It may seem like an attractive source of funds - but does tapping into your equity sooner mean shortchanging yourself down the track?
Quite possibly, says Sydney certified financial planner Peter Horsfield, who believes reverse mortgages can be a dangerous form of wealth erosion for the unwary.
If you're being charged interest and not making repayments, the balance of the loan will balloon over time, Horsfield says. So more to spend now is likely to mean less in reserve for aged care when and if you need it, or other essential requirements later.
According to the Commonwealth Bank, a reverse mortgage of $50,000 at a fixed interest rate of 8.5 per cent will increase to $272,060 in 20 years, if no repayments are made.
Read More: https://www.mynrma.com.au/living-well-navigator/independent-living/reverse-mortgages.htm
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.superannuation
Consider the future when spending a windfall.
Read More: http://thenewdaily.com.au/money/2014/11/10/free-money-get-tax-return-other-windfall/
Peter Horsfield CFP attains Adviser Platinum Status Adviser Ratings Help us transform an Industry - Australia's first and only independent financial adviser ratings and customer reviews service. http://www.adviserratings.com.au/
Read More: http://www.adviserratings.com.au/advisers/peter-horsfield-cfp--dip-fa
As life progresses, so does your income, but not everyone’s income grows at the same rate. Friends that shared the same broke instant ramen or cheap pizza at uni may have moved on in tastes.
“Of course we all want to feel part of something,” financial advisor Peter Horsfield says. “However, overstretching yourself to keep up with the Joneses is both an emotionally and financially risky strategy.”
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Whats the most valuable advice this two-million copy best seller offers? That creating wealth is a habit, says Sydney financial adviser Peter Horsfield who puts it on his must read list.
Making Money Made Simple - Noel Whittaker
Published in 1987, Brisbane financial commentator Whittakers first book is a beginners guide to managing personal finances, which includes easy-to-understand information on investing in cash, property and shares.
Peter Horsfield, founder of financial advice business Smart Advice agrees that as the US economy recovers and global investors move their money to less volatile economies, the global reallocation of investments and currencies is creating both headwinds and gains for Australian share market investors.
He suggests winners from the recent downward movement of the currency will be travel and tourism business, as well as Australian companies looking to merge with firms domiciled in other jurisdictions.
However, Horsfield says sectors set to face higher operational costs as a result of the lower dollar will include domestic banks, local property firms and consumer retailers selling imported goods such as electronic devices and vehicles.
As to where the dollar is heading, he says, “anyone who says they can predict future currency directions is best avoided when making investment decisions or listened to only for entertainment purposes.”
There are widespread expectations interest rates will stay where they are when the Reserve Bank of Australia meets tomorrow.
But some experts also believe Australians are edging closer to a rate rise.
Financial planner Peter Horsfield believes the RBA will keep rates on hold this month but will be forced to act on what is seen as a growing bubble in the property sector created by high real estate prices.
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SMH Domain 24th September 2014
Financial planner Peter Horsfield bought Timeshare from a developer’s presentation back in 2001. “We thought it’s going to be a long-term lifestyle decision that would force us to take holidays because we have to use it.”
The couple have used it, but he’s also aware that the rise of online discount accommodation sites like Lastminute and Trivago is eroding Timeshare’s claim of cushioning purchasers against rising travel costs.
“They do give Timeshare a run for its money.”
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The couple have used it, but he’s also aware that the rise of online discount accommodation sites like Lastminute and Trivago is eroding Timeshare’s claim of cushioning purchasers against rising travel costs.... read the full article here:
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