Bees 7 NE -sSsS Business news? 365-5579 WEDNESDAY, April 8, 1992 4B Understanding market value adjustments and penalties Knowing the difference between a “market value adjust- ment” and a “penalty” can save you quite a bit of money. While Some GICs or fixed term RRSPs fre locked in, others are redeemable - at different prices David Chalmers, a retirement DPD , & & Calorers Big or small, we cater to all 365-8369 and investment specialist at The Rogers Group and handy man with a computer, has produced some “interesting” figures relat- ing not only to penalties and adjustments but also to the way rates are calculated and com pared. Some financial institutions will allow early redemption of deposits; the penalty is a lower interest rate “For example,” said Chalmers, “you put money into a five-year deposit compounding at eight per cent a year and let's say you want to cash it at the end of the fourth year. “By then, your deposit would have grown to $13,604.89 That's called the “book value” HIGHEST TERM DEPOSIT & RRSP Rates * Year.....7 7/8% Year.....8 3/8% Year.....8 5/8% Year. ....8 7/8% Year. . 3/8 % ef 30 Days.. 1/4% ADVISOR Check & Compare Rates! MAgPLanvest * Subject to change without notice 428-2231 (creston) 365-81 88 (castiegar) as you don’t actually get this amount - you get the eight-per- cent growth only if you keep the deposit to maturity.” The penalty for cashing in your deposit early is a reduced return of four per cent. So $10,000 compounding at four per cent produces $11,698.59. That means your cost (or senda ed early redemption is $1,906. “A riled value adjustment, © on the other hand, is more fair to the customer,” Chalmers said. “You pay this adjustment only if interest rates are higher when you take early redemption. “A mathematical formula is used. In plain language, it’s approximately the amount of additional interest the GIC com- pany will have to pay a new depositor at nine per cent com- pared with continuing to pay you the agreed-upon eight per cent. That's far less than the $1,906.30 penalty in the previ- ous example. “So if interest rates are com- parable, always choose the red ble GIC with a market SUCCESSFUL MONEY STRATEGI adjustment rather than a penal- ty.” He criticized companies that use misleading interest rates when they promote their deposits. For example, if you invest $10,000 compounding at eight per cent for five years, you will end up with $14,693.28, or $4,693.28 interest. If, on the other hand, the $800 interest had been paid out each year, you would have ended up with your $10,000 principal plus $4°0( 000 interest, for a total of $14,000. Either way, you earned an effec- tive annual interest rate of eight Per cent on your money. “Some companies, however, divide the number of years into the i total,” same 7.7208 per cent rate for the remainder of the year. When you add up the 12 monthly payments for the year Plus the intefest carned at the end of the year on your princi- pal. There may occasionally be a tax advantage to taking income Chalmers said. In the above example, dividing five into the $4,693.28 gives 9.39. “I know of at least one pany that ly rather than monthly. For example, investing in a GIC today paying interest annu- ally means you would not have to report any of the interest income until 1993 - and possibly not pay tax on that income until April 30, 1994, If you were paid interest monthly, you'd have\to report all the monthly payments received in 1992 to your 1992 tax return, and pay tax a year earlier on this amount. uses this figure in its advertis- ing,” " he said. “You aren't really getting a higher return on your money. Even when the $800 interest has been added to the $10,000 prin- cipal at the end of the first year, you will still earn eight per cent on the $10,800 in the second year. In the less-than-ethical calcu- lation, when compounding inter- est has been added to the principal and you divide by the number of years, naturally you get a higher interest figure. “Always ask for the effective annual rate when you compare different financial products,” said Chalmers. If you receive monthly inter- est from your GIC of RRIF, you might think you are being paid a lower rate than if you receive your money annually. “The interest figures are indeed different,” Chalmers