Whitby Free Pros., Weêiosday, June 29, 1994. Page businss newsi 1JSJIICSS crea"Ite jobs':e Ont@ chaniber president The Ontario government should have minimal involvo- ment with the economy and allow business to create jobs and wealth, Ontario Chamber of Commerce president Stewart Verge recently told Whitby chamber members. Verge says the NDP govern- ment elected in 1990 bas put the province "in serlous f inancial jeo- pardy" and made business "very reluctant to invest in Ontario.» Speakîng at a Whitby.chamber meetig erge, wo is group vice-president of network ser- vices for Bell Canada, says the province's debt (more than $90 billion) bas more than doubled since the NDP took office. "Since the NDP came to power, revenue bas grown by only 5.2 per cent over the past four years ... Yet growth in expendi- tures bas reached 28 per cent over the past four years. Many businesses have faced similar circunistances and how have their books in the black-... U"ft appears that busineses are prepared to make bard choices, in order to survive. In govern- ment, it would seem. the bard choices are deferrable. Debta and deficits accumulate well beyond what woubd be an acceptable level for a business.» Verge say's the government has practised "creative accountin, noting that sanie items recorded as revenues are "ad hoc one-time re-evaluations of assets and exceptional cash flows,» for example, the sale of land and propery to crown corporations. "In ac, there bas been no Investment tunds are flot short-term investments Are y ou saving to buy something next year? If so, you can't really bave tha money for five years. Therefore, you really Can't invest it. You simply park it somiewhere (bank aceount, T- buis, short-terni deposits, etc.) and receive a nominal "investmnent rate of return." But if y ou are saving for your future, or some major purchase five or 10 years from now, or reti'rement anywhere fr-om, five to 40 years from now, you want to invest those dollars to get the maximum possible return, so you will have more dollars for that purchase or retirement. That's why investments should be looked at as long-terni. Maybe your definition is different than mine, but when I say long-term, 1 mean a minimum of five years. Many people choose to bock money up in a five-year terni deposits and GICe-. However, as soon as a person invests in stocks, real estate or mutual funds, they seem to expect that it should go up every dahen you start looking at the long-terni records of mutual funds, Templeton is a name that often cornes up. It has been available to investors for 40 years now. Maybe you know that $10,000 invested in 1954 is wortb just under $3 million today. That's very impressive. What mostrpeple don't realize i8 that in 13 of those 40 years, Templeton Growth F'und potda loss. That's right, almost one-third of the time, this und bas ot money -- and yet it bas averaged over 15 per cent (as of May 31, 1994) since its inceptitbn 40Oyears ago. There were even times when the fund showed losses two years in a row. What would you do if your investment decined in value by 25 per cent in the first year or two? If you answered "bail out , you would be numbered amongst those who treat investment funds as a short-terni investment. Ail markets cycle - everything goes up and down. If you experience the down before the up you usually end up with more patience, which is one of the Zeys to sucoessful long-terni investing. In--February, people were coming to me and expecting average annual returns of 20 to 25 per cent. When I suggested that they knock at least 10 per cent off that figure for the long terni they were quite taken aback. They were looking at the great returns experienoed by many funds in 1993 and thinking it was an average year. Pm sure everybody bas heard the old adage about buying low and selhing bigh. As obvious as it sounde, most investors do just the opposite. Think about it for a minute - the last part of 1993 and early in 1994 people were.literally lining up ta buy niutual funds because they were going well (higb). Now that the market bas dropped off for a couple of months (low) investors are scarce -- there are more sellers than buyers. If you need your money in the short terni and you put it into investment funds, you are speculating -- not investing. If you are investing for the long terni (five years or more) investment funds can be an excellent choice. Sir John Templeton was once asked, "When is the best time ta învest?" Sir John's reply: "Anytime you have money!" If you are investing, tbink long terni and use down markets as an opportunity te buy good quality investments at sales prices. Derek Dutka 18 an indepedenf financial planner' with Financial Concept Group in &a wa I~1 R,117,MORRIS I P11HOTO PRODI 101 Dundas St..NV., Suite 302, Whitby, Ont. LIN 2M2- (905) 430-1928 WATCH FOR GRAND OPENING Saturday, JuIy 9th L'ook.for Myua in next week's paper! STEWART VERGE change in government's net worth as a resuit of the transac- tion. Most, if not aff, of the capital appreciation occurrod in prior yoars. «No6w that the proporty bas been sold, government must bease it back. This seonis ta me just another form of debt, like a mortgage perhaps' - - Ver ge commended the governi- ment for allowing Sunday shop- pinpg, introducing casino gamn- b in g, and for opening discussion on inter-provincial trade barriers and conipany downsizing. With a provincial election upcoming, Verge says the New Democrats can be expected to «minimize their dismal iscal per- formance and stress the posit- ives,» while Premier Bob Rae might adopt the 'Captain Canada' robe in taîka about Que- bec separation and the constitu- tion. k ýi the election draws near, the Ontario chanibors agenda is «boss is more," says Verge. «Lot' business croate the jobs and lot business create the op'portunities. Just lot us breathe. W. can croate a sound business enviuronment." The chambor's "élection wake- up caîl pape?» seeks to "reinvent government. Ontario can no lnger sustain a social sft net hat fast becoming a hammock,» says Verge. eW must have a system that encourages people te hebp them- selves, where they can better themselves; not a systeni that fosters dependency'» Hie urges a competitive tax structure to encourage invest- ment in Ontario, and says busi- ness wants competitive regula- tions «go that smabl businesses don't get bogged down in compfi- cated paperwork and filing fees te compensate government's time doing their paperwork.» PrceChopperreplcesIG PROM PAGE 8 "The. food retail market bas many secters and components, there are a number of factors to, consider,» ho said. "If we're in a recession with bigh unemployment, thon the discount sector wlgo. 1he switch ta aà Price Chopper meant that only 53 of the 6 union employees at the former IGA stere kept their jobs. But this could not bo avoided, Carter claimied. "It had tc, be done to retain the store,» ho said. Workers who were laid off were offered three options. Tbey could go on part-time hours, use their seniority rights te «bump» someone froni another store, or accept a settlement package, Carter said. Your Financial Health Derek Dutka Advertisement R.W. LAWRENCE CONSULTANTS INC. ......W.Lawe.. ......e . Advice fro.an.Exper ~~~~~~Robert W. Lawrenceispesdtanonetefrngoacoulntimo service the business community of Durham Region. Bob recently took an early retirement package from the Royal Bank of Canada after 22 years of service, where he held the position of Senior Account Manager. Through his newly formed company, Bob is offering Durham businesses financial advice and negotiation services aimed at enhancing a company's ability to borrow. These services include, but are not limited to - balance sheet restructuring-in termns and format that Bankers understand - preparation of one to three year cash flows based on historical and projected basi s - meetings with company bankers to improve financial arrangements. With over six years experience in real estate banking, Bob is also an expert in identifying good real estate investments which can provide a secure investment and enhanced relurns. Bob invites you to cail him in confidence at 430-2651. He can arrange to meet you on your premises or at his new office located at 133 Byron St. North, in Pearson Lanes, Whitby. R.W. Lawrence Consultants Ine. 133 Byron St. N., Pearson Lanes, Whitby ~LIN 4M8~ (905) 430-265.1 1 a 1