jow to invest for cap Russell : Moldowan stock can be very attractive, The real benefit of holding com- mon stock as a long-term invest- ment though, is the potential that its Value will appreciate over time, Most investors know (that with- out risk there cannot be significant rewards, but they should make sure that any uncertainty in future carn- ings is compensated by a premium . on returns, Therefore, each invest- ment must be evaluated, not only for potential returns, but also for inherent risk. There are two principal types of . tisk to consider when investing in common shares. - The first is market risk. This is a “tisk shared by all common stocks, that the market price of your investment can move with fluctua- tions in the stock market as a whole even though there may have been no material changes in the company. Although this risk of volatility may be disquieting, keep in mind that along with higher risk comes the opportunity for higher reward. It is widely agreed that ‘equity investments have been the overall best performing asset class availuble to investors. ‘The second type of risk is spe- ‘cific to the company itself. This . tisk can be minimized by spreading your investment dollars over a number of different securities whose prices respond to different forces. The overall volatility or risk, of a diversified portfolio is significantly less than the risk of investing in any single stock. You ‘can diversify your holdings by ' investing in corporations of differ- ent sizes and financial strength, or from different industries, geograph- ‘ic regions and countries, Downtums in an industrial sece tor might reduce the share price of - THE BOTTOM LINE INVESTING FOR capital. - appreciation, or growth, is a ‘vital part of investing not only in oirder to build wealth, but also to protect - . capital | from taxes and infla- tion. : ‘Every well-balanced portfolio hould have a growth component. ‘The most popular growth invest- - -ment is common stock, either in the form of equity mutual funds or: ‘shares issued by individual corpo-: rations to provide capital to expand ‘their businesses, Investors purchase stocks or shares i ‘corporation : -and become part-owners of the.. -company,’As the company grows and profits are reinvested into fur-’ ther growth of the company, shares are likely to increase in value and can be sold at a profit.’ "3. Corporations can also declare | dividends: from company profits,» _ and in the case of many blue-chip : “companies, the yield on common ts Credit Union banks ‘DOUG*. SMITH, vice~ president - marketing and ‘communications of orth Shore ‘Credit - Union, “announced today: that NSCU. will. lund education scholarships for the « Coast. Zone for. the 'J-1 Nationul Ski Program, * “The J-1 National Program pro- vides an opportunity for talented . skiers between the ages of 15 and | 18+ to. pursue: their educational goals while continuing to ski com- Petitively.: 4, “We are pleased to encourage ; these young people'in their quest " for excellence,” says Smith. “Both ‘athletics and education are impor: . tant to families in our communities: and the J-1 National Program is a “Skiers are ranked according to the National Points System and the B.C. Alpine scoring system for their performance during the sea- son. Nozth Shore Credit Union will contribute $3,400 in scholarship funds to .the best and most improved skiers. The scholarship winners will be HUGH STARK! ital appreciation an investment, although you would still incur a loss, it would be con- fined to a fraction of your assets sind the other stocks in your portfo- lio would be able to compensate for it to some extent. On the other hand, you should be careful not to over-diversify. By selecting too many different securi- tics, the significance of cach indi- vidual holding is diminished. Essentially, good performers get fost in the crowd and their positive impact on the overall portfolio is minimized, Over-diversification can also increase the costs of investing and complicates the investment monitoring process. To determine the right number and types of investments for a well- balanced and diversified portfolio it is necessary to do some