said. “But mathematically, the two approaches are identical. Your bottom line - the true return on your money - is the same either way.” For example, eight per cent paid annually produces exactly the same result as 7.7208 per cent paid monthly. You can prove this by doing the calcula- tion: reinvesting each monthly payment being paid to you at the Wednesday, April 8, 1992 The Castlegar Sun Page 5B Castlegar Chamber of Commerce hires new man "I really enjoy working with “I really enjoy the chamber and what it stands for,” said Read, who has extensive chamber ing in the Castlegar area for six months, moved from Fort St. John where she also held the duty of chamber An extremely motivated and dedicated worker, Read says she will first familiarize herself with the chamber’s board of directors and goals before implementing any of her own ideas. Trail company “SEAMS” successful ARTHUR JOYCE For The Sun ise ‘The intersection of Broadwate ad now has two highwa Gia dovey tama va city timit ights leading up to Peano ie oe ‘On the move — Bev Zaytsoff, formerly of Honan Hair Saton is setting up shop at the Hair Annex in downtown Castlegar. She welcomes all her valued ‘eustomers to call the Hair Annex and book an ippointmen: new places — The Castlegar News toa changes within the last month. Mark : dvertising Manager has moved, Leanna uck, Advertising Rep has left and Bob Proo- tor 4 been hired as an Advertising Rep. — town — Alpine Auto Parts is renovating Castieaird Plaza below the Dairy Queen. Perras hopes to open soon. manager — The Castlegar Chamber of @ has @ New manager. Renee Read has bent in the ecetinn gi area since July 1991 and has : the manager of the Fort St. John Cham- Seeing the decorative white bow taped to the door of Jamie Mansell’s office, you'd never guess the Trail plant she is a manufacturer of disposable chemical protection suits. In fact, her relaxed warmth and rapport with the employees might not lead you to suspect she was in manage- ment, either. Dressed up for the photo in an ized suit and ing and is a While the chamber is often asked to comment on or tackle serious issues, Read says belong- ing to a chamber should be a fun and Sosaen Encore and Japanese Superhost. The Fort St. John Chamber of Commerce where Read Previously worked is a large, vocal ion with a “There's a lot of positive things that can happen when ded- icated members really enjoy what they are doing. When it comes to there should lot of positive influence in the community, Read is hoping that Castlegar's chamber will eventu- be a lot of enthusiasm and fun involved.” Read is the owner of a new ally have a as well as positive ideals and goals. se a Ons foe the Jong eam,” 1986, Bob James had expanded into production of traffic safety vests, and later, protective cover- alls. By chance, former owner Verigin had acquired af material made from wearing the bow made for her dur- ing a lunch break, she took the jibes with a good-natured, if somewhat sheepish, grin. “I really enjoy our staff- we work excel- lently together. They’re my little Company founder Mabel Veri- gin began the enterprise in 1981 to employ Vietnamese refugees, or ‘boat people’, entering Canada, hence the name, South East Asian Manufacturing, or SEAM. In 1984, facing financial difficulties, she sold the company and to stay on until new owners Bob and Audrey James could find a replacement to run the plant. Mansell, a native of Kimberley B.C., graduated from Brooks Col- lege in Long Beach, California in 1984 with an arts degree in fash- ion design. After graduation she moved to Vancouver, where she worked for women’s garment Marjorie as an assistant in the company’s 8 resist liquid or chemical penetration. b in Castlegar called Read Ventures, which specializes in getting people off social assis- prea and back into the work- lands, Fleck Bros., Safety Supply Canada, Price-Markle, and Trow- elex. Orders are placed directly with the plant, specifying the type JAMIE MANSELL Tdon’t know how Mabel got hold of it.” Before long, however, demand for the protective suits years with the company, Mansell has seen phenomenal growth, in equipment, operational scope, and quantity to obtain the material from DuPont. The suits are used for protec- tion by autobody paint booth sprayers, workers handling