20 - Sunday, February 8, 1987 - North Shore News Business ties unsuitable for THE GROWING popularity of the Registered Retirement Income Fund (RRIF) is causing many people to ask the question, ‘‘Do I invest my RRIF funds in equities, or go for guarantees?”’ Remember that equities denote ownership. Most - people unders- tand that the equity in their home is their share of the market value after deducting the mortgage. Likewise a typical equity invest- ment such as stocks and shares denotes a share of ownership in the corporation issuing them. retirement planning In both these cases the value can only. be: realized’ when .someone else buys it: In the meantime, there. may’ be earnings. For example, a house: represents rental . value whether we live in it ourselves‘or.. #” rent it to someone else. LikeWise * stocks and shares may pay divi- dends. In both cases neither the market Without exception, conservative financial .advisers recommend against equities for RRIF funds except for ‘the most experienced investors. Many taxpayers have enjoyed good returns in their RRSPs but such funds should be switched to guarantees when trans- ferred to an RRIF. This is not a smatter of opinion. There are hard facts in support of this general principle and older people ignore them at their peril. People invest in equities hoping for capital gain. Outside a Regis- tered Plan such gains are tax-free whereas the proceeds from Regis- tered Plans eventually are taxed. Where there is hope for growth there is likewise risk of loss. Fur- smarket. IF fund plans thermore, the effect of the divided tax credit, which is designed 0 protect against double taxation, i lost ina Registered Plan. Some equity-based RRSPs have performed extremely well, par- ticularly during the very bullish period of the last few years. In- vestors should be warned, howev- er, not to confuse price with value. Most of the gains in the stock markets today are based on the greedy speculation that prices will continue to rise despite the lack of underlying present value and earn- ings. In retirement, one becomes ex- tremely vulnerable to a drop in the You may not have the time and energy to survive long- term fluctuations. It is difficult to call the shots from Palm Springs or Hawaii! Furthermore, if the See Guaranteed Page 21 Selfirected RSP You Invest. Wedo the rest. @ Quarterly Statements © Multiple Brokers © High Daily Interest * Mortgages ® Best ate Loans, Deferred ‘Repayment © $100 fee tax deductible value nor.the réturn are guaran- |B teed. Nevertheless,” over: ‘the years, - many’ people. have’ realized. § substantial capital gains and:en- “fj joyed ‘satisfactory earnings. Many others ,have . been burned by. declines i in- the market. ; Cupar company of Canada oe . WAKE UP YOUR J! My rs : CHECK:THE TOTAL RETURNS ON YOUR RRSP FUNDS AND THEN INVESTIGATE AND COMPARE YOUR RESULTS WITH THOSE OF OUR TOP PERFORMING: UNITED ACCUMULATIVE RETIREMENT FUND AND UNITED VENTURE RETIREMENT FUND LOOK AT THE PERFORMANCE OF Average Annual THE UNITED GROUP OF FUNDS Rate of Return 18.7% 19.5% 17.0% 22.7% & ** United Accumulative Retirement Fund 4 ** United Venture Retirement Fund Ki] *AH! Results to Sept. 80, 1956 with dividends retavested. Financial Times sures Oct. 27, 1986. “Available for Registered & Non-Registered Investments, Offer made by Prospectus only. oy PRSEZRSCORASSSILOLADSTSSTOTSUROSALSEADROSOSSUCSHDASORPRSPASEOKAAASASE ASAT “ ‘| - For additional information, call cr write to: 669 7752 E Yorkton Securities Inc. Phil Mawani or John Bothwell . BH idth Fl., 609 Granville St., A & Voncouver, VI¥ 165. or Elaine Douglas 984-9371 By NAME: MW ADDRESS: *1 YEAR *10 YEARSE Telephone ; SAM BALDEN 681-0151, 926-6304 (eves.) 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