. 10, 000. - before. 16 -- Wednesday, April 14, 1999 — North Shore News Chris Carter Contributing Writer ‘THERE were cheers, a quick round of applause and. a lone trumpeter armed with a kazoo. For a brief moment in time, the floor of the New York Stock Exchange stood still as the world’s bell- wether for stock market activity tested the waters above the 10,000 = mark before retreating back below the milestone. Last - week, the notorious concoction of 30 _ Stocks flirted ‘again with sellers nsoved’ in and once ‘more: pushed it : back: vo: With each notable climb in ‘the . market, . individual investors are barraged with a- fresh: bevy of predictions and . forecasts for the market’s next. - big move. From: Wall Street . paris to cab drivers, everyone an- opinion. The. ‘over-' ; -whelming consensus’ among “When asked by a reporter for his forecast on the market, ; “Morgan stated simply, ‘It will - fluctuate.’” . the investment clite is to ignore such prognostications. The safest call on the market’s immediate future was made half a century ago by the now legendary J.P Morgan. When asked by a reporter for his forecast on the market, Morgan stated simply, “It will fluctuate.” The likes of Warren Buffett, Peter Lynch and Sir John Templeton echo Morgan's take on the merits of such forecasts. At times like this, individual investors’ per- spectives tend to swing from one extreme to another. At the market's peak last year, one American Investment house polled its clients’ expecta- tions for returns over the next decade. The average client anticipated an annual compound return of ~ 34% per year. That would put ‘the Dow around 174,000 by 2009. In the words of a notable Canadian mutual ’ fund manager: “Here’s a truly safe prediction — that’s not See. Headlines page 17 s 7 a now online for a low cost ‘HOME EQUITY MORTGAGE ‘“e International Business Law | Intemational strategic partnering: _... technology alliances, - distribution, . a import-export * y © 15 years experience, 9 years living > and working in Japan and the US Tek: (0) 913 8880 Fax: (604) 913 8881 ; " Email: gsenda@uniserve COM "Program (LAMP) graduate diploma. - ~ Starting in September 1999, professionals from diverse backgrounds wil begin an ’ cultural and social skills. in the second year they will apply these skills in a one-year paid, : co-op internship in Latin Ametica. | INFORMATION SESSION. * Tuesday, April 20, 6 p.m. Cedar Building, Room 122 north shore news <= BUSINESS The market will Quick tips help financial goals always change The most effective financial planning tips are often the shortest ones. Different is divine: Look for a financial adviser whose personality complements yours, who perhaps even thinks a litle differently from you. If you are an unrealistic risk-taker, you need the bal- ance of a conservative investment adviser, On the other hand, if you put too much emphasis on saving, you need an adviser whe will help you enjoy life more and not die too rich. You should feel comfort- able with your adviser. The underlying chemistry must work. Bur perhaps avoid the cotal comfort of an adviser who mirrors you completely. From fixed costs to profits: When you work for your- self, you typically spend about the first half of each day carning, money to cover the fixed costs (utilities, rent, computers, office oper- ating, stat ete.). Let’s say you work the first six hours of a 10-hour day to pay for those fixed costs. If you leave an hour early, you shorten your workday by 10% — but you reduce your profit by 25%. On the other hand, if you work an extra hour (an extra 10%), you boost your profit by 25%. Perhaps that’s why this fixed-cost syndrome turns so many self-employed people into workaholics. yet yates How long is long? Investment advisers always urge you to take the long-term approach. But a 25-year time horizon need- ed to show good returns in the stock or real estate mar- kets doesn’t apply if you are 45 and hope to cetire in 10 years, or you are 75 and Most of your ancestors were dead by 80. You must-plug in your own long-term and short- term figures to make sure your money goes into the appropriate investments. Be prepared for volatility over the long term; accept lower growth and perhaps more income tax as the price of the security you need in the short term. Plan for RRSP tax: When you take lump sums of cash out of your RRSP, between 10% and 30% tax is withheld. Often, that won't be enough to pay the tax you owe on your RRSP withdrawal, which is added to your income for the year. Always calculate how much tax you will have to pay the following April, deduct what was withheld and set aside the moncy you will nced — perhaps in a deposit maturing Jate that April. Take a dry run: {f you are waiting until April 30 to file your tax return, pencil in the form now. That will leave you a couple of weeks to find missing information and get questions answered. Then you can quickly finish the job. Mike Grenby is a columnist and independent personal financial adviser; he'll answer questions in this column as space allows but cannot reply personally. Contact hin at P.O. Box 50029, South Slope R.P.O., Burnaby, B.C. V5] 5G3; e- - mail cmike@qrenby.com>. GUARANTEED INCOME SUPPLEMENT AND SPOUSE’S ALLOWANCE | IMPORTANT REMINDER FOR SENIORS on't forget! If you received an application form for the Guaranteed Income’. Supplement or Spouse’s: Allowance, you need to fill it out and return. it to. us as soon as possible. ~~ Seniors who did not receive a form: have been advised that they can renew. their Guaranteed Income Supplement: or. Spouse’s Allowance just by filing their 2 income tax return by April 30. For more information, contact 3 Human Resources Development Canada - free of charge at. 1 800 277-9914. & \f you use a TDOD/TTY device, aed Hurnan Resources Development Canada ressources humaines Canada ‘please Call 1 800 255-4786. Développement des Canada a