I would consider myself to be on the lower end of the Twitter knowledge curve having created an account just two months ago. The following are some of the observations that I have made to date.
...for personal use
* Twitter is a great 'leveler'; like Texas Hold'em. You sit down with strangers and you can't predict an outcome.
* Twitter helps you mix with communicators that are better than you. This helps to lift you up a notch or two.
* It brings out the willingness in people to be helpful.
* If you are an information junkie, you're made.
* If you have addictive tendencies; you might be in trouble using Twitter.
* Fear of what to update focuses the mind, but may inhibit the content.
* Strong personalities shine through.
* Selecting people to follow, at random, is not a good idea.
...for business use
* Twitter for business should be like subliminal self-promotion. The 'in-your-face' repetitive promotion is a no-no.
* The greater the number of people that know you exist; and what business you are in, can't be a bad thing.
* The Development of a Twitter business 'relationship' has to be gradual.
* The personality behind the business usually comes to the fore.
* Twitter provides you with an opportunity to be 'busy being busy' as opposed to 'busy being productive'.
If you are also a novice to Twitter, I would be interested in your own thoughts on it. Or, if you disagree with any of the above, leave a comment.
Wednesday, May 27, 2009
Wednesday, May 20, 2009
Save for Retirement or Kids Education
Those of you who have kids have probably given some thought to putting aside a few bob that will go towards helping with their education. You may even have set up a specific savings or investment account for them, where children's allowance or other money gifts are put away until they are needed.
More often than not, it is likely that the accumulated value of these educational funds will be insufficient to cover the full costs that will be incurred. But, at least you have made a start and you have a plan.
It is difficult to balance your 'here-and-now' family overheads, from the limited income resources available to you, with your potential long term liabilities in terms of educational costs. You may even be tempted to elevate savings for college as a primary objective; and bury retirement planning in the back of your mind. It's only natural; as you want to what's right for your kids and it is one of those selfless acts that comes with the territory.
The decision to prioritise your kids education over a comfortable standard of living in retirement is a personal choice. However, it may be worth considering some common sense financial issues, if you are beating yourself up over one or the other.
* If you have the opportunity to contribute to a PRSA or Occupational Pension Scheme, where the employer will match some or all of what you will contribute, it's a no-brainer; take the money.
* Any tax reliefs foregone cannot be recovered in future years. If you pay tax at the highest marginal rate, it makes perfect sense to contribute to a pension. This may change in the future as the divide, between the lower and higher rate of tax relief system, may be put on a more equitable footing. It is also possible that access to limited amounts of pension funds may be available, prior to normal retirement age, at some stage.
* If you have credit card debt, or other high interest loans, pay them off before you start making any long term savings plans.
* Make your kids aware of the fact that education is not free and that compromises will have to be made in the years ahead. As they get older, try to formulate a plan with them on managing their educational funding. If a limited amount of student debt is part of the plan, so be it. It's part of life and they can learn from it. It is easier to borrow for education than it is for retirement.
* If you have the resources to start funding for educational costs in addition to retirement planning, you should begin as early as possible. It's difficult to make up for lost ground if you leave it too late, and it may influence you into making investment decisions that would not normally be within your risk profile.
* If you are a home owner and you have not re-mortgaged on a regular basis you will have equity in your property which could be freed up if the need arises.
* Protect your family by having an adequate amount of life insurance in the event of the untimely death of a parent.
* If you are a business owner, try and add some value to that business so that it will enhance your future earning capacity and make your financial situation better. We tend to forget that more lucrative job opportunities may also happen for us in the future.
* Although there may be uncertainty about Government assistance for educational purposes, it is probably fair to say that there will be some form of grant or scholarship system available in the future. Weekend or part-time jobs for the students would also help with costs.
In summary, do not sacrifice funding for your retirement over your kids education. Look after number one, first. Always remember that you will be able to offer some financial assistance and guidance to your kids but it may not be in the form that you now aspire to. Financial goals of deferred retirement, reduced standards of living or taking on second jobs in retirement should not be on your radar.
Relevant/Featured Website/s www.prsa.ie www.InvestAndSave.ie
More often than not, it is likely that the accumulated value of these educational funds will be insufficient to cover the full costs that will be incurred. But, at least you have made a start and you have a plan.
It is difficult to balance your 'here-and-now' family overheads, from the limited income resources available to you, with your potential long term liabilities in terms of educational costs. You may even be tempted to elevate savings for college as a primary objective; and bury retirement planning in the back of your mind. It's only natural; as you want to what's right for your kids and it is one of those selfless acts that comes with the territory.
The decision to prioritise your kids education over a comfortable standard of living in retirement is a personal choice. However, it may be worth considering some common sense financial issues, if you are beating yourself up over one or the other.
* If you have the opportunity to contribute to a PRSA or Occupational Pension Scheme, where the employer will match some or all of what you will contribute, it's a no-brainer; take the money.
* Any tax reliefs foregone cannot be recovered in future years. If you pay tax at the highest marginal rate, it makes perfect sense to contribute to a pension. This may change in the future as the divide, between the lower and higher rate of tax relief system, may be put on a more equitable footing. It is also possible that access to limited amounts of pension funds may be available, prior to normal retirement age, at some stage.
* If you have credit card debt, or other high interest loans, pay them off before you start making any long term savings plans.
