BUSINESS nt hesitate when hit with a windfall money matters EVERY time the lor- tery jackpot tops $10 million, I think: “What would we do with the money if we won?” The first answer is simple: “Share some, spend some and invest the rest.” But then it gets complicated. How much money do you give away and to whom? What's the best investment approach? In previous columns, | have dealt with the relatively small windfalls like an over- time or bonus cheque, tax refund, lottery win of a few thousand dollars and so on. Bricfly, my advice is to spend perhaps 10 per cent, maximize an RRSP contri- bution and then divide the rest roughly equally between paying down non-deductible debt, putting money into an opportunity/emergency fund and boosting a long- term (non-registered) investment program. But a divorce settlement, insurance payout, sale of a business or other asset, inheritance, retirement pay- out and major lottery win demand more attention if vou are to avoid being blown aseay by the windfall. In mv research for a book f wrote to help lottery win: ners I discovered two things ean accept. of the proceeds trom the sale ofa family asset. Then move into a variety of investments vou under: stand with risk levels vou Regularly meet fio. with vour adviser(s) or oth- erwise monitor your portto Setup a plan to share your money with fanily, friends and charities — pos- sibly while vou are alive and detiniteiv after vou die -- in the mast cost-effective way, Mike Grenby ts a columnist and independent persenal Jinanetal adviser; be U answer questions tn this column as space aliows but canuat reply persenally — contact him at miketigrenby.com and see pre- vious columns at . that apply te all windfall recipients: 1) Most people deal with their new money the same way as they have alw managed their finances; 2) The main changes people would make if they had it to de over are two opposite things: take more time to decide what to do -— and don’t wait so lang ta decide what to do, Prompted in-part by the increasing nuntber and size of inheritances, Susan Bradlev has founded the Sudden Money Center, developed the Sudden Moncey Process and written a book, Sudden Money — Managing a Financial Wind/all (Wiley, $34.95). Bradley suggests three phases: Preparation and planning (which includes the DFZ — decision-free zone —— and coping with emo- tions like gricf, guilt or unresolved issues following an inheritance), taking action and monitoring/shar- ing. You need to find expert and unbiased advisers to help you prepare and pian. Get tax advice — for exam- ple, transferring any cligible amounts of severance pay or a retirement allowance tax- free to your RRSP, or ensur- ing the lower-tax-bracket spousc invests her/his share Hitting the right note STEVE Haynes (right) and Candice Larscheid staff the West Van Notes and Crafts Society booth at Capilano Mall. The non-profit society of adults with physical disabilities raises funds to benefit iocal disability groups. Want to Save your Money? WESTERN CANADA'S LEADING DISCOUNT CHAIN - LOW PRICES - BRAND NAMES ee eleelalaadaeneetetente | nn nm en NU LIFE ait . bared reg *16.80 coupon mim Cal Mag 2:1 90's tee taketh natal tet petetetl & ee TROPHIC TROPHIC om oF REGIME meme een y 8.49 Ge FACTORS 3; Hi Po B compound 90's price Gingko 120 tabs 60mg Blow Out! coupon price Vitamin Centres began 12 years ago as a family business. it's roots are in B.C., and has expanded to 18 stcres throughout Western Canada. The philosophy behind their success is the ability ‘to bring the savings to the people’. Vitamin Centres offer name brand, quality products at sig- nificantly reduced prices. ‘ Barb, Marrisa and Lindsey are knowt- edgeable and helpful. More & more peo- ple are exploring alternative health options. People are tiving busier and more active lives; vitamins are one way to ansure your body is getting what it needs to function effectively and heatthfully. North Van Vitamin Centre has a wide array of neme brand products at great prices. i reg °€.10 rey Blow Out! fem oe" 84,09) ERR cover $6 99 Be etait Se tte ee + OMEGA ee er ORGANIKA | a] Korean Red : , — , Ginseng i 160 caps ! { clip and save ex ity July 23/00