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Halton Pile This Weeke Wedhesday, October'20; 1993 - Page 10) Canada Savings Bonds are Coming By George Perdue, B. Se. P. Eng. It’s just like the election. One competing against the other. All making promises. None telling all. The banks and trust com- panies are introducing their products to go against the CSBs and they are setting interest rates just over 4 percent. They have their CSB special-on giving cash- able GICs to compete against the liquidity of the CSBs. Bs. All the institutions want your money. So what’s in it for them? Better returns, that’s what. They invest the money you loan them. That’s right, they view your money as a low interest rate loan. They invest it in high- er return securities. They pay you and keep the rest. Then, in the case of the banks, they report record smallest investor can short- circuit the institutions and make direet investments in those higher income secur- ties and keep it all. So what are the pros and cons? CSBs are convenient and they are liquid. Although Brian Costello has unkind words for them, they do have some appeal. They are as secure as the gover nts them. They help finance the debt. he yield is low and the income is taxed 100 percent at your marginal tax rate. The first alternative to Money Talk with George Perdue almost as convenient and secure. They finance insti- tutional investments. The yield is low and the income is taxed 100 percent at your marginal tax rate. In con- trast to most GICs the GICs s quid. Another alternative is the money market. This is also convenient. The rate of return fluctuates with the bank rate. Security is also tied to the government which issues treasury bills to finance its debt. The yield is low and the income is taxed 100 percent at your marginal tax rate. ‘Traditionally, mortgage These securities have been performing with lower rates (around 5 percent annual- ized) as interest rates have declined. Interest income is 100 percent taxed at your personal marginal tax rate. Next is an alternative that is more aggressive and has a higher yield. This security also has a fluctuat- ing yield. These are mort- gage backed securities. Th recent years has income you are taxed 100 tax rate. This option also can be turned into a capital gain which attracts no taxes if you have not uséd up your capital gains allowance. Dividend producing secu- rities are also an alterna- tive. They too have a fluctu- ating yield and a reduced tax burden. Si s trading exchange they ‘have more volatility in their perfor- mance. The yield here has fluctuated hetween 9 per- cent and 15 percent in recent years. Balanced funds provide an attractive alternative today. There is no guaran- teed rate of return. Since the returns are often a com- bination of interest, divi- dends and capital gain, there is a tax advantage. The final alternative is equities. These have the highest returns, the most volatility, and the least taxes. Of course you can also provide diversification by combining several alterna- tives that meet your objee- ives. George Perdue. is Financial Planner, Business Consultant, and Partner in Money Concepts, Halton Hills. He can be con- & Marketing *Sales Representative Exclusive Sales STRAHL GRANT STRAHL BUILDING LIMITED. CUSTOM HO Inglewood Village Estates in the rolling hills of Caledon trahl Homes announces the ultimate in county living lifestyle. Soon to be released are 22 magnificent estate lots (with gorgeous distant views) in the rolling hills of Caledon. Select your new homesite now from this stunning array of estate properties. Strahl offers a complete design/build service to make the creation of your new home an enjoyable experience. Bungalows from $390,000. Drive a few minutes north. on Hwy. 10 from Brampton to traffic light at Olde Base Line. Turn left to Inglewood village and follow signs to the ultimate in country living. T ERY - ARTHUR F. OM COMERY au, 877-5165 acrune MES ON & IATES tacted at (416) 873-1877. nes (519) 855-4856. tor. 874-3040 asso CSBs are GICs. They are, percent at your marginal F Residence BILL ELLIS ** Associate Broker CANADA TRUST Office: 877-9500 Canada Trust Realty Residence: 877-7528 Inc./Realtor OVER 20 YEARS EXPERIENCE IN REAL E! CALL THE KIDS Here is that perfect three bed- room starter in Acton’s Glen Lea. Well established, quiet area. Features a back yard oasis. All for $149,900. CT93-010 PERFORMANCE COUNTS “Dora Mackinnon™ **Associate Broker YOU'LL FALL IN LOVE! It's updated to the '90s with skylights, FROM WAY UP HERE 5.8.acres. atop the pment at Silvercreek cre spring-fed lake. feeds refurbishing. Estate ale. Newly offered at $169,900. WANT A WONDERFUL Details from Bill Ellis"* 877-9500 or CHRISTMAS? : 7-7528. CT93-018 How about nearly 2500 sq. tt. of spacious and gra- LADIES AND GENTLEMEN with fireplace open to formal dining room, beautiful On your right is a cosy three bedroom oak floors and staircase, main floor laundry/mud home. On your left is a nifty barn. } nee Dead ahead is the big shop with the fi deluxe two bedroom apartment above. Zoned commercial in Ballinafad for $269,900. See it with Bill Ellis** 877- 9500 or 877-7528. CT93-012 reshingled — new fencing — you must see this beauty — $199,000. ‘Call Dora n- erful buy at only $339,000. Make your appointment to view with Dora MacKinnon". MOVE IN BEFORE HRISTMAS! ai This super 3 bedroom end unit is in #” nearly new condition with lovely broad- loom, fridge, stove and blinds included. 2 pc. powder room, garage and sliders to yard from kitchen. Low maintenance fees and immediate possession make this the right move for you at only $132,500. Call today for your inspec- tion, Dora MacKinnon**. 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