Guest Blog – How you can overcome your limiting beliefs regarding money and investing – Dr Ian Kaminskyj

Dr Ian Kaminskyj is a practitioner and trainer of Neuro-Linguistic Programming (NLP), which advocates the pursuit of excellence in all endeavours. It is the study of how to integrally & linguistically affect a person’s neurology in order to achieve a desired outcome. With a PhD in philosophy, Dr Kaminskyj also practices hypnosis and hypnotherapy to access the power of the unconscious mind. As director of AMFSC P/L and with 15 years of experience, Dr Kaminskyj has looked into the common limiting beliefs and internal drivers around money and investing.Profile photo of Ian Kaminskyj

If you would like to contact Dr Kaminskyj, his business links/contacts are:

LinkedIn: Ian Kaminskyj | LinkedIn

Website: Melbourne NLP Hypnosis Centre – experts in personal development & transformation — Melbourne NLP Hypnosis centre

Mail: ian@melbournenlphypnosiscentre.com.au

In case you missed Dr Kaminskyj’s first blog on establishing limiting beliefs on money and investing, and where they come from, the first blog post can be found her:

Limiting Beliefs on Money – Dr Ian Kaminskyj (endorphinwealth.com.au)

How you can overcome your limiting beliefs regarding money and investing – Dr Ian Kaminskyj

In our last post, we discussed many of the beliefs people have re money & investing, both positive & negative. We also discussed how these beliefs are formed and how often, they become outdated & no longer serve us.

In this post, we’ll describe one approach that you take to (a) become consciously more aware of the limiting beliefs you may have currently around money & investing, and (b) a simple approach that can help you start to change them into a version that will be more empowering and powerful moving forward.

So how do you determine your beliefs about money and investing? Quite simply, by answering some questions. Finish off the following statements, taking the very first thing that comes to mind.

People with money are ….

Money makes people ….

Investing is …..

My parents always thought that money would …..

I’m afraid that if had money, I would ….

If I were rich, I would …..

When I invest, I feel ……

I think money ……….

People who invest are ….

Some people’s responses to these questions might be:

Investing is RISKY!

Money makes people GREEDY!

The answers to these questions will start to alert you about your beliefs about money and investing, whether they be positive or negative.

Once you’ve started to get a better understanding of these, the big question is do these serve you moving forward?

Your current beliefs have got you to where you are today but will often NOT get you to where you may want to go financially moving forward. So if there are some limiting beliefs that you no longer want to maintain moving forward, how do you go about changing them?

There are a multitude of ways to do this using various different techniques, ranging from time line therapy, NLP, hypnosis, EFT to name just a few. As these beliefs are unconscious, the fastest way is to use tools that work directly with the unconscious mind, like NLP and Hypnosis.

In this Blog post, however, I’ll provide you with a simple strategy to become more consciously aware of your limiting beliefs around money & investing and then how to start to change these on a conscious level. With repetition, you can change your unconscious beliefs to ones that are more useful & empowering. This is generally slower than using NLP or Hypnosis, but still provides powerful results.

So here is the process that you can use. To illustrate how this work, I will use the limiting belief that Money causes grief & headaches

Step 1: Identify your limiting belief, which we have already done.

Step 2: What will be the consequences if you continue with this limiting belief for the next 5, 10, 15, 20+ years? How will they affect your family? Your retirement?  etc etc

For our example limiting belief, our response to these questions might be:

Given money gives me so much grief & headaches, I will naturally try and avoid it as much a possible. Consequently, I will generally never be wealthy & financially independent. I will thereby always be reliant on working and/or a pension in my retirement, assuming it still exists when I retire.

As a result, my family will just survive financially, never getting ahead, nor being able to enjoy the comforts that financial independence brings. My family will have limited choices as to which suburb we live it, which schools the kids can attend, what holidays we take as well as what house we live in.

Retirement will also be a challenge, as the pension will be low. Again choices will be severely limited when it comes to holidays, what retirement village we can stay in, etc.

To really drive home the consequences of this limiting belief, close your eyes and visualise and strongly feel how your future would be – feel all the pain & suffering it would provide, not only for yourself, but also your family!

Step 3: Ask – Is this something that you really want? For most people, the answer would surely be NO!

Step 4: What would be an empowering belief that you would be happy to take on to replace this outdated, limiting belief?

Money gives me the freedom & choices to live my life on my terms!

Step 5: By taking on this empowering belief, how will your life be different for the next 5, 10, 15, 20+ years? For our example limiting belief, our response to these questions might be:

By being able to live life on our terms, we will live the life of our dreams! We’ll be able to do what we want, when we want for how long we want!

