The Rural Voice, 1985-11, Page 60FARM ADVICE
Tips on Canada Savings Bonds
On October 23, the 1985-86 series
(S40) of Canada Savings Bonds went
on sale, offering an interest rate of
81/2 per cent for the first year.
Bonds from series 1 to 27 (issued
before 1973) as well as series 29 (1974)
and 30 (1975) have already matured.
Check today for the series number
and maturity date printed on your
bond certificates.
Past bond series 28, 31, and 33
(issued in 1973, 1976, and 1978)
matured on November 1, 1985. No
interest is earned on these series after
this date.
Year Potential Value
Series Issued Per 51,000
28 1973 $2.877.70'
31 1976 $1,449.40"
33 1978 $2.305.86" *
If all coupons are attached
•' With Nov. 'PS coupon attached
"' For Compound Interest Bonds
There are bonuses in connection
with these maturing series. Bond-
holders must report 50 per cent of
cash bonuses as interest income, not
as capital gain. This means that the
FINANCIAL HINT:
Guaranteed
Investment
Certificates
TSE:
Prime:
Inflation:
Short Term
(Days)
Dow Jones:
Bank Rate:
Gold (Cnd):
RRSP's
T -Bills:
US Dollar:
Cdn Dollar:
Mortgages
Mutual Funds
(Average Compound
Growth)
bonuses will face the same effective
tax treatment as before, but they will
not be eligible for the proposed
$500,000 lifetime capital gains ex-
emption.
Some useful tips to remember when
purchasing Canada Savings Bonds:
• Canada Savings Bonds will most
likely be sold until November 8.
Canada Savings Bonds bought on the
last day of the campaign earn you in-
terest on your money from the first of
the month. Therefore you could earn
double interest on your money
• when surrendering a Canada Sav-
ings Bond prior to maturity, always
cash it on the first day of the month
to ensure your full previous month's
interest
• Canada Savings Bonds are
suitable for even the smallest investor
as they can be bought in amounts as
low as $100
• bonds can be bought as "C"
bonds with interest compounding or
as "R" bonds with interest paid each
year on November 1.
Canada Savings Bonds are an ex-
cellent short-term vehicle for payroll
savings available through many
employers, but should not be treated
as a long-term savings vehicle. If you
are investng for a long term you are
wise to choose higher yielding
guaranteed investments or mutual
funds to maximize your return.
Your after-tax yield should always
be considered. Canada Savings Bonds
do not offer any reduction in the
amount of income tax payable.
However, the main advantage of the
Canada Savings Bond is completely
liquidity. You must decide how much
liquidity you desire.
If you are unsure which investment
will best suit your needs and afford
you the highest after-tax return, con-
tact a financial planner. ❑
Dennis Little
is a consul-
tant with
ABC In-
vestments &
Insurance
Agency Ltd.,
Goderich
FINANCIAL MARKET TRENDS
CANADA SAVINGS BONDS: Canada Savings Bonds went on sale October 23 with a first year interest
rate of 8'/2% and a guaranteed minimum of 61/2% for each year to maturity. Last year they paid 111/4%.
Series S28, S31. S33 mature November 1 1985 and will not earn interest after that date.
1 yr.
3 yr.
5 yr.
30-59
90-119
270-364
1 yr.
3 yr.
5 yr.
1 yr.
3 yr.
5 yr.
3 yr.
5 yr.
10 yr.
OCT. 3 OCT. 10
1985 1985
9.500 %
11.000%
11.375%
-4.40
10.250%
4.000%
9.000%
9.000%
9.250 %
+ 7.28
8.990%
$444.28
9.375%
10.625%
11.125%
8.860%
$1.367
.7315
10.0000/0
11.250%
11.750%
37.400%
21.700%
26.600%
9.500%
11.000%
11.250%
-29.93
10.000%
4.000%
8.750%
8.875%
9.000%
+ 1.12
8.550%
$444.76
9.000%
10.625%
11.125%
8.250%
$1.3667
.7317
10.000%
11.250%
11.750%
37.200%
32.200%
21.500%
OCT. 17
1985
9.750%
10.750%
11.250%
-14.22
10.000%
4.000%
8.750%
8.750%
9.000%
+ 17.69
8.780%
$444.78
9.375%
10.750%
11.125%
8.550%
$1.3675
.7313
10.000%
11.250%
11.750%
37.600%
21.900%
26.800%
COMPILED BY: ABC INVESTMENTS, 53 WEST STREET, GODERICH, ONTARIO, N7A 2K5
42 THE Rl'RAL VOICE
OCT. 24
1985
9.500%
10.750%
11.250%
+ 4.82
10.000%
4.100%
8.750%
8.750%
9.000%
+ 2.80
8.770%
$445.88
9.375%
10.750%
11.125%
8.250%
$1.3648
.7327
9.750%
10.250%
11.750%
38.600%
22.900%
26.900%