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The great risk in Canadian finanâ€" cial life is not that you will lose your money, but that you will outlive it. The problem, in part, rests in the fact that Canadians do not underâ€" stand risk. They are not riskâ€"averse investors, as is generally thought, but, rather, lossâ€"averse savers. The financial religion of Canadians is that their principal remain the same, guaranteed every day, and they regard any reduction in their princiâ€" pal, no matter how cyclical or preâ€" dictable, as loss. Unfortunately, they have not learned that fluctuation is not loss. Yet, as long as their primaâ€" ry objective is the constancy of their principal, they will remain savers, and, most often, suffer because of it. It has been said that an investor is someone who looks to the future with faith. A saver, alternatively, is someone who looks to the past, with fear. In essence, you will never become an investor until you replace fear with faith. To begin to resolve this dilemma, Canadians must realize that there is a cost and a benefit to everything they do with their money. Savings, unfortunately, have a psychological benefit and a financial cost. In savâ€" ings, you have the purely psychoâ€" logical benefit of knowing that your principal is the same every day. For people who lived through the Depression, or whose parents did, which covers many of us, this preâ€" sents a powerful sense of security. Consequently, as investors, we often have portfolios that are "comfortâ€" able" rather than appropriate. One need only look at the billions of dolâ€" lars deposited in lowâ€"paying Canada Savings Bonds and Term Deposits to see proof of this statement. As investors, we must realize that term deposits and the like, no matter how they are dressed up, do a poor job of protecting our money from the insidious dangers of inflaâ€" tion and taxation. So, to the extent that the lossâ€"averse saver triés to battle volatility, he or she finds themselves committing financial suicideâ€"painlessly, and on the installment plan. They find themâ€" selves enjoying the great psychologâ€" ical benefit ouf constant principal, while unknowingly: suffering the horrifying, and occasionally fatal cost of declining real net worth. To better understand this risk, we need only look at many of our retired friends and family who have placed much of their money into term deposits. One relative of mine had all her money (about $200,000) in various GICs, and adamantly refused to consider any other types of investment. At 12%, which was the interest rate she used to enjoy, Financial success means saving AND investing Active living mokes a heolthy difference / YABBAâ€"DABBAâ€"DOO! The Flint Mobile is coming to Eaton Sheridan Place. Mom‘s, Dad‘s Kid‘s can dress up as Barney, Wilma The Gang and have their pictures taken in the "Flint Mobile" with Fred. Cost of pcitures: $6.95 incl. taxes â€" $1.00 goes toward Credit Valley Hospital Fund ADVERTISEMENT she received about $24,000 a year income on which to live. With today‘s declining interest rates, she has seen her income drop by more than oneâ€"third or $8,000 a year. Now she must start to eat into her capital to maintain her standard of living. These days, her concern for her security is palpable. Fortunately, there is something you can do with your money to proâ€" tect yourself from this danger. It is called investing, and it has a benefit and a cost. But thankfully, the cost of investing is, for the most part, psychological, and the benefit is purely financial â€" just the way you would want it. The psychological cost of investâ€" ing is that your principal is not the same every day. It fluctuates. However, this is a psychological cost, not a financial cost, because I do not know how many times during our lives, the various world‘s stock markets have gone down. However, I do know that however many times they went down, they never stayed down, and that, in the end, was all that mattered. It is this growth, with all its attendant psyâ€" chological costs, that buys you the phenomenal economic benefit of real afterâ€"tax rates of return. Most retired people in Canada do not have any inflation indexing in their income, except for Old Age Security (OAS) and Canada Pension Plan (CPP) retirement benefits. Unfortunately, this level of indexing does not go far in meeting the growâ€" ing expenses of retirement. If we are to prosper during our retirement years, we must embrace the fact that there is no such thing as a riskâ€"free investment. With this belief firmly in mind, we must then set out to structure a diversified portfolio of many assets, including stocks or equity mutual funds, and have the strength of purpose and determination to stay the path and ignore the daily media warnings that the sky is falling. In short, we must look to the future with faith. As John F. Kennedy so astutely observed: "There are risks and costs to a program of action. But they are far less than the longâ€"range risks and costs of comfortable inaction." Mark Mitchell is a Financial Planning Consultant at the Financial Concept Group, 4145 North Service Road, Suite 100, Burlington, Ontario, L7L 6A3, (905) 332â€"5988, Fax: (905) 332â€" 7276. He will