THE BOTTOM LINE QUESTION: WHAT is a Self-Directed RRSP and when should I consider one for my retirement savings? tA Self- Directed RRSP is an account set up at an investment ° . dealer or.an institution like a bank, financial ‘planner, trust company, life insurance company or the like. The self-directed part is really a misnomer, it should be and is usual- ly directed with guidance and input“ from a financial adviser who knows you and your unique goals. “Self-Directed” means that you_. , are encouraged to invest in a variety of products and instruments to attain a.well-balanced mix of investments. “The account is like a basket that is protected from tax and can hold a variety of eligible investments. Any changes to ‘the assets in the basket can be done without incurring tax consequences. As an example, the : types of investments that can be held in the the same Self-Directed’ RRSP with an investment dealer include: i Listed stocks and bonds ° & Mutual funds GICs . 8 ‘Savings bonds A. Mortgages Stripped coupons @ Qualifying shares of private cor- porations a Real estate investments Holding these investments in one account facilitates the transfer of money between different asset groups with no headache, paper- work, lag-time or hang-ups. A full- service investment adviser offers SDRRSPs that simplify tax report- ing, contribution ‘calculations and” limits ‘and better returns through diversification. The shortcomings with many basic RRSPs is that most people have separate accounts often {EXECUTIVES | MANAGERS AND | PROFESSIONALS Find better careers through © Canada's leading Career Management and Relacation Service. We objectively assess -your career alternatives and “help you uncover career positions in the “hidden” job market - the 80% of desirable { B. opportunities in the $35,000 - i §250,000+ range which are -# unadvertised. Phone for a f confidential interview. i 669- 0202 EUR WD WD verconeis teorg Coron i CAR Ene. Couseting & Job Finding Sermce for Unverty Graduates 9 - Be BDS.6R Prolessonats & Exacuiwes 900-1281 West Georgia Street. . Vancouver, BC. V6E 3J7, Fax: 689-8622 Celebrating our 20% year of «4 service and Success. held at different financial institu- tions. When it comes time to reinvest because of a matured investment or switch investments because of per- formance, you are limited to the investments available at that finan- cial institution or a lengthy wait for your RRSP assets to be transferred to another institution that might have the same limitations. Having many small RRSPs poses limitations when you want to take advantage of the foreign content allowance of 20%. The foreign content is calcu- lated from each RRSP, if you do not have them consolidated, your allow- able portion will be small. If you were planning on taking advantage of the growth in European economies, it wouldn't be much of an investment. Also, for the majority of mutual funds available in the public realm, you needn’t be affiliated with a particular bank, trustco, insurance company, etc. The public funds have performance records and management that have proven them as responsible invest- ment managers. The fact that they are available to all Canadians make them very competitive against the institution sponsored, private funds. The reasons for maintaining plain Jane RRSPs is one or more of these: & You always wait until the last minute to contribute and your bank makes it sooooo easy. @ You will always hold GiCs and other bank products ONLY. i You have less than $15,000 in all of your plans. @ You can't find the time to change. The Bottom Line is: Growth-ori- ented investors who want to take advantage of what Revenue Canada has allowed us, can maximize their tax savings, minimize headaches and give themselves more flexibility and choice by considering a Self- Directed RRSP. Next week I will explore some different investments that will