96 - Wednesday, July 7, 1999 — North Shove Naves HOW much cash have you got on hand? Why? Never let cash accumulate untess you have a specific pur- pose. While a few places offer a reasonzble interest rate on cash, most pay 1% to 2%, often less — and then income tax typically takes close to half of that.” - : Now “specific pi * “can mean 2 varicty of things. . You might need that mency _ :. projected for the* for everyday expenses. Perhaps you plan. to buy a car or other consumer item, pay down a debt or make an investment. But if you keep cash around for comfort (or through lack of attention), take a closer look. For example, you might have a $1,000 bond or deposit paying perhaps 4% (after tax, that’s 2% to 3%} while you have a $1,600 debt costing anything from around 6% to 33% (the cost of many credit card balances). That means while you carn $20 to $30 a year on your savings, your debt costs you $60 to $330. Use the savings to pay off the debt, and you ill be ahead by between $30 and $300 a year. Another example: _ Liquidate a $56,000 invest- ment portfolio to pay off a Despite this significant growth, industry leaders are concerned that as the industry matures and begins to move its products from: research into commercialization, it will ’ need broadly trained n- nel with backgrounds: chat ~ combine scientific ‘disciplines with business experience. * With most employees cur- rently having less than three of industry experience, this inexperience could nega- “> Gvely impact product develop- + ment-and continued growth ._ Of the industry. : Key findings shortages survey reveal that: ° north shore news & BUSINESS ing cash on hand cosis Treat internet — stocks cautiously $50,000 mortgage taken out to buy your principal resi- dence. Then borrow $50,000 to reinvest. Now you should be able to deduct the interest. That could casily save you u to $1,500 a year. (First checl — and try to minimize — the transaction costs of sclling and buying, and any capital gains income tax liability of selling.) Ideally, keep as little cash on hand as possible. Set up a line of credit or other bor- rowing facility to find any emergencies. Suil, you should look ahead. For example, if you will need money for an RRSP contribution, consumer pur- chase or other non-ceductible purpose, keep the cash avail- ble, Ocherwise, you will have to borrow. Bottom line: compare the recruiting is the principal wa they currently meet sta needs. However, their ability to recruit is constrained by high provincial tax‘rates and the high cost of living in the Lower Mainland; @ the three fargest growth areas projected. by company CEOs are clinical research, regulatory affairs, and manu- facturing/prodaction, typical of companies moving to field - trials and fall commercializa- . tion; ‘Wl the most frequently cited + skill gap arcas identified by company employees were @ the ‘staffing “growsh rate - ie industry is 20% for fhe next two years; dicated” ‘thar’ . FILTRATION: .» SUPER CLEANING SYSTEM. TURBOFAN DRvIKS System. (oo: > WARRANTY | - : programs with aspects of communications, computer skills and project. manage- ment; these skills are not . taught in a traditional four- year science program; ®@ B.C. universities” provide iotechnology,, . but no biotechnology specialization; & ettiployees ‘in management lack industry experience, ‘con-: ‘firmed by the fact that for 50% of. employees, their current job is:their first. in the indus- ‘try; 7 Lot @ 48% of emplovees said the lis required in their current after-tax return on your sav- ings und investraents with the (after-tax) cost of your debt. Review these figures at least annually. If you sull want to have a cash reserve, make sure it pays the maximum interest. Look at money market funds, short-term deposits, T-biils, cashable longer-tezm deposits, bonds and so on. . If you are keen, keep even everyday cash reserves in such instruments and transfer money to your chequing account as needed. Mike Grenly is a columnist and independent personal financial adviser. Hell answer questions in this column as space allows but cannot reply personally. Contact him at P.O. Box 50029, South Slope R.BO, Burnaby, B.C. V5 5G3; e-mail . job are likely to change in the next three years, Taking a leadership role in addressing the human skill - gaps identified in this report, BCBA has spearheaded a pro- ject to realize a Biotechnology Degree program. .A UBC/BCIT partnership, this program will combine science and business training, provid- ing B.C.’s future workforce with the required skills that will foster. the continued growth of the biotech indus- - try and bridge existing gaps in ~ the educational system. . Other ongoing initiatives being developed by BCBA are. the development of _profes- sional training courses as well - as: biotechnology education programs at the secondary school level The B.C,” Biotechnology Alliance was . ‘granted -$100,000 funding in. March - 1998 from the provincial gov-..