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Page MONEY MANAGEMENT Wednesday February How to in Investors must plan when theyll need to use their money the Herald The type of investment a person chooses depends on the amount of money a person has to invest and when that person needs the money again to meet expenditures says Gary Elliott the manager of The Municipal Savings and Loan Cor poration Although the corporation which is part of The Municipal Financial Corporation and other like it are governed by provincial legislation unlike the chartered banks which are governed by federal legisla tion the two types of money offer some similar types of investment packages The Municipal offers customers the option of three kinds of invest ment a demand deposit account or investment or sav ings account a term deposit count or guaranteed investment certificates or debenture invest certificates Regardless of the type of money institution a person chooses Mr Elliott recommends all people take the time to sit down with their bank manager and talk about the dif ferent options before deciding on an investment portfolio Mr Elliott started his banking career 20 years ago Wales Before moving to the Municipal he was the manager of the Bank of Montreal in Georgetown As a basic guideline Mr Elliott suggests that people put the money they need on a daily basis into a de mand deposit account As the ac count s title implies a customer can withdraw money from this count at any time And the greater the amount of money in this count the greater the interest rate says Mr Elliott A customer can either choose to collect interest on a daily or monthly basis with this type of account said Mr Elliott who has been with the company since it opened Georgetown in November People who choose a term deposit have to be willing to com a minimum of for no less time than 30 days Mr Elliott said There is no maximum amount that can be invested a term deposit But there is a time limit of 364 days he said A couple would choose a term deposit if for example they sold their house and t planning to buy another for a few months said Mr Elliott Depending on a persons age and the amount of money to be in vested current interest rates at the Municipal dictate a demand deposit account would generate a higher return than a term deposit People over years old with to invest should consider a demand deposit account rather than a term deposit said Mr Elliott People interested in long term saving should consider a GIC or a debenture investment tificate says Mr Elliott These two types of investments offer customers the stability of a fixed interest rate for a long period of time he said A minimum of l is necessary for either of these in vestment types The minimum term is a year People can either collect interest monthly annually or have it re invested and compounded with the original he said The manager of The Municipal Savings and Loan Corporation in Georgetown Gary Elliott says deciding on an Investment package depends on two factors the amount of money to be invested and the length of time a person can do without the money Herald photo BRIAN GOODLET 8775129 GEORGETOWN I can show you how to make dollar cost averaging work for you Ovor Itio long haul Inveslmonl Funds a good buy And when you purchase Ihcm by regular conlnbulions you can lake dollar averaging and oven For service and a range JJ call me The Mutual Group S Facing Tomorrow Together Net worth calculation helps you chart financial progress Just as every business has a balance sheet every in dividual or at least every family should have a net worth statement a list of all assets and liabilities to show how much the house hold is worth There are several good prac tical reasons for knowing where you stand First you can make better use of your income and maintain better control of expenditures as you have a clear idea of what you own and what you owe Secondly knowing whats left over after deducting cur rent liabilities provides a strong incentive to save and as you see your net worth in crease youil be encouraged to help it grow more Knowledge of your net worth is also an essential component of all financial planning How else can you judge what to set aside for buying a home to pay for childrens education to es tablish your own business to plan investments and to look ahead to retirement years A net worth statement is also needed for estate plan ning Everyone needs a will and to know whats going to be left before deciding how the estate is to be broken up Futhermore if you borrow cash or arrange a mortgage youll have to give the lender an accurate and up to date account of existing assets and liabilities How much you have will govern how much you can borrow Then in the future you should plan to update your net worth statement annual ly In the process its not ab solutely essentia to obtain reappraisals of valuable per sonal property each year But it probably makes sense to have jewelry art and anti ques looked at by an expert every three years Your bank or trust company will probably have a folder to give you pointers on how to calculate net worth Your local credit union also has an excellent little free guide in cluding a sample form in the Financial Fitness series Canadians work half a year to pay their taxes just On average Canadi worked for government just over half the year in and kept less than half of what they made for themselves accord ing to Vancouvers Fraser In stitute Tax freedom day when the tax bill was paid for the year was calculated to have oc curred on July 3 on average This year things will be worse as the taxmens grip tightens across the land the think tank group believes As for 1991 its best not to think about how late in the year it will be when the total tax bill is paid if the Goods and Services Tax actually happens as scheduled on Jan 1 1991 Fraser director Michael Walker says Since 1961 tax freedom day has moved from May to July 3 and so taxation has become a much more sig nificant economic phenomenon in that period Calculated since mid- 70s The institute began calculat ing the individual tax burden in the mid1970s when run away inflation was the main levies on tax freedom day theyd be less tolerant of expen sive government programs Walker said As it is the average Canadian already pays per cent of income a vast array of hid den and direct taxes some 51 topic of debate Walker said it different categories included in soon became clear government tax freedom day cal spending far outstripped the rate of inflation Furthermore no one escapes We want people to be aware Walker said Even of the extent to which they are who provincial sales responsible for the generosity tax paid 1863 in federal sales that periodically governments taxes average in 1988 announce Were never going to Walker said deal with the expenditure side reality is that the under of government which is the ground economy which we es- problem unless people timate to have grown in leaps become aware of what the costs of that spending are If Canadians actually had to pay all their taxes from in come sales and property taxes and hounds in recent years is in part a reflection of the tax bill because people avoided taxes by working for unre corded cash payments or bar- to import duties and medical tenng services Walker said In Brampton or worldwide It all fits together Kerr Chartered Accountants International Member Kerr For Information Please Contact MARTY HUGHES MAKYG IIISON George Street South Brampton Ontario 2E1 416 Telefax 416 4533522 25 offices across Canada and more than offices worldwide