A sensible approach to investment plannin Russell Moldowai THE BOTTOM LINE IN TODAY’S financial world, the ever-expanding variety of investment prod- ucts available, combined with the technolegical sophistication to execute orders and retrieve informa- ’ tion often within seconds, have made investing relative- ly easy. However, investing wisely remains the trick. Investment opportunities have multiplied, but so has the time required to research them adequately, As a result, many investors may end up with an unfo- cused approach to investing. Many people know in 2 general way what they want to accomplish through investing: To send their children to college or university; to provide for their own retirement; and to increase their current inconie. Knowing what your financial objectives are is not heipful unless you can qualify them. For example, you might want to accumulate $50,000 for a university education by the year 2000, retire on $5,000 per month in 10 years, or increase current investment income from $750 te $1,000 per month, Without these types of numerical goals, you won't he able to sort through the investment choices or measure your progress. But quantifying your goals is not simply a matter of wishful thinking. The numbers must be realistic, which means you need to have a fairly good idea of your financial resources as well as your attitude toward risk, Only then can you decide on realistic goals. For one family, the goal of amassing $50,000 for their child’s university education might be real- istic, while for those with fewer assets, less current income or a lower tolerance for risk, $30,000 might be more reasonable. You may think you know what your present financial position is, but many people have only a vague idea of their own big financial pic- ture. The best starting point is to determine your family’s net worth. Though that’s a term that confuses many people, the process of figur- ing it out is quite simple. First, add up all your assets — the value of your home; cash assets, like chequing, cavings and money-mar- ket accounts; other investments, such as stocks, bonds and mutual funds; and the present value of profit-sharing plan. Then subtract your liabilities — mortgage, Joans and other debts, including such obligations as alimony and child support. The result is your net worth, Even if you calculate your net worth yourself, you could use the assistance of an expert to determine how much you can regularly invest and in what specific investment. If you have substantial capital to invest, you may want to visit a pro- fessional money manager, or to a fee-only financial planner (who may charge from several hundred to several thousand dollars for a detailed plan), or to an investment advisor, bank o7 insurance compa- ny. There are also computer pro- grams available designed to process financial plans. Luse an investment planning kit that analyzes detailed financial PROVINCE OF BC GUARANTEED COUPONS RBC DOMINION SECURITIES ANNUAL YIELD MATURING AUG, 2003 FOR MORE INFO & TODAY'S BEST GUARANTEED RATES, PLEASE CALL- 987-6600 Norti: Shore’s ONLY Full Service i investment Firm Suite #201-250 15th St. West Vancouver RATES SUBJECT TO CHANGE WITHOUT NOTICE information, and alerts me to any possible problems or potential pos- sibilities. This analysis takes into account your current and prospec- tive income, spending patterns, insurance requirements, retirement and estate planning considerations. Moreover, with ever-changing tax laws, investments that at one time were appropriate from a tax- saving viewpoint have to be con- stantly reviewed to see if they will still make sense under new legisla- tion. However you determine your financial plan it is important to real- istically assess your financial resources and apply them — sys- tematically and sensibly — to your 66 However you determine your finan- cial plan, it is impor- tant to realistically assess your financial resources... 99 investment goals. The Bottom Line: Take a good hard look at your investments and spend some time coming up with a plan for your retirement, for your children’s education, and for your retirement years. Enlist the help of someone who can assist you, keep- ing in mind that good advice is rarely ftee. Russell Moldowan is an invest- ment advisor in Vancouver, He advises on investment management and retirement planning. Call ar write to Russell at (604) 661-7475, P.O. Box 10342, Pacific Centre, Vancouver, B.C, V7¥ 1H6. Don't be fooled by high bond | and mortgage yields. 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Your first step toward financial independence is joining us at: NORTH VANCOUVER Tuesday, September 20th Lonsdale Quay Hotel 123 Carrie Cates Court 7:30 pom. BURNABY Thursday, Sepiember 221d Holiday Inn Metretown 4405 Central Boulevard 7:30 p.m. PS - Come and receive your complimentary investment package PPS - Time will be set aside for you to meet with Ted informally after the meeting. * NO CHARGE * NO RESERVATIONS NEEDED * ARRIVE EARLY