REMEMBER their middle name. Canada Savings Bonds

are a way to save. money, to
better use for it — if you can.

Now don’t get me wrong. I
think CSBs are great — as do sev-
eral miflion other Canadians. But !
like them for specific purposes.

Try -not to be swayed by the
popularity of this motherhood of
all financial instruments during the
current annual CSB campaign.
Make the decision whether to buy
or keep CSBs for your ‘own
reasons. For example: -

hold money until you find a

What are some other alternatives
to CSBs? You might:

© Pay off non-deductible debt,
and earn up to 32.9 per cent on
your money (that’s the annual
compound rate of interest on many
outstanding credit card accounts).

Of course, if you repay those
debts, then run them up again, you
would have been better off to keep
that debt load as a brake on fur-

dollars

and sense

® You have a hard time saving
money and your employer offers
CSBs on the payroll savings plan.
This is one of the best forced sav-
ings techniques — because the
money to buy your bond is taken
off your paycheque before you get
achance to spend it. — .

You can’t miss money you don’!
have. Then, next fall, you pick up

your CSB. You may even deduct
the interest you paid to, buy the

bond, so remember to get a
receipt.

© You have spare cash which
you might need for an emergency
oY Opportunity. You want easy ac-
cess to your funds and a reason-”
able return. .

CSBs may be. cashed at any time
for their full face value — without
fees or discounts — plus accrued
interest. (Remember, interest. is
normally paid only to the end ‘of
the previous: month, and there is
usually - an initial no-interest

’ waiting period on new issues.)
® You feel: comfortable with the
safety, flexibility and familiarity of
CSBs. You are willing to forgo a
higher return in exchange for this
simplicity. - .

That’s the price you pay-for aif
the advantages of CSBs. Just be
sure you have considered the
alternatives so you feel comfor-
table paying that price.

For example, treasury _ bills,
money market mutual funds, mor-
tgage-backed securities, gov-
ernment and corporate bonds and
even redeemable savings certifi-

cates of varying maturities usually ~

produce a higher yield on your
money. :

“You should at least investigate
these alternatives to CSBs, to see if
it might be appropriate to put
some if not all of your funds into
one or more of them.

Remember, by the time you pay
tax on the interest from guaranteed
investments and allow for the in-
roads of inflation, the true return
on your money will be relatively
small. So increasing your yield by
even one per cent is worthwhile.

Bur if after doing this research
you still feet CSBs are right for
some or all your money, then you
wili know you have made an in-
telligent decision based on the kind
of person you are, nol on what
.“teverybody else’’ does.

Mike Grenby

ther’ borrowing while you put your
extra cash in a CSB.

© Contribute to a_ registered
retirement savings plan. (You
could even hold CSBs in an RRSP,
where the interest would be tax-
sheltered.) When. you put money
into an RRSP, you deduct your
contribution from income and save
tax: the higher your tax bracket,
the more you save.

However, if you put money into
an RRSP now and take it out in

the near future, when you are in a
higher tax bracket, you will end up
paying back more tax than you
saved. In this situation, CSBs
might make more sense (and
dollars).

® Invest your money more ag-
gressively. Consider the other
guaranteed investments fisted
earlier, which could pay a higher
return. Consider mutual funds or
direct stock market investments.
Perhaps real estate — your own
home or a revenue property —
would be-a comfortable investment
with the poteritial for more long-
term gain than CSBs. Investing in
your own or somebody else’s
business is another option.

© Spend the money! Especially if
you have retired with enough
funds, shake loose the thrifty
habits that have helped you ac-
cumulate that comfortable retire-
ment nest egg. Now it’s time to
have fun with your funds.

At any age, always weigh spen-
ding against saving. And strike the
balance that feels right for you,

wwe

De you have a financial or con-
sumer question for Mike? Or a
story you think should be in his
column? Please write to Mike
Grenby, North Shore News, 1139
Lonsdale, North Vancouver V7M
2H4. Mike cannot reply in-
dividually but will answer as many
of your letters as possible through
The North Shore News.

- Remember to include your
phone nuntber in case Mike needs

to contact you.

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EXERCISE
REGU

DISTRICT OFFICIAL PLAN ® OPEN HOUSES

The Corporation of the District of North Vancouver has now drafted an Official Community Plan for the entire
municipality. This Plan sets out broad land use objectives and policies for the next two decades.

A flyer containing highlights of the draft Official Plan is being distributed to all District houscholds during

this week.

To provide residents with an opportunity to review and respond to the draft Plan, the Planning Department is holding

Open Houses on:
Tuesday, October 18

Thursday, October 20

Residents are invited to attend either or both of these Open Houses.

~ Windsor Secondary School

4:00 — 9:00 p.m.

931 Broadview (off Mt. Seymour Peskway)

~ Municapal Hell
(off Lonsdale 2t Queens)

2:00 — 9:00 p.m.

Further information may be obtained from the Planning Department at 987-7131, local 358.

355 West Queens Road i

North Vancouver
8nuch Columbia