We can live wherever we want in whatever size house we want. Our kids can go to the school of our choice and we can have as many holidays as we want.

Finally, we will have a comfortable retirement, enjoying ourselves with our friends and family. We will have choices available to us re where we stay, with whom we holiday and for how long.

I can’t wait to make this life a reality!

Step 6: Is this new future something that you want? If yes, what are you prepared to do about it?

For our example limiting belief, our answer would be YES and given the massive benefits, we’d be generally prepared to do whatever it took to achieve it!

Step 7: Make a commitment, right here & now, do to whatever it takes to achieve the future that you desire.

To reinforce this very strongly, do the following:

  1. Create a daily affirmation of your new empowering belief and repeat it daily 5 times in the morning & evening with passion, emotion & power! If you repeat this for 3-4 weeks, this is generally enough time to reprogram your unconscious mind with your new belief.
  2. Before going to bed, visualise your new future & again experience strongly all the wonderful emotions & feelings that will ensue, not only for you but your family.
  3. Create a plan of how you will start to make this new future a reality. Which experts will you engage?
  4. What new knowledge will you seek? What daily rituals will you create?
  5. Take massive action by taking the first step of your plan TODAY!!
  6. Celebrate, acknowledge and be grateful on a daily basis for whatever progress you make towards achieving your new future. Sure, there will be challenges and problems along the way – that’s guaranteed & part of the process. Learn from these, get the right support & advice and success will be yours!

I hope these suggestions have been helpful. I’d love to hear any questions you may have, any stories you’d like to share as well as your progress towards achieving your new future. Thanks again to Endorphin Wealth for this opportunity to share this information and these techniques to help their clients.

Till next time.

Dr Ian Kaminskyj

 

The team at Endorphin Wealth are passionate about helping people achieve their life goals with great financial planning. We are not licensed or owned by big banks and financial institutions. The advice and wealth management we provide is always in our client’s best interests. We have the advantage of being able to access a range of products from different providers that can be tailored to our client’s goals. We have offices located in Sydney and Melbourne, where you can find a financial advisor that is suitable for you.

For an obligation-free conversation about your financial future, please contact us on 03 9190 8964 or at advice@endorphinwealth.com.au

How do I recontribute to my Super?

Have you always wondered how you could pay less tax in your super? With help from Endorphin Wealth, you can now recontribute super to minimise the payable tax on either a super income stream or when your inheritors receive your super benefits.

By withdrawing and then recontributing your super, it will be classified as a non-concessional contribution. This means the tax-free proportion of your super will increase. With this strategy, you may save money in the long run.

This means more spending power and a more comfortable future.

How does recontribution work?

The recontribution strategy will first need you to be able to withdraw a lump sum from your superannuation. This means you must have either met a full condition of release, such as retirement or reaching 65. Another way is that you have unrestricted non-preserved money already in your account.

To continue making contributions, you need to be either under 67, or be under 75 and work for at least 40 hours over more than 30 days in a financial year. This is called the work test. It provides an exemption for one-year relief for recent retirees. It is available in the financial year following the year you last met the work test, where your total superannuation balance is less than $300,000 as of the prior 30 June and provided you have not previously used the exemption.

Step 1: Withdrawing your funds from super

After meeting all the requirements, you are able to withdraw money from your super account. Depending on the amount that is in your taxed and tax-free components, the withdrawal will proportionally draw from both accounts. This means that if your tax-free component makes up 20% of your account balance prior to withdrawal, then 20% of any withdrawal is the tax-free component and 80% is from the taxable component.

If you are above 60, you do not need to pay tax on either component if you’re a member of a taxed fund. You’re only liable for tax on a withdrawal if you are in an untaxed superannuation scheme.

If you are under 60, you’re entitled to the ‘low-rate cap’. This is a lifetime amount that you may withdraw from the taxable component of your superannuation, without paying tax.

Step 2: Recontributing the funds back into super

After making the withdrawal we then contribute the funds back as a non-concessional concession. If you are under age 67 on the 1st of July and your total superannuation balance is less than $1.4 million, you may be able to bring forward up to two years of non-concessional contributions. This is called the bring-forward rule and will let you pay a larger amount sooner.

However, this is a complex financial action. Hence, important to seek independent financial advice as your situation may differ.

How can this benefit me?

The strategy is effective also under the following circumstances:

Income tax perspective: A recontribution is still beneficial for those aged between preservation age (from age 58) and age 60 and who are expecting to receive a superannuation income stream as they do not need to pay tax on taxable components.

