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PigeI4THE HERALD Wednesday January Money Matters Consolidate RSP investments into one account By BRIAN LESSOR With the February deadline for contributions approaching its a good time to consolidate all your RSP investments into one account By now you may have accounts at several financial institutions each containing one years con tributions plus earnings Many investors have ended up with a grabbag of because they wanted to diversify or because they tried to get the best return on each years contribution So one year they brought GICs the next a bond fund the third an equity mutual fund that is however not the best way to diversify Because the amount in each account is small you limit your flexibility Addi tionally you may not have a wide variety of investment alter natives at many financial institu tions If you combine all your RSP accounts into a single self- directed RSP at a brokerage firm you increase both the amount available for promising investments and the speed with which you can shift your money Brian Slessor Dollars and Sense Finance Minister gets a break Now that Christmas has come and gone it is time to make another list of things to do or not do In the New Year Eat less drink less stop smoking exer cise more For my part I resolve to stop criticizing Michael Wilson Only for a while mind you Say two months If I were to stop altogether I would not be doing my Job But fairness requires that even finance ministers get a break After all Mr Wilson is a hard working man who firmly believes he is doing the right thing for Canada That is not why I have decided to go easy on him I am not impressed by a persons com mitment After alt one can be deeply committed and still be dead wrong The way I figure it Mr Wilson probably knows more about high finance than I do After all he is the finance minister He can af ford to hire good help DOES HE KNOW But wait a minute Mr Wilson did not know the economy had slipped into recession How can we trust him with the nations finances Besides his view of how money should be managed is costing more people their jobs their homes and their peace of mind The scars will last The damage Maley Your Business 4UHri is permanent There are alter native views If he is wrong as he well may be these people will have suffered in vain Still I will give the finance minister the benefit of the doubt for two months starting Jan 1 I hope the rumors that he plans to resign soon are not true Mr Wilson In his travels has talked to some of the brightest financial minds in the world If his views were narrow at first they must have broadened since Longer term it is hard to find fault with his attempt to contain the burgeoning budget deficit The deficit must be reduced then eliminated Only then can we begin chipping away at the billion or so of national debt Of course by the time the deficit disappears if it ever does the tional debt will be much higher than it is now That will make the task all the more difficult It is the seeming hopelessness of the situation that has made Mr Wilson so stubborn Perhaps he has resolved to leave a better Cnaada for his grandchildren But what about us Can a govern ment responsibly raise taxes or cut spending in a recession Are we in for another to lost years HIS MISTAKES Before I make good my resolu tion I will list what I think were Mr Wilsons mistakes Some may be traced to his boss Prime Minister Brian Mulroney 1 Allowing the capital gains tax exemption quickly cut to to be used by real estate speculators 2 Allowing the money supply to mushroom in 19H and 1989 3 Not keep a close enough eye on reckless lenders Using interest rates rather than to try to curb real estate speculation 5 Exempting things such as food from the GST Using interest rates to prop up the Canadian dollar without explaining why a strong dollar is desirable 7 Borrowing too much money from foreign investors Not another word along these lines for two months Happy New Year Mr Wilson Precious metals investments Putting money aside to invest for your future takes on a new shine when you put part of your savings Into gold If you think gold is something only millionaires to youll be pleased to discover that average investors get involved and experience the rewards of in vesting in precious metals ThroughQUt history gold nd other precious metals have assumed great importance Since the empires of ancient times gold and silver have been prized both for their beauty and prac- metallic properties Precious metals became the un- timate gift and a universally- accepted standard of exchange This centuriesold tradition has given preciou metals a lasting value among all cultures that en dures even as empires have come and gone As a result gold has always been an attractive longterm in vestment Its price fluctuates daily on the International market but gold tends to retain its pur chasing power over the long term That makes gold attractive as a hedge against inflation Investors are drawn to it to balance the volatility of other flnincial instruments in times of economic uncertainty investment managers suggest that a certain percentage of your holdings should be in gold or other precious metals All in vestments involve an element of risk therefore a diversified portfolio is a fundamental strategy for investors You can buy gold in several forms from the gold bar to the smaller popular in vestment coins Its important to distinguish clearly between investment coins and numismatic coins Numismatic coins are collector coins usually limited editions often produced