The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

Page THE HERALD OUTLOOK Saturday March 11 IMS Outlook Business Why have mutual funds done better Have you benefitted from infia tion Chances are you have if you purchased a home or if you are now purchasing a borne it will pro bably be worth double what you paid for it 12 to years from now It doesnt necessarily mean you can buy more goods and services than you did at the time of purchas ing your home but at least you kept pace with inflation and can buy just as much with those in flated dollars Thats what happens when you own something Conversely if you save those dollars and loan them such as leaving them in the bank ITS YOUR MONEY Paul J Rockel GICs Term deposits or taking out a mortgage etc you are virtually guaranteed to lose purchasing power thanks to the ravages of in Even if you earn a reasonable rate of rent interest on those loaned dollars you are often lucky to break even after the twin evils of taxation and tion If today I would earn 10 per cent in interest and I in the per cent tax category I would pay almost half of that in taxes leaving me with just over five per cent But they tell us inflation is rising again in Canada and will probably reach the five per cent or more in this year of 1989 Take away the five per cent inflation rate and what do I have left Almost zero zero per cent in pur chasing power gain Sure I have more dollars but I cant buy any more goods or services with those dollars than the original amount I invested would buy at the time of investment I ve gained nothing Florida a good bet for March break If you re looking for sun and sand this March Break travel ex advise Florida Its to the warm weather said Murray Henley of Barber and Henley Ltd travel service in Georgetown Both Mr Henley and Melitta Hannon of Travel also in Georgetown agree that Florida the Dominican Republic and Mexico are some of the more affordable places for families to visit during toe annual spring recess in March Many families are going to Florida said Ms Hannon One of the major reasons why the south is so popular is that holidaying there is more affordable than going overseas due to the increased rates in flying fares and package tours during a prime holiday season Both of the travel services feel that individuals or couples going away for March Break do not book as much as families Mr Henley said that his service has not booked many students This could be due to the fact that students may be booking flights on campus or ing alternate routes to their destinations In addition the AIDS Acquired Immune Deficiency Syndrome scare last year in the most popular student March Break vacation spot Fort Lauderdale has deter red prospective partiers from booking vacations there Skiers will be interested to know that even with the lack of snow in our area both and Barber and Henley report ski holidays have not been that popular This is not through preference of our slopes to a place like the Rockies however Ski trips are considered SAME DAY TAX RETURNS 101 Guelph St Georqelown too expensive for the average budget especially for those with famihes As an interesting sideline Ms feels that those prospec tive travellers interested in Venezuela as a vacation while wary should not be too concerned about the recent political problems in that country Economic ASK KATHY pressures on a major part of the population in Venezuela have led to mass rioting in its major city of Caracas Media services have been focus ing on Caracas due- to this but Ms feels that unless pohtical tensions increase the hotel and tourist districts in Venezuela will remain safe from violence FIBER Because of the fast- food society we live in many foods have been refined in processing thus losing their valuable fiber Refined foods are often quick and easy to prepare and store well but seldom provide the bcTdy with necessary vitamins minerals and bulk Sufficient bulk or fiber is important In one s diet to help alleviate constipation Fiber itself has no known nutrients little or no calories and unlike proteins carbohydrates and fats is not digested passing through the large intestine almost un changed However foods rich in fiber such as fruits and grains usually require more chewing and more saliva than many other foods and some experts believe Equity ownership investments pretty well always keep pace with inflation you own a business chances are the land it sits on the buildings that house that business will continue to increase m value to keep pace with inflation That in crease in value is called a capital gain and we still have a capital gains holiday of up to on which we pay no tax In addition if that business pro ves to be profitable we have a se cond form of gam namely our share of the profits If it is a cor poration that owns that business those profits come to us as dividends which are taxed very lightly whereas interest loaned dollars are taxed fully What if that business just in creases in value this year by five per cent well assume inflation is kept at live per cent and it earns an after tax profit of five per cent a combined total gain of ten per cent The five per cent increase in value comes to you the owner tax free if it comes within your lifetime capital gains limit The dividends have something called a dividend tax credit which in effect means you might pay 30 per cent of the dend in taxes if in the per cent bracket So with a 10 per cent interest gam you have almost nothing left after taxes and inflation example above whereas with the owner ship gain of capital gains and dividends you have a 8 5 per cent after tax gain Take out the value of inflation five per cent and you have a purchasing power gain of per cent Both the loaning investment and the owning investment had the same 10 per cent gain but the loaning investment gave you almost zero per cent in spendable gam whereas the owning invest gave you 3 S per cent Which would you rather have I own parts of hundreds of businesses I have never seen 99 per cent of any of them I don know their names I dont know what they do I don t even know where they are located or even in which country And I owned a part of all of them even when I only had or invested I do it by investing in equity mutual funds which are pools of capital yours mine your neighbors my neighbors etc managed by people who do know the best businesses to invest in and who look after it every working day They have averaged well over 15 per cent per year for me and the hundreds of thousand of others in the funds over the past 10 years And it s owning dollars with very little taxes I not only keep pace with tion but I end up with an increase in purchasing power which I pro bably wouldnt do if I loaned those dollars to the bank etc I like it For free Information on Mutual Funds and Planning for the Future contact Peter C- Masson 10 Drive Georgetown or phone Paul J Rockel is the author of the best seller Why I Invest in Mutual Funds and President ol Regal Capital Planners Ltd KATHY chewing sends a signal to the brain saying that you are satisfied Diet Center stresses that eating whole fruits is more satisfying than drinking fruit juices These fruits supply more bulk take longer to eat are slower to digest than juices and are excellent sources of energy CHURCH DIRECTORY 8772217 TO ADVERTISE IN THIS SPACE CALL DISPLAY ADVERTISING 8772201 NON DENOMINATIONAL PENTECOSTAL ALL PEOPLES CHURCH DELIVERANCE CENTRE Finchgate Boulevard Bramalea W corner Bible Study Worship Deliverance Sunday 10 30 am 7 Wednesday 8 We Provide Children s Church Nursery Service English Italian translation Pastor George A 2176 No 1 PET CENTRES Moure Park Plaza Georgetown 8732666 96 Broadway Ave 9421655 Stone Rd Mall 8368020