Do All Doctors Need A SMSF?

As you would know, employers are obligated to contribute a set percentage of an employee’s salary to a chosen super fund. You have a choice to decide if you would like these funds invested in a retail fund, an industry fund, or perhaps even a Self-Managed Super Funds (SMSF).

SMSFSMSFs are traditionally for individuals who wish to be more involved with their wealth management strategies. They may be complex to manage, but for doctors and other medical professionals with multiple assets or income streams, it can be worth the additional effort.

Advantages of a SMSF:

  • 1. Cost Benefits

Many medical professionals, as high-income earners, utilise a SMSF for the cost savings. Once established, the annual costs and fees associated can be much smaller compared to a retail or industry superannuation option.

  • 2. Purchase Property and Medical Rooms

A real game-changer for SMSF compared to retail or industry funds is their ability to use super funds to purchase property. Medical professionals have the option of using a SMSF to purchase consulting rooms or business premises through the super fund, which can provide considerable tax benefits when structured in correctly.

  • 3. Additional Members – Asset Consolidation

By combining multiple members into the fund, you can essentially combine the funds which opens up additional opportunities to invest.

  • 4. Ability to borrow funds

Although lenders have recently shied away from lending to SMSF, there are still some institutions that will allow a SMSF to borrow funds to invest in property assets. The ability to leverage brings additional risks, however there is a potential to increase your wealth at a much faster rate.

Disadvantages of a SMSF:

  • 1. Compliance Complexity

There is a number of complex laws that must be adhered to as a member and trustee of a SMSF. For busy professionals, this can be time-consuming, and you may not have the knowledge required to ensure your SMSF is compliant. However, there is always the option to outsource the management of the super fund and leave it to the experts.

  • 2. Costs

Early in your career, the costs associated with running a SMSF may outweigh the benefits. Costs such as auditing, financial advice, and establishment costs can be larger than anticipated – you may need to wait until later in your career to truly benefit from establishing a SMSF.

  • 3. Commitment

Investing isn’t just a game you can pick up and start playing immediately. The ability to build a diversified portfolio of investments and a strategy that has the best chance to succeed in the future takes considerable education and knowledge in the area.


How we can help

It is important to get expert advice from Endorphin Wealth Management regarding SMSF structures and if they’re the best fit for your situation.

For an obligation free discussion, call us on 03 9190 8964, or email us at

How Does Buy / Sell Insurance Help Your Business?

If you own a business in partnership, there is always the risk of you or your business partner being unable to work due to injury, serious illness or death. Buy / Sell Insurance can be vital to your business succession plan as it may answer the question: “Would I be able to afford to buy out my partner’s share of the business if they passed away or were not able to work in the business?”

A Buy / Sell Insurance policy can provide a lump sum to be paid out to the remaining owner(s), their spouse or their estate in the event of death or if they are leaving the business due to a serious illness or injury. This can ensure the business can continue to operate (with existing partners) and that their spouse or estate is compensated for their share and rights to the business.

The purchase of the departing owner’s share of the business can then be funded either fully or partially by the proceeds from the buy / sell insurance policy.

Buy / Sell Insurance can help reduce the risk of:

– An owner or their estate commencing legal action over a payout figure, as it will have already been determined by the buy / sell arrangement.

– The departing owner’s estate selling their share of the business to an unsuitable third party;

– Without working in the business, the departing owner’s spouse taking claim over the business profits;

– A departing owner’s spouse deciding (against the wishes of the continuing owners) to act as a partner of the business as opposed to taking the payout;

– The remaining owners having to sell the business in order to pay out the departing owner, spouse or estate.

Different types of ownership structure

You should consider the three types of insurances available – Life insurance, Total and Permanent Disability insurance, and Trauma insurance. After determining the appropriate policies with your financial advisor, you must then decide on the appropriate structure for ownership; these can include:

1. Self-ownership
The person insured is the policy owner. This is a simple structure where the insured is in control of their own policy, even after they leave the business.

2. Cross-ownership
in this situation, business owners take out insurance on each other. The policy can then change with any changes in business ownership.

3. Insurance trust
the trust owns the policies on behalf of all business owners, and the policy ownership is not impacted when business ownership changes.

4. Business entity
the trading entity owns the policies on the business owners’ lives. The business entity can then use the insurance proceeds to buy back the departing owner’s share.

