Page 6, January 17, 1979 - ~ North Shore News

From rags to riches via ‘the

_ The financial wizards have come up with a.
great new idea for enabling Joe Lunchbucket and

Willie Whitecollar to make large amounts of

‘money: simply borrow the stuff and rent it out at a
profit. The theory — long familiar to all red-

_ blooded entrepreneurs --

has now been refined for

use by us ordinary mortals as ‘well, however
. modest our bimonthly pay cheques.

For the dullards amongst _

by_ someone else’s money.

“us, the way from rags to -
riches via the moneylender

- It's heady stuff.

-—_was~—explained recently by
the keynote Speaker at a
conference © of major
financial institutions. He was

‘talking about an exciting
new concept for the 1980's
called “investment debt”.

an

. “Investment debt is

—The -plan--has—a—classic”
simplicity. You borrow

money at-an interest rate -

equivalent, say, to eight per
cent. You invest it at 12 per
‘cent and make a profit of

“four per cent, which is very

nice. With an annual in-
flation rate of nine per cent,
in fact, it will enable you to.

he is quoted as saying, “and
is no_ longer
something negative. Because
of inflation, people - are
looking for new ways to
make money with their
savings ... I think
average individual. and
family in the 1980's will have
the confidence to embark on
investment programs based
on borrowing.”

Not just MacMillan
Bloedel, Domtar or
Canadian Pacific who've
been doing it for years,
-you'll note. Henceforth it
will also be “the average
individual and family”. You
‘and IT and the little women at
-home getting supper ready -
all of us with our lucrative
investment programs funded

a

Record
loadings
on B.C.R.

the —

recoup almost half your lost

seen -as——SPending power each year.

Companies, the speaker
pointed out, are doing this
all the time. They get a loan

to launch .gr expand their
businesses pwaste a profit
out of their investment after

paying their expenses. So
why shouldn’t ordinary
employed individuals
exactly the same approach?
Money, after all, is only a
commodity -- no different,
really, from baked beans or
ballpoints.

Idealistic, forward-looki-
ng schemes of this kind, of
course, .always run up
against a handful of negative

thinkers before they finally -

take off. Such a one, alas, is
my friend Gloomer.

“Where,” he asked, “do
you borrow money at eight
per cent today?”

“You don’t, ” I replied,
“You borrow it at 12 per

Anyhow." continued
-Gloomer, “what happens if

— --the---income~ -tax --people

change the rules like they're
always doing, so that you
‘can’t deduct your interest

payments any longer?”

“They'd never do that .
‘at any rate, not until. after
the election.”

__Gloomer pressed on

-keep pace. Fo-get-that-kind—

somewhat primly, “you'll : “A: e
have to pay back the loan. A~~pare

Of |: pz
deal’sadeal.”.  .... - va —-interest?”™ Presson
_ “You must be erazy?

a
‘ “With inflation at nine per
cent,” Gloomer persisted,

per cent for your loan you
need an investment a one
at least 17 per. cent ‘just to

+Gloomer. He has this.
fashioned notion: that-

of money you'd probably
have to invest your loan at

regardless. “How can you be
sure you'll make more
money with the money
you" ve borrowed?”

; va

“Because the bank or trust
company or credit union
where you borrow will
advise you on the.soundest

Noel Wright

_ cent and deduct the interest
from your income tax. Then,
as the speaker said, if you're
in a 33 per cent tax bracket
the loan will actually cost
you only eight per cent.”

use -

“You have to be earning
nearly $25,000 a year to get
into a 33 per cent tax
bracket,” -said Gloomer.

“Nearly $27,000 if you're -
~married and supporting your-

wife.”

“Well ... lots of people
earn that nowadays.”

“Lots of people don't. I
thought this was a scheme
for everybody.”’

“Jt can't exactly be a

scheme for everybody.

- Obviously, you have to start

with a certain amount of

money beforé it makes sense
to borrow to make more.”

Carloadings on the British
Columbia Railway in 1978
reached an all-time high.
Loadings for the year totalled
154,850, up from the pre-
vious record of 152,597 set in
1977.

Carloadings in December
totalled 10,536, an increase
of eight per cent over
December, 1977, when load-
ings totalled 9,736.

Traffic which moved in
greater volume this Decem-
ber, compared with Decem-
ber, 1977, included lumber
eastern rail, woodchips and
export woodpulp.

Retailers: expand your
shop window!

133,232 people on the
North Shore could see
this message.

it Gould be your ad.

Call display advertising
980-0511

cee ene ant eA LNA

“investments to make and

keep an eye all the time on
how you're doing. In fact,
they say you probably won't
even have to put wp your
home or other assets as
collateral for the loan.”

“In that case, why will
they bother to lend you the
money to invest in the first
place? Why won't they
simply invest it themselves
without going to all the
trouble of using their
customers as middlemen?”

“Because they want to get-
as many people as possible |
into the investment act. The
‘the -

more people invest,
healthier the economy.”

_“O.K. But what happens if

— after all their advice and
guidance -— you still lay an
egg and lose the money
you've borrowed to make
money?” »

“Naturally,” I replied

All week, January 22 to 27, you won't find our advertised
baby buys for less anywhere else in town. If you do, we'll
refund the difference to you. Shop in person or call

Eaton’s Buyline for our baby specials ...

while they last.

And remember Eaton's Baby Furniture Sale tasts yntil
January 31st. So, keep an eye out for all the specials.
They're guaranteed to save you money.

EATON’S BUYLINE

669°2111

Exhibition Park — or with ae
Loto Canada. Wouldn't it-be - .--.-.-.. —*
simpler to put a few bucks of |
your own into a nine per
cent term deposit?”

for
PERSONNEL
NEEDS _=

_Maureen Stirling
REP...

Syivia Gowans; MGR

When you have a job:
to fill, Office Assistanc
does the job for yo
il providing qualified effective

. _people. Permanent or Temporary, our only
job is to obtain the right candidate for your .
on opening, in the least amount tof time. —

: “Personnel
1 Ney Ps 40 W. 15 Street, North Vancouver

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