investin Peter Boronkay Contributing Writer MANY investors have the misconception that ethics, and social and environmental con- sciousness must be left at home when going out to invest. The prevailing attitude seems to be that socially responsible companies must make costly sacrifices which jeopardize profit, thus reduc- ing investment potential. Fortunately, the opposite is proving true. Undoubtedly companies that want to be perceived as being ethical must divert funds towards socially responsive and cnvi- ronmenially friendly pro- grams, but not at the expense of profit and market perfor- mance. The coming of age of envi- ronmentalism has given rise to ethical investing which means investing in the growth indus- try of the nineties. Environmental issues are at the forefront of public and political consciousness. This Sheila Kilnatrick Contributing Writer WITH many analysts predicting an economic downturn for the province, heve are some tips to help you protect yourself, your farnily and your assets. Every family needs an emergency fund — money that you can access in a hurry, in case of job loss or other unpredicted event. Having ‘enough money set aside in a savings account or 30-day term deposit will provide you with peace of mind and tide you over if your income is reduced temporarily. How to get your fund started? If you don’t already have one, figure out what it would cost you to live for about three months and start putting some money into low-risk, liquid invest- ments such as term deposits or no-load Money Marker mutu- al funds. If you don’t already have a wealth-building financial pian in place, now is che time to set ene up with a financial advi- sor. If you do have one, con- sider reviewing, to make sure your goals, risk tolerance and time horizons still hold true, given the new economic reali- ties, Most investors would like to buy low and sell high, but ~ in reality, it’s very difficult to time markets. Investing a fixed amount in a specific security at regular intervals will, over time, average out * your overail cost per unit and reduce your risk. [f you don’t feel you have much money to set aside at this time, even $40 per month will get you started on an automatic savings in a term deposit or mutual fund. You'll be surprised at how quickly it adds up. ACCORDING to Peter Boronkay, there are many ways to invest ethically. increased public awareness has helped push the environment to the top of government agendas resulting in new legis- lation imposing tighter restric- tions on carporate polluters. Offending companies suf- fer the financial losses associ- ated with punitive damages and decreased investor confi- dence. Clearly, the environ- ment has become everyone’s business. The environment is not the only, issue concerning fp For most of us, our home is our most valuable invest- ment. ft can be a little fright- ening to watch the erosion of house prices in Greater Vancouver. The days of mak- ‘ing a real estate profit in a couple of weeks or months are over, at least for now. But remember, real estate is cycli- cal. Unless you need to sell right now, the loss is a paper loss only. Chances are, hous- ing prices will rebound over the next five years. So hang on to your house if it suits your lifestyle and needs, and wait it out. If you look at everything you buy and own asa five-year investment, real estate is still one of the smartest places to put your money. On other _ investment fronts, “diversify” remains the word of the day. Continue to mix your investments among cash, term deposits, stocks ers TEN socially conscious investors in today’s. marketplace. Human issues form the basis for cthi- cal standards. Corporations which efcourage progressive indus- trial relations, promote racial and sexual equality, and strive to achieve sustainable growth are generally considered ethi- cal. More recently, the health concerns associated with smoking have put the tobacco industry under scrutiny through increased public pres- sure. Obviously, ethical investors have a broad range of criteria to choose from when selecting potential investments. The idea is to define your own standards and. select certain screens which will help you identify the companies which fail your test. You must then find a suitable investment which meets your criteria and can still offer a reasonable return. Fortunately, the — last decade has seen the creation of various ethical funds in Canada. These are professionally tecting your family and mutual funds and make sure you also have a mix of national and international investments. Now is not the time to be dependent on any one geographic market. And, of course, it’s always good sense to be well-protect- ed. Safeguacd your family in the event of job loss, disability or death through adequate and up to date insurance cov- erage. Review your home insurance, and check your loans and mortgages — are they insured against job loss and disabiliry or death? At some institutions, you can apply for employment loss or disability insurance for your mortgage. Usually, you must first buy life insurance on your mortgage. Be aware that this is product-based and not gen- eral insurance. History has shown us that what goes go up must come ae * QUESTIONS managed mutual funds which have specific investment poli- cies designed to uphold ethi- cal standards. These funds have performed well during the last few years. Statistics are proving, thar restricting investments along ethical lines also serves to weed out a number of under- performing companies. It seems that profit and social responsiveness work hand in hand —if you don’: have profits you cannet be socially responsible. Moreover, high visibility resulting from increased prof- § Wednesday. January 27, 1999 - North Shore News — 45 in socially responsible companies ing new technology for waste- able energy sources. management, recycling, and among other things, renew- See Ethical page 16 its tends to make companics Gai more conscious of their image and social responsibility. Ethical investors can only reap § the benefits, all the while feel- ing confident in knowing their § moncy is not promoting bad standards. An alternative method of cthical investing is to explore the widening array of environ- mental companies listed on the various North American stock exchanges. These publicly traded ompanies focus on environ- mental products often involv- down and conversely, what goes down will come back up. Markets work in cycles. British Columbia is still in good shape. This “down tum” is merely a slowing down from many years of phe- nomenal growth. A litde financial planning can enable most of us to ride out any economic slow down. If you'd like some advice on reaching your goals in a tough economy, or managing a change in your financial sit- uation, contact a financial advisor to develop a plan that works for you. . — Sheila Kilpatrick is senior manager, Business Development, North Shere Credit Union. For more infor- mation on developing a person- al financial plan contact | Sheila at the Ambleside branch & ar call one of the credit union’s teleconsultants at 713-2000. iar You Must Ask Before You Hire Any Financial Advisor How do you know a financial advisor is working In your best interests? Are you happy with tho lovei of taxes you pay? Are your Investments on track? Knowing how to sefect an advisor can be more important than the decision to use one! Selecting the wrong advisor can mean the difference between Financial Security and Financial Ruin! Call (604) 889-0829 for a recorded m essage and-order a This information ts most appropriate for B.C. residents with a high income or a minimum investable net worth of $250,000. Let North Shore’s financial advisors help you plan and grow your RRSP portfolio with competitive investment choices like our popular Escataton 3. This time-limited RRSP option offers tiered rates guaranteed for 3 years. And, to give you complete flexibility, Escataton 3 is redeemable on each anniversary date. > Year 1- 4.28%* > Year 2— 4.50%* > Year 3— &.00%* * Rates subject to change without notice, Available unsil March 1, 1999.