Estate planning perspective: This strategy can also be used where there is some likelihood that your superannuation benefits will be received by those not considered to be dependants under taxation law, such as adult children. This means it can decrease the potential tax payable from inheritors.

However as mentioned, it is a complex strategy and it is important to consider seeking professional advice. The team at Endorphin Wealth has both the experience and knowledge to implement these strategies and revamp your retirement plans.

For an obligation-free conversation about your financial future, please contact us on 03 9190 8964 or at advice@endorphinwealth.com.au.

The team at Endorphin Wealth are passionate about helping people achieve their life goals with great financial planning. We are not licensed or owned by big banks and financial institutions. So the advice and wealth management we provide is always in our client’s best interests. We have the advantage of being able to access a range of products from different providers. This means that our advice can be tailored to our client’s goals. We have offices located in Sydney and Melbourne, where you can find a financial advisor that is suitable for you. 

Guest Blog – What are your limiting beliefs around money and investing? Dr Ian Kaminskyj

Dr Ian Kaminskyj is a practitioner and trainer of Neuro-Linguistic Programming (NLP), which advocates the pursuit of excellence in all endeavours. It is the study of how to integrally & linguistically affect a person’s neurology in order to achieve a desired outcome. With a PhD in philosophy, Dr Kaminskyj also practices hypnosis and hypnotherapy to access the power of the unconscious mind. As director of AMFSC P/L and with 15 years of experience, Dr Kaminskyj has looked into the common limiting beliefs and internal drivers around money and investing.Profile photo of Ian Kaminskyj

If you would like to contact Dr Kaminskyj, his business links/contacts are:

LinkedIn: Ian Kaminskyj | LinkedIn

Website: Melbourne NLP Hypnosis Centre – experts in personal development & transformation — Melbourne NLP Hypnosis centre

Mail: ian@melbournenlphypnosiscentre.com.au

What are your limiting beliefs around money and investing? – Dr Ian Kaminskyj

So what are some of your beliefs about money & investing? Can you relate to any of the following?

  • Money doesn’t grow on trees!
  • Money allows me to live life on my terms!
  • I attract money with ease!
  • Money causes grief & headaches!
  • People with money are successful!
  • Money is the root of all evil!
  • Money is simply energy!
  • The rich get richer & the poor get poorer!
  • You have to work hard for your money!
  • Abundance is all around me!
  • People who are rich must be dishonest/shifty/dodgy/untrustworthy!
  • Having lots of money gives me options & freedom!
  • Investing is inherently risky, where you can lose everything!

It’s amazing how the subject of money/investing & wealth can raise such different emotions & beliefs in people. Some are positive & empowering while others can be very negative & disempowering. These emotions and beliefs that we have will also then heavily influence how we invest and our success in doing so.

The personal development expert Tony Robbins says that our beliefs are a feeling of certainty about what something means. Beliefs thereby control our lives in many ways. Limiting beliefs are beliefs we have in any area of our live that limit us in some way and produce unwanted or negative consequences for us.

You may be thinking then, where do these limiting beliefs come from and why do we take them on with such certainty?

This is fascinating question with at least 2 answers:

  1. People we looked up to when we were growing up, especially between the ages 0 to 7 years, but also into our teenage years, and
  2. Our past experiences.

In this article, I’d like to focus on the former, as it is something that many people are totally unaware of and can thereby, produce massive results when changed.

Our parents as influencers on our beliefs

You see, when we are children, especially in the age range 0 to 7, we are like sponges, learning from everyone around us. If we are with someone that we look up to, respect and admire, then we take on whatever they say as being totally true & correct – without question.  So if our parents have very limiting beliefs about money & investing, then we automatically these on board ourselves. The opposite is also true!

With enough repetition, these form deeply held beliefs that we take on that can subsequently rule the rest of our lives, as we believe them with such certainty!

Have you ever witnessed adults talking about their views on money & investing, only to see their kids take on the same beliefs?

I was talking with a colleague of mine recently who was describing how his Dad had very negative beliefs about money. He was always broke and complaining how much everything cost. When his Dad subsequently remarried and had children with his new partner, the children took on the same beliefs as his Dad when they grew up – always short of money & complaining about their finances!

So when you consider your beliefs around money and investing, can you identify where they came from? Can you see any beliefs are aligned with those of your parents?

Can you now also start to understand how they may be influencing you positively or negatively regarding your finances and investing?