also be available at the Oakville Financial Forum, on October 15 at the Howard Johnson‘s. Call 338â€"8600 for details. oi‘ uctuation 1$ not Ince PaRnciracrion Thursday, October 6â€"Saturday October 8 Main Mallâ€"Front Entrance Thursday 12 noonâ€"8:00pm Friday 12 noonâ€"8:00pm Saturday 10am â€" 6:00pm Come to the Crawford Lake this weekend, Oct. 8th, 9th, and 10th for the annual ‘Autumn on the Escarpment‘ Festival. Visitors will be able to see native craft demonstrations in the Indian Village and hear folk musicians or go on a horse drawn wagon ride through the colorful woods. There are many interesting and eduâ€" cational activities at the Mountsberg Conservation Area where the color The autumn is a great time to think about a visit to a park or conservation area to witness some of the great scenes of the season. Madensiselle Spa ‘Autumn on the Escarpment‘ | Snminerama WOMEN‘S HEALTH CLUBS Erin Mills Parkway just north of the Q.E.W. THE OAKVILLE BEAVER The fall color change is most specâ€" tacular at t Rattlesnake Point and Halton Falls. Panoramic views of the countryâ€" side and a ribbon falls cascading over the Niagara Escarpment are highlights of these areas along with 22 km of hikâ€" ing trails including the Bruce Trail. change is also quite spectacular. Be sure to visit the new Raptor Centre where regular presentations with hawks and owls are available. Horse drawn wagon rides are also available all weekend. The 500 acre reservoir at Mountsberg is one of the best places in Halton to watch migrating shore birds and waterfowl. Multiple Sclerosis It‘s fall and there‘s a hint of winter in the air, but for many this is the ideal time to buy that longedâ€"for cottage property. They feel that this is the season to get good value for their dollar, and they also get a chance to see the fall foliage in its full glory of red and gold. And now there‘s an added bonus of buying via auction, where you get a sense of comâ€" fort and reassurance in an exciting and friendly atmosphere, says veteran auctioneer Ken Maynard. "A room full of active bidders can provide a true snapshot of value." Maynard of Vendors Auctionâ€" eers of Canada is marketing a prime recreational project on Lake Manitouwabing, a major leisure lake near Parry Sound. (Freely translated from the Ojibway language, Manitouwaâ€" bing means: The place where the Great Spirit watches over.) This is Vendors fifth annual vacation property auction, and Maynard says the 14 lots being sold are some of the best he‘s ever offered. Up to five of them may be offered with no reserve. Hundreds already make their yearâ€"round and seasonal homes on this boating and fishing paradise which has more than 100 km. of shoreline. For those who want to build their own waterfront retreat, there are 12 heavily wooded lots to choose from. They range in size from one acre to 1.5 acres. There are facilities aplenty, including marinas, stores, restaurants and other amenities. Auction of cottage lots brings country to the city One is even on an island, just For the nature enthusiast, there‘s another that‘s 22.6 acres, with 800 feet of wetlands waterfront. And the last lot will appeal to those who want to move in right away. It has its own yearâ€"round cottage and even a dock. minutes from shore. The mainland lots are accessible by a combination of yearâ€"round subdivision road, private drives and pathways. This project took four years of approvals and processing â€" even building, dock, boathouse and septic tank permits are assured. And you own to the water‘s edge. The auction will be held Wed. Denis Grayhurst is a media consultant to the home building incustry 125 CROSS AVE. CALL (905) 844â€"1600 A Leader In Beautiful Nails Since 1985 In its first year of participation in Shinerama, the smgle ;largest charity event among Canadian colleges and universiâ€" ties to raise funds#for cystic fibrosis research, Sheridan College had 30 students working at 10 locations on Sept. 14th, and raised $1,294. Shown at Oakville Place are, from left, students Karen Ford and Jennifer Bates, client Holly Love of Oakville, and student Tanya Linseman. Top money raiser (not shown) was Jennifer Ste. Croix, $225. * Queen Glass Nails * Nail Wrapping e Manicures D J SAVINGS WITH NAIL @QUEEN! Oct. 19 at 7:30 p.m. at Novotel Mississauga near Square One. You‘ll want to see before you buy. Make a day of it. Bring the family, a picnic lunch and good shoes to walk the lots. Don‘t forget the camera or camcorder. The lots can be viewed from noon to 4 p.m. on five occasions â€" Sat. and Sun. Oct. 8 9, Thanksgiving Day Oct. 10, and Sat. and Sun. Oct. 15 16. Auction staff will be on site to greet and assist viewers. To get there, follow Hwy. 400 north of Barrie to Waubaushene where it becomes Hwy. 69. Drive to Parry Sound, and just past the McDonalds turn right onto McDougall Rd. and go about 18 km. to the end, then turn right onto Hurdville Rd., left onto Burnetts Rd., right onto Stormy Pt. Rd. and right onto Wendy‘s Lane and you‘re there. Vendors Auctioneers signs at McDougall Rd. and every turn will guide you to the site. For more information call Vendors at 416â€"410â€"0689, Ext. 9. * Fibreglass Nails * Pedicures * Nail Tips * Waxing (Photo by Peter McCusker) October 5, 1