28 - Wednesday, Janttars 20, 19Ke - North Shore News BUSINESS FUNDS: LIQUID VS. LOCKED UP Reader IT’S YOUR turn, North Shore News readers. I've chosen your questions whose answers will, | hope, help other peo- ple, tao. “lam 4 senior citizen, u widow, and To own my own home. My spare moncy is invested in Canada Savings Bonds and I also have a sizeable sum earning minimum in- terest in several savings accounts. This seems foolish. Stilt, t like ta be able to liquidate my money quickly if I feel so inclined. Cun you advise me? - A.F. Everything has a price. If you want to be able to get your money at any time, you pay the price of carning less interest than if you are prepared to lock up your funds for tion and possibly security for the loan. “i bought 4) strata title townhouse last August in North Vancouver, as an investment property. Apparently it's a MURB, bat ['m cat quite sure what kind of tax benefit that of- fers." 5.D. income deduction: wan't apply after 1987, we are looking for in- vestments that will produce capital gains. My hushand earns over $60,000 a year, we have no debts, he already puts the maximum in an RRSP and we have $12,000 to in- vest, plus another $500 a month. We Jost heavily in -eal estate in 1981, so my hushand is quite leery of any risks. He thinks a savings account outside the country is the answer. Or should he invest in dollars investment returns from anywhere in the world. Do you have a financial or con- sumer question for Mike? Or a story vou think should be in his column? Please write to Mike PROFESSIONAL FINAN CIAT-?LANNING iosing interest on safe savings Greabs, North Shore News, 1159 Lonsdale Ave.. North Vancouter VOM 2H4. Remember to include sour phone number in case Mike needs fo contact vou. Mike cannot reply indiidualls but will answer as many ef seur letters as possible through the North Share News, HAVE YOU A PLANNED STRATEGY FOR YOUR FINANCIAL FUTURE? a period. You should decide how much money you want to be completely and sense accessible. Leave this amount in a high-interest (not a regular) savings account — often called an ‘'in- vestment’’ or sometimes ‘'T-bill’’ account, depending on the amount you have. Canada Savings Bonds are equally liquid, although you would have to cash them on the first of the month or lose some interest (interest is always paid to the end of the previous month — except in September and October). Then look -at Treasury bills (available from the bank or, for smaller amounts, a stockbroker) and term deposits. You could choose staggered maturities — perhaps one month, six months, one year — so you are never more than a few months from a maturity date, at which time your money would be available for spending or reinvestment. The mortgage-backed instru- ments offered by many financial institutions are another possibility. You could lend money to family members, with proper documenta- With a multiple-unit residential building, you may use depreciation to create or increase a loss. In other words, if your rental income is $7,000, your expenses are $8,000 and your depreciation is $5,000, you may claim a $6,000 loss and use this to reduce your other income — and so save tax. With a non-MURB rental prop- erty, you may claim depreciation but only to reduce your rental in- come to zero. You will have to complete both the Statement of Real Estate Rent- als and the Capital Cost Allowance (Depreciation) schedules in your tax return. On this second form, there is a line for your MURB Cer- tificate Number. Make sure you have CMHC form 1925, which shows this number. “Because the $1,000 investment Mike Grenby mutual funds?"’ - J.S. Mutual funds can make sense, especially if you contribute on a monthly basis. That approach, callsd ‘dollar cost averaging,"’ protccts you against swings in the market — and enables you to buy more when prices drop. However, choose mutual funds which invest in the stock market only if you can take the long-term approach: at Jeast five to 10 years. You have only the four basic in- vestment choices: guarantecd, stock market {including mutual fund), real estate and a business. So diversify according to your needs and temperanient. Even if you put money into an investment outside Canada, as Jong as you are a resident here, you are still suppose to declare all Deposit $5000 or more in any CanWest Trust account, for, a minimum of $0 days and walk away with a Sony Walkman AM/FM stereo radio** “Per annum, Rate subject to change without notice. “Limit one per customer, while supply lasts. Otter valid at North and West Vancouver branches only. Right on the Money! 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