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THE HERALD Wednesday 1991 Page 15 Money Matters Mutual funds can represent a lifetime investment By PAUL J While in Calgary a few year ago I was asked participate a a guest on a local TV show that deals with financial matters and investments As the guest I was being in terviewed by the host of the show plus a stockroker and another financial executive Wouldn you know it The first question asked by the stockbroker was there a frontend fee involved in the pur chase of mutual funds Ouch Some people the mutual fund industry find it ficult to answer that question But I don t It was answered truthfully Ves there can be a socalled frontend load or fee on mutual funds The maximum is as much as 9 percent and that fee is reduced as you invest more or in vest larger amounts Usually it is around 5 percent but could be percent There are also many funds available now with no frontend load or fee instead there is a redemption fee that reduces to nothing in five or years With some funds you can have your choice of front load or no load with a reducing redemption fee Mutual fund companies try and mnke it as easy as possible to in vest When my turn came to ask a question 1 turned to the broker and asked How much docs it cost to buy stocks through you The answer I was given was about percent on each lion My reply went some thing like this In other words if I were to worth of stocks from you it would cost me percent or If that purchase were a wise one and it increased in value to and I decided or you advised me to sell it it would cost me Now if decided to reinvest that would cost me another to reinvest ITS YOUR MONEY Paul J in a different stocks Supposing it did fantastically well and rose to a value of now it would now cost me to sell it and if I wanted lo reinvest it in other stocks another In having made just three stock purchases and two sales I haven sold the third yet I have paid in fees and am look mg at ongoing fees as I buy and sell and attempt to make a profit But in a mutual fund the max lmum I could pay on a 10 in vestment would be and that money could be working for me for the rest of my life managed by experts on a full time day to New Seniors program launched day basis who would be buying and selling securities whenever necessary and I would never have to pay another fee Which would you rather pay The stockbroker and have continuing costs or a maximum of more likely 500 on a investment and have a lifetime investment I also pointed out that I can t afford the costs of a Guaranteed Divestment Certificate or Term Deposit Reason Everything in life has a cost My banker admits to me that the bank has to earn at least 2 percent per year more than they pay me as a depositor or holder of a Guaranteed Invest ment Certificate or Term Deposit In many cases their mark up on the money is a lot more than 2 percent After all with that profit they must pay rent employees taxes utilities janitors etc So if I look up my savings for years at 2 percent per year that s 10 percent over the five years So that 10 percent cost is irstLme Trust Toronto in cooperation with CARP dian Association of Retired Per sons has developed a Reverse Mortgage called Home Equity Pension Plan designed for CARP members Ivan Wahl Chairman of Trust an that Trust is the latest of a select group of very few financial services companies in Canada meeting the growing demand for the Reverse Trust soon to be a Manulife Financial Company has developed the in answer to this problem for seniors The Trust has been designed so that homeowners live their homes and actually spend some of their equity Seniors can receive regular tax free payments for the rest of their lives for a fixed term or as a lump sum to help them enjoy their retirement stated Mr Wahl The HEPP is currently being offered in major urban cities across Canada excluding Quebec and New Brunswick The minimum advance amount is and will not be charging any fees The customers will only be responsi for paying their own legal costs associated with the HEPP and these fees can be added to the amount of the advance This new program is just one of the many money saving benefits available to CARP members which now number across Canada Membership in CARP is only 10 per year or 25 for three years and includes spouse To join please send cheque or money order name name of spouse age address including postal code and phone number to CARP 27 Queen Street East Suite Toronto Ontario Save 20 30 Storewide during Sussman NORTHOFTHEBORDER 2 Piece Dressing Functional and affordable these pretty looks belie their practicality They carry you from daytime into evening with confidence and panache Sophisticated affordability is the hallmark of these famous makers including Joseph Onte Maggy London Andrea and more In regular and petite sizes from 6 to 16 complete outfit reg to 210 SALE PRICED and up DESIGNER CARRERWEAR Simon Chang Louben Looks Mr Jones Now York Conrad C Maggie London Mr Leonard Allure and London Fog all create fashion statements that endure This year the colours range soft pastels to startling rich tones bold prints dots and stripes too Block navy and while remain important and the cuts are Invariably classic Sizes6 18 re and up BLOUSES the difference with minimum effort and investment Such an array of styles fabrics colours and patterns from an amazing list of famous makers including Como Porter Isa Welg Above The Crowd Serge John Henry London Fog Allure Simon Chang Chagall Mr Leonard Elite Andre Peters Ashley Split Doc on Marcelta Lady tan and so many more Sired from 35 toS155 S PRICED FROM and up Friday MAIN STREET ARTHUR 5198482660 there even if it is hidden And if decide to renew for another years it is going to cost me another percent and the next 5 years another 10 percent and the next etc That to say nothing about the much heavier taxation that peo ple who earn interest are sub jected to as compared to dividends and capital gains in mutual funds and stocks I d rather pay up to percent once and have lifetime invest than a hidden 10 percent every five years on a term deposit That s why we say the feeon mutual funds is cheap I- or free tax comparison sheet on interest dividends and capital contact Peter Ma son Drive Georgetown Ont or phone Paul J Rocket Is the author of the best seller Why I Invest in Mutual Funds and President of Capital Planners Limited year old financial planning company with offices from coast to coast in Canada ALL ANNUAL BEDDING PLANTS FLOWER AND VEGETABLE A BOX HANGING FLOWER BASKETS PEONY FESTIVAL The peonies are in bloom Come down and enoy their beauty POTTED GERANIUMS ASSORTED COLOURS HAND PAINTED WOODEN SCARECROWS Appro Toll AC Reg 95 uiilon ANT GRUB KILLER KO lo 79 no 500 ml Bol Reg JOIN IN OUR FATHERS DAY CONTEST Why My I word or lew v know dad why think Amti3ihri3Qfrtt will be Sunday Jon SALE STARTS Thursday June 6 thru to Sunday June While Quantities Last