Nike

money matters

STRAIGHT answers on loans, gifts and statements:

@ compare loan cost’ with investment return;

Bi giving away money can

a taxing matter;

@ monthly statements should be no problem.

“This is my second mar- riage and I have never told my husband about a $31,000 so-called ‘sma loan’ on which I am paying only the interest. TF own our house which [ pian to sell eventually and move to something less expensive.

“Should f cash in part of my $200,000 investment portfolio now to pay off the debt? I work but find it hard at the end of the month to pay out any more after everyday expenses.” — I.B.

if (1) the after-tax cost of the loan is more than the

ing sound advi

after-tax income /capital gains of $31,000 of your investments, and (2) the tax and other costs of cashing out aren’t too high, pay off the loan. Otherwise, wait until vou “move down” and review the matter then.

424

“Are there any gift taxes in Canada?” — E.B.

No. But if you transter certain assets to somebody else, vou might have to ¢ Income tax (see tax bulletins IT-510 and IT-S1IR).

For example, if you trans- ter investments like stocks, mutual funds, revenue prop- erty and probably a holiday cottage to anybody other than your spouse, and if those assets have increased in value while vou owned them, you must declare the capital gain.

If you give any money or assets to a spouse, you must still declare the income and capital gains produced by that money unless the money is invested in the spouse’s business.

[If you give money toa child under 18, you must declare interest and divi- dends earned by that money; the child declares capital gains.

ice

aaa

“My wife and [ have con- solidated all our RRSPs and other investments with a large investment dealer. But the statements we receive aren’t summaries and our rep says the best we can hope for are quarterly sum- maries. Am [1 unreasonable in expecting something monthly?” — G.H.

With today’s computer capabilities, the company should have no trouble pro- viding detailed monthly summaries showing any transactions during the month, the original cost of your assets, the month-end value, a percentage break- down of the different types of stocks and bonds, and so on, The company’s policy might be quarterly state- ments if there have been no transactions during the month. But as long as portfolio is a reasonable size, you should be able to arrange for monthly reports.

-—- Mike Grenby is a colum- nist aud independent personal financial adviser. Contact: BO. Bax 50029, Sauth Slape R.P.O., Burnaby, B.C. Vat 5G. e-mail <mike@ arenby.com>.

Online training expands

From page 15

News that it expects sales to expand about 30 per cent this year, outpacing the industry's average of 25 per cent. Online training: this is also an area that [ve watche

grow throughout the last six months. The training market in North America alone is a $60 to $95 billion industry.

And the online component of

the training sector is still in its infancy. — West Vancouver resident

Geaf Wheelwright is Chief Operating Officer at <Investment.com>. Wheelwright bas more than 18 vears of experience in working with technolagy companies, newspapers, magasines, book publishers, TV and radio.

Software plus

GARY Hee, of North Vancouver-based Paramount Computers Ltd., led a seminar at the Holiday Inn last month during a forum held for software and hardware

developers and vendors.

and restaurants in your neighbourhood.

NEWS photo Terry Peters