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id ae. oo a TTY YY TH 16 - PORT PERRY STAR - Tuesday, January 26, 1993 OOOO) ve ves DOC OOOO .e Oe | OOOOOOOO0) DOOR) OOOO MOON | ARR .e J 000% 0% 0 0 UOOOOOOOOOOO0) ea % Ye 0 0s Pe How do you make intelligent financial plans when compa- nies such as Birks and Olympia and York are in Receivership? We live in an uncertain world where asset values are chang- ing and guarantees of security have become suspect. Most peo- ple approach financial planning much as they would the weekly shopping list, "A little of this and a little of that." To get suc- cess and contentment out of your hard earned money you must develop a plan. This plan should consider your existing assets, your need for periodicin- come, the need for an emergen- cy cash positioh, and known ex- peniiturey looming on the orizon. If you wish to use a con- sultant, and unless you are par- ticularly competent in this area you probably should, be certain to satisfy yourself first that the person is qualified. Any compe- 'tent advisor will not object to yourequesting references. In any case, once you have an idea about what you are com- fortable with you will have to explore the gamut of instru- ments available in the market Place: Remember that, general- y speaking, return on invest- ment is usually offset by the "1nordinate C0) IRR HE LC) va concept of security. If you are of- fered inordinately high returns you are most likely also taking risks. Security should be rated on a scale going from instruments issued direct- ly by a higher tier government (i.e. Government Of Canada) to lower tier governments (prov- inces and municipalities), gov- ernment guaranteed securities (i.e. GICs) to unsecured invest- ments, such as mortgages, real estate, common stock of public- ly traded companies, and prob- ably ending at lottery tickets (high return and high risk). If you constantly put most of your Financial survival in the 90s savings into chartered bank's savings accounts (less than $60,000.00) or Canada Savings Bonds, you will be very safe but you will find your return on in- vestment very low. All of this obviously depends on how much money you have available. Peo- ple with an amount of invest- ment funds, say in excess of $100,000.00, should consider some sort of portfolio mix. Usu- ally this is based on percentag- es: say, 10 per cent cash, 60 per cent G.I.C., 26 per cent good quality firat mortgages, 5 Ther cent equity markets. is weighing will be more an ex- A ------ \ in the long run; there's an investment fund that gives you an Saveanextra % in taxes on your RRSP contribution hile mutual funds are generally designed to reward investors this year ; Working Ventures' objective is to pfoduce the Superior returns . immediate tax advantage. traditionally associated with investment in dynamic and growing businesses, Working Ventures Canadian Fund gives while minimizing risk through prudent - you a 40% headstart over just about every other Here's an example: development and management of the fund. band ics Caasts. | Investment in Working Ventures $5,000 ne Private equity investing involves certain The Power Of Working Ventures Tax Savings | -$2,500 = aa 'Mibough Voki od : Canadian Fund ax dey site) you with a tax credit to help offset those risks, it ~~ Now, you can take advantage of a unique cannot guarantee that its investments will eam a investment fund - Working Ventures Canadian Fund - Federal Tax Credit ($20%) - $1,000 specified rate of retum, or any retum, in the short that could permit you to reduce this year's taxes by Provincial Tax Credit* or.long tem. In addition, a private equity $4,500! That's 40%" more than the tax benefit of just (20% where applicable) - $1,000 investment involves a longer term commitment. tote essy oper RES 1 Circ Your Net Cost $500 Poised For Growth $5,000 in Yorkin Verma re i Investing Your Total Tax Savings $4,500 Due to the current economic environment, Working Ventures is in an ideal situation, prepared to The fact that Working Ventures shares are take advantage of investments in under-valued businesses and positioned to savings'. Ex also eligible for an RRSP means further tax breaks. For instance, if you are in a 50% marginal tax bracket, a $5,000 contribution to an RRSP would reduce your taxes by a further $2,500, for a total of $4,500 ($2,000 + $2,500) in tax Your investment will primarily be reinvested in promising, growth- oriented small and medium size businesses in your province. perience That Counts Key to the performance of the fund is the expertise and experience of its management team headed by Ron Begg, President. His track record of success combines senior corporate management disciplines with the hands-on company-building skills of a successful entrepreneur. This complements well the investment and finance background of Jim Hall, Vice-President Investments. Jim has solid professional credentials from public accounting and merchant banking, and a record of originating and managing successful investments. Jim offers a prudent, disciplined and seasoned approach to the development of a strong, diversified investment portfolio. profit as the economy tums around. And, while a majority of the fund's assets will be invested in enterprising businesses tq maximize return potential, risk is tempered by investing a significant portion of assets in short-term, high quality govemment securities. The information contained herein is not complete. Prospective investors are advised to refer to the Working Ventures' prospectus for complete details of the offering. Class A shares of Working Ventures are offered for sale solely under the terms of a accepted for filing in all Canadian provinces and territories. Copies of the prospectus may be obtained only from persons duly qualified and licensed to distribute these securities. "The extra provincial tax credits are available to investors resident in Saskatchewan, Ontario and Prince Edward Island. Working Ventures is subject to certain interim investment restrictions which are described in the amendment to Working Ventures' prospectus. Discover How Working Ventures Can Work For You For more information, call: ROBERT J. GOW (416) 434-7156 » 1-800-267-1522 En Investment advisors to Canadian enterprise and enterprising Canadians 111 Simcoe Street North, Oshawa, Ontario L1H 7M9 "> WORKING VENTURES * CANADIAN FUND INC. . OOOO COOK SASS pression of your own orienta- tion. Another aspect that will concern you will be terms, As the term lengthens on fixed in- come items your risk of capital appreciation or'depreciation in- creases with swings in interest rates. Do not be fooled by people who tell you where interest rates will be two or three years down the road. Educated guess- es should be accepted for what they are. Few economists will quote you their batting averag- es on statistical forecasting for good reason. In summary, analyze where you are now. Get to know your- self. That is to say, what can you live with and what are your fi- nancial goals. Develop and exe- cute a plan. Ask many ques- tions of advisors and assess their credibility. . courtesy of Alex]. Shepherd, C.A., Scugog Financial Service, «division of Cressbrook Financial _ Planning Ltd. 'Efiling' returns get fast 5 RL pot it 3 refunds This year, for the first time, ayers all over Canada will be able to file their personal in- come tax returns electronically. "Efiling" as it's called, began as a pilot project in Manitoba back in 1990° with approximately 2,000 1989 tax returns. The pro- gram was expanded in 1991 to include Alberta, Saskatchewan and the Northwest Territories, and in 1992, Quebec, British Columbia and the Yukon were brought into the system. Last year, over 500,000 tax returns were filed electronical- "ly. Now, with Ontario and the Atlantic provinces being added - to the program, Efiling of 1992 tax returns will be available to taxpayers in every province and territory. How does Efiling work? It's really pretty simple. You have your tax return prepared using one of several Revenue Canada approved T1 software packages - most accounting firms or tax preparers use them. The pro- gram creates an "electronic pro- le" of your return, containing all the information the tax au- thorities need to process it. This profile is then sent by an au- thorized transmitter over spe- cial telephone lines directly to a government assessing centre in Ottawa. Within three hours, the transmitter receives an ac- knowledgement report - evi- dence that your return has been filed and accepted by Revenue Canada. And that's it - no need to send any T-slips, receipts, forms or paper of any kind. Of course, if you owe money, you still have to send the government a cheque accompanied by a special form, but you can do this at your local financial institution, However, for the millions of Canadians Turmnto Page 17 - vara mre ate