How we can help

It is important to get expert advice from Endorphin Wealth Management regarding business succession planning and as to which policies and structure would best suit you and your business. When carefully considered, Buy / Sell Insurance can be a useful asset which allows you to focus on everyday management and growth of the business rather than worrying about the future should one partner be forced to step down.

For an obligation free discussion, call us on 03 9190 8964, or email us at


Phillip Richards – Money & Life Article

Phillip Richards
Congratulations to our Director Phillip Richards featured in an article on the Money & Life website:


The two of us: Josie & Phillip

There’s never a dull moment in Josie’s lifestyle. Whether she’s travelling the world, creating art or catching up with her grandkids, she’s making the most of every moment. Discover how working with Phillip Richards AFP® from Endorphin Wealth has helped her fit everything into her budget:


I’m lucky enough to lead a very rich and rewarding life, full of friends, family and fellow artists here in Melbourne. After my divorce, I managed to buy my apartment which keeps a roof over my head, but I was relying on my pension to meet other living expenses.

I did have money invested in shares and when I wanted extra income I’d get my broker to sell some. It felt like I was having to dip into my nest egg to keep doing things that were important to me, like buying art materials or spending time with my son who lives in London.

So when my bank manager introduced me to Phillip, it was a great opportunity to completely transform my whole outlook on money and retirement. As I’m on my own, it’s very important that I can take care of myself financially for the rest of my life. Phillip has really taken that on board and come up with a plan that gives me the income I need, without running down my savings.

With a more generous regular income, I have the freedom to make exciting plans from one year to the next. Visiting my son in London is one of my top priorities, especially since he became a father last year. I travelled there soon after my granddaughter Pearl was born and I’ll be returning soon for her first birthday. And while these trips definitely have a family focus, I also enjoy my side trips to Spain and Italy, taking in the amazing culture and art in places like Barcelona, Seville, Venice and Rome.

Although I love exploring the world, I have so many reasons to feel grateful when I return home to Melbourne. I get to enjoy indulging my other two grandchildren living with my son and his wife in Kew. It’s such a privilege to be a grandmother and have all the fun with much less of the responsibility!
Young people are an important part of my family and my artistic community so I make regular donations to children’s charities, here in Australian and overseas as well as volunteering as a mentor to younger artists at my shared studio space. Thanks to the financial plan Phillip has put together for me and the income that it creates, I have enough to look after myself as well as some extra to do what I can for others.

Thinking about where I’d be now without the benefit of Phillip’s advice is quite scary. I was relying on just one type of investment before because I didn’t really know what my options were for making my money go further. He communicated it all to me so clearly, I knew I was making the right choice to go with his recommendations. And it’s paid off for me in all sorts of ways, as we’ve become good friends along the way. With our shared love of art and Italian food, there’s always plenty to talk about after the money part of the conversation is all taken care of.


When I asked Josie about her life goals, it really came down to two things – being able to continue with her art, and be part of her son and granddaughter’s lives with regular visits to London. As things stood with her finances then, it made her feel very vulnerable to be drawing on her savings as it’s the only reliable source of income she has, apart from her pension. This is a situation that’s quite common for people after divorce and bereavement. They end up with a fixed sum to last them a lifetime and if they lose that money, their financial security goes with it.

Establishing trust between us was a very important part of the advice process and it doesn’t happen overnight. Getting to know Josie and what matters to her was essential to coming up with the right recommendations for her financial plan. It also gave her time to understand that I was committed to getting the right outcome for her money and her future.

Josie is definitely one of life’s explorers and I could see that she already had what she needed, financially-speaking, to follow her innate sense of adventure and put her life goals within reach. So I put together a plan to move her investments into a conservative blend of assets, including bonds and annuities. This gives her a boost to her income to cover regular expenses like art supplies and to pay for adventures overseas. Her capital is well-protected so she can rely on this money coming in, knowing she isn’t drawing down large sums from her savings to create the extra cash flow.

Josie has really opened my eyes to all the variety and talent in the Melbourne art scene. She shows an extraordinary commitment to fostering young artists and using her own experience to help them find an audience for their work. She’s often said how grateful she is to me for stepping in and helping her enjoy the financial freedom to see her family overseas from year to year.

But I’m just as grateful to her for helping me follow my passion for arts and culture right here on our doorstep. It’s been a very warm and rewarding relationship between us and I always look forward to catching up with Josie over a glass of Prosecco after an exhibition opening at the studio.


For an obligation-free conversation about your financial future, Phillip Richards can be contacted on 0477 004 455 or at