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Take the time to. cho ose Be the right credit card |

Choosing the right credit or charge card is worth the time and effort it takes to be sure

: you get what's best for your particular needs. Here are.

some tips from Consumer and Corporate Affairs Canada to help you make the correct

decision,

‘Don’t just compare interest rates if you pay off your balance regularly within the grace period, Determine the

cost of other fees and charges

and consider all the benefits offered.

Check out the grace period — the number of days from the statement date before interest is charged. Obviously, longer grace periods give you greater flexibility and longer “free” use

of the card company’s money.

Find out how interestis calcu- lated. A card that calculates from the statement date will probably cost less than one that counts from the date of purchase.

Look at other benefits too such as convenience and mer- chandise discounts.

Bank, trust cards are usually cheaper

‘Check it out for yourself, but as a general rule cards issued by banks and trust companies charge lower interest than department store cards. But

bank and trust company cards have relatively shorter grace

periods and interest is usually :

charged from the date of pur-

a

from the ‘end of the grace period.

Gasoline company cards have relatively high interest rates,

and interest is calculated from

_ the monthly statement date.

Most gas cards call for full pay- ment each month and are not intended to provide credit, so you pay more if you go past the due date. Travel cards due in'30 days

Most travel cards aren't in-

-tended to provide credit either

and payment in full is expected within 30 days of the monthly statement. Relatively high

‘penalty rates are applied to - overdue balances.

chase, while stores charge only:

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BAUR Po Ut

2 000, 000 Canadians - invest in mutual funds

By KEITH A. DOUGLAS investment Funds [nsiitute

of Canada More than two. -million Canadians own mutual funds

relatively long grace periods. because they understand the.

sible ways to achieve personal investment objectives.

It’s important for people with disposable income to identify their goals. To build assets for the future? Or do you need in-

‘ come? Are taxes eating away at

your savings and you'd like to have more to spend after tax? Do you need a hedge against inflation?

Decide what you want to ac- complish; then buy only the in- vestments that will achieve your goals. The next trick is to stick to the plan. . What are

| mutual funds? | ~~:

A mutual fund -is simply an

. . investment. enterprise in

which many. people pool their money in a-diverse portfolio of

"securities. They share-propor-

tionately in the profits and ex-,

--penses — and the losses, if

there are any — and there's a

bewildering choice. of funds ’ available to meet every objec-

tive. - All the funds are operated with the advice of a full-time

professional manager and the.

wide diversification possible

reduces the risks of an all-the-

eggs-in-one-basket situation. Investors can also count on

_porting'slip.

getting their money back from a mutual fund on demand.

What you receive is the market value of your share of the fund according to the latest calcula-

‘tion. Many funds establish

values daily. This means you don’t have to wait for someone else to buy out.

Most funds need a minimum investment of only $500 or $1,000 — or less if you intend to make purchases monthly. You can also invest a large sum for the purpose of receiving a fixed monthly income.

Two per cent

levy per year All of this variety, expert

management, liquidity and

convenience are available far a cost of about two per cent a year. Furthermore, each re- ports transactions on one statement and provides all tax- ation information on one re.

After you've. decided which fund to buy, remember invest- ingis a long-term undertaking.

Keep your time horizon at least -

five years out, then exercise

patience and discipline and

stick to your plan.

_etbeete

For an information package .

on mutual funds with a list of funds and their advisors, write to the Investment Funds In- stitute of Canada, 70 Bond St., Suite 400, Toronto, Ont. M5B 1X2, |

Consider T-bills for high-yield, short-term investment option

Treasury bills have been around since the early L960s in Canada and they're becoming more and more popular year by

year. They're a huge market, _ with well over $100 billion out- _ Standing. There’s also an ac- -] . tive, efficient secondary mar- . ket. . T-bills’ |: surprising because they're ‘flexible, absolutely safe and ' pay very respectable yields, Al- .] « together, the bills are just , .about ideal for most short-term . investment needs. _: ‘Federal T-bills are a form of government bond. with matur- ities of 30, 60, 91, 182 and 365

‘popularity isn’t

days. They’ re purchased in huge amounts by banks and in-

- vestment dealers at Bank of

Canada auctions every Thurs- day noon. Then you can buy them fora given number of days. You buy at a discount on the maturity value and the dif- ference represenis your yield. Banks usually offer the bills in minimum denominations of $10,000 while brokers often

sell units as low as $1,000.

Prices and yields vary not only

_ from week to week based on the

latest Ottawa auction, but also

from institution to institution, a

So shop around. -

In addition to the Ottawa ver- sion, some provincial govern-. ments also offer T-bills of their own and yields vary marginal- ly between the various kinds.

But whichever you choose,

you'll find T-bills enable you to park funds conveniently for relatively short periods pend-

ing longer-term investment _

choices — and, at very respect able interest.

T-bills are entirely safe, too, and usually flexible. If you

.neéd access to your funds sooner than expected, you can

probably arrange for your bank or broker to buy back your holdings for a small fee. So you won't have to miss out on that golden opportunity that came up unexpectedly,

One way. or another, you should certainly discover the T-bill option. Your bank or broker can tell you more.

1343 Headon

Money Supplement 1990

was produced by

G@éna

Canadian Community Newspapers Association for the exclusive vse of its member newspapers.

Editorial services: Michael Sausden, Cornmunications Counsel,

‘ Box 714, Grane Say, N.B. E0G 1Wo

Typesetting and layout: Joneor Print Consultants,

-, Burlington, Ont, L7M 1X4 Printing by Uxbridge Printing Ltd., Uxbridge, Ont.

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