24 - Wednesday, August 17 — North Shore News BUSINESS maga Mo, Cware O TAKE CARE if you mix your friends, or family, and your finances. I have seen several people who have a friend or relative help them with tax returns, insurance and general financial planning. These people have been getting excellent advice. But I also know many _in- dividuals who have been poorly served by family members or friends. In some cases, the advice was not objective; in others, it was simply incorrect. A North Shore News reader said she and her husband have always used an accountant to prepare their tax returns. “But he never mentioned that we should be declaring our com- pounding Canada Savings Bond interest at least every three years,"’ she said. ‘‘We never thought anything of it because we received no tax slip.’’ This woman was talking to her sister-in-law, who suggested the CSB interest be declared every year. ‘‘So we refiled our returns on her advice and are now waiting to hear back from Revenue Canada.”’ (On that particular point: con- sider all investment income, possi- ble losses, timing of capital gains and so on before you decide. Also, if declaring compounding CSB in- terest every third year will put you into a higher tax bracket that year, then consider declaring annually. If not, consider declaring only every third year.) “T feel a little annoyed at the accountant and am reluctant to go back,’’ said the woman. “‘My sister-in-law has worked in the tax department and has been studying insurance. She works together with her husband, who is an insurance broker, as ‘Indepen- dent Investment and Insurance Brokers.’ “They seem to know their stuff — can draw up financial plans on their computers, help with life in- surance and so on. “But they aren’t accountants, Could they do our returns suc- cessfully and profitably? As for financial planning, what questions should I ask them to determine if I can trust them with our long-term financial goals?" A proficient accountant who specializes in personal income tax should be able to do a better job than most other people. However, you must find out if the accoun- tant is prepared to review and ad- vise you on all tax aspects of your personal finances — and charge you accordingly — or simply com- plete your return based on the in- AT EL died WEL SG PARTOP ACT ixing family and finances formation you provide. This might explain why your ac- countant didn’t query the CSB in- terest. If it doesn't, then ask him why he didn’t bring up the subject. As far as financial dealings with friends/relatives, here are some guidelines: * Do you feel comfortable discussing all your personal finan- dollars and sense Mike Grenby cial — and probably many non- financial — affairs with that per- son? You must disclose everything to receive appropriate and com- plete advice. * Did the person approach you, offering help? For example, when some people first start to sell life insurance, stocks, real estate, etc., they prospect for new clients by contacting family and friends. When selling is involved, offer- ing help could lead to a conflict of interest. So I would prefer to be the one to make the first approach, to start such a financial relation- ship. Try to separate the financial part of the relationship from the friendship/family side. You want expert, objective advice — in plain English. That the person is a friend or relative should be irrelevant. TRACK LIGHTS SORREY 14625-108th AVE. 4 bike, north of Guildiurd NORTH VANCOUVER uv 1400 MARINE DRIVE 1790 £. HASTINGS Ask questions like: ® What are your areas of exper- tise? How long have you been in the business? What are your qualifications — both from past training and ongoing professional development? To what profes- sional or industry organizations do you belong? © How do you get paid? If your income depends on selling me something, how do you maintain objectivity? If you provide only advice, who will sell me what I need? * Can you give me the names of clients with situations similar to mine, so { can contact them and find out more about you and the work you do? If you get satisfactory answers to all these questions, then ask yourself (and your partner) if you get good feelings about dealings with the person. The chemistry must be right. Do you have a financial or con- sumer question for Mike? Or a Story you think should be in his column? Please write to Mike Grenby, North Shore News, 1139 Lonsdale, North Vancouver V7M 2H4,. Mike cannot reply in- dividually but will answer as many of your letters as possible through , 3 Michael ~ Becker on vacation BURNABY Cav. of Hastings & Beta The North Shore News. Remember (to include your phone nuinber in case Mike needs to contact you. CONCERN FOR THE CONSERVATIVE INVESTOR Watch for your neighborhood newspaper. pee Centre trapravements oF schedule element FEY WAIL ASIM anil wake Preschool forced out ¥ WEST VANCOUVER VILLAGER SERVING: All of West Vancouver from Capilano River to Horseshoe Bay. Circulation 15,480 SUNDAY CAPILANO CHRONICLE SERVING: Pemberton Heights, Capilano, Highlands, Canyon Heights, Grouse Woods, Delbrook, Edgemont, Westview & Upper Lonsdale. Circulation 10,596 WEDNESDAY SEPTEMBER 7 WEST VANCOUVER; Raa Villager § hese neighborhood newspapers were launched by the North Shore News to serve the specific Phone 585-8877 984-0341 Business Management Dept. invites you to attend an INFORMATION MEETING If you are interested in a career in business and want to know more about our 2 year full-time Business Management Diploma Program which starts in September, plan to attend our special information Meeting on Wednesday, August 24 at 7:00 pm in room H501 You will earn about our programs, including Accounting/Finance, Administration, Computer Systems, Marketing, and Retail Management. We can help you to make your future education plans and be “job-readyv” in just 24 months. Call 984-4960 and let us know that you're coming. Phone 294-5256 and unique needs of individual neighborhoods within the North Shore. Delivered monthly, these papers will offer a magnified view of the people and events within the neighborhoods they serve. They will also assist small businesses by allowing them to advertise to their primary markets at a lower cost. ~ Because these publications will rely on readers living in these areas to keep them abreast of the pulse of the in- dividual neighborhoods, we ask that you contribute by wat- ching for and reading them and by mailing or dropping off press releases, letters to the editor, birth, wedding and obituary announcements to 1139 Lonsdale ‘Avenue, North Vancouver, B.C. V7M 2H4. We hope you enjoy your new neighborhood newspapers. For questions or news tips call 985-2131 For Display Advertising call 980-0511 For Classified Advertising call 986-6222 Please let us know if you do not receive a ciate eal SENSE your neighborhood newspaper on the date shown above. Distribution 986-1337 : AS SUNDAY «+ WEDNESDAY + FRIDAY 1139 Lonsdale Avenue, North Vancouver, B.C. V7M 2H4