26 - Wednesday, December 2, 1987 - North Shore News

MARKET CRASH LESSON
Too many investment risks are chancy

THE OCTOBER market crash made people realize how
easily they can lose their balance if they climb too high up

on the risk-reward pyramid.

Dale Ennis, publisher of the
Canadian MoneySaver, said here
the market collapse served as a
valuable reminder that when you
invest, you should never take risks
you cannot tolerate.

Ennis was on a tour to promote
the new edition of Guide to Mak-
ing Money, written by the editors
of the MoneySaver ($9.95 in most
bookstores).

dollars and
sense

by Mike Grenby

The Canadian MoneySaver
- started out seven years ago as an

eight-page newsletter dedicated to
helping ordinary Canadians save
and manage their money more ef-
fectively.

Today, the magazine has 32
pages and a distribution of 20,060
nine to 10 times a year.

(If you'd like a free copy of the
MoneySaver, which sells for $2.75
an issue, write to. P.O. Box 370,
Bath, Ontario KOH 1G0).

From his experience, Ennis
outlined the most important
guidelines to help people feel better
about their personal finances.

*WHAT, WHEN, WHY:
Decide on your goals and objec-
tives — write them down — but be
specific.

For example, instead of saying
you want to save money, put down
‘how much you want to save (for
example, $1,500) by what date (Ju-
ly 01) and why (for a specific holi-
day — write down the details), and
how you plan to save the money
(starting Jan. 01, have bank
automatically transfer $250 a
month into a special holiday sav-
ings account).

© FINANCIAL SNAPSHOT:
Identify your financial position by
listing your assets (what you own)
and your liabilities (what you owe)
. The difference is your net worth.

Do this annually and compare
the changes year by year.

" PROFESSIONAL -
FINANCIA!-BLANNING

Our experience and§
expertise enables us to &
design programs for your
piesent & tuture goals.

Cail Cliff Garrett

Office: 681-5411

Res: 926-4461

The Manufacturers Company

Licensing as required by law
> held by the Mi: caucachurers | Life,
"f

e WHERE DID IT ALL GO?
You must know where your money
goes befcre you can change
anything.

the interest charges) or put enough
aside each month into a reserve to
cover the big bills.
*KNOWLEDGE PAYS:
Understand the factors that affect
your money, like inflation, com-
pound interest, your marginal tax
rate, competition among financial
institutions, changing economic

PRIORITY/INVESTMENT PYRAMID

Art
Gems

Options
Warrants
Commodities
MURBs, Collectibles

Films

Precious Metals
Preferred, Common Stocks

MEDIUM
RISK

Property, Mutual Funds
Bonds, Mortgages

Registered Retirement
Savings Plan (RRSP)
Canada Savings Bonds (CSBs)
Guaranteed Investment Certificates (GICs)
Treasury Bills, Term Deposits, Cash

Home

Debt Control

Insurance
Necessities (emergency fund)

Use past records or get receipts
for everything you spend and put
them into envelopes for groceries,
eating out, entertainment,
clothing, car and so on. Keep track
with an account book or computer
program if you prefer.

Do this for several months ini-
tially, then perhaps carry out a ’
spot check once a year.

© WHERE WILL IT ALL GO? .

Plan ahead. Using your categories

for past spending, write down a

month-by-month cash needs
forecast. ;
List all regular expenses but pay
particular attention to the ‘large,
irregular items (annual insurance
premiums, holiday spending, etc).
Subtract each monthly - total
from take-home pay plus cash on
hand. To avoid shortages, cut back
on discretionary spending (perhaps
eating out, holidays, clothing),
borrow (if you would rather pay

“Your Money Counts ...!”

A monthly commentary on economic and market
conditions that is informative and educational.

Write or call today for your free copy.

Name

i

Address _:
Postal Code

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Telephone

Od!um Brown Limited
1800 - 609 Granville Street
Vancouver, B.C. V7Y 1A3-:

Your money does matter

RICK SALES ° DAVE JILES « PETER ROBSON
6 a.m. to 4 p.m.

(604) 669-1600

ee en

conditions. Read, take courses and
ask questions.

* DOWN WITH. DEBT! Pay

off consumer, mortgage and all
other non-deductible debt.
Remember, if you are in the 40-

per-cent tax bracket, paying off.a ©

1$-per-cent loan is the same as,
earning 25 per cent on an invest-
ment.

¢ INVESTIGATE, THEN IN-
“VEST: List as headings the follow-
ing key factors about each invest-

FINANCIAL
PLANNING

“I can help you”

JANE DAVIES

926-7516 (Res), 684-3111 (Bus.)-

Regal Capital Planners Ltd.
#100-1525 Robson St., Vancouver, B.C.

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ment. Then make notes under each
heading — and ask if you don’t
know what to write.

The headings: safety and_ risk,
the return (after inflation and tax),
liquidity (how easily and quickly
you can get back your money),
term (how long you plan to hold
the investment, related to your
personal and the general economic
situation), tax implications (how
the income or growth will be tax-
ed), costs (how fees, commissions
and other charges are taken).

Sg

The federal government has an-
nounced it will investigate bank
service charges. NDP MP John
Rodriguez said banks have up to
160 different service charges; the
banks said they operate on a
user-pay system.

But you don’t have to wait for
government action — which might
never take place anyhow.

Just remember many service
charges are negotiable. Depending
on how badly a financial institu-
tion wants your business you can
bargain for lower or even no ser-
vice charges. But you must ask, for
such breaks are rarely offered.

Do you have a financial or con-
sumer question for Mike? Or a
story you think should be in his

CANADIAN
publisher | Dale
your debts.

MoneySaver
Ennis...pay off

column? Please write to Mike
Grenby, North Shore News, 1139
Lonsdale, North Vancouver V7M
2H4, Remember to include your

phone number in case Mike needs -

to contact you.

Mike cannot reply individually
but will answer as many of your
letters as possible through The
North Shore News. °

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AGE a _

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