18 —- North Shore Mews ~ Sunday, July 23, 2000 YOU get what vou pay for. Or do you? “Tam a fairly new investor with a financial! planner,” writes M.V. “I have a diversified portfolio but don’t seem to be mov- ing ahead. I think all my gains are caten up in fund management fees.” Last month, the Canadian Mutual Fund Adviser and the Money Reporter newsletters both commented on fees. “If you invest $1,000 at 10% compounded annually for 20 years, you will end up money matters with $6,727,” said the Mutual Fund Adviser. But if you pay an annual 2% in fees on that invest- ment, you will end up with $4,661. “Ignoring income taxes, you get $3,661) for putting BUSINESS : : Be wary of management fees when investing your money on the Hine. And the helpers who charge that two-per-cent fee get $2,066.” The Investment Reporter published a table to illus- trate “what a huge differ- ence a half or a full percent- age point can make” — and referred readers to The Mutual Fund Cost Calculator (www.sec.gov). Let’s say you invest $50,000 for 10 vears com- pounding annually at 8%. An annual MER (man- agement expense ratio) of 1% costs you $7,433 in fees plus the $2,889 you could have earned on that money. © The Road Ahead THIS SPRING AND SUMMER, the City of Vancouver is working en a series of construction projects that will affect residents and commuters. City crews wiil be busy keeping our infrastructure in good shape and making safety improvements to tho streets. We'll bo replacing old sewer and water mains, and re-paving. We're looking shead, trying to make sure the world’s most livable city stays that way. a | Summer is the best time to do this type of work ~ traffic volumes are - lowor, and drier weather makes construction work cheaper and faster. To avoid dolays during this construction season, look for the roadwork symbol above. Our construction projects will have signage with this symbol. To avoid delays in these arenas, we encourage residents and commuters to ure transit where : possible, travel in off-peak hours, or consider alternate routes. - ie Hera Is a list of major projects (ses the corresponding map): ~ Major Construction Projects: §f @ First Avenue and Clark Drive * Already underway. New retaining walls are being built to allow widening of First » Avenue and Clark Drive intersection. Construction will then begin on left-turn bays from north- and south-bound Clark Drive onto First Avenue. Left-turn bays will be ao i oe completed by the beginning of September. “ (2) Marine Drive | of, Already underway, Street paving “will follow sewer construction “at South East Marine Drive | “. and Fraser Street on South West ’. Marine Drive from Oak to Knight ne Street: July and August. _s Provincial project ae to renabilitate the Lions *“* Gate Bridge. Periodic complete ‘closures of the bridge weekends “and weeknights. Tune your radio te . FM 94.5 for updates or call 473-1500, } Nanaimo and Lakewood Bridges: ‘Both bridges will be removed and rebuilt to accommodate SkyTrain construction. : i. August toFebruary, o. Tenth Avenue, Alma to Blanca Streets a Already underway. Water main construction on the south side of 10th Avenue from ; “Alma to Highbury Streets and intersection construction at Blanca Street. Tenth we | “co's dweanue will then be paved from Alma to Blanca. Mid-May to mid-August. OF Poweail Street and Victoria Drive | Seger Widening of Powell Street for a left-turn bay to the Port of Vancouver. July to “1. September. LE @ Georgia Street : Upon completion of curb work from Granville to Hornby, Georgia Street will be ° repaved from Nicola to Granvitle. June to August. “2nd Avenue, Yukon to Main Streets ca 2nd Avenue will be paved from Yuken to Main. July. (9) Broadway, ‘Nanaimo Street to Boundary Road - Broadway will be paved from Nanaimo Street to Boundary Road. : Work scheduled to begin mid- -August. - www. city.vancouver.be. ca/roadwork — q ROADWORK INFO LINE: 871-6308 So the total cost of $10,322 leaves vou with $97,625. An MER of three per cent costs you a total $28,344, cutting the return on your initial $50,000 to $79,602. All funds charge a man- agement fee. With some funds, you also pay a com- mission (and even a service charge) when you buy, teansfer or sell. Such “loads” would cut your total return even more. “As with any product or service you buy, financial services cost you more the more you rely on other peo- ple,” said the Mutual Find Adviser. However, some funds run a dghter operation than others. {f two funds are sim- ilar, lean toward the fund with the lower costs — and leave more money in your pocket. Make sure you have net figures (after the manage- ment fee has been taken out) when you compare funds. The bottom line is your bottom line — the caral return in both service and performance you and your money receive. You might not always score the best performing invesunent with the lowest costs but you should defi- nitely always be working toward this ideal. Regularly review the ben- efits you receive compared with the costs you pay. Mike Grenby is a cotumnist and independent personal financial adviser. He'll answer questions in this col- serum as space allows but can- not reply personally, Contact him at P.O, Box 50029, South Slope R.P.O., Burnaby, B.C. V5] 5G3; email mike@gren- by.com and see previous columns at Mike’s Wetsite, , Freestone looks ‘3 expand From page 15 “With all three programs, it has become more or less a full-time occupation. During the fall, you’re doing the housecleaning that’s required, plus sending out thank-you letters to sponsors and starting to contact sponsors for the following season.” Freestone said Kidsworld runs on an annual $50,000 budget and relies on partner- ships with WestCoast Families Newsmagazine and the Knowledge Network’s KidZone Live to help promote membership sales. Kidsworld was built on Freestone’s event manage- ment and production back- ground with First Night, the Vancouver Sea Festival and the Christmas Carol Ships Parade. Prior to starting Kidsworld, Freestone was part of the production and plan- ning team of First Night, the family-oriented New Year’s Eve arts and cultural festival in downtown Vancouver. It was a wildly successful event unu! hooligans crashed the no-booze event. Policing costs skyrocketed, cancelling _ the event. It was relaunched last New Year’s Eve by a dif- ferent promoter at Science World. Freestone also chaired the 1983 Grey Cup parade and West Vancouver's Expo ‘86 committee. This vear’s memberships are sold out, but call 983- 9799 or go to the Web site at www.kidsworldprogram.com in mid-September when 2001 memberships go on sale. The Face of Business is.a- - monthly feature projile of inde-: - pendent business leaders who live” or work in the community. If you would like to be interviewed © for 2 story, or recommend a unique individual, please con: tact Bob Mackin c/o The North : Shove News, fax: 985-2104 or e- ~ mail: .