Wednesday, October 16, 1991 — North Shore News - 74 Savings bonds are still better than the old under-the-mattress strategy WHAT HAVE your. Canada Savings Bonds done for you lately? Nothing — if you are one of the thousands of Ca- nadians holding $170 million of matured, uncashed CSBs. Another $3.3 billion of bonds — Series 39, issued in 1984 — mature this Nov. 1. Like their predecessors, these bonds wil! earn * no more interest after their matu- rity date. So take a look through your safe deposit box or other repository of important papers. Perhaps help an elderly friend or relative to do the same. One of the people who owns those bonds . could easily be you or that friend or relative. “With interest rates so low and. income tax rates so high, it really doesn't make much difference anyway”? is a comment I have been hearing lately. "Not true. Let’s say you earn on- ly 7%.to 8% interest, pay perhaps 41%.tax and so earn little more than 4% after tax. With inflation around 5%, you are losing 1%.of the value of your money each year. .. But if you “just put the cash under your niattress — or neglect to cash a matured CSB — you then earn nothing on your money, before or after tax. With inflation at the same 5%, your money now is losing 5% of its value each : year. Taiking of. CSBs and income. tax, note that a $1,000 com- ‘ pound-interest Series 39 CSB will -be worth $1,927.35 when it matures on Nov. I. Even though your tax slip will Show $927.35 as remember to deduct the interest N. Shore interest,” Michael Grenby DOLLARS AND S SENSE you should have been declaring ei- ther annually or at least every three years since you bought the bond in 1984, Then declare only the remaining interest when you file your 1991 tax return next spring. Canadians clearly have a fond- ness for CSBs: they hold a total of $32.7 billion ‘at present. But _when you ‘make a‘decision about confuse. buying CSBs, don’t fondness with fina..ce. - If you hold or buy CSBs, do so. for a specific reason: for the safe- ty, flexibility: and, if rates con- , tinue to drop, .the rate guarantee. But. always look at the alter- natives: ‘many financial institu- tions compete with CSBs by offer- agency gets lottery grant “THE SENIORS’ Lottery recently “approved a grant for the seniors’ legal .and_ finanzial service of. North Shore Community Services. The’ grant, in -the amount of . $5,000, will go- toward the pur-" ~ chase ofa new photocopier. The -new copier ,is needed to ‘print information: materials for seniors on legal rights, Planning options and benefits. >. The Seniors’ Lottery funds are “generated through the sale of lot- SAMSUNG SD371I0 386SX/16 SD3710 386SX/16 ZENITH MASTERSPORT 386SX/20 60MB HD $3699 MASTERSPORT 336SL/20 6oMB HD $4520 20MBHD $2399 6OMBHD $2988 tery tickets. Proceeds ware then distributed to seniors’ groups throughout British Columbia. At North Shore Community Services retired people volunteer their time to help seniors apply for benefits and complete income ‘tax returns. They. also help with consumer problems and give in- formation about putting financial and legal affairs in order. For more information call 985- 7138, Super Prices ON NOTEBOOK COMPUTER QUANTITIES ARE LIMITED SURE REN — Prices effective w October 31, 1991 — Prices subject to change without notice —E& OE DARIUS D20 —-386SX/20 D4 -386SXI20 PRINTERS KODAK DICONIX 150+ INK JET $436 CANON BUBBLE JET ijJ-10 $475 OKIDATA OKI400 LASER $790 CITIZEN PN48 NOTEBOOK PRINTER $465 $2359 _ $2759 20MB HD 60MB HD Give us 4 CALL aT 689-8133 FOR ALL YOUR COMPUTING NEEDS #807 - 510 West} Progressive Computers B.C. V6B ing similar instruments with higher returns. Paying off credit card debt makes more sense financially than buying a CSB. On the other hand, if you pay off the debt and run it up again, perhaps you would have been better off to buy the bond. At Jeast you would then have some savings as well as the debt. Making an RRSP contribution could be another- alternative (al- though you could also put a CSB into an RRSP). You save :ax now and your money will grow tax- free. A Treasury bill can lock in an interest sate typically between 30 days and one year. T-bills are completely liquid; you might make or lose some money if you sell be- fore maturity depeading on which way interest rates have moved. A money market fund is even more liquid and will pay a com- petitive interest rate. If rates start to climb again, you will earn a higher return. But if they fall, then you might wish you had locked into the CSB rate. Term deposits and GICs, whether periodic or compound in- terest, allow you to lock in a higher rate for a longer term. You can stagger the maturity dates to protect yourself, no matter which way interest rates move. Or you could diversify: pay off some of your most expensive debt, make an RRSP contribution, keep some funds in a muney market account, T-bill or term deposits, and also buy some CSBs. Perhaps one of the strongest practical attractions of CSBs is the payroll savings plan. “In 1972, 704,000 people in Canada enrolled in payroll sav- ings, buying an average of $522 in bonds,"’ said Bob Sutherland, a regional director of the CSB payroll savings plan. ‘“‘Last year, 1.4 million enrolied and the average | application was up to $1,588." Having money deducted from your paycheque is an idea! forced savings program. And you can ATRIMONIA LAWYERS HUGH | -KIRSTIE- STARK & MACLISE “Over Thirty Years Combined Experience” Authors of DOMESTIC CONTRACTS A Book on Marriage and Separation Agreements. MCUSTODY MS MAINTENANCE &® PROPERTY DIVISION 1620 ~ 808 NELSON STREET, VANCGAUVER, B.C, (NELSON SQUARE) PHONE; 682-4999 For3 DAYS _ THIS MONTH WERE | GOING TO SHOW OFF | OUR TONGUES. No kidding. At our North Vancouver branch, we're proud to be able to offer you service in English, French, Mandarin, Cantonese, Spanish and Persian. And we are celebrating this fact during our International Days, October 17, 18, & 19 with decorations, refreshments, costumes and prize draws. So drop into our branch and join in the fun and festivities. We'll be dcing our best to make sure that Bank of B.C. is on the tip of everybody’s tongue. Bank of British Columbia Division of Hongkong Bankof Canada «> 1457 Lonsdale Avenue even claim the interst paid as a tax deduction (the interest rate charg- ed is always the same as the inter- est rate the bond pays). Mike Grenby is a North Shore-based_ columnist and in- dependent financial adviser who works with individuals; he will answer your questions as space allows — write to him c/o The North Shore News, 1139 Lons- dale, North Vancouver V7M 214. The priccipals of Solguard Financial Led. / Bere Wickham and Associancs extend congratulations to Avis Lapham cf cheis West Vancouver | office. Avis is the mcipient of che Lelie W. Dunseall Memorial Medel, awarded annually to the B.C. residence: finishing with the highest overall marks in che Chartered Life « Underwriters course. The C.L.U, der ignation involves successful comple- tion of @ series of sdywced tax, insurance and financial planning’ courses. Solguard Financial Led. / Baz Wickham and jAstociates ar Independent Deposit brokers, special izing in Retirement Income Planni : ‘West Vancouver, B.C. V7T 142 __ Telephone: 925-3101 .