‘2 Basic financial strategies Fe IT’S FEBRUARY, and the topic is RRSPs — the tax breaks, con- tributing regularly, borrowing if you don't have the moncy. That might sound familiar, but I'm looking at a piece 1 wrote on registered retirement savings plans -—— in February 1973, . As this column celebrates its 20th anniversary, [ want to thank you readers, editors and advertis- ers for all your support over the years. | thought it would be inter- esting to look at some financial things that have, and haven’t, changed. Here are highlights from the first couple of menths of: @ 1973: You could deduct the in- terest on loans taken out to make RRSP contributions, one of the few breaks we've lost. The only way to turn an RRSP into retire- ment income was to buy an an- nuity; mow, you can also choose the flexibility of a registered retirement income fund. My first column encouraged people to shop around for the best rates when they needed to borrow and: to consider a fuliy secured demand loan at 6% to 7%. (vir- iually the same as today’s rates) rather. than a staadard consumer ‘loan at about double those figures. - @ 1978: The debate of whole ver- ‘sus’ term life insurance was flourishing -- again,.as it still is today. New policies have been in- ‘troduced over the years, but the conclusion ‘remains the same: ‘make sure you have enough coverage for. your dependants’ ‘needs; then ‘look at the most. ef- fective way to provide this -coverage for as long as it is need- ed, , oe Reader . Chuck. . Alverson - told me: “Being a landlord isn’t a quick way to make money — but from what I’ve learned after in- vesting in my first property, I'll invest in this field again.'’- Author Betty Jane Wylie advised wives to learn about the family finances — and. widows to “yelp a little, ask for help, sound off?’ as they learn to cope on their own, _ The idea of a ‘‘reverse mort- gage’ appealed to some home- owners who wanted to draw an income -based on the equity they had in their hom +s, but financial Baird named to join B.C. Film board _ of directors A WEST Vancouver woman has been appointed to the BC Film ‘ board of directors. Nini Baird, who is director of general education programming ' for. the Knowledge Network, was one of nine new members. to receive the appointment. Culture Minister’ Darlene Mar- zari said the expansion of BC Film’s .board reflects the govern- ‘ment’s commitment to “work more closely and responsively with the industry,’’ and recognizes BC Film’s role in enhancing the pro- vince’s indigenous film and TV sector. Baird has devoted more than 25 years to the management, promo- tion and funding of the arts. She received the Queen’s Jubilee Medal in 1977 and was named a Member of the Order of Canada this year. ‘ ain sar Rs el institutions were unenthusiastic. “You can’t be sure the home- owner will be dead when the Mortgage runs oui and must be repaid — and I'd hate to be ask- ing a 95-year-old widow to move - out so the house could be sold,” said one leader. That problem has been solved and today the pro- gram is slowly growing. By 1978, savers and borrowers were used to shopping around for the best rates and deals. One RRSP comparison table showed $1,600 invested in Industrial Growth mutual fund five years ago now would be worth $2,601, while $1,000 put into Pension Mutual would have dropped to $688. @ 1983: ‘The key to investing in the °80s is. flexibility — the agility to shift directions as circumstances change,’’ said the financial ad- visers Henry Zimmer and Jeanne Kaufman. There is no single right answer; you must feel comfortable with the investnients you choose. Borrowers found they could pay off their mortgages very quickly if they continued with the payments ie for the °90s they had been making on a 17.5% mortgage which now was being renewed at 12.5%. Canada Trust became the first major Canadian financial institu- tion to charge a user fee ($1 a month) on Visa/MasterCard; it was aimed mainly al people who paid off their accounts each month. The Canada Deposit insurance Corporation limit was tripled to $60,000; the $20,000 limit had been in effect for 16 years. @ 1988: Canadians were urged to save more money on their own to provide fer retirement as the fed- eral government looked ahead to dealing with its ever-increasing debt. People considered ethical in- vesting. This $1,600 investment income deduction was no longer available starting with the 1988 tax year. Some experts predicted inflation, others predicted depres- sion. Home-based businesses were growing in popularity and gov- ernment support. ® 1993: Many conditions have changed but, reassuringly, most of the basic strategies remain the same: pay off debt, save/defer tax, diversify your investments, balance saving with spending. 