Investment Centered vs. Life-Centered Advice

Take a moment and imagine the following…

Picture what your life would be like if you were financially secure… physically fit… enjoying life… living with purpose… intellectually engaged… surrounded with loving relationships…

When you have this kind of life, you are filled with energy and enthusiasm and you greet each day with gratefulness and a huge smile. You walk around lighter than air and bring joy to all you meet. You make a positive difference in the world.

Do you want this kind of life? Yes, we all do. It’s available to each of us.

Financial advisers have historically focused on helping you get a greater return on your investments/superannuation. We believe the focus should be are you managing your money in a way that allows you to live your best life ?

Our retirement planning specialist, Glenn Malkiewicz, uses a more effective approach called Return on Life (ROL). The result of using a ROL-centered approach is that our clients are able to live the best lives possible with the money they have.

 

With ROL, the money is there to serve you, not vice versa. Instead of focusing on a financial adviser’s definition of success, you write your own. ROL puts quality before quantity by managing your money/assets in a way that improves your life and provides peace of mind and confidence.

The conversation changes from focusing on your money to putting your life at the center of the conversation. The advice process changes from selling you products and basic financial planning, to what we call Life-Centered Planning.

Life-centered planning starts with understanding you, your story, your situation and the challenges and opportunities ahead of you. We then help you identify and prepare for life’s transitions.

It’s about aligning your money with your values.

Nobody on their deathbed wishes they’d made different choices with their investment portfolios, but many wish they’d made better life decisions. That’s our difference.

We encourage you to use the below link and take the free ROL Index Assessment. You can see your results immediately.

We’d also be happy to setup an appointment with you to review all of our tools in greater detail and help you get started on your journey to a greater Return on Life. True Financial Planning where we place your life at the centre of the conversation and not your money.

 

Focus on Good Habits for your Health and Finances for a Fulfilling Retirement

When we ask clients to describe their ideal retirement, two of the most common responses are:

  • Being Healthy, and
  • Financially Secure

In our experience, the successful retirees find ways to align these two goals and throw in a little fun as well.  Here’s why developing good habits can lead to big dividends down the road for both your health and your retirement.

 

Live better:

The Harvard School of Public Health studied how five habits affected long-term health: eating well, exercising regularly, maintaining a healthy body weight, avoiding smoking, and drinking alcohol in moderation.

 

According to the study, women who adopted four of these habits by age 50 lived 34 more years free of diabetes, cardiovascular disease, and cancer than women who did not.

Men who adopted four of the five habits lived 31 more years without developing these diseases. And both men and women who adopted this lifestyle lived almost 24 years longer than those who didn’t.

 

Retire Better:

The relationship between your money and your health is something you should monitor closely once retired.

 

One way to keep medical expenses low during retirement and in your later years is to improve your lifestyle now.  Studies have linked the healthy habits discussed above to significant health care cost savings for seniors. By controlling things you can control early in your retirement (Seriously, stop smoking!) the money you save on health care could provide a cushion later in retirement.

 

A healthier lifestyle will also give you more options for enjoying the retirement assets you’ve worked so hard to save and grow.

 

Do you want decades of bad eating habits to keep you and your spouse from taking that dream trip to Europe once you retire? If a lifelong lack of exercise creates a serious health problem at 65, the money you earmarked for that European holiday might otherwise need to be used to fund medical expenses.

 

Our goal for clients is that they live the best life possible with the money they have at every stage of their lives. Let’s talk about how our Life-Centered Planning process can help you develop habits that will reinforce each other and improve both your life and your finances so you can live your best life.

Market Update- April 2020

The world economic situation continues to present uncertainty and challenges for investors as the infection and mortality rates of the COVID-19 virus develops at uneven trajectories across countries and regions. The chart below tracking the progress of new cases in the 10 most infected regions shows the epicentre of the virus now seems to have shifted from Europe to the United States, where the real-time impact of COVID-19 has been bought into stark relief last Friday, with labour market data figures showing 10 million people have applied over the past two weeks.

 

US fiscal support is slowly being rolled out, but it is increasingly clear more support is necessary where Europe, Asia and Australia manufacturing and services industries have effectively been
put on hold.

In Australia, wage support and debt relief helped sentiment and supported equity prices. The RBA’s bond buying measures helped keep rates low and the Australian dollar weak, helping cushion the economy somewhat. But the economic fallout is set to be significant and data through April is likely to start showing the impact on our retail, tourism and hospitality sectors

Overall the outlook for global markets is continued volatility, with earnings expectations having been revised lower while governments scramble to contain both the virus and economic fallout.

Below is a range of plausible outcomes for the markets in the coming years – further highlighting the importance of building resilient portfolios that are able to participate in the upside of a V-Shape Recovery, but also protect on the downside of a Depression.

We continue to monitor the ongoing market conditions as part of our wider operations. If you have any questions about your investments or the path that lays ahead, please get in contact with an advisor here at Endorphin Wealth.