PENNY MAGEE, peneral manager of the Ginger Jar,
relaxes on a piece of furniture for sale in the North Van-
couver store during its opening held Saturday. The Ginger
Jar used to operate three different retail outlets on the North
Shore but has now moved into one location at the corner of
Marine Drive and Fell Avenue. The store will hold its grand
opening in May.

TREASURY
BILLS

420%

PHONE:

ANDREW EISENBOCK
CHRISTOPHER C.R. TIDD

683-9388

*180 Day Rate
Rare as of April [7th, 1990

43 - Wednesday, April 18, 1990 - North Shore News

Free analysis
can heip with
money matters

SHOULD YOU pay up your
RRSP or pay down your
mortgage?

“My wife and I are thinking
about taking out a mortgage to
buy a home,”’ writes S.K. ‘‘Should
we then pay off the mortgage year
by year and contribute to RRSPs,
or forget the RRSPs and pay off
the mortgage faster?”’

That is one of the most fre-
quently asked questions these days.
The answer can vary and depends
on both your present situation and
your plans for the future.

Several computer programs have
been developed to show which
choice makes more sense finan-
cially. But you can get a
reasonably good indication in a
less structured way.

DirecTrust, a division of
Counsel Trust, has prepared a
one-page analysis which deals with
this question. It provides four
simple guidelines plus two detailed
examples with calculations that il-
fustrate what happens when one
follows the mortgage paydown or
the RRSP route.

DirecTrust is offering readers of
this column a free copy of this
analysis. Phone toll-free 24 hours a
day, 1-800-668-7283.

Up to 15 people are available to
answer the phones (DirecTrust
calls itself ‘‘Canada’s telephone
trust service’), but if you have any
trouble getting through, write to
Kathleen Richardson, Marketing
Manager, DirecTrust, 36 Toronto
St., Suite 300, Toronto, Ontario
MSC 2C5.

You can also answer the follow-
ing questions to help you choose

VanCity offers the advantage of on-site mortgage
arrangements and approvals. Our mobile Mortgage
Development Managers are as close as a phone call.
Point is, buying a home these days means
looking for every advantage you can find.

And VanCity offers a lot of them:

Bi-weekly Mortgage
Same Day Approval

¢ 80% Conventional Mortgages - No Fees

* Pre-Approved Mortgages
© Open and Fixed Term
20/20 Payment Option

whether the mortgage paydown or
the RRSP approach would be bet-
ter for you,

(1) Are you (and your partner)
in one of the two higher tax
brackets now?

dollars
and sense

Michael Grenby

(2) Can you earn a decent rate
of return on your RRSP — close
to or perhaps even more than the
mortgage interest rate?

(3) Will you leave your money in
the RRSP for a long time?

(4) Might you be in a lower (or
the same) tax bracket when you
take out your RRSP funds?

(5) Are you more likely to make
regular RRSP contributions than
to have the discipline to keep aside

See Make
Page 44

Payments

(subject to chanue)
$10,000 Minimum

®
Contact. Astley Morgan VanCr
Morteage Development Manaer

tin

290-12-43 Jou belong seth