Blake Dennis Editor of Vet Practice Magazine talks with Certified Financial Planner and founder of SMARTadvice Peter Horsfield about why cashflow is just as important to business as it is our personal lives. More importantly he discusses "red flags" to watch out for, ensuring you keep on track and businesses doesn't go bad overnight.
The Sydney Morning Herald reporter Claire Dunn interviews Peter Horsfield of SMARTadvice about the three pills every business leader needs. Taken every day, this medicine can make the difference between surviving and thriving or ending up in a Centrelink queue.
Fairfax Money reporter David Wilson interviews Certified Financial Planner Peter Horsfield on how we can over come sharemarket trading anxieties.
With new buzz words like momentum trading, neuro-investing, behavioural based, contrarian and many more its easy to be confused not know what to do.
Whats the best approach to investing?
For organised types who like to have their house in order well in advance, what are some of the financial things that might warrant attention before June 30 rolls around?
If you're over 50, still working and not salary sacrificing the maximum $35K per annum into your super fund then consider doing so, if funds permit, before the new financial year begins. Concessional super contributions are taxed at just 15 per cent, which means you'll pay less to the ATO while increasing the size of your nest egg, according to Sydney financial adviser Peter Horsfield.
Topping up can be especially effective when applied in conjunction with a 'transition to retirement' strategy.
For more read the full article at https://www.mynrma.com.au/living-well-navigator/independent-living/are-you-ready-for-tax-time.htm
So what's the best strategy to ensure we're not caught short when these items need unexpected or urgent replacement?
Does it make sense to upgrade your wheels, white goods and home furnishings before you retire and are still earning in the hope of enjoying several trouble-free years with your new kit? Or does setting aside funds specifically for major purchases as they're needed make better sense financially?
The latter, says financial adviser and SMARTadvice founder Peter Horsfield.
He advocates having a healthy cash cushion on hand before downing tools. Think a minimum year's worth of living expenses in cash or easily accessible term deposits, plus an additional three months' of emergency funds.
Meanwhile, "don't trouble trouble until it troubles you," Horsfield counsels.
"Don't buy a whole lot of new stuff just before you retire - think more about the opportunity you have to de-clutter," he says.
For more read the full article: https://www.mynrma.com.au/living-well-navigator/independent-living/budgeting-for-big-ticket-items.htm
"Clearly there is a strong argument for having an Anzac dollar," says financial strategist Peter Horsfield. He highlights multiple benefits, ranging from the end of transaction currency costs to a more efficient tax system between the two neighbours.
Another advantage of a trans-Tasman dollar is that it would strengthen the historically entrenched unity between the two countries, bolstering economic co-operation and shared values: the young, predominantly Anglo-Saxon Commonwealth countries have an Anzac identity, cemented by the same legal, political, religious and social structures, Horsfield says.
"So, yes, there are many fundamentally sound reasons and efficiency benefits proposing an Anzac dollar," he says, but he has qualms.
To read the full article: http://www.smh.com.au/money/investing/could-common-coinage-bring-us-together-20150331-1m81g2.html
ABC National (Adelaide) 891 Afternoons with Host Sonya Feldhoff.
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It is not a sign of weakness if you pause occasionally, reflect and breathe.
In fact, giving the other party a chance to say their piece can prove potent in a tense or protracted negotiation as slowing the pace can help you reassess, regroup and return with an effective counter.
"Let the other person talk and allow one breath before you reply," says certified financial adviser Peter Horsfield, who describes his job as "one part financial adviser, one part marriage counsellor".
"This tactic will ensure the speaker feels heard and it will give you some time to reflect before replying."
Focus on the issue, not the individual
Professional negotiators who seal deals never launch personal attacks on their opposite number.
Business is business and as soon as your client/supplier/distributor hears name-calling or foot-stomping, you've lost your deal-making power.
"This is important as people who feel judged often close up or counter attack," Horsfield says.
"The key to negotiating is to keep conversation going and find grounds of similarity that both parties can agree to work on together."
Certified Financial Planner Peter Horsfield helps many empty nesters and says as people age they “realise their vulnerabilities … and value convenience”.
They prefer ground floor apartments “with a pleasant outlook” in low-rise developments with an elevator.
A pool is a bonus but Horsfield says his health-conscious over-55s clients mostly want onsite gyms.
Cinemas, concierge services, underground parking and ground level shops, restaurants and cafes are also features vying for baby boomer buyer attention in today’s highly competitive new apartment market.
“Look, they have worked hard and are seeing people going to concerts, the opera, restaurants and so this lifestyle is sought when downsizing to an apartment,” Horsfield says. “They also want proximity to hospitals, transport and family and friends. Location is the most important factor.”
Read full article : http://www.realestate.com.au/blog/luxe-homes-later-life/
"Bookkeeping is the instrument that gauges of the lifeblood of every business by recording income and expenses. As such I believe high standards of bookkeeping are essential. It underpins and aids the success of any business, small or large," says Peter Horsfield from financial advice firm Smart Advice.
He explains the most important benefit good bookkeepers provide business owners is information about their own business, so that they can proceed with, or decline, opportunities presented to them with greater confidence, based on real information about their business performance.
"Bookkeeping plays such an important role in aiding reporting and decision making processes in a business, better regulation of this role is important and would have flow-on benefits for consumers, business owners and bookkeepers," Horsfield says.
It would mean bookkeepers would receive recognition as an important profession in their own right. It would encourage better professional advancement by allowing them to more closely partner with accounting bodies.
Financial planner Peter Horsfield also reckons Australians are reckless — especially when speculating on property with borrowed funds. Horsfield partly blames market forces – the tax deductions and historically low interest rates.
