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MONEY TAB Wednesday February 1988 Benefits and drawbacks Continued from Page Although self administered plana have the potential to otter a higher re turn than virtually any other Type of Investment especially now while he dock market la buoyant some end up losing precious retire ment dollars How then do you decide II the selfdirected vehicle la right lor Philip Schetdlnx rtcMCwMect of trust senlees at First ClS Trust be- that the three moat Important factors In determining the success of a sendirected are capital eouacy knowledge and time ft Is worth looking at these Host tHi advisors suggest that unless you hare a mini mum off In your pun the annual tee represents too nigh an pti to relation to the level of assets the account For example First Citys self administered plan fee Is one of lowest In the market at per year with no additional tranaaetloa charges ret this still represents an ex ratio of almost two per cent if you only In your selfdirected plan They advise that you are almost certain to achieve a better return Ih a guaranteed Investment type Of course It Is better to transfer In tax tree ine proceeds of an you ready own rather than start from scratch Because your selldirected can only be good as the Investment deci sions nuke for It the second impor tant factor knowledge Is critical This Includes knowledge both of the product and of the market Not every one realises thai under the terms of the trust agreement Is solely responsible for ensuring that all bis arrestments conform Canada legislation governing the rilgt of Investments A partial list eligible Includes common stocks and preferred snares of companies listed on a pre scribed Canadian stock exchange op tions deposits money In a Canadian bank trust company or credit union government bonds trust company guaranteed Investment certificates certain units of a mutual fund trust and certain mortgages secured by real roperty located In Canada Unqualified assets Include gold or other precious metals art and antiques shares of almost all private corpora tions commodity futures and real es tate Adding an unqualified asset to your RRSP exposes your plan to a slg lax penalty This Is to be avoided for obvious reasons The 10percent foreign ownership limit within an RRSP can also cause problems or unwary Investors SAME DAY TAX RETURNS 101 SI Georgetown 8772217 Best rates in Brampton We guarantee it Best because well match any major bank or trust company offering a higher Interest rate than ours This applies to all our Guaranty Trust 6month to 5 year terms in amounts of 1000 or more and your interest compounds annually at these same high rates Ask for details And ask about our complete choice of to suit every purpose Daily Interest Government Guaranteed Managed Fund and Mortgage Fund the latter not available In Quebec Imperii Bank of Royal Bint Toronto Dominion Bulk of Nov Scotia Sural Hint Canada National Victorias Canada ism Member Insurance Corp Queen Street East Kennedy Park Plaza I ding pointed iTUs 10 per cent is based on book value original cost not market value so must taken in area also A one per cent per tax penalty Is levied on he excess and this can be very costly Yet another area In the pro spective Investor must acquire some expert knowledge Is be proposed new legislation on capital gains These pro posals are both too complex and too un ruled to treat satisfactorily here but can be expected to have a cant impact on the way Investors choose to structure their selfdirected plans This will be especially true If tbey plan to sell or contribute In spe cie any personally owned assets to their self directed vehicle Do you have questions about c taxes Investment return business loans J real estate transactions personal financial planning We have answers Call us Got belle Wagner MncAdum Chartered Aciountaiitg Of Id Services in Aw Account Income aSsLss Si faalt taut lead YOUNG WEIR PRESENTS FREE INVESTMENT SEMINARS DATE Tuesday February 25th 7 30pm LOCATION Young Weir 201 City Centre Drive floor Mississauga TOPIC SelfDirected RRSPs THE INVESTMENT ALTERNATIVES SPEAKER Hodgson VicePresident Young Weir Seating is limited Reply to Laurie Allen 8481300 for reservations I am unable to attend but would to receive FREE Information on selfdirected RRSPs RETURN TO C HODGSON YOUNG WEIR CITY CENTRE DR FLOOR MISSISSAUGA