Know the ti EVERYTHING you do with your money involves risk. Even “sate” GICs and Canada Savings Bonds could carry the risk of loss of buying ~ power and inflation. Investment decisions arc highly personal and it’s imper- tant thar each investor find the right balance of risk and reward fer him or herself. If yowre 55 years old and hope to retire in 10 years or sooner, it may not be a good idea to stake your savings on a high-risk investment. In most cases you'd be better off stick- ing with less volatile invest- ments that are unlikely to leave you high and dry when you most need. your savin On the other hand, if you’re in your 20s or early '30s, you have more time to recover from an investment loss and may feel comfortable taking a higher tisk for the potential of higher rewards. Then again, if you are 30 wees’ ind are saving for a down pay- ment on a house while working to feed and clothe a couple of young children, you may not teel very comfortable raking a risk with your nest egg. When I was first learning about financial planning, a triend took me to a seminar held by a company that orga- nized real estate investment opportunities. Rerarn on the investment could have come in three years, or 10 years or, possibly, not at all. Because I di-in’t fully understand the way the investment was structured, I felt uneasy about becom- ing involved. 1 was aware of the risks and the potential rewards, but it just did- n’t feel right so [ lett it alone, I felt chen that until my investment skills and sense of control had grown consider- ably, I was unlikely to risk a large chunk of my money — and even less so borrowed rnoney — on a high- risk investment. The point is, indi- vidual investors have to decide what feels right to them, and how much risk they’re prepared to take and when. There is no one “right” investment for everybody. You Save money, HOLD on to hard-earned money by using RRSPs to reduce taxes. Depending en your annual income, the government takes anywhere from around 25% to just above 50% of whar you carn annually in income tax. By putting money into an RRSP you Suite 1440 - 1055 West Hastings St. Vancouver, VGE 2E9 ° Tel: 889-4065 SEGREGATED FUNDS: THE INSURED AND “GUARANTEED” MUTUAL FUND RRSP: AN ACRONYM MEANING PLAN NOW FOR RETIREMENT BY reducing your income tax, throuch ASP contributions, for of example, you automaticaily gain a higher rate of return. simply consider the various chotces — basically there are only four major areas: guaran- teed, stock market, revenue can save in two ways: an RRSP gives you an immediate tax deduction in the ycar you put funds into the plan and money you have invested in an RRSP can accu- mutate interest, dividends and capital gains tax free. As well, an RRSP is tax free until you begin to draw from it, no later than the property and a business -— and choose the one(s) that suit your personal and financial situation. Don’t expect something for nothing. If you want simplicity and safery, you may well have to pay more income tax, If vou want protection against inflation, you will probably have to take more risks and spend more time man- aging vour money. While there is no such thing as an absolutely “safe” investment, vou can come pretty close with things such as sav- ings accounts in major banks, Canada Savings Bonds (CSB), and guaranteed investment certificates (GIC). You can count on get- ting back your capital plus a guaranteed rate return (at least before you factor in inflation and income tax). However, there is a trade- off benween safety and after-tax rate of return. Generally, the higher the Photo submitted reduce taxes with an RRSP end of the year after vou turn 69. You must decide by the end of your 69th year how you will withdraw your funds. If you choose to transfer your RRSP money into a repistered retirement income fund, you can keep the same investments compound: ing tax-free, subject to the minimum amount you must withdraw yearly. rate of return expected from any investment, the higher the risk, and of course, the safer the investment, the lower the rate or rcturn. There are a number of ways to reduce the risk of your investment porttulio: 1, Diversify types of investment and countries ‘of investment. Don’t keep all your eggs in one basket. Murual funds are an’ excellent way to bring diversifi- cation to any investments. 2. Reduce income tax. By reducing income tax — through RRSP contributions, for example — you automati- cally gain a higher rate of return, 3. Choose a wide range of maturities for your interest- bearing investnents. 4. Invest for the long term. Long-term investments allow you to ride out the ups and downs of financial markets and still come out on top. 5. Get advice from 2 financial expert. 6. Hold foreign currencies as well as Canadian, either direct- ly or through investments with a foreign “flavor.” You know it’s not wise to hold only one stock. The same holds true for currencies. It is important to consider assets such as revenue property and life insurance as possible investment opportunities for a balanced portfolio depending on your own investment “tastes” (interests, skills, and management time availabie). Administration Fees Waived *Annual Administration iee waived for RRSPs and RRIFs $100,000+. 1st years annual adzuinistra- My philosophy is to invest using a balanced approach. Using the knowledge gained in the Canadian Investment Manager op designation, I can help structure a bal- by Richard Knowles A litle known and discussed financial product has existed for years fim with little attention until recently, the Segregated Fund. This investment is exactly like a mutual fund butbetter. Like mutual funds, it invests in stocks, bonds, and international investments. In fact, the same managers as the top performing mutual funds can be found managing their same funds as segregated funds. They differ, however in three important ways. First, they are fully creditor protected (assuming no fraudulent intent). Second, segregated funds are NOT probatable as all your mutual funds and other investments and rea! estate are. This saves a clear 1.4% to your estate. Third, they offer an incredible guarantee of your principle on death and d:ring your lifetime! This is not available in any form with mutual funds or stocks. if you do not have any now, you may discover your broker is not " . paid to sell them. If they are not properly licensed, they cannot talk about them. If you call your fund company they probably manage one but they can’t tell you. Want to know more? Come to booth £1027, Richard Knowles & Associates/ Equinox Financial Group at the Financial Forum Show (Canada Place Feb. 13-15) to discover these and other amazing financial products or call Richard Knowles & Associates directly at 889-4065 to receive free information. : “Great: Investment. returns - witl t b out. the e lor-made for your invest- . ment objectives. Please phone me on ways to maximize returns for a given level of risk. INSLEY’S INVESTOR INTELLIGENCE A catalogue of Investment ideas for growth oriented and high wealth individuals. ¢ Fixed Income Instruments (Bonds, GICs, Strip Bonds, etc.) ¢ Mutual Funds « Equities (NYSE, NASDAQ, TSE, VSE, etc.} ¢ Options For your free copy phone: (604) 668-1785 (24 hrs.. B.C.) or fax (604) 668-1816 Georei4 Pacific SECURITIES CORPORATION Peter Insley, sa tcon., cam FCSt Senior Investment Advisor hard Knowles personally at the Financial Forum Show Feb. 13-15 Come see hard Knowles / Equinox Financial Group Booth. al Canada Place al the Member of the Canadian investor Protection Fund Sponsored in part by ATRIMARK tatended for astobuten to resuteats of GC. tty