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Page SECTION C THE HERALD Wednesday February 17 IMS Investment funds let money managers work for you Investing In stocks bonds or real estate substantial expertise and the time to manage your finan cial affairs on a daytoday baala In vestment funds are ideal for people who don t have the time or expertise to manage their own Investments or who are bewildered by the growing array of now available Thats why investment funds were developed and why they have become Increasingly popular in Canada In UBS Investors poured more than into funds associated with the Investment Funds Institute of Canada and by the end of 1MB over one million will nave purchased in vestment funds With an Investment fund your money ia pooled with the money of many other Individuals and Invested In a variety of securities companies and Industries Individuals who In vest In Investment funds rely on skilled professional money managers to manage their ln full time Investment funds offer a number of powerful attractions over other in vestment vehicles They offer the kmds of features most Investors ore looking for professional manage ment diversification the potential for real growth as measured against Inflation Investment funds put the for the average Investor to build a diversified professionally portfolio All the efforts of a pro fessional money manager are directed towards the proper selec tion of securities with full diver sification available The profes- money manager has the time the capital and the knowledge to provide a properly diversified in vestment fund As a result most money managers outperform in dividual Investors Diversification Is an Important goal for most Investors Only the Eruve or foolish invest everything in one type of asset or security Invest funds offer a degree of diver you probably t af ford Individually If you have only or so to Invest you simply have enough cash to spread at the opposite ends of are a money market fund and an equity fund A money market fund la composed of highquality short term fixedincome corporate and government securities It combines he liquidity of a bank account with a high degree of security and a com shortterm return You earn Interest strictly on your money but there Is virtually no risk involved An equity fund la for the more adventurous Investor the person who Is willing to take a few risks with he knowledge hat longterm financial success distinctly possi ble This fund is fully invested In stocks and can experience wide fluc tuations in performance Over an ex tended period of time however an equity fund offers potential for good hedge against Inflation and provides worthwhile tax ad vantages With a wide range of investment funds available you m able to choose a fund appropriate for risk selection and comfort tone The selection should be made only after a full discussion with a qualified ad- Courtesy Mntaal Life of Canada Seniors offered opportunity SAME DAY TAX RETURNS In an Investment fund you can buy a small piece of a highly diversified basket of assets Despite the benefits of diversifies lion the expertise of skilled money managers and the potential for growth Investment funds are not immune to the vagaries of the market They can end do go down as well as up For this reason and because of the costs associated with opening administering and closing accounts Investment funds should be viewed for the longer run They are not suitable for quick turnovers or for money that may be required on short notice There are many types of funds each Investing In different types of securities and commodities They cover a broad spectrum from full Investment in equities to a blend of equities and debt to a full investment ling with the budget The has proposed to greatly relax rules that govern what you can With and PATRICK DONNELLY Now that Parliament has resumed Its deliberations in Ottawa we may see some fast action in enactment of several Important proposals con tained in last February budget Senior citizens have been most by the protracted delay in the rules do with the money you cumulated In a Registered Retire ment Savings Plan The big break Involves an Invest ment called the Registered Retirement Income Many Canadians have at least some knowledge about the RRSP Us a sound method of putting money aside during your working years to provide you with retire ment income which will be flora to government and private pensions There are limits to how much money you may Invest each year In your RRSP In fact you can own more than one RRSP However up to now you have had rather limited options aa to what you can do with your funds once you retire The alternatives are to convert the RRSP funds into a life annuity a RR1F or cash or any combination of these There is plenty of time to select a suitable alternative one that mat your personal needs even when retire at age Your money can remain In your and enjoy its tax sheltered status up until the end of the calendar year In which you reach age But keep in mind that you must do something with RRSP funds before the yearend ir you your RRSP will be automatically dereglstered at the end of and thus be exposed to full taxation Basically your option Is between a life annuity and a Depending upon financial circumstances a provides you with more longterm benefits than an annuity A RRIF la a plan based on the simple principle that as the cost of living rises so will your retirement in come That makes it an excellent hedge against inflation disadvantage of a RRIF with an annuity is that initial your retirement Income payments from your plan will be lower pared A your However the capital you have ac cumulated in your will con tinue to grow at the same time aa your Income payments are disadvantage of a RRIF Is that Ottawa limited the amount of Income you could withdraw from a each year But the new federal get proposes to abolish the limitation on what Is withdrawn from a Keep in mind however that a RRIF holder must continue to receive a minimum annual payment from the plan What does change is that the bolder may take any income In excess of the minimum re quired payment in any year The feet of this rule change Is that you have much greater control over your pool of capital and the income payments It Yet another RRIF benefit propos ed In the budget la that payments out of a RRIF will be allowed to start at any time after the plan Is purchased At present a RRIF holder baa to wait until the next calendar before be or she can receive any payment from the plan Kerb and Patrick Don nelly are flaandal planner with the Investors Group Brampton Office WHO SAYS HAVING AN ADVANTAGE IS UNFAIR out Enhanced Interest Rates SS No Hidden Costs Easy To Start Instant Tax Receipts Professional Advice Creditorprod Sf Eligible ST Conveniently Available Direct Payment ST Ease of Transfer ALLSTATE ADVANTAGE ACCOUNT The Investment Account that gives you the advantage of guaranteed attractive returns with absolutely I Ask your Allstate Agent how you can benefit from our other competitive advantages state GERRY NUMAN 116 St Georgetown 4168731643 WHY FILE A TAX RETURN Tax Credit The Federal Sales Tax Credit Is available to people with little or no income but only when a federal tax return is filed Many persons over 1 8 years and seniors who do not file income tax returns because of little or no income should strongly consider doing so this year because they too may be eligible for this credit For further details call or come In to MMaMiPIni MMritftgMo 41B BLOCK 519BM1771 THE HI