Shift. investment focus Russell Moldowan THE BOTTOM LINE AS INVESTORS and depos- itors get older, their focus should shift from stocks to fixed-income investments and more and more te get- ting regular, guaranteed income. The alternatives available to income-oriented investors include: Annuities, GICs, Dividend/Bond portfolios, MBSs, and some pecial Bonds. . oeeanuities allow investors to ensure they. will get income every “" month fora ‘set term or for life. - «If it is:a life annuity and it is: . insured, the principle will be ‘retumed to a beneficiary upon death. Théré is'a tax advantage to" . annuities’ in: that i it is assumed that: . some of you principal is returned - with eac! ‘all of your income is 5a elng The /*. payments.. AsI menii nips ina recent arti- ent at 8% will pay e rate of interest ments but again you give up con- trol of your money for a certain sand bond portfolios are "best -putitogether by an investment adviser, fas the expertise and : “ensure ‘your goals are JHave you aver siuck a quarter ain someone elss’s mete! as the mater maid was approaching, lust to help tham aut? BRandom Acts of Kindness sto- hi ties offer a rellef from the mun- dane and negative daily news. 7 Share your stores and you may be our monthly winneil Or Just stan to the stoslas of others. he call costs $2.49 par minutel : ind is automatically added tof f your monthly phone bill. All yous {nged Is a touch tone phone! Make Someone's Day! 1-900- 451-4833 § ttionthly payment, so not Most bonds pity interest twice a year, so by finding six bonds, each paying interest in a different month, you can getaregular income, Dividends are usually paid quarterly so fewer securities are necessary to get the monthly. income. } suggest having about six different issues. The limitation with these portfo- lios is that they do not have the’ sane level of safety as other invest- ments and though the returns can be greater, so are the risks, The grentest tax advantages can be had with dividend paying investments and a knowledgeable investment adviser can put a suitable portfolio together for you. * I have covered Mortgage-Backed Securities in the past, and they remain among my favorite invest- ments because they are fully guar- anteed by the government, there are many different issues available, and the returns are very good. As with annuities, MBSs retum some principal every month. If chosen wisely, there can be an extra capital gain at maturity, which will! be taxed at a much lower rate than the monthly income. Recently, there have been some government bond issues that pay interest every month. These are by far one of the best STARK ways to get good returns and still have liquidity and flexibility, Not every one needs monthly income; there is a slight reduction in the rate of return you can expect if you choose a monthly-pay investment, _ Keep in mind that if you don’t need monthly income, don't invest for it . But if you could make use of it, there is no better way to meet your needs. On purpose, f have skipped mutual funds since they are not true monthly-pay investments, The best way for investors to investigate their alternatives is to establish a relationship with a qual- . ified investment adviser. Almost all of these investments are available only through investment dealers; banks, trust companies, credit unions and mutual fund dealers are not able to consult in these invest- ments. The Bottom Line: these invest- ments are best suited to investors who need monthly income, have investments outside of ar RRSP, and are conservative. Russell Moldowan is an invest- ment adviser in Vancouver. He advises on investment management and retirement planning. Call or write to Russell at (604) 661-7475, P.O. Box 10342, Pacific Centre, Vancouver, B.C., V7¥ 1H6. KIRST] -MACLISE “Over Thirty Years Combined Experience” Authors eof 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 9.12% ONT. GOVT. BONDS.,,.. 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