Simplic

ty key

when investing

Mike
Grenby

dollars

and sense

KEEP IT simple. And keep
records. That sums up Dale
Ennis’s financial planning
advice.

“You must understand what
you are investing in,” he said.
“Usually the more complicated
the investment is, the more it will
cost you in time and money.”

Ennis, 51, and wife Betty, 45,
both former teachers, launched the
Canadian MoneySaver magazine
as a home business in 1981. The

66 Avoid making
financial decisions
under pressure,
whether it’s buying
life insurance, choos-
ing a mutual fund... or
buying property, 99

subscription-funded publication

"has outlasted several competitors
and today boasts a circulation of
more than 30,000. (You can get a
free copy from P.O. Box 370.
Bath, Ontario KOH }G0.)

“If you agree with gurus like
John Templeton, Peter Lynch and
Warren Buffet. then you should be

_ investing in blue-chip stocks,”
Ennis said. “And the simplest
ways are through regular share

. purchase plans and buying stocks
that have automatic dividend rein-
vestment plans.” (DRIPs reinvest
your dividends in additional
shares of the company without
brokerage charges.) ~

Ennis started his investment
career far from the field of blue
chip stocks.

“T formed an investment club
with friends.” he said. “Each
member had to research and bring

to the table one stock recommen-
dation each month. The club
would then decide whether or not
to buy.”

Although a very speculative
penny stock came as a hot tip, the
club decided to buy. After some
movement on the Vancouver Stock
Exchange, the price collapsed. “]
had to report each month on its
demise.” Ennis said.

The investment club disbanded
after about 18 months and every-
body forgot about the stock —
“unti] Peggy Witte made the offer
of one share of Royal Oak for a
number of these “worthless” silver
mine shares. When we heard
about this, everybody who had
kept their certificates decided to
sell and there was enough money
to buy all of us and our spouses
an evening on the town.”

Ennis cites another example of
the importance of keeping
records.

“YT make my RRSP contribution
at the beginning of each year for
the current year, but usually don’t
get my official receipt until about
14 months later.” he said. “One
year, when I was doing my tax
return, J found the receipt hadn't
been issued.

“The trust company had no
record of my contribution. But
because | had my initial receipt, |
was able to negotiate an appropri-
ate interest rate. Always ask for
and keep a proof of payment.
deposit and so on.”

And avoid making financial
decisions under pressure, whether
it’s buying life insurance. choos-
ing a mutual fund, buying proper-
ty or investing an RRSP contribu-
lion.

“If you are up against an RRSP
deadline, for example. put your
money into an RRSP money mar-
ket fund and then decide Jater how
to invest that money.” Ennis said.

Mike Grenby is a North Shore-
based columnist and independent
financial adviser who works with
individuals; he will answer your
questions in this column as space °
allows - write to him clo 2444
Haywood Avenue, West Vancouver, :
B.C. V7V 1Y1.

BE YOUR
OWN BOSS _|
ISUCCESSFULLY!}

Learn the basics to start
your own business.
Day and evening seminars
from $100
Call BUILDING BLOCKS
To BUSINESS SUCCESS
986-7302

CLEREC RT Co REO EYED

COMPUTER

|
CONSIGNMENT

Bring in your ota
computer for
consignment -
No appointment
necessary.

Shop early
for best
selection!

- 3
P.C. GALORE CONSIGNMENT ETD.

VANCOUVER'S FINEST COMPUTER CONSIGNMENT STORE : fey

125 Lons¢iaie Ave.

930-0547

Ron. to Thurs.10- 6; Fri. 10-9;

2736 Wi. Ath Ave.

732°98%

Sat. 10 - 5:30

SE VOILE ANT a RETR RES A WTO RULE Aa BING ASS EOD AIRE CF

NLT Li RTT E TT Na AES SEINE IS ENT TOT EELS,