advance planning. The Bottom Line is this: You should consult a qualified invest- ment advisor to get a better idea of ‘how to properly diversify your . investments and reduce risks, Find someone who can navigate all the different opportunities available to you as a growth-oriented investor. For those of you who are just beginning to look at your financial ‘plan, consider looking at investing the way I do for my clients; first determine what risks you are pre- pared to take. The investments that fit your tolerance for risk will be easier to identify and you will be able to sleep at night, knowing you - have raade the right investirients, Russell Moldowan is an invest- ment adviser.in Vancouver He advises on investment management and retirement planning, Cail or write to Russell at (604} 661-7475, P.O. Box 10342, Pacific Centre, Vancouver, B.C, V7Y 1H6, Or by E-mail at russell @unixs, ubc.ca, - on slopes “ announced in April. “We are grateful to North Shore Credit Union. for this support,” says: George Aboussafy, .J-1 National Coast Zone’ chair. “By being partners in education, NSCU ‘will make a real contribution to :fulfilling the dreams. of these young people.” ATRIMONIA KIRSTIE -MACTISE | WHAT To be WITH TT. ~ great way to combine these activi- ‘ ties.” Participants in the J-1. Program — ‘will compete in a. series of ski races to take place on. mountains “', around Southwestern B.C. . Peete: Arse Te i ae “Over Thirty Years Combined Experience" Authors of DOMESTIC CONTRACTS A Book on Mariage and Separation Agreements, @ CUSTODY ® MAINTENANCE & PROPERTY & MEDIATION 1412 - 925 W, GEORGIA ST., VAN., B.C. (CATHEDRAL PLACE) PHONE 682-4999 RIGHARDSON GREENSHIELDS Suite 911 ~ 100 Park Royal South West Vancouver V7T fA2 Phone: 981-2300 Call us for a free RASP guide. Te oe other than RRSPs? YES, through Mutual Fund Limited Partnerships! JIM PERKINS ' wena B ALB. & FI.C.B. Vice President “lmparan infomation clu Mutual Fund Led, Pamersip eo For more Information It contained in the fruspectus, Obtain a copy from your -. cu.diM PERKINS ” Fan Acro rl cn foe cg 681-1300 a 750-1075 W. Georgla St. : MEN'S Nigar. _ Monday, December 19 ; -9 pm. Everything you need {07 make her Christmas Special. * Housecoats. Nightles « ® Pyjamas © Lingerie * | .. © Men’s Robes © Night Shirts. -© Slippers (leather - sheers) ° ° Gift Certificates ; Evory year since 1980 we have taken it upon cursetves to prepsré a lst of recommendations ‘ which wo think are the most appropriate for your RASP. We have prepared a NEW LIST for 1994, . adjusting forthe economic changes we have seen and ara expecting to see, OUR 1004 RRSP. KIT m INCLUDES ALL OF THE FOLLOWING:- 1) Our PREMIER Mutual Fund choices which Inchxe 8 top-ranked Canadian Equity Funds, ‘ 4 distinguished Canadian Batanced Funds and 8 outetanding Foreign Funds. 7 H 2) — if you prefer stocks to Mutual Funds we have prepared a short list of § which we believe a: will do well, Many think that capital gains should be confined to non-ARSP accounts. It Seems to us (hat growth of your RASA by whatever means, Is also lmportant, =: Some investors prefor “Guarantees” in their AASP This section nf our RRSP nit detaits ta best of the “guara.steed” options. THE RASP RULES, This section of our KIT outlines, in detall, “how to calculate your RRSP - contribution limits — Spousal Contribution limits — the $8000 excess contribution ete, We sense that having just one Self-Administered ARSP all under one toot Is gaining : acceptance with investors, t's cheag, it's afficient, it can includa all RASP eligible items from GIC's to Mutual Funds to Stocks to 20% Foreign Cuntent. In cur kt we fe discuss he. merits of having your own Self-Administered Plan, B For your “1894 RRSP Kit" please call 844-53A0 or 1-600-663-0706 (B.C. Toll-Free) of Fax this ad to 669-6392 or complete and return the coupon below. Thank you, i ' ~ GENTLEMEN: PLEASE FORWARD YOUR 1994 RASP KIT i, FNAME accesses WCITY ca cesssscussencisessussesne POSTAL CODE |... j 2 HT CHRIS TIDD/ANDREW EISENBOCK i & ~ ODLUM BROWN LIMITED 1890 « 609 Granville St, Vancouver, B.C. V7Y 1A3 TUT Tet: 944.8380 (24 Hours) Fux: 669-6592 OWN | or 1-800-663-0706 (B.C. Toll-Free)