18 — Wednesday, May 12, 1999 - North Shore News

Posipo

Chris Carter

Contributing Writer
COMPLAINING about
taxes is rapidly becom-
ing a favourite pastime
for B.C. residents.

And is it any wonder, with
economic report cards unani-
mously awarding B.C.'s recent
fiscal performance with failing
grades, citing unprecedented
levels of tax overload as a pri-
mary cause?

As B.C.’s tax regime
becomes increasingly complex
and arguably more draining,
an existing program for prop-
erty tax deferral sponsored by
the Ministry of Finance and
Corporate Relations continues
to go underused. For seniors
facing the daunting challenge
of living on a fixed income in a
world of rising costs and
increased taxes, this program
deserves closer examination.

Here’s how it works.
Subject to some fairly simple
regulations, B.C.’s Property
Tax Deferment Program
allows you to defer payment of
annual property taxes on your
personal residence if you are
60 years or older or a surviv-

ning property taxes is a possibil

ing spouse or a disabled per-
son as defined in the
Guaranteed Available Income
for Need (GAIN) Act.

After deducting the home-

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owners’ grant you receive on
your property, you can deter
the unpaid balance of your
home’s property taxes for the
current year. This application

tor deferral can be repeated
annually, effectively deferring
all of your property taxes as
long as you own and live in
your home or until death.

Here’s what I call the
“kicker.” Interest charges
tacked on to the deferred taxes
will accumulate as simple inter-
est only, not as compound

interest as one would logically
expect. Your unpaid taxes plus

simple interest amass at a

See Invest page 19

Define your lifestyle and plan for wealth

IF you are tired of
“other people” always
being more successful
financially than you,
take a lesson from the
simple truths in The
Millionaire Next Door.

In their book with that
title, authors Thomas Stanley
and William Danko report
their research revealed the
critical factor in becoming
wealthy is your behaviour.

There is no magic invest-
ment or tax strategy. How
much you carn is also refative-
ly unimportant: People who
earn big money often spend
even bigger money.

That leads to the first and
probably the underlying
guideline: live below your
means. You don’t have to be

a pennypincher but you do
have to spend less than you
earn so you can invest the dif
ference regularly.

Most of my wealthy clients
have been “ordinary” people
who didn’t arrive in fancy cars
or live in mansions. Those
most comfortable with their
money wear it quietly.

Perhaps you have both a
real knack and also enough
time for planning your
finances. Otherwise, focus on

what you do best to earn the
money and pay the experts to
help you develop and regular-
ly review a plan, to provide
tax and investment advice and
even management.

Just make sure you invest
cnough time and energy to
find the right advisers.

Get rid of personal debr. If
you must borrow, do so to
increase your investment in
appreciating — not depreciat-
ing — assets. It helps if your
children are or will become
self-sufficient. And if vou have
a partner and one of you is a
super-spender, your wealth
will be in consumer goods,
not money.

People can change behav-
iour patterns. But — and
financial advisers will cringe
when I say this — if “live for
today” is your motto, then

Rumour has it winter will one day return.

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MAJESTIC

VERMONT
CASTINGS

enjoy the lifestyle you have
chosen without guilt. Just
don’t complain when tomor-
row isn’t as good as today.
I’ve always encouraged people
to consider scif-employment,
whether as a sideline or a full-
time occupation. Stanley and
Danko confirm the self-
employed are more likely to
become wealthy. Finally,
define wealth not in dollar
terms but in the treedom to
do the things you want with-

out having to worry about
money. Estimate how much
after-tax, disposable income in
terms of today’s dollars you
will need for the rest of your
life, plus perhaps a reserve
tund for those “extras.”
Achieve that objective and
join the “wealthy” club. ;
Mike Grenby ts an indepen-
dent personal financial advis- &
er. Contact him at P.O. Box
50029, South Slope R.P.O.,
Burnaby, B.C. VS] 5G3.

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