liquids on production lines, handling asbestos or disposing of chemical spills, and hospital operating room staff seeking to maintain maxi- mum sterility. The company does not sell to the end user but sup- plies retail outlets such as Ack- From the single Trail operation the company has expanded to include plants in Brockville and, last year, in Water- town, New York. Profit Magazine named Seam Enterprises Ltd. the 11th fastest growing company in Canada in 1989. That position has since dropped, due partly to the recession, and Trail staff has gone from a maximum of 40 to 22. Even so, Mansell remains opti- mistic. “If things are slow we use the opportugity to build up our stock. Come spring, we're so swamped with orders we get behind anyway.” What led Mansell to take such a radical detour from a career in fashion design? “In school I never thought I'd do industrial design- normally what comes to mind are things like men’s wear or evening wear, but when I heard about SEAM, I thought, well, someone has to make industrial clothing, too. The bottom line is, I enjoy sewing, and if you enjoy doing something you stick with it.” People. Benwees iny job sad the ager Nielsen, who was acting as inter- im manager. "I enjoyed the three Fitecingeneatac® Read will be replacing Dale months, it was a lot of fun. But T'm leaving the Position in good hands,” Nielsen said. + West Kootenay Today - looks at upcoming programs. + Screening Mammography Program of B.C. - a look at the mammography van that will return in May/June and it’s + 5:30 pm - West Kootenay Today - repeat from above. * 7:00 pm - Falth Alive - Bob Watson & Faith Alive Girls Choir. * 8:00 pm - Screening Mammography Program of B.C. * 9:00 pm - Your Money or Your Life - repeat from above. Schedule for Apr. 8, 9 & 10 Wed. 6:30 pm, Thurs. 9:00 am Wed. 7:00 pm, Thurs. 9:30 am Importance to women. Wed. 8:00 pm, Thurs. 10:30 am * Your Money or Your Life - a video exploring military expenditures. 2:00 pm Mon. - Thurs. * Question Period - LIVE from BC legislature. Sunday, April 12 * 6:00 pm - 1991 USCC Youth Festival- part 10. FACTORY DIRECT PRICES 20 YEARS OF Six Mile Repair 20" Gas Mower. 18" Electric Mower 12 h.p. Tractor cw Mower 5 hp. Front Tiller ....... Push Rotary Reel...... 32 Ib. 2 Stroke Cultivator ...... me 16 h.p. Hydrostatic Tractor c/w Mower Servicing all lawn and garden Saws, trimmers, outboards, etc. ATTENTION GOLFERS! Servici golf carts - Harley, Yamaha, Club Car, EZ-GO Pick-up and Delivery Avaliable, Free To Seniors ] A L PINE : as extensive chamber mare AUTO PARTS he and Fepenese Superhostratucter Welcome THE PARTS SPECIALIS A - Spring cleaning = Time to get out the winter sand @ It our carpets and John Darnforth of int Carpet Is ready to help. Accent © Gare uses truck mounted equipment to get carpets and upholstery clean. John has 20 years of cleaning experience in Victoria and Kamloops. Last fall John, his wife and two teenage daughters, moved to Castle- gar for a change. John has been kept busy with residential and commercial cleaning including carpets. Welcome to Castlegar, Johni S SEMINAR sponsored by Selkirk College LEARN HOW TO © Manage your money © Structure your © Reduce your taxes © Reduce your insurance costs © Save and Invest more © Retire financially independent A THREE PART SERIES ———— conducted at each campus on the following dates Trail Campus April 21 & 28, May 5 Castlegar Campus April 22 & 29, May 6 Nelson Campus April 23 & 30, May 7 WHAT YOU WILL RECEIVE 10 1/2 hours of instruction - Three sessions are taught i easy-tounderstand, and enjo classroom setting Seminar Workbook information. It is a valuable reference tool Personal Financial Data Form and Tape - Helps you siepby- step develop a written summary of your finances Six Mile Repair NorthShore,Nelson 825-4681 they were engaged and by late 1985 the couple had moved back to Castlegar. “For six months after we moved back I was trying to find out what SEAM Industries was, but nobody seemed to know,” she says. The James’ owned a fire and safety supply business in Brockville, Ontario and had decid- " " ; ed to expand into manufactured Riv Cor ake ar _ goods, but were unsure they could -. r Ware find anyone locally with sufffi- cient experience in the garment industry. “I walked in with my resume, we