There are three other books in my annual investment series scheduled for the same time. They are the 2000 Buyer's Guide to RRSPs, 2000 Buyer's Guide to RRIFs, and Investing Strategies 2000: Mutual Funds and Beyond. All the books can be ordered now at a special pre-publication price. See details here. - G.P.

Could you tell me where I might find your evaluation of seg funds? I would like to have this asap, since our investment counselor is suggesting we move all our mutual fund investments to seg funds. Thanks for your help! - V. de G.

If you need information immediately, there is a chapter on seg funds in my book Making Money in Mutual Funds. There are also reviews and ratings of 100+ seg funds in my 1999 Buyer's Guide to Mutual Funds.

However, you may prefer to wait a bit (never let a financial advisor stampede you into a decision you are uncertain about.) A new book coming out in November, Gordon Pape's Investment Strategies 2000, will contain an up-to-date analysis of the seg fund scene with specific comments on how to select the best funds. Also, the 2000 Buyer's Guide to Mutual Funds, out about the same time, will have a completely updated section on seg funds.

One general comment I can make is this: if your investment counselor is suggesting you move everything into seg funds, you should ask a lot of questions before doing anything. For example, while I see some virtue in protecting assets in equity funds in this way under certain conditions, paying higher management fees for balanced and bond seg funds doesn't make a lot of sense.

Another option you may want to consider are the protected funds offered by Dynamic and CIBC. The CIBC version guarantees your principal after just five years. - G.P.

If risk is a primary concern and you want the potential of above-average returns, investigate protected or segregated equity funds, or index-linked GICs. But remember, there's a possibility you will get your capital back and nothing more.

If you want safety plus a guaranteed return, a regular GIC should be your choice. In that case, I suggest you use a laddered approach, so that you can take advantage of higher rates if they materialize. - G.P.

I am currently contemplating a career change and may soon be faced with a decision of what to do with my vested company pension. The options I will have allow me to transfer my lump sum pension to a locked-in RRSP, Life Income Fund or to purchase a life annuity. There is one other option and that is to leave it with my current employer and start collecting a reduced pension in seven years . Given these choices I prefer to move my pension to a locked-in RRSP. My questions to you are:

1. Currently I have a self-administered RRSP account which I manage and would like to transfer my pension to this account. Is this allowed?

2. What are possible options for a locked-in RRSP and which financial institutions offer them?

3. Have you published anything recently in your books that would help explain my options? I would like to purchase a copy.

4. Given that I plan to work for at least 10 more years and do not plan draw any money from these funds until then, could you share your opinion on the pros and cons of investing my pension in a locked-in RRSP, LIF and annuity.

I would welcome your opinions on the above questions. - J.W.

1. No, you cannot transfer the pension assets into your existing RRSP unless your self-administered plan is already locked-in.

2. Every financial institution that I know of can handle a locked-in RRSP. I suggest you talk to the people who currently hold your self-administered plan and explore the options with them.

3. I have a new book just off the press called Retiring Wealthy in the 21st Century that has a chapter on LIRAs and LIFs. It should be in bookstores later this month, or you can order a copy here.

4. Here you're getting into difficult territory. So much depends on your other assets, income needs, tax status, etc. It appears from what you've said that you should take a growth posture in investing these funds, but it's impossible to know without a complete review of the situation. There is quite a bit of information on investing strategies in the new book that may help.

I should also note that no new mutual fund limited partnerships are being sold. The only place to acquire them is in the resale market. The tax advantages of any units purchased this way will long since have been used up, so you would be acquiring them for cash flow only. Be aware of the fact that while the yield on some of these second-hand partnerships looks great, the income is fully taxable and the share price is steadily declining because some of these limited partnerships will terminate at a certain date. Get all the information before you invest. - G.P.

By investing in IPUs, you know you will receive approximately the same return as is generated by the underlying index. In strong markets, many "active" managers have trouble matching market returns; for example in recent years only a small percentage of actively-managed U.S. equity funds beat the S&P 500. However, in weak markets or in specialized markets (e.g. the Far East), active managers will often do better.

There is no clear answer as to which approach is better and advocates of both sides are passionate in their praise of the system they prefer. One compromise is to use both - take a core position in IPUs or index-based mutual funds and then add some top-notch actively-managed funds for extra potential returns. - G.P.

There is a full chapter on this subject in my new book, Gordon Pape's Investing Strategies 2000: Mutual Funds and Beyond. As a general rule, we feel the death benefit is more valuable than the maturity benefit and we recommend that people pay the higher seg fund fees only for equity funds. If the guarantee is the main attraction for buying a seg fund (there are others), we do not feel it is worth the extra expense to protect investments in a bond or balanced fund. - G.P.