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stux wek0etitovatem2f94 f11 provincial saving bonds will compete with csbs the ontario government has decided to join seven other provinces and sell provincial savings bonds that compete with canada savings bonds term deposits gics and other investments the questions obviously are why and are they worth buy ing the first answer is obvious governments everywhere in canada are short of cash if they can raise some extra cash from those who live in the province it reduces the amount they have to get from foreign ers the second question though is a difficult one for every province they have to com pete with the might and power of the canada savings bond campaign each fall that might explain why ontario has decided to start the sale of their bonds in january during january and february everybody looks for investments to use inside their rrsps federal and provin cial government bonds includ ing these qualify for inclusion in self directed rrsps however because self direct ed rrsps usually require a 100 annual fee ontario has asked ottawa for a ruling to allow a single purpose rrsp it would include only this type of bond other financial institutions already have received permis sion for similar rrsps that hold only gics or term deposits so theres little reason why the provinces shouldnt also be able to do the same the real question though is whether provincial bonds of this sort are worth buying safety wise they are at the top of the heap i am absolute ly convinced that ottawa is going to cut back on the 60000 canada deposit insurance limit we presently enjoy we cannot afford to bail out the financial institutions that are failing some of the burden will be passed on to us say after the first 25000 if that happens those who really worry about the safety of their money will head for csbs and provincial bonds where there are no limits on the guaranteed amount in the pecking order of things the federal government is always going to be the strongest however most people dont realize that provincial debts are automatically covered by the federal government as a result these provincial bonds will be just as safe as csbs what about cashability csbs have always been recog nized as the best savings veh cle when it comes to cashabili ty until now most of the provin cial bonds have been just as liquid i suspect that in the future provincial bonds will be as liquid maybe even more so than csbs if only to get local savers to buy them rather than canada savings bonds generally speaking though provincial bonds should pay a higher rate of return than fed eral bonds as a result they should be your money brian costello more attractive than csbs especially when you consider that they are effectively guar anteed by the federal govern ment however when it comes to deciding which investment is best for you it isnt always the safety of your money that rules most canadians realize that the higher the degree of safety also equates to a lower yield in other words if you want a decent rate of return you have to invest some of your money into investments that historically produce a higher rate of return because they include some degree of risk historically that means stocks mutual funds real estate investing in businesses and other similar investments there are some investments though that are fully guaran teed but also usually offer a higher rate of return than csbs or provincial bonds the first group include typi cal government bonds they are sold by the billions of dol lars each year the brokerage community breaks them down into smaller amounts and sells them to individuals pension funds and mutual funds they can be liquidated easi ly are fully guaranteed by the federal government with no maximum and generally have to pay a more competitive rate a similar type of provincial bond usually pays a higher rate of return and there are also government guaranteed bonds issued by utilities like hydro that pay an even higher rate of return the drawback to these bonds is that you normally need to buy these bonds in the thou sands savings bonds are available in much smaller numbers there are lots of other alter natives that provide a degree of safety but one in particular is growing in popularity its called a mortgage backed security or mbs this is a pool of government guaranteed res idential mortgages we all know that mortgages normally cost more than we earn on term deposits and gics after all the financial insti tutions sell us term deposits and gics to raise the money they lend out as mortgages dont they mortgage backed securities are 100 per cent guaranteed but pay a higher return than gics term deposits or savings bonds the provinces need money the rate they pay will general ly be higher than a csb they are good as a savings vehicle as usual though there are better yielding invest ments that also offer safety and security w andorf ratepayers association vandorf ratepayers association unanimously endorses ken prentice for mayor and ivanka bradley for council member thirteen years service as your councillor positive dependable representation sound decision making for information call 8527317 reelect ron johnson councillor ward3 authorized by fo for ron johnson 1 i z elect judy scala ward 5 councillor to achieve communication enhancement renew business development establish youth programs her mandate is to serve you and your community authorized by cfofor scala campaign on november 14th for a familiar friendly strong voice vote preston raymond call me at 905 8366398 authorized by the cfo for the campaign of raymond preston childrens clothing will be hosting an open house nov 17 18 19 come in on nov 17 18 19 and we pay the gst also bring this ad in and receive 10 off all regular priced merchandise little threads carry lines like banana split swedish comfort peas in a pod and many others we also have a preferred customer program spend a total of 50000 in our store become a preferred customer and receive 10 off all regular priced merchandise every day little threads also does baby gift baskets starting from 3000 we also have handcrafted wood products eg rocking horse turtle stools etc country bunnies mice etc 6362 main st stouffvtlle 6426784