good ft nancia ANNUITIES have declined in popularity recently and this is unfortunate. Jt is also unjustified. When properly used, the annuity remains a fundamental ingredient of most retirement pians. The decline in popularity seems due to several factors. First, there is the notion that the rate of return from an annuity is low. In fact, annuity interest rates are based on first class mortgages and long term bonds and are cur- rently producing a return of over 10 per cent of capital. This is at a time when Canada Savings Bonds are selling at 734 per cent and when inflation has been running at four per cent or less for the last four years. There is also much competition for retirement funds and serious misconceptions abound. The structure of an annuity is quite simple. It is almost precisely By BERT WICKHAM Contributing writer the same as a mortgage. With a long-term mortgage, the repay- ment schedule is structured to amortize the capital plus interest over a fixed term. t the end of the term, all the capital has been repaid, in installments, plus the in- terest earned thereon. Canadians have been using this simple device to buy and finance housing for generations. An annuity works the same way. The only difference is that the term of repayment is bas- ed on the life expectancy of the annuitant. As the life insurance company has many thousands of ‘ “__R.R.S.P. MATURITY OPTION RATES ANNUITY AND R.R.LF. ILLUSTRATIONS .... November, 1986 Monthly Income Based on $50,000 of proceeds LIFE ANNUITY JOINT ANNUTLY MIX, GUAR. LIFE-GUAR. 10 IN YRS. 19 YRS, AGE M&F MORF R.R.L.F. INCOME ~— MIN. BY LAW MALE OR FEMALE (CURRENT RATE 10, 375%) Ist 10th 10th Year TOTAL PAYOUT Yeur . YEAR FUND VALUE TOACE $458.72 $439.06 $431.72 463.54 442.48 468.60 445.41 473.95 449,32 479.54 453.23 485.42 457.14 - 491.69 461.63 498.27 467.24 505.13 472,29 $12.25 477.90 519.61 484.08 527.22 490.25 $141.70 $351.51 $327,849 146.62 363.92 305,207 151.89 = 377.23 284,286 157.55 391.56 284,950 163.85 | 407.01 247,072 170.24 423.76 230,535 171.37 441.94 215,236 185.13 461.76 201,076 193.59 483.46 187,965 202.85 $07.33 175,823 213.05 §33.70 164,574 224.31 563.00 154,145 Rates can charge from day to day and vary desending on amounts, + Sense i¢ people insured, it can afford to use the law of averages and guarantee payments for life. In those cases where there are dependents who must be protected, it is possible to obtain a minimum guaranteed period by paying a suitably ad- justed higher premium. See Annuitias Page 18 PORTABLE CARPORT {tj} Protect your car or boat from rain & bad weather. Keep your investment dry & clean. This free standing por- table shelter assembles in less than 1 hour. Requires no building permits & can be set up anywhere. Great as a dry work area too! Name 45’ Mode! — $825.00 SUNDANCE TRAMPOLINES cay 683-4331 1358 Seymour St., Van. Adaiess Anyone wishing complete R.R.LF. tables or the free brochure '‘A Guide to Setec- ting Your R.R.S.P. Maturity Option’? may telephone SOLGUARD At 688-9577 or write them ul Suite 1205 - 675 Wess Hastings Street, Vancouver, B.C. V6B 1N2. Tables prepared by SOLGUARD ANNUITY CONSULTING SERVICES LTD. MAKING AN R.R.S.P. INVESTMENT? TALK TO A LISTENER... NOT A TELLER NO FEE — 60+ SENIORS SELF-DIRECTED PLAN CALL ROD CLARK 669-6262 Ten years ago children with Leukemia had little hope. Today 50% are cured. Together We’re Winning! RITE COUT BLA ANID OL QUES tC, Bor O00 Stn.0), Vane., Vo] 449 In business today, effective management teams are composed of team players who provide and contribute select specialized skills. One crucial role is that of the Management Accountant. Management Accountancy now represents two-thirds of all accounting- related positions, and continues to be the fastest growing segment of the profession in Canada. Only the RIA* designation specifically identifies professionals trained as Management Accountants. Some local RIA’s include Hana Carbert, Comptroller of CPAir Holidays; George Hartmann, Senior Vice-President an Secretary, Loomis Canada; and Alan Baruard, Deputy Controller General, BOM *Registered members of The Society of Manage designation RIA. Legislation to change it to CMA in the British Columbia Legislature. Currently the CMA 17 - Sunday, November 16, 1986 - North Shore News gehts ‘A 510,000 INVESTMENT GREW IN VALUE TO It’s a Fact! an investment of $10,000 in 1954 when Templeton Growth Fund started...assuming reinvestment ot all dividends and capita! gains distributions, increased in value to $1,133,684 by April 30, 1986. This is an update of the performance shown in the prospectus and covers a period of generally rising common stock prices. Of course there is no quarantee of future performance bul you should tind out how the Templeton approach has produced these Investmont results. For mote information send coupon to: Mark Shahkl Groat Pacitle Management Co. Ltd. Sulfe 300-1190 Homl-y Street Vancouver, B.C. V6Z cXS Bus: 689-1143 Templeton ...the name says it all* Sold by prospectus Ministry of Finance, Province of British Columbia. Management Accountants are employed as Accountants, Controllers, Vice-Presidents of Finance and Chief Executive Officers. To earn the RIA Management Accountant designation, candidates must complete the academic requirements of the Society's Professional Program and have at least two years of senior financial experience. The Professional Program consists of advanced management and accounting courses specificaily designed to train “Chief Financial Officers” in industry, commerce and government. For information on the admission requirements into the Professional Program's Winter Session, please contact the Director of Education prior to Friday, November 28. The Society of Management Accountants P.O. Box 11548, 1575 ~ 650 West Georgia St., Vancouver, B.C. V6B 4W7 Telephone: (604) 687-5891 Toll Free: 1-800-663-9646, ment Accountants of British Columbia presently utilize the (Certified Management Accountant} has received first reading designation is used by our colleagues in the rest of Canada.