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INVESTING YOUR MONEY
 

Sure, saving money is a great idea but how do you make your money grow?

Here are a few places you can invest your hard earned cash - the benefits and disadvantages of each are also discussed:

• BANK ACCOUNT - Great for security, but that's about it! Most banks offer very low interest rates for savings.
   
• CANADIAN & PROVINCIAL BONDS - Secure, but they have restrictions on withdrawals. Their interest rates are low and actually put you in the hole (when you account inflation rates).
   
• TERM DEPOSITS & GICs - A guaranteed return but you are locked in for a predetermined amount of time. Interest rates are reasonable for the amount (or lack) of risk involved.
   
• MUTUAL FUNDS - A riskier possibility since you are investing a majority of your money in the stock market. There are few limitations on withdrawals. You can make a lot of money fast but you can lose it as quickly. Before you get involved in this type of investment, educate yourself and make sure you are aware of all the risks involved. Note that not all mutual funds are the same.
   
• STOCKS - The riskiest choice of all. You can make a killing or be killed. Unless you know exactly what you are doing, avoid it! If you want the possibility of good returns and stock market investing, pick a good mutual fund.
   
• REGISTERED EDUCATION SAVINGS PLAN (RESP) - The federal government has made some drastic improvements to RESPs. It is excellent way of investing money for your education since the government will give an automatic 20% extra on top of your investment. Where else can you get a guaranteed twenty percent return on your investment?

www.theRADS.cjb.net