* Make your kids aware of the fact that education is not free and that compromises will have to be made in the years ahead. As they get older, try to formulate a plan with them on managing their educational funding. If a limited amount of student debt is part of the plan, so be it. It's part of life and they can learn from it. It is easier to borrow for education than it is for retirement.
* If you have the resources to start funding for educational costs in addition to retirement planning, you should begin as early as possible. It's difficult to make up for lost ground if you leave it too late, and it may influence you into making investment decisions that would not normally be within your risk profile.
* If you are a home owner and you have not re-mortgaged on a regular basis you will have equity in your property which could be freed up if the need arises.
* Protect your family by having an adequate amount of life insurance in the event of the untimely death of a parent.
* If you are a business owner, try and add some value to that business so that it will enhance your future earning capacity and make your financial situation better. We tend to forget that more lucrative job opportunities may also happen for us in the future.
* Although there may be uncertainty about Government assistance for educational purposes, it is probably fair to say that there will be some form of grant or scholarship system available in the future. Weekend or part-time jobs for the students would also help with costs.
In summary, do not sacrifice funding for your retirement over your kids education. Look after number one, first. Always remember that you will be able to offer some financial assistance and guidance to your kids but it may not be in the form that you now aspire to. Financial goals of deferred retirement, reduced standards of living or taking on second jobs in retirement should not be on your radar.
Relevant/Featured Website/s www.prsa.ie www.InvestAndSave.ie
Thursday, May 14, 2009
Competitive Business Environment
Forgive my ignorance of economics, but I just don't understand how the current reform of taxation/spending is going to get us out of predicament that we are in.
Much has been written about the economic crisis in Finland in the 1990's and how this compares with what we are going through. Okay; the stock market and property market crashed, with drops of approximately 70% and 50% respectively, but they had their own currency at that time and had the 'luxury' of devaluing it to assist with a recovery.
As a small business owner I am acutely aware of the need to be competitive. The current crisis is having the effect of weeding out uncompetitive businesses but is also pushing some viable future businesses over the edge. There are internal costs that I can control, but the majority of the larger costs are outside my control. It's basically down to survival of the fittest at the moment, if you can get through this period unscathed then you will come out the other end in a far stronger position.
The private sector is being reformed by market force and the future is bright for businesses that can develop by gradual growth. A sustainable business will be possible, but the worry is in controlling those external costs. More worrying still, is the apparent irresponsible nature of the political establishment in managing these costs.
There is little point in having an environment where competitive and sustainable businesses can thrive, if the rewards of their labour are swallowed up in carrying the burden of an uncompetitive public sector. Both public and private sectors have to work in unison and we can't have a competitive 'one', without a competitive 'other' . It is about time that employee representatives in both sectors realised this. I would consider Finland to be a competitive and fair economy. They have made it so, without a minimum wage agreement.
In the short-term, consumers will benefit from the knock on effect of the surviving competitive businesses. Incentives have to be given to entrepreneurs and possibly investors, in creating and supporting businesses that actually 'make' something. Importing 'services' businesses that can be easily relocated to up-and-coming competitively priced countries is a stop-gap measure in a country's development.
Until such time as the hard economic decisions are made on whether we want the country as a whole to be competitive, not just sections of it, the problem will not go away. Or rather, it may go for a while but it will resurface again and again and again. I am sure that, given the choice between sinking and swimming, many more business owners would prefer to try rising above the surface without an anchor tied to their leg.
Much has been written about the economic crisis in Finland in the 1990's and how this compares with what we are going through. Okay; the stock market and property market crashed, with drops of approximately 70% and 50% respectively, but they had their own currency at that time and had the 'luxury' of devaluing it to assist with a recovery.
As a small business owner I am acutely aware of the need to be competitive. The current crisis is having the effect of weeding out uncompetitive businesses but is also pushing some viable future businesses over the edge. There are internal costs that I can control, but the majority of the larger costs are outside my control. It's basically down to survival of the fittest at the moment, if you can get through this period unscathed then you will come out the other end in a far stronger position.
The private sector is being reformed by market force and the future is bright for businesses that can develop by gradual growth. A sustainable business will be possible, but the worry is in controlling those external costs. More worrying still, is the apparent irresponsible nature of the political establishment in managing these costs.
There is little point in having an environment where competitive and sustainable businesses can thrive, if the rewards of their labour are swallowed up in carrying the burden of an uncompetitive public sector. Both public and private sectors have to work in unison and we can't have a competitive 'one', without a competitive 'other' . It is about time that employee representatives in both sectors realised this. I would consider Finland to be a competitive and fair economy. They have made it so, without a minimum wage agreement.
In the short-term, consumers will benefit from the knock on effect of the surviving competitive businesses. Incentives have to be given to entrepreneurs and possibly investors, in creating and supporting businesses that actually 'make' something. Importing 'services' businesses that can be easily relocated to up-and-coming competitively priced countries is a stop-gap measure in a country's development.
Until such time as the hard economic decisions are made on whether we want the country as a whole to be competitive, not just sections of it, the problem will not go away. Or rather, it may go for a while but it will resurface again and again and again. I am sure that, given the choice between sinking and swimming, many more business owners would prefer to try rising above the surface without an anchor tied to their leg.
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