1 hope you have fared well over. the past 20 years, personally and fi- nancially, and the future will treat you even better. You might like to write in your own bottom line (personal — your quality of life — as well as finan- cial) against each of the dates above to help review your pro- gress. ; Mike Grenby is: a North Shore-based columnist and in- dependent financial adviser who works with Individuals; he will answer your questions as space allows — write to him c/o The North Shore News, 1139 Lonsdaie Ave., North Vancouver V7M 2H4, BBC Dominion SECURITIES Is PLEASED TO INVITE You To THIS SPECIAL PRESENTATION RSP RATESHOCK! Wuat To Do Wirn Your RSP mw 1993 IE You; | * are not satisfied with current rates be.ng offered, | * have funds maturing in GICs or your RSP and you want a higher:rate of return, or * arc looking tor some unique growth opportunities SPECIAL GUEST SPEAKER Mr. Jim Allworth, Vice-President Vice Chairman, Suategy Committee, RBC Dominion Securities (24 ycars in the investment field Date: Wednesday, February 10,1993 Time: 7:30 PM FLACE; International Plaza, Presto Catering, Squamish Room 1999 Marine Drive, North Vancouver Nole: Admission to this special meeting is free, but as seating is limited, pre-reg- istration is requested. To book your place, please call 925-3131 RBC DOMINION SECURITIES MEMBER OF ROYAL BANK GROUP Wednesday, February 3, 1993 ~ North Shore News ~ 35 Sale by Tender Q-818 2-°82 Chev Malibu Wagons 3-782 & 6-°KH Dodge Aries Sedans 2-'81 Ford Fairmont Sedans 1- ‘87 Reliant Sedan (Not Running) 1-*74 & 1-°74 Chev Walkin Vans 2-780 Chev Walkin Cube Vans 1-844 2-86 Chev Pickups 2 on Propane) 3-°86 Chev Vandura Vans (2 on Dual Fuel) 1-'86 Chev Pickup 4x4 1-°86 Chev S10 Blazer 4x4 2-°87 Chev Blazer 4x4 1-°76GMC Vandura Van 1-°76GMC Walkin Van 1-°62 GMC 1 Ton Flatdeck 1-'84GMC SIS Jimmy (2 Wheel Drive) 1-'&) & 6-*84 Dodge Tradesman Vans NOTE; VEHICLES ARE “AIR CARE TESTED”, 1°81 Dodge 12 Passenger Van 1 - °86 Dodge Caravan 1-°75 & 1 -°S0 Ford F350 Flatdecks 1-°77 Ford UTRUO0 Flaldeck with Crane 1-°79 Ford C8000 Linetruck with Digger Derrick 1-°79 Ford FA00 Flatdeck 4x4 with Folding Crane 1-82 Ford F350 Flatdeck with Power Tailgate 1-°78 Int’! 5000 Flatdeck 6x6 with Crane 1- ‘81 Int'l S1824 Flatdeck dad 1-84 Int'l $1900 Linetruck with Digger Derrick 2 - ‘87 Nissan Kingcah Pickups 1-°74 Petebone 407K, 20 Ton Crane Truck -°75 Case 850 Crawler Loader Backhoe 1-°78 Wayne CI6T Chipper Location: B.C. Hydro Disposal Yard, 12251-88th Ave., Surrey, B.C. Inspection Dates and Times: Saturday 06 February, Sunday 07 February and _ Monday 08 February, 1993 from 9:00 a.m. to 3:30 p.m. Mechanics will be available to start vehicles where sequired on Saturday and Sunday ONLY, Salc is “as is, whe is," and subject to B.C. Hydro Conditions of Sale, All tenders due in the office of Disposal Agent, 12345 - 88th Avenue, Surrey, B.C. V3W 5Z9 by 3:30 p.m. 08 February, 1993. Please quote Reference No. Q-818, Chydro & bo We MINIMIZE @ - LOAN tate.s0. 30 CAN MAXIMIZEsRRSP eee eer reer rrr rr irre rrr) ’ If you don't have the. cash to make the highest allowable | contribution to your RRSP, consider an RRSP Loan from Montreal Trust. At 1% below our prime rate, it makes sound financial sense. The tax savings and the fucure value of your RRSP * contribution will far ourweigh the cost of borrowing,’ Loan payments are automatically deducted from your Montreal Trust Money Master account, a high-interest savings/chequing account required to receive this attractive loan rate. Ask your Montreal Trust RRSP Specialist for ail the derails, ste MONTREAL TRUST - 1 Xk Ko Minimurn loan is $500 and is subjece to normal Montreal Trust credic guidelines. Rate subject ta change without notice. 1524 LONSDALE AVE. N.VAN. 1586 MARINE DR. W.VAN. 980-3355 926-4365