will probably pay back some tax when you withdraw the money again. But in the meantime, your funds grow tax-free. (Of course, you might buy CSBs and then put them into RRSP as your con- tributuion). A careful strategy for putting money into the stock market, rev- enue property, a business or other investment could also be more profitable in the long term — and, if your timing is right, even the short term — than choosing CSBs. Naturally, you take more risk. Remember, if you buy com- pound CSBs (the interest is added to the principal each year instead of being paid out), you may choose to declare the accumulated interest every third year — a good approach if you will be in a lower tax brackets in the future. Also, make sure you redeem the 1982 Series 37 CSBs, which mature Nov. 1 this year, and, like all other matured bonds, earn no more in- terest after the maturity date. aa Based locally, Mike Grenby writes a money column which ap- pears in newspapers across Canada, Although he also works as an independent financial ad- viser, Mike will respond to readers’ questions and story ideas through the paper. Write to Mike Grenby, Money Columnist, North Shore News, 1139 Lonsdale, North Vancouver V7M 2H4. Mike cannot reply in- dividually but will answer as many of your letters as possible in his column. e hanie C3 Der Fashion ues) Park Royal South 926-5616