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"BILL'S PICK OF THE WEEK” “YOU CRAFTY DEVIL, YOU!” So you found a comfy Ballinafad. Zoned C1 too. Asking $279,900. Details from Bill Ellis** 877-9500 or 877-7528. CT93-012 BILL ELLIS, Associate Broker Office: 877-9500 CANADA Residence: 877-7528 TRUST: OVER 20 YEARS EXPERIENCE Canada Trust Real f ine./Realtor IN REAL ESTATE Wednesday = CrownLife ro <<. _ PARTICIPACTION o) CHALLENGE G - romero > i & HEATHER (WHITING) SCOTLAND Associate Broker** Bus. 853-2086 Tor. 874-3053 Blue Springs Realty (Halton) Corp. FIRST TIME BUYERS SPECIAL ~ $114,900 Spacious Phase I! end unit features 3 ‘ * rooms, master ensuite, slider walk- out to 12 x 13 deck overlooking pond, super pine bar and rec. room and 5 appliances. Call Heather (Whiting) at 853-2086. id ] RMAC93-54 HOME OFFICE? WORKSHOP? $294,900 REDUCED This versaie 3 bedroom farm house has been + Site Heather (Whiting) Scotland at 863-2006, MACS3.07 This well maintained 4 bedroom family home features upgraded windows and ) broadloom, cosy rec room with wood- hood. See it today with HEATHER (WHITING) SCOTLAND“ 853-2086, ™ RMAC93-50. 5 LEVEL BACKSPL $149,900 is vation area and. playground. Call HEATHER (WHITING) SCOTLAND for more details 853-2086. _RMAC93-47 SIRABLE RIVER RUN $149,900 This immaculate and upgraded end unit features a professionally finished rec room with wet bar and slider walk out to the park; plush natural broadloom and five a = f= — appliances. Won't last long! Call - Heather Sc@tland™ RMAC93-45 INDUSTRIAL & RESIDENTIAL SYIERI) REDUCED | tion for your business, Call HEATHER (WHITING) SCOTLAND" _ pts oe Specializing in Country Halton Hills This Week Wednesday, June 24993 Paige 21 Properties |} Excellent starter home over- looking Lake Roman in} Hillsburgh with new 600 sq. ft. addition. Large mature lot. 3 BEDROOM - LAKE ROMAN Quiet setting - $159,000. | Call Toini Comers NEW PRICE! $255,000] Ten beautiful private acres close to highway with many trees and open fields. Country style 3 bedroom] bungalow with sunken livingroom, | cathedral ceiling, hardwood floors, and airtight stove. 92-2-534 “for further deta on these homes! AMACS3-39) Focus on Risk - Your Reward Will Come By George Perdue, / B. Se. P. Eng. Most investors focus on return. They also focus on the long term such as retirement. Finally, they ignore inflation and the real affect of taxes. All investors have essen- tially three choices for their investment dollar. These are savings, lending, and buying assets that will make money. GICs and -T-Bills are examples of savings. Government bonds and mortgages are examples of lending. Stock, stamp collec- tions and gold are examples of assets that can be boyght to-earn money. . Making choices is what investing is all about. The best choice or combination of choices depends on the viewpoint of each investor. There is no ideal invest- ment. However, each invest- ment has risk and each has a historical return. If you review each type of ‘| choice in terms of risk and return some interesting observations come to light. Risk is the potential for loss. The two greatest risks to the investor are inflation and volatility. The average inflation dur- ing the last 41 years is near 5%. Volatility over the same period has varied by asset class as shown in the follow- ing table which also shows the average return during the period. Class Return Volatility save 6% t/- 4% lend 6% +/- 10% buy 11% = +/- 18% By observation you can see that you need to be in equities (buy) in order to beat 5% inflation and the ravages of taxes. The income from savings is taxed 100% at your per- sonal tax rate. The same is true for lending type invest- ments. On the other hand, the capital gains associated from buying type invest- ments enjoys considerable tax relief including 100% relief for the first $100,000. Also by observation you can see that you should be in different classes at differ- ent times in order to avoid the dips shown as volatility. The best returns are attained by changing the mix of the various classes of investment. The trick is to know how to make the calls. The second trick is to keep the associated risk low enough so you can sleep at night. There are products on the market known as asset allo- cation funds. These work to keep the correct proportion of assets in each class depending on the prevailing conditions. These products should not be confused with "balanced funds". they operate in a different way under a differ- ent mandate and produce significantly different results. For assistance in deter- mining a course of action with asset allocation, see your financial advisor. George Perdue is a Financial Planner, Business Consultant, and Partner in Money Concepts, Halton Hills. He can be contacted at (416) 873-1877.