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MONEY MANAGEMENT TAB Wednesday February 19 186 Page A variety of plans are available In part of this twopart above we reported tint there Is a great deal of confusion In the la this article we have Identified the various types and provided a explanation of each The pre vious article covered guaranteed plans while this oat review three re- Moat life Insurance companies otter guaranteed plans similar to those trust companies or banks However do Dot have coverage and sometimes charge certain feet such as charges or Initial pot Icy lees These plans are usually led as flexible premium guaranteed In wrest annuities or single premium deferred annuities Additionally some the life plans combine life Insurance and saving or retirement so the savings component can be used or pur poses However this approach Is dom used lor RRSPs today These plans frequently charge large frontend loads and many charge penalties upon Mutual Fund Type Pooled Funds Plans In mutual fundtype plans Individual Investors poo together money for In vestment as a stogie portfolio In effect Investor buy units in a fund and be come part of the assets of the fund They pay the manager a fee to ad- minister the assets tod the gains expe rienced by the portfolio is well as the losses are passed through to the partic ipants based on the number of units or lie proportion of the fund owned Key Facts neither the return nor the principal J many funds charge a frontend load or acquisition Tee almost all charge an annual administration or these funds sre not eligible for CDIC coverage depending on the types of Invest- CAH BACK refund Cain now If you qualify you can get of the first S300 of your lax refund and ol the rest usually wilhin Iwo working days return will be expertly prepared al no extra charge Why wail for Ihe refund cheque to arrive by mail Ask about Cash Back the quick lax buying service from HR Block Available at most rURIhKtt offices HR BLOCK THE INCOME TAX SPECIAUSTS ia it Id Mil KIM DM gIH meats held by the fund the value of your holdings can vary from period to period only pooled funds that comply irtlh the allowable Investment rules cm be sold directly as an RRSP there arc virtually as many differ ent types of pooled investment funds as there are types of eligible Investment for However the main ones and These Include mortgage funds bond funds which are Intended to vide slightly higher returns than guar an teed plans with somewhat higher risk and volatility rising Interest rites the unit value of funds can decline sharply These Invest primarily In common shares traded on major stock ex changes Because share prices are typ ically more volatile than other Selfdirected RRSPS ties prices common stock funds tend to fluctuate more widely than Income funds or other types of funds However over the longer term common stock funds theoretically should deliver a bet ter return than most other types funds a there are a number of other funds such as real estate gold and money market funds SelfDirected Plans As the name Implies in a reded RRSP the plan holder Is respon sible for making all Investment for the plan For this reason these plans are best suited to the more knowl edgeable investor Key facts since only certain specified types of assets qualify as RRSP investments you must be fully aware of the rules be fore you Invest with a selfdirected RRSP you are able to tailor your portfolio to your spe cific Investment preferences However Benefits and drawbacks to running own scheme Whether you are in i vestor or merely a dedicated you have probably at some considered opening a self directed You may have been attracted by the I may have been somewhat deterred by the uncertainty and risk of selfdi rected investing Continued on Page BARRY D CHARTERED ACCOUNTANT Sun IS 18 YEAR AVERAGE COMPOUND RETURN 10YEARS198 of InduMruil iund I 1 YEAR of superior long Better still it you by under a strategy that gives top ni w It the to reducing the ind inciwsing the your investing Write or tall for Jils THE INDUSTRIAL SOWTH FUND Looking both ways to your RRSP lid likt to the stress arid Iikiljm the of m investing send RRSP Animi Book SUTHERLAND INVESTMENT CORPORATION JACK Ft BOULETCQ A Stockman Ctas Toronto your return will depend solely on the In vestment decisions you have made This then completes the four major types of Investments You should be able to select among Ibem to a diversified tailored to your specific Investing style and finan cial goals SAME DAY TAX RETURNS 8772217 Your first class ticket through retirement No matter what your retirement plans Mutual Life of Canadas may have just the features youre looking for It offers Competitive interest rates A wide choice of investment and savings opportunities No charges or fees on interest accounts All income options available at retirement Flexible tax deductible contributions Call today out how you can retire in stylo J of Canada The NOFEE The Basics Everything you need know about s and retiremont income options is yours in Tho Basics A complete up to the minute booklet that explains everything in simple every day language send me a copy The Basics Address City 273 QUEEN ST ACTON 8530911 HALTON CREDIT UNION GEORGETOWN 8776926