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Till HERALD OUTLOOK Saturday December IMS- Outlook op Business Earning interest can be a losing proposition Con you afford ID earn Interest I cant even at to per cent or 11 per cent annual return I have no Investments that cam In teres such as mortgages Guaranteed Investment Cer tea savings accounts other than a small account for vacation purposes and paying regular bills no Canada Savings Bonds or noted and loans to other people In fact when my son purchased a home and asked If I would like to assume the mortgage my Im mediate answer was No way but Ill back you at the bank or trust company you wish them cam the interest You gee I cant afford to lose pur chasing power each year has always surprised me that most people In putting their savings to work look at only one thing and that rate of return If Its per cent they think they will have per cent earnings to spend But will they The second thing to look at Is rate of return after taxes That is a very very important point and the third thing to look at is inflation Those las two points In the past several years have made It losing proposition for me to earn In Let s look at It If you were to earn 11 per cent per year in interest and have a taxable Income of between and you would be paying approximately per cent in taxes Therefore an 11 per cent return would at per cent be reduced by per cent leaving on after tax return of per cent If you have a taxable income of you will be paying taxes at Imately per cent therefore per would be Hydro tests new heat pump designed to help save energy Ontario Hydro will teal a new heat pumpheal recovery system at its trades training centre next year The system will use waste heat from clothes dryers to heat water for washers at the centres laundry facility The training centre operates like a small hotel with a commercial sue laundry facility onsite Over the next few months the heat pump system will be installed to draw ex cess heat and humidity from the dryers and laundry area and use II to heat water Its expected almost all the energy currently needed to heal water will be provided by the hcot pump saving energy and making the work area more comfortable for staff More power toCockbum Island Cockburn Island residents can now turn on their lights television and other appliances any time of the day or night Thanks to a Joint effort by Ontario Hydro and the Island Township CocVbum is now served by the Ontario electrical system instead of generation The Island Is at the western tip of Island in Lake Huron During the summer Ontario Hydro had a fourkilometre under water cable laid from Mamtoulin Island to Island Township then constructed the distribution line to the village and Hydra did the line and buildings Power at Oct 13 Residents now have access to all the electricity they need at all times whereas generation was available only during certain hours of the day Students play electric ly planning game What route should a planned transmission line take Will it cross arm land or the industrial park Should standard towers be us ed or more expensive narrow based towers These are some of the problems to be solved in a new simulation game developed Jointly by geography teachers and Ontario Hydro or Ontario high schools Students are divided groups to represent economic environmental and social concerns with Ibe propos ed transmission line route A fourth group nominated to be the Joint Hearings Board those who will make the final decision on route after listening to all concerns The exercise was developed in response to teachers renuesls for a learning tool that would help explain Ontarios public hearings processes The game draws on Ontario Hydro experience In planning and getting approval for transmission lines In eastern and In southwestern On tario Electricity In October More than million megawatt hours of electricity were used by customers in October 2 per cent more than In October of 1887 The highest peak demand last month the point of time when the most power Is being consumed occurred on the last day of the month On Oct at the peak reached megawatts The weekend electricity demand hit a higher level than ex petted when customers turned on lights and heating to cope with cold rainy weather On Saturday Oct demand grew 1100 megaut than SSSt The University that comes to you WINTER TERM 1989 January 3 April including exams Join the growing number adults starting or continuing their studies parttime at You may qualify for any number of our classroom or courses available the Brampton Area For your convenience classes are held or weekends with a selection centres to choose from Brampton Centennial Secondary School McMurchy Ave Peel Regional Police Mills Parkway Brampton Public Library Queen Street Peel Regional Police Dixie Road Misstsauga HewlettPackard Canada Ltd Goreway Drive MltsJuauga For those who prefer not to attend formal classroom lectures Telecollege can be your alternative At Launer there is a course to suit your interests career lifestyle and location Choose from an array of Arts Business Music and Economics courses For a complimentary copy of the FallWinter PartTime Studies Course Calendar or for personal assistance call us well be pleased to help you or tollfree 18002658866 Ext 2447 OFFICE OF PARTTIME STUDIES AND CONTINUING EDUCATION YOU CAN DO IT1 WILFRID LAURIER UNIVERSITY UNIVERSITY AVE WATERLOO ONTARIO N2L 3C5 if ITS YOUR MONEY Paul J Rockel per This means the lower Income tax payer earning per cent after axes would gain only 2 per cent In re ha sing power whereat the Income person would suffer the same per cent low io lion pay per cent which added together equals per cent When you deduct Ihii from his per cent interest It leaves only per cent gain in purchasing power Now lets suppose you were to cam IS per cent in capital gains and dividends If you were In the to 11 taxable range your dividends would not only come to you free they would also save you taxes on your earned Income Capital Gains on the other hand are only taxed In other words If you achieved a Capital Gain of 10 per cent only per cent of II would be taxable whatever rale you pay I would much prefer to have a gain of B per cent in dividends than per cent In Interest because thanks to taxation I would have more to spend after taxes with the dividend return than with Ine 10 per cent ln- continue to remark How come no one has ever shown me before the difference taxation make In the various types of return I think the answer is quite simple Most institutions thai we deal with day after day such i- trust companies unions offer only one kind of return and that is Interest Even bunk manager admitted to me he did not understand the difference that taxa tion makes on Interest versus dividends and capital gains And I dont blame him all he deals with is For mutual funds by year for the past 10 years tact Peter C 10 Drive Georgetown Ont Or phone Paul J is the author of the best seller Why I Invest in Mutual Funds and 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