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weekender april 19 1997 p21 low interest rates will continue to challenge canadian savers if you are concerned about how todays low interest rates affect your investment performance you are not alone the bank of canada has cut its prime lending rate 19 times in the lst 22 months in turn themnterest rate orf five year fixedincome securi ties is about six per cent that works out to about three per cent after taxes and less than three per cent after inflation why are rates so low this current downtrend in interest rates is not merely a function of monetary or fiscal policies instead it results from wholesale changes in the population at the root of this upheaval are the babyboomers the first generation to decide vol untarily against replacing themselves the number of people under the age of 35 is actually shrinking and this middle aging of the citizens of developed economies means that the overwhelming pro portion of consumers are just hot consuming on a grand scale supply is dwarfing demand for money in capital markets and rates of return on fixed- income investments are being driven down to levels not seen since the 1950s and there is little evidence on the horizon that this situa tion is temporary canadas performance in managing inflation key determinant in the level of nominal interest rates has been remarkable fiscal discipline has also made a significant impact in wrestling federal and provin cial debt loads to more man ageable levels so govern ments no longer compete as ferociously for funds in capi tal markets more dollars are being placed in capital mar kets fewer users are compet ing for them it is precisely because this trend is expected to continue that all canadians must address how they will adapt their saving and investing behavior to assure their abili ty to capture returns needed for financial independence how to survive and thrive in a lower interest rate environment low interest rates today and in the foreseeable future are going to continue to chal lenge canadians savers many professional money managers feel rates will trend lower after the current volatil ity this level of rates has taken the easy returns off the table after all what was eas ier than investing in the 1981 series of canada savings bonds at 195 per cent ninetyday treasury bills which paid 177 per cent in 1997altimagxe 1997 maxima gxe month 1997 quest xe month 1997 pathfinder xe month quality priowmed automobiles warranty included 4600 hwy 7 iwy i y rd byp at kennedy rd bypass markham 4773337 village nissan major mackenzie v 16th avenue f o x z ul a dc main st unionville kennedy b z o u u 3 smart people always read the fine print and they always wear ihcir scalbclis limitedtime offers include new 97 aluma gxe t4rg77ae00 msrp 324498 special nononsensc 24monlh leases available from nissan canada finance inc oac on ncw97 maxima gxeu4rg77ck00 alr 58 1399 a month quest xe v6lg77cc00 alr 68 329 a month with down payment and pathfinder 5clg57cc0o alr 855 399 a month with down payment maxima 2429 quest 2976 pathfinder 3604 respectively or equivalent trade 1st payment 339 329 399 refundable security deposit 475 450 475 due at lease signing freight pdi licence insurance and taxes excluded al the end of your lease you may exercise your option to buy maxima 20802 quest 17906 pathfinder 22754 respectively based on maximum of 40000 km additional km charge of 008km if applicable 1981 are currently yielding 286 per cent you also want to stagger your maturities so as not to be trapped with all your money com ing due in a low interest rate peri od reality today demands a reassessment of risk and risk tolerance over the longer term spreading your risk over dif ferent types of investments can pro tect your purchasing power invest ing in stocks would have yielded superior returns over the past 20 or so years indeed stock market perfor mance superseded fixedincome returns even through the excep tional early 80s with the high bond yields armed with professional advice and a comprehensive plan that addresses your specific investment needs and goals you can thrive in this lower interest rate environ ment this article was submitted by michael comeau vice presi dent and senior investment advisor of td evergreen investment services lw lom u w term insurance rates affordable financial security male non smokers rates male smokers rates r 250000 500000 1000000 250000 500000 1000000 40 223 375 680 468 840 1525 45 255 440 810 590 1110 2150 50 358 645 1220 815 1560 3050 55 498 925 1780 1185 2300 4530 60 780 1490 2910 1798 3465 6725 9035 65 1435- 2690 5115 2555 4775 70 2593 5115 10j60 5913 11725 23350 female rates considerably less monthly premiums available lowest rates for level increasing term plans no tax added to premiums quoted lowest rates for disability coverage rates for group health dental plans special rates for select smokers call cyril gerson today for your financial security needs tel 905 7646924 toll free 18004653601 j fair compensation something can be done victims of personal injuries and their families need swift attention and professional assistance to obtain fair compensation for their losses early consultation with experienced lawyers will achieve the right results for over 60 years thomson rogers has consistently maintained a leader ship position in the battle for fair compensation we can help you if you or someone you know has suffered a personal injury please seek legal counsel early make the call to our special personal injury group at 4 1 686832 1 4 your call is confidential and there is no obligation its only fair the case for thomson rogers barristers and solicitors suite 3100 390 bay street toronto ontario canada m5h iw2 fax 4 1 68683 i 34 tel 4168683214