10 - The Prince George Citizen - Monday, October 15, 1990
B u s in e s s
Pros and cons of savings bonds
It’ s that Canada Savings Bonds
time o f the year again. If you have
— or are thinking about buying —
C SB s, review the following check­
list and circle the relevant points.
ADVANTAGES
Taking part in the CSB payroll
savings plan at work is one o f the
best ways to force yourself to save
money.
And employees have until Nov.
15 to sign up, two weeks after the
Nov. 01 deadline for cash pur­
chases, said Bob Sutherland, a
director o f the payroll savings pro­
gram and vice-president and direc­
tor o f Odium Brown Limited.
Note: because you borrow to
buy the bond, then pay off the
loan over the year, remember to
deduct the interest on that loan
when you file your tax return.
C SB s are as safe as the federal
government’ s backing. And you
may cash the bond at any time, al­
though you receive no interest in
the first three months o f a new
issue if you cash in before Feb. 1.
The 1990 series will have a 12year term.
The interest rate is competitive
when compared to other safe, flex-
Mike
Grenby
ible deposits. If rates rise over the
year, Ottawa sometimes raises the
CSB rate -as it did this year. If
rales fall, however, you still get
the guaranteed rate until the fol­
lowing Nov. 01.
C SBs are fine for a short-term
investment, as an emergency re­
serve or ready cash for an opportu­
nity. They are also handy for
children’s
family
allowance
savings programs.
D IS A D V A N T A G E S
As their name says, CSB s are a
savings instrument, not a true in­
vestment After tax and inflation,
you make little if any money.
Even the famous 1981 issue that
paid 19.5 per cent was a moneyloscr for those in the top lax
brackets. After tax, these people
earned about 10 per cent on the
bonds — while inflation was run­
ning around 12 per cent.
A L T E R N A T IV E S
My favorite is to knock off
debts. W hy pay up to 33 per cent
on outstanding credit card accounts
or even 11 to 14 per cent on a
mortgage when the bonds cam you
only around six to seven per cent
after tax?
Contributing to an RRSP (if you
aren’ t already putting in your max­
imum and an RRSP is appropriate
to your financial situation) is often
a better choice than buying a CSB.
That will produce an immediate
tax break o f about 27 to 45 per
cent of your contribution. And
money in the RRSP can then
easily earn a guaranteed — and
tax-sheltered — return at least as
high as the CSB rate.
O f course, you can also put
C SB s into an RRSP, claiming a
deduction for the amount con­
tributed.
Many financial institutions offer
deposits which compete directly
with CSBs. These deposits typi­
cally pay about one -quarter of a
per cent more than the CSB rate.
And they are equally redeemable
with little or no penalty.
As long as the deposit (principal
plus interest) is within the limns
provided by Canada Deposit In­
surance Corp. or credit union in­
surance, the money should be just
about as safe as CSBs.
Ottawa itself also offers Treas­
ury bills, which generally pay a
higher rate than CSBs. T-bills,
bought through a broker or bank,
are also guaranteed by the govern­
ment and can be sold at any ume
pnor to maturity.
Depending on how interest rates
move after you buy the T-bilLs,
you could make or lose money on
their sale. Also, if you buy a T-bill
for a term o f less than a year, if
rales drop you would then have to
renew your funds at a lower rate.
If you arc an investor (as op­
posed to only a saver), then you
might look beyond CSBs to the
stock market, revenue property or
a business opportunity.
Naturally, you lake higher risks.
jccL
The Sydney Tar Ponds in Nova
Scotia arc one o f the most hazard­
ous chemical waste sites in Cana­
da, and contain 600,000 tonnes of
sediments laced with polycyclic
aromatic hydrocarbons (PAH s) and
other compounds.
The si4.3-m illion federal-pro­
vincial cleanup project is the
largest undertaking o f its kind in
North America, according to a
Prince George Hydro Mechanical
release. The cleanup operation will
involve digging out the hazardous
waste with dredging equipment
and then incinerating it to destroy
hazardous compounds.
Prince George Hydro Mechani­
cal is the only Canadian company
operating the IMS Model 40 1 0 10inch cutterhcad suction dredge.
B u s in e s s N oteb ook
The unit is capable of removing
high-density sludges in effluent
lagoons or other areas subject to
siltation or sludge buildup.
Industry and
municipalities
throughout the U.S. use this
dredge. Prince George Hydro M e­
chanical Ltd. recognized the need
for the equipment for environmen­
tal cleanups in pulp industry
lagoons and acquired the VcrsiDrcdge in August. The Sydney Tar
Ponds trial contract resulted from
the Globe ’90 Trade Fair.
★ ★ ★
B.C. Tel is installing an ad­
vanced operator switchboard sys­
tem that will significantly change
the way operators work and the
way customers arc served.
The Traffic Operator Position
System, or TOPS, as the equip­
ment is called, will come into
service in Prince George early in
the new year, says Kathleen
Mears, area public affairs manager.
It will begin operating in larger
population centres in the province
on Sunday.
The new work stations arc er­
gonomically designed, that is, they
arc designed to ensure case of
movement. They are fully ad­
justable, making it possible for
operators to personalize their work
area for standing or sitting. In ad­
dition, the new system will mean a
quicker response to all customers’
calls.