in alloyed precious metals and featuring special themes and designs Numismatic coins sell for a premium over their face value that reflects their art and rarity value Whether they appreciate in value depends partly on the popularity of the design and the rarity Bullion or investment coins are purchased for their pure precious content Their retail price is determined by the price of the metal on the international markets plus a premium for manufacturing and commission charges Coins small bars are the most liquid form of precious metal investment as they can be readily bought and sold Mints from many countries of the world produce competitive in vestment coins Maple Leaf gold Coins from the Royal Canadian Mint in Ottaa are the ost popular with an estimated percent share of the international gold coin market In 1989 the Canadian Mint sold 112 million ounces of Gold Maple Leafs Purity is part of the reason for their popularity The Canadian Mint does its own refining of gold and has an international reputa tion for the purity and quality of its coins The Gold Maple Leaf is percent pure gold there is no purer gold bullion investment coin Despite the myths that sur round gold the price of invest ment coins is not out of reach The Gold Maple Leaf available In onetenth onequarter one- half and oneounce sizes is cur rently selling for only a low premium over the international gold price quoted dally in the media At those prices its ac cessible for most investors Parents and grandparents who want to introduce their children to saving and money manage ment choose it as a Christmas or birthday present Its a gift for that special person who has everything or can be a corporate incentive item Gold has traditionally had the most allure but silver and platinum also present op portunities to own and invest in precious metals Silver coins are currently in gr t demand in the US Investors particularly like the Canadian Mints Silver Maple Leaf because it is the fir and only silver coin manul in fournines silver percent pure One reason for silvers popularity Is its relative af- The retail price varies with the price of silver but an average price is about for a oneounce coin With any savings and invest ment portfolio you too can par ticipate in the precious metals market Investment coins are available from major banks and financial Institutions You also expand your investment choices to include individual stocks and bonds as well as the widest array of managed in vestment products mutual funds for example During the bull market for in stance you could have quickly moved 50 or even 100 of your money into stocks if youd had a selfdirected RSP You could have invested in equity mutual funds individual stocks or a combination of both During the recent downturn on the other hand it would have been possible to move into bonds coupons bond and money market funds and other defensive income- producing investments A selfdirected offers other benefits You get the advice and assistance of an Investment Executive who alerts you to emerging opportunities and is always ready to discuss your in vestment strategy And you reduce your bookkeeping chores since youll get one monthly statement instead of three or four Another reason many RSP holders had multiple plans was that until recently legislation prohibited withdrawals from RSPs This meant that if in vestors needed somd of their RSP funds they had to collapse the en tire plan with resulting tax con sequences Recent legislation allows withdrawals from RSPs so this is no longer a factor The mechanics of moving an RSP from one institution custo dian to another are fairly straightforward In order to ef fect a transfer you direct your new custodian to request your assets from your present custodian You dont personally get the money so you dont have to worry about missed deadlines tax penalties etc Plus you are permitted an unlimited number of transfers each year The problem with transfers is that financial Institutions often act very slowly to relinquish assets Delays of several weeks can occur However when you transfer your RSPs to a full- service brokerage firm your In vestment Executive will ride herd on the previous custodian for you speeding the release of Brian Slessor is an Investment Executive with ScotiaMcLeod Questions should be directed to Brian who can be reached at 8632825 outside Toronto call collect THE CORPORATION OF THE Town of Hills I Holion Hills Drive PO Box HAITON HILLS Georgetown Ontario L7G CHRISTMAS TREE COLLECTION The Public Works Section of the Town of Haiton Hills is scheduling in the Urban areas ONE pick up exclusively for Christmas Trees They will NOT be collected with your regular refuse Please place at the roadside on Monday January 7 1 at 700 AM Thank you Hills EngineeringPublic Works Austin P Eng Town Engineer THE CORPORATION OF THE Town of Haiton Hills Hill Drive POBox HILLS Georgetown Ontario L7G C0UR WARD ESY NOTICE OF A PUBLIC MEETING 3GUELPH STDURHAM ST General Committee for the Town of Hills will con duct a Public Meeting to examine and discuss a proposed amendment to the Haiton Hills Official Plan and Georgetown Zoning Bylaw to permit a chiropractic clinic with commercialoffice uses The property is located on Street at Durham Street in Georgetown The property has a municipal ad dress of Street Town of Haiton Hills Georgetown Further information is available in the Planninq Depar tment ALL INTERESTED CITIZENS ARE WELCOME TIME pm DATE Monday Januaij 7 LOCATION Council Chamber Hilton Hills Cnric Centre 1 Haiton Hilts Diiie Hills Geortetnm FILE NO DMSWEENY