28 ~ Wednesday, May 11,

1988 ~ North Shore News

SOME PEOPLE thrive on risk. But most don’t — as this reader points out .:2and..wonders if he is a fool to be so

cautious. "

“} have a good. education, hold an average job and always. live _ within my means,"’ he said.

"| have saved a ‘good’ sum of ‘money over. the years. My car is _paid for and ji co-own a house. Obviously, I have no moncy wor-

' ries. Or do 372?

This _man,: ‘who asked not to be

identified,. said he has never’ in-

vested in anything more risky than. °

- guaranteed investment certificates, ‘which he holds’ both inside and “outside his RRSP.

Py always wondered if “my money is working hard enough for me,” he said.

=A"] have read about XYZ mutual

© funds that have ‘proven’*yields of “ 1§ to 20 per cent, plus the benefit ~ Of tax-free: capital. gains.” And .1 : know the: stories of people ‘who

e on make tens of thousands of dollars -

+ in -just'a “few years, buying and ‘selling real’ ‘estate, (and also collec-

“My very own sister-nas told me many times if: only “1 had more : brains (in investing), I would make _*@ lot.more money and not have t to

“work nearly as hard.”* Th he probably never

ything other than” “and ne hardly. even. buy a:

that extra energy would then shift

to managing your investments.

You must: choose the moncy- -

generating activities that produce the highest. return for your in- volvement — which implics you

have studied the pros and cons of |

the various options.

Let me give you a personal ex.

_ample.

At the moment, I ama very low-risk investor. — because I have just taken a very high risk in another arca.

After 25 years in a secure news-

paper job, |

speaker and- individual financial adviser.” ” At that time, I shifted my i

“vestments into low-risk categories

for two main reasons: '

(1) Until my: business: become established, 1 am unwilling to risk any financial loss. of’: my

savings -~ even if. I must pay for: safety. by» accepting « only .

that nominal growth.

(2) Although my job‘ gives me “insights into the various investment® ' fields, building my business prom--

ises a higher return for me at this

time -than aggressively : “managing,

my investment portfolios. — . 4 ~ Once I feel the business is com- ‘ fortably | established,

Bur “they. forget “that not everybody wants to be rich or at

_Igast not. everybody is} ‘prepared 0 » take the risks involved.:: :

Commented, Don: Pooley, 2

Wy.C System ' Etectronics; Mechanical Deca Biological “Sciences; Chemical Sciences, Mining, Petroleum, ‘Plastics, Wood Products + Manutactiring, Renewable | R

K to. you about career training and :

“employment opportunities ry

tout available for September. (es most. Brograms)

“May 3t:and June 01. 5 pm- 9 pm “4 ‘ ‘ACtivi Centr x watch for, the"

about

“has

1. will then : consider: devoting more effort: to: ' the investments, = = ; Some: financial ‘advisers “say you" _ must take" risk’ to. get’ tich. ‘That's : true.’

BusINnESssS

Vancouver financial adviser who is.

past-president of the Canadian Association of Financial Planners’ Pacific Chapter and publishes The Low Risk investor (for details this monthly newsletter,

some money invested in the stock market, for example, stick with mutual funds which have a long history of above-average perfor- mance. .

“On the other hand,

dollars

and sense

started my own «gg business as a freelance journalist, -

‘Vancouver, B.C... V6M 1H5): .

“Ask yourself if you really need the higher reward and if so, are you willing to take on the. chigher risk?

write. Pooley at ‘7849 West 35th: Avenue,

TE vou feel you. ‘should have.

Mike Grenby

thought of losing even one cent will cause you to lose sleep, stick to’ Canada Savings Bonds and

» selected GICs.”"

» Also heed Gordon Pape, a

Toronio. broadcaster who has just. ‘written a-book entitled Building

Wealth (Prentice-Hall, $14.95). He

e oe “GUARANTEED Rates: “Guaranteed Term Deposits $100,000 +. lea” 180 - 364 days Q

GUARANTEED RATES

“*Guaranteed Term, Deposits +

$5,000 +! 270 -'364 days’ ©

VARIABLE RATES © - & LIQUIDITY | "Total Money . > © “Market ‘Account . 50,000 +

lorth Vancouver: 1407 Lonsdale Ave. = 25

if the |

outlines these basic principles:

* Establish “an attainable yet challenging objective. Sct the amount and time frame.

© Keep things simple, Tf -you don’t understand an investment, don't put your money into it.

© Start ‘your investing “with a small amount of money. Commit more as you gain confidence and skill.

-» @ Don't be afraid to borrow to invest. But realize the risks, and be able to cope if things go wrorg.

© Choose investments you enjoy.

© Be prepared for losses a8 well as profits, - ‘

© Get started — even if you in- vest only $5 a month. To pay off, investing must become: a habit.”

Do you have 4 financial or con-

Sumer Guestion for Mike? Or a =. | story -you. think: should ‘be in his.

column? . Please write to. Mike Grenby, North Shore: News, 1139 , Lonsdale, North Vancouver’ V7M ©

. 2H4. Mike . cannot » reply in-

dividually but will answer as many.

- of your letters as possible. through ‘ The North Shore News. : tie, 3