Five Keys to a Great Retirement

Retirement can be a bit of a tricky subject sometimes as there are so many psychological elements to consider. How will you fill your days if you’re not working? Will you have enough money? What will be your purpose? These are the types of questions we visit regularly with our clients.

So what can you do to make sure that you’ll have the best time in retirement?

  • 1. Visualise Your Retirement

Before you retire, it is important to spend time thinking about how you want your retirement to be. Retirement planning does not just involve financial strategies, but also considers how you will spend your time, where you will live, and what will give you purpose after you leave the workforce.

  • 2. Don’t Go Solo

Research supports the idea that truly happy people are those with more social connections. You may lose contact with your work colleagues, so it is important to engage with other people and groups as you move towards retirement.

You may wish to volunteer, take up a new hobby, or join a community group. If you have a spouse, it is important to collaborate and determine their expectations for retirement and you can even plan some activities to look forward to together.

  • 3. Have a Positive Outlook

It’s also true that only half of those who were planning to retire in the next five years were looking forward to it. Common concerns were managing money, feeling bored, losing the social connections from work, or losing their purpose. Retirement planning and focusing connecting with the community would solve three of these problems, and intelligent financial planning from the team at Endorphin Wealth will allow you to manage your money effectively.

  • 4. Control Your Destiny

One of the most consistent findings in retirement related research is that the people who had the most control over their retirement decision were also the ones that most enjoyed their retirement. It is important that you do not leave your retirement to chance and that you work closely with your financial planner, family, and extended support networks to ensure you maintain an income, purpose, and social connections.

  • 5. Develop Retirement Goals

Retirement is the first time since childhood where you are free to do whatever you want! You also have the means and capacity that you did not have in childhood to take advantage of this new freedom. While you are transitioning towards retirement, it is important to determine what really matters for your life going forward. Your role and identity may change from when you were working, but you can now define your own identity outside of the workforce and work towards new goals.

Planning is an important part of retiring right – we encourage you to consider each of these points and plan effectively for all portions of your life as you move towards retirement. The team at Endorphin Wealth Management is happy to assist with your retirement planning from a financial planning perspective. Most importantly – enjoy your new freedom!

For an obligation free discussion, call us on 03 9190 8964, or email us at advice@endorphinwealth.com.au

Benefits to Buying Commercial Property with Your SMSF

With over 600,000 SMSF in Australia today, one of the most common questions we’re asked is ‘Can we buy a property to live in with our Superannuation funds?’. It would appear to be a great idea on face value, but unfortunately this is not allowed and there are some considerable consequences for breaching the governing laws of Superannuation.

In contrast with residential property, a SMSF can purchase a commercial property, then rent it to themselves or a relative conducting a business. This provides a major advantage for business owners as you can own a commercial property and pay rent to yourself, rather than a landlord. Let’s take a quick look at why commercial property could be the right investment strategy for you:

BENEFITS TO BUYING COMMERCIAL PROPERTY WITH YOUR SMSF

What is Commercial Property?

A commercial property is any property which a business operates within. Any business from small to large, from local cafe’s to large organisations can utilise commercial property. So why invest commercially? Most Australians feel more comfortable investing in property, rather than more complex investments such as shares and bonds. For this reason, it’s no wonder SMSF investments in ‘business real property’ have become an increasingly popular investment vehicle.

Rental payments can be paid to your SMSF or can be used as you please. You can also expect lower volatility from negotiated rental contracts when compared to other common investments such as shares, which can be more volatile.

Why should I include it in my SMSF porfolio?

While there are benefits to purchasing commercial property with your Self-Managed Super Fund, there are also some considerations to be aware of. For example, if you lease the property back to your own business, the lease must be at market rate – you cannot use this as a loophole for your business to pay more or less rent into your Superannuation.

Along the same vein, all payments must be on time and in full, just as if you were renting through an agency, and independent valuations must be conducted regularly. However, this is not necessarily a negative – as commercial properties generally have higher rental returns than residential, your rental repayments will allow your investment to grow more quickly! It is also important to note as with all SMSFs that any activity within the fund must be for the sole purpose of providing retirement benefits for the SMSFs members.

Some potential costs involved

In addition to the purchase price of the property, costs such as stamp duty, loan application fees, renovations, conveyancing and etc can impact the viability of the transaction. Ongoing costs such as building insurance, loan repayments and property maintenance can also catch you by surprise.

The Tax Benefits and Considerations

There are also tax benefits as while you are paying rent to yourself, the tax on rental income is only 15%. Capital gains are generally lower for commercial property than astute residential investments, but the capital gains tax is just 10% if the property is held for a year or longer. It should be noted, however, that your super fund must be a decent size; generally, between $400,000 – $600,000 to be considered for a loan.

How We Can Help

Five Tips to Minimise Your Tax

SMSFs can be great investment vehicles, but we strongly encourage you to speak with Endorphin Wealth to determine how best to approach purchasing commercial property with your SMSF. For an obligation free discussion, call us on 03 9190 8964, or email us at advice@endorphinwealth.com.au

Money Management Awards 2019

Eugene Serravalle, Glenn Malkiewicz, Phillip Richards & Andrew Kreskas

Eugene Serravalle, Glenn Malkiewicz, Phillip Richards & Andrew Kreskas

Phillip, Glenn and Andrew are in Sydney this week to celebrate Phillip being named as a finalist for both ‘Financial Planner of the Year’ and ‘Young Achiever of the Year’ at the 2019 Money Management Awards. An outstanding achievement given the quality of advisors around the country, but on this occasion unfortunately the award has eluded us!

From The Money Management website:

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https://www.moneymanagement.com.au/news/financial-planning/best-advisers-and-bdms-industry-recognised

All the finalists for the Money Management Fund Manager of the Year awards have been announced, recognising the best and brightest in the financial services industry.

The ultimate winners would be those who not only provided clients with excellent results and service, but also went above and beyond in what they offered their workplaces, communities and the industry.

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We’re very proud of all the hard work Phillip has been putting in servicing his clients and building the business over the years. Looking forward to even more recognition from the industry in the years to come!

For an obligation free conversation about your financial future, contact Phillip on 0477 004 455 or phillip@endorphinwealth.com.au