went for coffee, and the next day I started work. It was pure luck, really- the next day Bob could’ve gone to Vancouver to find someone,” says Mansell. Originally the company had been manufacturing uniforms and doing mending work for Trail hotels. By the time Mansell started with the company in January H&R Block keeps up with the changes. “Give ME, el * . . e best Bill Schneider and Art Waite ste mete Sra wish to welcome all customers to our NEW LOCATION CASTLEGAR effective April 6, 1992 _eguctiple v4) Kat Canadian pride — Bonnett’s Mens Wear in doit town Castlegar has a new twist on marketing. All their Canadian made clothing and boots carry a new, large “Made in Canada, Proudly Sold in Canada" red and white tag. i New Deb Keraiff hi old CASTLEGAR — 365-5015 || |, tem toan nem snes - De vara nas sid the TRAIL — 368-9116 the Woodland Park Shell station. - Fri. 8: - 5:00 : Men, = Fis 8300 am - pm Opening soon — The Fireside Restaurant, located in. Saturday 8:00 am - 4:00 pm the hotel with the same name, will soon be screening 600 - 18th Street {below Dairy Queen in Castleaird Plaza} off an area adj it to the and creating F - outdoor patio dining. = iT =ECEEE atter the seminar Escape from Cooking i i re oS it a $ 1 375._| 75_ Se favourite Pemagopoulos and get 1 Medium Cook's Special Pizza 1 Medium Hease Steal Bisse 4-TOPPING | PIZZA Wing it tonight .. with 2 Pana’ favourites for one low price ( PANAGOPOULOS PIZZA PLACE SEAM Enterprises in Trail has expanded to include a . operations in Brockville and Watertown, New York. . aie Moe Give By NOW SERVING YOU FROM TWO LOCATIONS Carpet Care We have the BEST Hours BEST BUYS IN OUR QUALITY PRE- OWNED VEHICLES LISTED BELOW 1990 Ford Bronco II} [ 1990 Dodge Dakota 1987 Ford F150 4x4 XLT model. V-6, fuel injected, auto., air V-6, 5 speed, AM/FM radio, rear step V-8, tue! injected, 4 speed, stereo, two Cond., tilt steering, cruise control, p.w., bumper, cloth seat. This unit is like tone paint, camper window, new tires, P.1., two tone paint, mag wheels. Only ‘and much more. 77,000 miles. 60,000 km. Stk. #Y86318-B Stk. #PU0192 Optional - You are entitled to a personal financial planning consultation after the conclusion of the seminar. This is your opportunity to ask specific personal questions regarding your financial future They Edmarssars, | EA trrees oF Coxe, OREN (5 “CHEE Be Drum - TOPPING a # 2 °1622, | 9: 7 Get ready for takeoff with 2 An exceptional value! aked Lasagna, 2 Tossed Sal Clear that runway. Sweet Pana’ [ ins = 2 Garlic Toast . . . and the sky's dreams are made of this! the limit! TWO ROOMS Professional wall-to-wall carpet cleaning. $ 00 Introductory onty Offer BEST VALUE Carpet cleaning: 5 rooms, 12 steps and a hall $41Q 0 fics 80'At "49° CLEANING All types and makes r\ SOFA ast om: Free pick up PER SAVINGS; oo (accor 7 Accent Carpet Care m, 206 Verne He sete #1 aR, 8 1449 Arrow Lakes Drive, Castlegar, B.C. ops tite 365-2593 100% MONEY BACK GUARANTEE There are absolutely no hidden casts or obligations. This is not an introductory seminar or an aillemp! to sell another seminar Our objective is lo educate you and help you with your financial future. We are conkident you will find our sominar very worhwtule However, if for any reason you are not satished, simply retum your workbook and study materials at the final session. You will receive an immediate and full refund 0 ° o individual ] 4 ° per couple PRE REGISTRATION REQUIRED i THIS IS THE LAST SERIES OFFERED be BEFORE THE FALL SEMESTERIII Selkirk College Castlegar Campu: 301 Frank Beinder Way, Castlegar, B.C. « 365-1208 i aati: 2305 Columbia Avenue Castlegar, B.C. . with Panagopoulos! We know the income tax laws and the forms inside and out. That’s our business. 1987 7 Ford Tem sedan, 4 cy, 5 stereo, pw pl 78000 km. Stk #1447732- +988 Ford F150 4x4 Ext Cab. V-8, fuel inj., 5 speed, tilt, Cruise, air, stereo. 77.000 mies, two 1989 Toyota \ Camry V-6, fuel in., auto., “ver len ut 80,000 km. Stk. Canada’s Tax Team. Standing up for you! 345.00 = weal charges before OST Riverview Chev-Olds Lid. Selicirk 900 Helena St., 365-5666 Hours: Sun. - Thurs. 3:00-12:00 midnight Fri. - Sat. 3:00-1:00 A.M. stlegar Customer Call 365- 2296 2880 t hig Drive, Trail, Selkirk College Nelson Campus 2001 Silver King Rd., Nelson, B.C. © 352.6601]