Winnipeg Free Press

Winnipeg Free Press (Newspaper) - January 21, 1990, Winnipeg, Manitoba January Gold bugs Licking wounds by Harry mar Don question where have All i the Gold bugs gone answer there in he Kifle their wounds from their too often wrong predictions the Price of Gold will Gold bugs is the term used to describe those Amateur and professional fanatics who believe Gold is the Best Protection against inflation and a surefire Winner during periods of economic and political they had their heyday 10 years when Gold reached a Peak of an those were the Golden by the end of the 70s the Price of Gold had risen to about per ounce of that a tradition in the world Market place for they line up for hours to buy Gold bars or coins they clamoured for Gold certificates or the shares of Gold mining companies they speculated wildly in Gold futures confidently predicting the Price of Gold was headed for an and the Gold buying spree be came a Al time High the Price hit an Al time High of per ounce on March pity the wretch who liquidated most of his other assets to buy Gold bars at that to Hoard until a Nice big capital gain could be made As the Gold Market continued its upward almost As suddenly As it had the Market went into de Gold had lost much of its its speculative by last september the Price of Gold had dropped to an there was a bit of a Market rally during the last couple of months of the Price getting Back Over in it reached in Early december before falling to end the year Only a Shade Over per in other anybody who bought Gold at the beginning of the eighties particularly if the Pur Chase was in 1980 and held on to the precious Metal to the end of the decade would see the value of his asset Cut by More than that Price decline occurred through 10 years of which is generally considered an Ideal condition for the value of Gold to weve seen in the past decade wild a severe business recess Ion and an Overall economic the Confidence of smaller investors was shaken by the Stock Market slump in and there have been International confrontations and All of these factors should be working in favor of the Gold emotional Stampede there of that is because too Many people were burned in the Early 1980 Gold buying people became caught up in an emotional Stampede they scoffed at those who cautioned the investing Public that golds glitter was a snare and a Many Are bitter and in this new year Gold is struggling to stay around the per ounce Price financial analysts with some new York financial institutions have been predicting the Price will reach by april that april fools in Case you Harry Mardon is manager of Community relations for Winni Peg based investors group new year Calls for fresh look at personal financial planning by Brenda Dalglish the Canadian press when one elderly Cou ple came to Ron Trace for advice on their financial he was they were in their late 70s and concerned they we rent saving their annual income was about while their expenses were but their investments were Worth a Quarter of a million i cant think of a better exam ple of people who could afford to Stop saving and Start spending a Little bit said a partner with accountants peat Marwick Thorne in but they got into the habit of saving and they didst want to Start Tak ing Money like Many the Cou ple were following old patterns rather than giving their financial circumstances a thorough review and planning a new year is As Good a time As any to take a fresh its a very Good idea to periodically assess where your Cash is coming where its going and to think about what your Lon term objectives says who conducts financial planning Semin Trace Doest Call it budgeting that sounds too much like your Mother telling you to eat your he Calls it a diagnostic and traces system is less pain Ful because it int necessary to stick to a detailed monthly budget once the review is make list you have to figure out How much Money is coming in for the year and How much is going list All sources of income for the minus the income taxes to be then consider your annual sex dont Overlook from dry cleaning and gifts to rent insurance Likely medical and dental expenses and car if you have any doubts about exactly How much youre make a list of everything you spend Money on for a says Faye manager of operations for consumer lending at the Canadian Imperial Bank of com sometimes people Are quite surprised when they discover what their lists look Davis at this Point you May face the sobering discovery that you have More Money going out than you have coming if that the youre Likely financing the shortfall with credit which is costing even More Money in interest clearly the next step is to take Quick action to Stem the flow and either increase your earnings More reason Cut your if you have a positive Cash flow More earnings than expenditures should decide whether the Money is being spent to Best says with careful a family earning a year can live better than another family with an income of but no Clear financial people tend to look very Short said if they have left Over at the end of the month they think about what they can spend it by sitting Down and planning where you want to go you can put that in context and choose the Best think about your Lon term do you want to buy a take a plan for Early retirement or just make sure your savings Are adequate in Case of emergency keep in mind that from a Finan Cial an expenditure on something that builds your assets or reduces your liabilities such As buying property or paying off your credit card is better than an something that costs Money but has no lasting Mone tary like a everybody is that Why rules of thumb dont Trace travellers better off buying greenbacks two weeks ago set your goals buying resp take this resp business one step at a that the Way to a smaller tax Bill now and at larger nest egg in step Tine what do you want out of life and your Money if you live totally for today and plan to let the future take care of then spend away and forget registered retirement savings or if you Are a successful investor building your own business or a real estate for example rasps might Only slow you perhaps you want to pay off expensive or save toward a first or better if you Are in the lowest tax an resp Proba Bly cant help much if you Are in a higher an resp strategy might make step two understand How an resp an resp is an Ordinary invest ment with extraordinary tax