Unfortunately, Horsfield says, investors are leveraging into the market well after the start of a growth cycle, spurred by family and a friend at a barbecue, or unregulated get-rich-quick spruikers.
Caught up in "the bravado of the block", some investors try to build a property empire, driven by greed or narcissism.
Warning how easily a "cross-collateralised" empire built on multiple mortgages can unwind, he quotes Warren Buffett on the perils of leverage. "To make money they didn't have and didn't need, they risked what they did have and did need."
Financial planner Peter Horsfield is a big fan of the Snowball method. He gives the example of a couple who had multiple debts ranging from $1300 on a credit card to $100,000 on a home loan. He asked them to direct 10 per cent of their gross income, or $750, towards debt repayment, starting with the smallest debt. When that debt was paid off the trick was to add the amount they were saving ($300 per month) to the $750 and direct that towards paying off the next debt. "You lather, rinse and repeat until all your debts are paid off," he says.
The Snowball method This starts with paying off the smallest debt first, then tackling larger and larger ones. Why? "If someone has got a lot of smaller debts that can lead to them feeling overwhelmed especially when they are dealing with several companies and lenders," says David. Paying off one debt quickly creates a sense of positive momentum and encourages you to keep going.
Read the Full Article: http://www.smh.com.au/money/saving/many-ways-to-escape-debt-spiral-20150206-136qfk.html
The courts can’t be beaten, but there are ways to ensure you don’t lose everything.
Divorce is to be avoided at all costs, as the lawyer fees, asset split and ongoing maintenance can be crushing.
Research commissioned by law firm Slater and Gordon has found that the start of the year is one of the most popular times for wives — who are more likely to instigate a divorce — to book an appointment with a family lawyer.
Whichever partner looks after the children can expect to take up to 80 per cent of everything, so the best advice for the other side is to never, ever let it get to that stage.
“If you can at all avoid it, don’t get divorced. It is a very quick way to erode your wealth and health,” says Sydney-based financial adviser Peter Horsfield.
But wisdom tells us to prepare for the worst, so here are some sound ways to protect your money from a relationship breakdown.
Read Full Article: http://thenewdaily.com.au/money/2015/01/27/protect-money-from-divorce/
Peter Horsfield, financial advisor
1. Start. It’s action that will make you successful. If all you do is daydream or worry about making a decision there is a great chance you will never achieve your goals. Now’s the time to start saving for that holiday, open that term deposit or invest that money.
2. Make your goals personal. You are going to receive the most personal and financial satisfaction if your financial goals are all about what’s important to you.
3. Reward yourself. Run your personal finances like a business. When you have worked hard and achieved a result above your targets, you expect a bonus. So when you do the same in your own personal financial goals, give yourself a small reward.
4. Focus on what you can control and let go of what you can’t. For example, you can control your regular savings and expenses but you can’t control the share or property markets. Regular savings, reinvesting returns for compounding and seeking out low administration cost investments are all within your control. Stop chasing that next hot investment, highest return or asset class.
5. Hold yourself accountable. Identify the gap between current reality and your goals and document a game plan that you will have to put into action. Ask someone you trust to monitor your progress.
Peter Horsfield, founder of financial planning business SMART Advice, reminds investors that there’s no stamp duty or brokerage fees to pay when buying shares through a prospectus. Buying into IPOs can also help investors to diversify their portfolio. In addition, investing in a company as an employee might mean you can buy the shares at a discount to the issue price, or use share options to increase your future salary.
But he warns investors that if the IPO is for a well-know company, then the listing price is generally fully valued. So don’t expect the value of your investment to immediately rise once the shares list. He also says it can be hard for retail investors to get access to an offer if only limited shares are available.
“Investors should also be aware that sometimes forecasts are inflated to attract shareholders. This can be hard to assess if there’s limited historical financial information available about the business, which can increase investment risks.”
Horsfields urges IPO investors to look for historical success. “If it’s a well known business at least you have a better chance of understanding its performance before investing.
“The idea is to research the value of assets the business owns, and its current income and expenses, rather than focus too much on forecast income. If you can, visit their office and ask to interview directors and staff. And don’t gamble what you cannot afford to lose.”
"Be Better Not Bigger" has been my mantra for the last 12 months.
Since being on this path I am less stressed, doing more things that directly benefit me, have better relationships with others and myself, my savings have increase by several thousand dollars each month and without struggle I've dropped over 10kg.
I'm still search for my purpose/reason in life, however with this mantra I now have less distractions and more time to discover it and when I do even more time to enjoy it.
May you find peace and Merry Christmas.
A man came up to me and asked “You can’t be debt free in 5 years or less if you own a home”. I said “Really, do you mind if I use you as an example?”
“This will be interesting” He responded.
“Can you save 10% of your gross income?” I asked.
His response was “If it means I will be debt free in 5 years absolutely."
The following is the sequence we recommended the client pay down their individual loans so to achieve the goal of being debt free in less than 5 years.
Read the full article: http://www.adviserratings.com.au/blog/2014/november/how-to-get-out-of-debt-asap/
The deadline for taxpayers filing their own tax returns was October 31, meaning thousands of Australians are now eagerly awaiting news of a tax bill or refund.
For those lucky enough to receive a tidy windfall from their tax return, the next question to consider is what to spend it on.
Financial planner Peter Horsfield says there are countless ways to spend, but knowing what to do with your cash all comes down to individual circumstances.
Consider the future when spending a windfall.
Peter Horsfield CFP attains Adviser Platinum Status
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