Yellowknife (Dec 01/04) - If you're worried about saving your money, then it might be time to look into some investment options.

If retirement is your priority, then a Registered Retirement Savings Plan (RRSP) may be the place to start. The point of an RRSP is that you aren't taxed on the money you put into it until you withdraw it. The idea is that you'll use the money after your retirement, when most people will be in a lower income bracket.

Money in your RRSP can also be invested. Any of the following ways of investing can also be used without an RRSP, but the money earned is then taxable immediately.

Canada Savings Bonds (CSBs) are on sale for six months every year, from early October until April 1. Bonds are purchased from the Government of Canada for $100 or more.

The money is basically loaned to the government for a one-year or three-year period. The government promises to pay it back at a fixed interest rate.

"They're geared for people who are really looking for security," said Joy Roberts, assistant manager at the Royal Bank in Yellowknife.

"People like to buy them for grandchildren as gifts," said Michelle Martin, a financial services associate with the Royal Bank. "I buy one for my niece every year."

Mutual funds are a riskier, but potentially more rewarding way to invest money. Hundreds of thousands of investors put their money into a fund. The fund manager decides how to invest all the money in the stock market, buying shares in many different companies.

"It's a great way of investing in the stock market with less risk," said Roberts.

If one company loses money, the loss is spread among all the investors in the mutual fund. It's the same with any gains.

Mutual funds vary greatly in risk. Some buy shares only in established businesses. Others invest in businesses that are just starting up -- it's riskier, but there's more potential for huge growth.

Guaranteed Investment Certificates (GICs) are another way of saving for the future.

Banks do assessment questionnaires with people who are interested in investing, to find out how many risks they are willing to take with their money.