Fea d when you put Money into a Sav Ings term can Ada savings Mutual Stock and other qualifying invest ment and Register that investment As an resp you May deduct your contribution within limits from your that saves you d the in your resp can grow tax d you must de Register your resp by the end of the year in which you turn although you May take out your Money As you get Back your funds in a Lump sum or spread Over Many years you must add that Money to your income the year you receive you will be in a High tax bracket when you put Money into an resp and in a lower tax bracket when you get Back the that the tax you pay Back will be less than the tax you the Money will have grown tax free in the note contribution limits for both 1989 and 1990 Are unchanged still 20 per cent of your earned income maximum if you do not belong to a pension if you minus any Money you put into the pension step three choose the resp strategies Best suited to your Situa talk to the resp those who specialize in retirement income do this Well before the March 1 deadline for for the 1989 tax strategy the spousal if you have a spouse Likely to be in a lower tax bracket than you when you draw out the resp contrib Ute to a spousal you get the High tax break your spouse pays Low tax you contribute according to your whether or not your spouse contributes to his or her if you have pension Check into the special spousal Rol also Check the three year so you dont inadvertently end Mike Grenby up paying tax when your spouse takes out the strategy the last Hance pension Ottawa has said 1989 will be the last tax year in which you May contribute to your own resp up to the total amount of All your pen you might choose this rollover but leave out for a spousal you might also want to leave out another to Benefit from the pension income strategy the bit of both contribute to an resp and use your tax refund to pay Down take a buy a new bedroom suite and so step four shop and compare before you buy review what you what sort of investor Are you willing to go for Lon term growth and take some or satisfied with guaranteed returns and no big perhaps a combination decide whats right for you term Mutual then find the offering a competitive Low or at least reasonable comfortable risk and Good put new resp Money into the Best you can find and make sure existing funds Are still among the earning 12 instead of 10 per cent on annual contributions of for 25 years Means 40 per cent More Money an extra thousands of words Are being written and spoken about rasps during these first two months of the you might like to clip this column so you can refer to these four Basic they summarize the key Points about the the most tax effective investment for most pm offers prizes for Laid off workers Ohio a general motors workers in stung by can win prizes by bring ing customers to pm dealerships under a program to fight weak Auto the program is modelled after one launched two years ago at a pm Truckan car engine Plant in ton near pm spokesman Kathy Tanner said the Tonawanda employees helped sell vehicles last we have a whole lot of Energy out pm spokesman Thomas Tatham we think it will have a whale of an Toronto up the Way Cana Das Dollar has fallen trav Ellers to the United states would have been better off buying their greenbacks a couple of weeks the Canadian Dollar dropped to cents us by the end of trading but that still considerably higher than its 76cent level two years said Bryan senior vice president of foreign Exchange with the Royal Bank of and the Canadian Dollar is expected to fall another few cents by the end of the so it could be he one should have purchased dollars a week Griffiths but i dare if you look Back in six months you would have wished that you had purchased them the Canadian Dollar began its climb in Early due partly to the Bank of Canadas High interest poli Canadas Dollar gained on the the japanese major Continental currencies and the Brit ish late last the trend was Bro Ken against some of the the latest being the the change in the Canadian Dollar since last week Means an extra or tacked onto every us Griffiths by the end of the year that extra is expected to swell to about for every people who change Money at a Bank or Trust company usually wont get the Exchange rate most often rates vary for Small depending on several but Cost customers a Frac Tion of a cent per Dollar retirement annuities and Grifs As of annuities and Grifs Are available from certain life insurance Trust companies and Banks licensed in availability is subject to Federal legislation and individual corporate policies among those offering such the following table illustrates the monthly income that of registered funds will provide at certain Trif Deposit rates Are also certain minimums May apply and All rates Are subject to change without Purchase 61 62 63 64 65 66 67 68 69 70 71 single Lite and Mitty i0year minimum Mala female 00 annuity guarantee a 10year minimum male female 4 year 1 1 term certain to age 90 male or female 5 year Trif to age 90 income Only minimum formula term to 90 based on Purchase at age 71 note All monthly income shown commences Ona month after Purchase As rates Are affected by interest rate the rates Are subject to change at any rates represent the highest yielding plans at the time of current resp Deposit Trust Aetna Canada Trust Central guaranty Trust citizens guaranty Trust cooperative Trust confederation Trust counsel first City first line City household line Inland 1 investors group metropolitan group Montreal Mutual 1 National 1 North West 1 1 Pacific Western West 1 1 peace Hills Western 1 1 Peoples Hills Royal Presnor Saskatchewan 1 Standard Wellington Bank of Canadian Western of Western Hon Kong Bank National Royal Bank of Scotia Bank of Toronto Dominion Dominion life companies american Canada Crown great West West manufacturers maritime metropolitan in North american american Royal Seaboard 1 Standard Sun trans Amerea other Assn Loone credit credit Calisse do St de St secure la Home Mia Natl certain minimum Rwy apply to both to dump without Tor Home Art compound annual interest and May include Padal on resp and on arc minimums May tha majority Are compound not annual and will Raj a 1 1 prior to maturity with a value adj Atman not All 1 1 Anies offer both rails Tad and Noraa Tetrad quoted As of january source face financial croup Ira Winnipeg free press Winnipeg free press ;