Spending My Way to Prosperity
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13.03.16 / 13 JOEL GOODMAN FAME & FORTUNE PETER CASEY TALKS TO LARISSA NOLAN I HAVE GONE THROUGH PERIODS WHERE I Spending HAVE MADE MONEY AND I HAVE GONE THROUGH PERIODS my way to WHERE I HAVE LOST IT prosperity Where did you buy your first house and how much did it cost? It was a nice little bungalow in Sydney The Dragon bounced back from going bust that I bought for A$275,000 (€188,000) in 1983. I paid half in cash and borrowed and says austerity just doesn’t work for him the rest. I lost that house when the banks took all my money. HAVING beeN an investor on RTE’s Spender or saver? What is the best value in Ireland? Dragons’ Den, Peter Casey is turning his Definitely a spender. I never saved in my There are some real bargains in property hand to politics. The 58-year-old hopes life. My wife HeleN is a good spender too. in rural Ireland. Dublin is saturated, and to become a senator on the upper house’s The funny thing is, I hate shopping. I eventually the government will realise industrial and commercial panel, having bought a car last week and the whole that. We need to decentralise. decided against running in Donegal in transaction was done in 15 minutes. I On the upside there is a great the recent general election. haggled for a bit, wrote a cheque and opportunity to buy houses outside of Born in Derry, his first business walked out. Dublin. You could buy a home on the venture was selling plastic bullets as I’m not a big believer in austerity. I water in Donegal for €50,000 but there souvenirs to tourists. One of nine don’t think you can save your way to wouldn’t be jobs or public transport. children, he witnessed the events of prosperity. It hasn’t worked in Japan for There are plenty of wise buys, however. Bloody Sunday in 1972. the past 25 years, and it won’t work here. He left Derry at 17 to study economics CaN money buy happiness? and philosophy in Birmingham. After What was your first job and how much were I have goNe through periods where I have university, he joined Xerox and credits you paid? made money and I have gone through the American document services I worked in Kevin McLoughlin’s garage periods where I have lost it. Anyone who company for developing his work ethic. on the Buncrana Road in Derry as a petrol knows me will tell you I am a much After rising through the ranks in Europe, pump attendant on Saturdays when I was happier persoN when I have money. he moved with Xerox to Australia. about 13. I got £4 (€5.20) a week. One I don’t think it can buy happiness but He earned his first millioN at 27, week in the school holidays I did 42 hours earning money can make you happy. I having founded his owN search and IT overtime. I got time-and-a-half for it. have friends who are very rich and very contracting business in Sydney in 1985. unhappy — they inherited their money. He invested heavily in the property Pension or property? If you earn it, that’s different. market but lost all his money in an I have never had a pension plaN and, up economic downturn. to 10 years ago, I didn’t have an insurance Biggest rip-off in Ireland? He returned to Ireland in 1993 but policy. I didn’t even have a will. We’re being ripped off at the petrol two years later relocated to America, I’m sure my wife would have got it pumps. Oil has gone from $145 a barrel to where he set up Claddagh Resources, a all [if I died]. I made a will, though, $30 a barrel. Yet in Ireland it has hardly global recruitment and search business when a friend who is an accountant gone down at all. They are getting it so based in Atlanta. questioned why I didn’t have a will much cheaper but they are not passing it The company operates on four when I have five children. to the consumer. That’s to do with continents and in six countries, including I bought a large farm in Derry about 20 government charges. There’s a slight Ireland, and opened a European head years ago, which exhausted my funds, so drop in the cost, but not as much as there office in Donegal in 2000. I didn’t get a chance to get into property Casey has never had a pension and drew up a will only after an accountant friend said it was a good idea for a man with five children should be. In recent years, he has become a in Ireland, and avoided the bust. familiar figure on RTE’s Dragons’ Den. What would you do for €1m? He is married to Helen, from Crumlin Do you have stocks and shares? shares because I knew what I was My father also used to say there’s no have no idea how my parents managed. Nothing. I have my goals and values in Dublin. They have five children: I bought 1m shares in Bank of Ireland, getting into. So many people have lost a right way to do the wrong thing. That’s We had no car, no washing machine, and established and in place. My family is Fionnbarr, Ryan, Neala, Ailisha and which I still have — I like Bank of Ireland. lot of money investing in things they another good piece of advice in business. an outdoor toilet. No 1. I wouldn’t change anything or do Siofra. The family live in Atlanta, with I have five Berkshire Hathaway shares, have no idea about, such as Lehman But I never felt poor. I never felt I anything for €1m. I have a lovely life and other homes in Derry and Donegal. Warren Buffett’s company. I bought them Brothers. People were buying bonds How could the government help needed anything. I was the eldest boy, so a lovely wife. Casey is also a writer and political and quite some time ago, they were about and they had no idea they were toxic. people financially? I got all the new clothes before they were business commentator. His 2014 book €100,000 each. I don’t look at the Don’t go near anything you don’t Small businesses are the lifeblood of any handed down a few times. Any advice for budding entrepreneurs? Tata: The World’s Greatest Company, lifts share price [Berkshire Hathaway understand. country. We should do more to encourage We all felt we were our parents’ Be prepared to work 100 hours a week the lid on one of India’s biggest currently trades at about $209,000 people to jump off the entrepreneurial favourite. They raised a very successful and keep some gas in the tank to ensure conglomerates. It is in its second reprint (€190,000) a share]. What’s the best financial advice you cliff. The government could allow bona family. I’m the least qualified, with my you can stop before you run out. Draw a in India, where he has conducted signing have received? fide entrepreneurs to live tax-free for two economics degree. line in the sand and define when to call it and speaking tours. Any investment tips? Cash is king. My father, Leo, used to say years to build up their businesses. My siblings are dentists, doctors, quits. Don’t keep going if it’s not working Peter was named by Irish America Don’t invest in anything you don’t this, and he was right. The reasoN good solicitors, teachers. There is no doubt — know when to pull out. And ideally, magazine as one of the leading Irish understand. Never follow people into businesses go broke is because they Are you better off thaN your parents? that my parents are the ones behind have a partner who is totally onside and American businessmen for 2007. investments. I bought Bank of Ireland mismanage cash flow. Oh Lord, yes. I was one of nine children. I our success. supportive. Manage your money or you’ll feel old before your time Sticking to some simple guidelines can reap rich rewards and improve your prospects of achieving a comfortable lifestyle in retirement s a financial government bonus of €40, OVERCOMPLICATED AND adviser, my job is which equates to an instant OUTDATED STRATEGIES to help clients top-up of 67%. If this is not There are only the same five manage their enough to entice you in, main asset classes to choose money, which consider the underrated from — cash, bonds, equities, Aoften means advantage that your entire property and alternatives — undoing some of the mistakes retirement fund grows regardless of whether you are made in the past. Here are tax-free. saviNg for retirement or other some of the most common purposes. mistakes I encounter. IGNORING LIFE INSURANCE One or at most two TAX BREAKS broadly-diversified unit- NOT JOINING AN EMPLOYER’S Life insurance is a financial linked multi-asset funds is PENSION SCHEME necessity if you have loans, normally all that is required. A typical defined contribution EOIN children or other dependants. As you would expect, lower- scheme requires employees to You may be eligible for tax risk funds will have a higher contribute 5% of salary, with BUCKLEY relief of up to 40% on the allocation to cash and short- a matching 5% employer premiums if you are dated bonds; higher-risk contribution.