help RRSP investors get better returns and mail. . Russell Moldowan is an invest- ment adviser in Vancouver. He ' advises on investment management and retirement planning. Call or PROVINCE OF BC ESCALATING NOTE ‘YEAR 1 8.700% YEAR 6 9.500% 2 9.000% 3 9.125% 4 9.250% 5 9.375% 7 9.625% 8 9.750% 9 10.250% 10 11.560% Call 1 DAVID BLAIR « 244.5709 , 300+ 1066 West Has All rates are subject to Street, Vancouver, British Columbia V6E 3x1 without notice, 6 KIRSTIE MACLISE. “Over Thirty Years Combined Experience" Authors of DOMESTIC CONTRACTS A Book on Marriage and Separation Agreements. CUSTODY &@ MAINTENANCE & PROPERTY & MEDIATION 1412 - 925 W. GEORGIA ST. VAN., B.C. (CATHEDRAL PLACE) PHONE 682-4999 THE PERFECT RSP INVESTMENT! PROVINCIAL-GOVERNMENT GUARANTEE Minimum Investment $20,000 FOR TODAY'S BEST RATES ON ALL FINANCIAL INVESTMENTS - PLEASE CALL: 981-6600 WE ARE LOCATED AT 15TH AND BELLEVUE iN WEST VANCOUVER — # DOMINION eH SECURITIES Member of Royal Bank Group Rates Subject To Change Without Notice - write to Russell at (604) 661-7475, P.O. Box 10342, Pacific Centre, Vancouver, B.C., V7Y 1H6. Or by | International Give vesting E-mail ‘ at russellm@ unixg.ubc.ca.ntain safety in their portfolios. We will be hosting a valuable information session for investors who are within five years of selecting a retirement income option. TAKE THIS OPPORTUNITY TO LEARN: * What is a Registered Retirement Income Fund (RRIF)? + What investments qualify for a RRIF? * Key strategies to maximize performance within your RRIF. * How to structure a RRIF portfolio to meet your personal retirement needs. WHEN: ‘Tuesday Nov. 29 at 1:30 PM WHERE: RICHARDSON GREENSHIELDS BOARDROOM Suite 500-1066 West Hastings Street, Vancouver No cost — just call David Blair at 244-5709 to attend. CAN'T MAKE IT? Cail for a free information kit. ~ FORTUN FUN AN CUTALS “JIM PERKINS - ae . ALB. & F.LC.B. Vice Presisiant Ce . ye pectalizing Are 100% of your assets in less « than 3% of the world markets? , “7OO% International ; RRS Bs available “681-1300. #1750-1075 W Georgia St. WHAT TO DO WITH IT Every year since 1980 we have taken it upon urselves to prepare a list of recommendations which wa think are the most appropriate for your RASP. We have prepared a NEW LIST for 1894, i adjusting for the economic changes we have seen and are expecting to sea. ouR 1994 RRSP, xr me (NCLUDES ALL OF THE FOLLOWING:- ; : Our PREMIER Mutual Fund choices which Include 8 top- ranked canadian Equity Fans, 4 distinguished Canadian Balanced Funds and 8 outstanding Foreign Funds. If you prefer ‘stocks to Mutual Funds we have prepared a short list of 5 which we believe will do well, Many think that capital gains should be confined to non-RRSP accounts. it By seams to us that growth of your RASP, by whatever means, is also important. Some Investors prefer “Guarantees” in their RRSP. This section of our RRSP Kit etalls the , “best of the “guaranteed” options. THE ARSP RULES. This section of our KIT outiines, in detail, bow to calculate your RASP e : contribution limits —- Spausal Contribution limits — the $8000 excess contribution etc. We sense that having just one Self-Administered AASP afl under one root is gaining i acceptance with investors. It’s cheap, it’s efficent, it can include all RASP eligible items ff "from GIC’s to Mutua! Funds to Stocks to 20% Forelgn Content. In our Kit we discuss the i merits of having your own Self-Administered Plan. For your “1994 RASP Kit" please call 644-5380 or 1-800-663-0706 (B.C. TollFree) oF Fax this ad Hl to 669-6392 or complete atid return the coupon below. Thank you. GENTLEMEN: PLEASE FORWARD YOUR 1994 RRSP KIT | E NAME ......0... F ADDRESS escenesninnsnnnnninstnntntininnsnenn CHRIS TIDD/ANDREW EISENBOCK ODLUM BROWN LIMITED » 1800 - 609 Granville 5t., Vancouver, B.C. V7Y [A3 eau ‘Tel: 844-5380 (24 Hours) Fax: 669-6392 or §-800-663-0706 (B.C. Toll-Free) 12