- ernment’s ~~” Information; - - Science and. Technology : Agency to help increase the: -number of people: with ‘the:: right skills who are needed to sustain the growth of the biotechnology industry. °° ____~‘Apply now on-line for a low cost _ www. TRANSMISSION ence ise2 MEZ @ Heskation?... com EQUITY MORTGAGE . Bi Leaking red fluid? “ e Harsh shitting? & Difficulty driving in one or mare gesre?. Ni Car sounds like it's running, but won't move? OED Finoncing Avalobls 9... ANY. INTERNAL AUTOMATIC 160 | RANGMUSSION REPAIR OE “1 Leenit one coupons por customs. Expires J pn a ae my op om s VANCOUVER - (604 8687. - - 860 West 15th Strest; Across from Dave Buck Ford independently Owned & Operated ©, Hours: Mon.-Fri, 8-6". _ Office of Patents Charles - company shares to lunar - Chris Carter THE Internet, Western civilization’s technological marvel for the '9Us, just passed the acid test. Why am I so sure that the Internet is here to stay? Well, my mother (age with- held for the sake of the author’s self-preservation) is now on-iine! Given her sta- tus as one of the last per- sons to accept television via cable, rather than antenna, her appearance on the - World Wide Web indicates its widespread acceptance. From an investor’s per- spective, however, the Internet and Internet stocks should be approached with caution. Great technology should not be confused with a great investment. . New inventions are gen- erally accompanied by : gadgetologists and carly, users who are quick to tout great investment bonanza. Since most new tech- nologies fail to live up to . their initial promise, it’s not ° surprising that many econo- mists and investment ana- . lysts approach these discov-.- .. fies as noveltics deserving a healthy dose of skepticism. © © In fact, in 1899, Commissioner of the U.S. Duell proclaimed thar “everything that can be invented has been invent" ed 2 Today, there are ari‘ esti-” mated 150-million Internet users worldwide — still only about 3% of the global pop- ulation. Growth forecasts ” for the Internct vary by ana- lyst and no consensus exists beyond the simple observa- tion that this technology is still in its infancy... The promise of rapid: ~ growth often nurtures the . allure of incredible invest- ment opportunity. For ” some, greed-fueled specula- tion creeps in, overcoming - common investment sense. Recent Internet stock | | mania has become vaguely reminiscent of the rage in bio-tech stocks in the carly : nineties and the pre-Bre-X -feeding-frenzy that pro- pelled numerous junior gold heights before gravity and economic fundamentals took over and ruined the party. In fact, legendar investor Warren Buffett is - alleged to have said that if he were teaching a class in investments at a graduate business school and gave an assignment to develop a methodology for evaluating Internet stocks, anyone who completed the assignment would flunk, The accelerating pace of growth that creates oppor- tunity also brings cnor:nous confusion and potentially tremendous disappointment for unfortunate investors whose picks fail to survive Or prosper. | For savvy investors who” - wish to participate in real _ economic growth driven by. . the Internet, numerous spe-. « cialty funds are now avail- “Before investing part of your nest: " egg in any one - technology, give: very careful consideration. to ~ the share of your their newest toys as the next savings that is: _- appropriate.” able. While the attra “trying to pick a... -* : “Runedinger” can be hard t resist, these funds offer pro ‘fessional guidance inthe: *» selection of appropriate .. stocks and typically hold : { Seast 30 differ np: ~ shares in their portfolio: This diversification signifi cantly reduces the risk of _ toval loss when a humdinge: turns out to be a pooch: * something that’s bou: happen when investing in! these types of shares: 3°...) ~The Internet bandwagon "should be jumped on with - caution. Before investing part of your nest eg; one technology, give very’ careful. consideration to the. ‘share of your savings that is appropriate, The case fo: ~< diversifying youc inves ' ments be n-new technol ogy and old, at home and “ abroad, has’never b stronge ~ Chris C ment executive with: “* ScotiaMeLeod in No Vancouver. He is also's Aaily business commentato: on the BCTV Morning New : He cain be reached at 981-. POI . ACH SYSTEMS, ee