In this current "bear market" environment, the primary concern for most retired Canadians should be the preservation of their capital and the maintenance of their cash flow. This does not mean putting your money into a money market fund, to produce 4% interest, or into a GIC.

What you want is a tax-efficient return in capital gains ­ taxed at the lowest rate ­ with some assurances of the return of your investment capital. In other words ­ capital-guaranteed capital gains.

Today, we have a number of new vehicles that outperform GICs, and with the same security. This is particularly relevant with ever-declining interest rates.

First, on the money market side ­ there are new-for-2001 Managed Yield funds paying at least 5% in capital gains guaranteed and a 100% return of capital. This is a far better parking account than any interest-bearing vehicle ­ equivalent to 7.5% interest, for short-term funds, redeemable at any time.

Next, the financial services industry has created a new investment cash flow product called a Yield Enhanced Capital Insurance Note, also called a blue chip income trust.

Available in denominations of $2,500, the notes pay 9% in capital gains, are liquid, and provide a capital guarantee ­ equivalent to about 13% interest, payable quarterly. One point six billion dollars in these notes were sold from January 2 to April 20 of 2001, mostly purchased by pension funds.

Combine this with a small percentage of assets in oil and gas income trusts, which produce tax-deferred capital gains cash flow, and you start to see an improved picture in your personal finances.

This will be a total lifestyle and change-oriented education series, which will focus on risk-managed capital gains investments.