★ ★ ★
Other Art and Capuccino is open
at its new location at 1110 Fourth
G e t e a r ly
o n
C h r y s l c r C a n a d a a n n o u n c c s its o w n
C iM
G r e a t S a v in g s T o d a \ a p r o g r a m
th a t e l i m i n a t e s a m r e a s o n lo r p o s t p o n i n g
t h e p u r c h a s e o i a n e w J e ep o r 1 a g io d u e to
e x p e c t e d C iS I s a v i n g s e u r r e n t h s c h e d u l e d
t o g o m t o e l i c i t | a n u a r\ 1 .1 0 Q 1 I lu s
p r o g r a m w ill p r o v i d e c u s t o m e r s w it h C iS l
UP TO
Ave., and is already enjoying an
increase in patronage at its morevisiblc,
strcci-lcvci
address,
manager Lilia Tipton said Fnday.
Unul last Tuesday the capuccino
bar and art gallery had been lo­
cated upstairs al 547-A George St.
“ Now' it’ s all on the ground
level and wheelchair-accessible,”
Tipton said.
Now, after the move, the art gal­
lery is more clearly separated from
the capuccino bar area. In addiuon,
the graphic design service is in ils
own comer and has all the advan­
tages of a storefront location.
Other Art and Capuccino is open
from 9 a.m. to 10 p.m. Monday to
Saturday. Both the art gallery and
the capuccino bar arc open these
same hours.
Currently being shown in the art
gallery are the works of Phil Mor­
rison, a Pnncc George sculptor,
and Andy Schlitt, a city painter.
- Interested In a monthly Income from
your RRSP?
-Confused about the maturity option*?
-Wish control of your fund# and an
Increaauig eatate value7
Check the Regletcred
Retirement Income Fund
Conted:
Bruce D. GUchriet. C.L.U. ChT.C.
GILCHRIST
FINANCIALLTD.
"Retirement Income SpedaJieta"
Phone 563-1264
1531 Victoria St., Prince George
"W»
plan better retirement* all year long
Hoot been for over 3 0 yeo n *
The Partners o f
Ferguson Gifford
j
An- pIc.iM il it. .innoun, < that
*
W illia m K. H ib b a rd
tuv loiiK'd (bt lirm rttu tm ( Xtolnt 1. 1990
Mr 1libb.ird will hc.ui up tin lirm s labour department Mr
Hibbard has advised and represented ih tn is in arbitrations.
Industrial Relations ( ouncil hearings, u illeitin bargaining,
ti .man right' wrongful dismissal easts and related
empiovment matters in both tht Provincial and Petit rai
lurisdu tituis Mr Hibbard s , lu tits include companies m (lit
privatt set tor in forestr\. maiuitat taring, hospitality, trucking
and trans|vrtation. mining, health t.irt and supply and servue
industries In tht publu st-vtt»r. ht has represented ( lients in
health art and edm at ion
11 te:ust*n l ntford. tom tht r with Ilouiman and ( arr and
Lipimtt Kostnstein. proudt a tull rangt ot torporate
onion r ai and litigation st r\ n es to t lit tits throughout ( anada
and. with >ur murnationa’1 afiiliates. tht world
Ferguson Gilford
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'sui11 '(Hi
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Park Plate. 066 Hurrard Steel
Vatu ouvt r B ( Y6( '1 1 '
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G o o d m a n L a p o in te F e rg u so n
I apomtf
I
oronlo
a n il ( a r t
K o s t- n s lt- m
• North York
Montreal
1 rryusnn Gifford
Vancouver
Stf»W Nl
Hufiurd Siren
VH »H*
G S T s a v in g s
a l l J e e p v e h ic le s .
It m a k e s g o o d
e c o n o m ic
s e n s e to d riv e h o m e
Je e p
a
C h e ro k e e n o w !
sa\ in g s h a s f d tin \ e l m le lin e a v e r a g e s
S hi II te c c i\ c u p to S 1 .0 0 0 ( iS I s,i\ m g s
tm | c ep i h c r o k e c I h a t s m a d d i t i o n to
\ o iu c h o n e o l SI 0 0 0 c a s h hat k o t k m
lac to r\ I m a m m g
H u m m tt> \ o u t j e e p a n d I a g lc ile a le i
a n d get ( treat \ i \ m g s 1 1n l a \ 1
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$1 ,0 0 0 G STp**10.90'
*
MATURITIES
But you also get a shot at a higher
return.
Perhaps the answer is to diver­
sify: buy some CSBs (perhaps
through payroll savings) but also
pay off some debus, contribute to
an RRSP, consider longer-term
bonds (in case interest rates fall)
and possibly invest in a (stock
market? real estate?) mutual fund.
If you don’t have enough money
to do everything, review the points
you circled in this checklist lo de­
cide your prionues.
Finally, be sure to redeem all
bonds once they mature, for they
earn no further interest afler the
maturity date.
C i t y f ir m h i r e d f o r t a r p o n d c l e a n u p
Prince George Hydro Mechani­
cal Ltd. has been engaged to pro­
vide trial dredging services for the
Sydney Tar Ponds Cleanup Pro-
R .R .S .P .
SAVINGS*
FINANCING*
OVER 48 MONTHS » R '
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1596 3rd Avenue
Prince George, 562-5254
1,000
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