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PAGE 8 - WATERLOO CHRONICLE. THURSDAY. DECEMBER 26. 1985 -Picture This Can you identify the people, places or dates in this photo? If you can, call Waterloo public library's historical collection department at 886-1310. Who? When? That's why I don't rent money to earn interest. But today "I don't rent out money". Reason: I can't afford to earn interest. If most of us are honest and "think" about it. we simply cannot afford to earn interest. because of the erosion that takes place through the "twin evils" called inflation and taxation. Instead, I try to put my savings where I can achieve two types of in- crease. By being an "owner" rather than a "renter" I can dothat, through Ifloday I receive 1 Ici "rent" (inter- est) and I'm in the 50r'i tax bracket, all Ihavelertaftertaxesis 5V2“; . And . . . if inflation were to be as high as 'Y/fi , I would end up with no gain in purchas- ing power whatsoever. (NC) - "I don't rent out money' (peIiot1ally). _ A .. Earning Interest True, my parentsdidn't use theterm "rent." Instead they used the terms "deposit" or "lend" to describe the various ways that could be utilized to earn interest. But . . . ifwe analyze it, wemust hon- estly admit that if we deposit our fiav- ings in a financial institution such as a bank, trust company or credit union, we are actually "renting" them our money, allowing them to do with those dollars as they please, so long as they pay us "rent" (interest) and give us the privilege ofgetting those dollars back when we want them. The same is true when we "lend" our money out on a mortgage. etc.. we are actually "renting" those dollars out until they are repaid. That's me. But, most Canadians "tent" their savings out, all their lives, and do nothing different as far as their savings are concerned. In factihat's all many of us know, and that's what my parents taught me. I don't rent out money IS"; tax free u. I It , unablc Which would you prefer? For a FREE pamphlet showing the taxation of interest vs. dividends vs. capital gains, ask tor "Dividends, Taxation and You" and write: Paul J. Rocket, 153 Union St. E., Water- too, Ont. N2H 164 PAUL J. ROCKEL is President ot Regal Capital Planners Ltd. and at the Independent Investment Fund Dealers Association of Canada You see. the Government has de- signed the tax laws so that if you earn dividends, and have a taxable income (after deductions) of $22,000 or less, dividends come to you without any tax liability. In cases of lesser taxable in- comes, dividends are not only tax free, they save you taxes on other income such as wages, interest, etc, Further- more, when you "own" something. in addition to dividends, you could have a capital gain. which. since the May/ 85 budget. comes to virtually all of us tax free (unless we've exceeded the al- lowable limit). 15% tax tree I personally use mutual funds which have averaged L'iCi and bctterper year over the past decade. That's l5"; per year virtually tax frcc, when-us Carn- mg Interest, it would be fully Imuhlc. once the tnvestment deduction of SL000 th used up. owning things, such as shares, mutual funds, apartments. businesses. etc. IT’S YOUR MONEY Paul J. Rocket ~M~ PRES‘PON ADVERTISEMENT