Is it time for a change? If we use the analogy of running a software program in your mind re finances and investing, is it time for a software upgrade from a version that you may have been running since you were a child?

Next post

In our next post, we’ll describe one approach that you take to (a) become consciously even more aware of these limiting beliefs you may have currently around money & investing, and (b) a simple approach that can help you start to change them into a version that will be more empowering and powerful moving forward.

Till next time.

Dr Ian Kaminskyj

 

The team at Endorphin Wealth are passionate about helping people achieve their life goals with great financial planning. We are not licensed or owned by big banks and financial institutions. The advice and wealth management we provide is always in our client’s best interests. We have the advantage of being able to access a range of products from different providers that can be tailored to our client’s goals. We have offices located in Sydney and Melbourne, where you can find a financial advisor that is suitable for you.

For an obligation-free conversation about your financial future, please contact us on 03 9190 8964 or at advice@endorphinwealth.com.au

Endorphin Wealth welcomes Alexis Kavaliotis

We’re very excited to announce that Endorphin Wealth has expanded the team in Melbourne – welcoming Alexis Kavaliotis as Associate Advisor. Alexis joins us with over 2 years of experience in the financial services industry, with financial advisory being Alexis’ long-term career dream. In addition, Alexis holds a Bachelor of Commerce, having completed a major in Financial Planning.

I have joined the Endorphin Wealth family as an eager Associate Advisor, dedicated in becoming a Financial Advisor in the coming years.

I am very passionate in helping others and am very lucky to be working closely with the team at Endorphin Wealth to provide families with the advice they need to achieve their goals.– Alexis Kavaliotis

Alexis Kavaliotis

Alexis has already impressed us with her professionalism and dedication to helping Endorphin Wealth provide goal-based advice to our clients. See below her LinkedIn profile and email if you would like to contact Alexis. Welcome Alexis, great to have you on the team!

Alexis Kavaliotis | LinkedIn

alexis@endorphinwealth.com.au

Sustainable Investments – The Future of Investing

Sustainable investing has gained a lot of popularity in recent years. People want to see their values and morals reflected in their investment portfolios.  

Typically, these values can be expressed under the headings of Environmental, Social and Governance (ESG). Also, there is growing evidence that ESG investing outperforms the market in the long term (RIAA Report).

The most recent Responsible Investment Association Australasia report states that $1.281b of assets are now managed under an ESG framework.  

What is ESG? 

The philosophy behind sustainable investing is to ensure that short term profits do not override long term considerations. This includes non-financial factors, such as environmental impact, stakeholder assessment and future generations.

It has been an increasing trend over the past decade by fund managers to create ESG assets. Also, demand for these assets has been increasing, with many of our clients requesting portfolios that take these factors into consideration.

For instance, sustainable investment would see tobacco, slave labour and businesses that pollute the environment prohibited from portfolios. This expectation from investors has led to a 42% increase in ESG investments from 2018 to 2020. This is expected to continue.  

COVID-19 impacts and looking forward 

There is increasing evidence that ESG assets are performing well over the long term. During 2020 and into 2021, sustainable investing faced some challenges due to COVID-19 though.

Despite that, many large ESG funds have outperformed the market and received record inflows during the pandemic. 96% of US investors expect their firm to prioritise ESG decision making in their portfolios. With investors more buoyant about economic recovery with COVID-19 over, ESG is definitely becoming part of the future.  

Having sustainably aligned morals and values should not prevent our clients from achieving quality returns. The performance of these ESG funds show that this is not a problem. The contention that ESG assets underperform the market should be considered a myth, as it is not supported by quantifiable market returns (see Bloomberg’s latest report here).

If you would like to consider if your asset portfolio can reflect your morals and values, please contact us on 03 9190 8964 or at advice@endorphinwealth.com.au 

The team at Endorphin Wealth are passionate about helping people achieve their life goals with great financial planning. We are not licensed or owned by big banks and financial institutions. So the advice and wealth management we provide is always in our client’s best interests. We have the advantage of being able to access a range of products from different providers that can be tailored to our client’s goals. We have offices located in Sydney and Melbourne, where you can find a financial advisor that is suitable for you. 

Endorphin Wealth welcomes Nicole Piccolo

We’re very excited to announce that Endorphin Wealth has expanded the team in Melbourne – welcoming Nicole Piccolo as Practice Principal. Nicole joins us with over 20 years of experience in the financial services industry, with experience in various positions within Funds Management, Investment Banking and Financial Planning firms. In addition, Nicole holds a Graduate Certificate in Financial Planning and a Graduate Certificate in Management.

Being at Endorphin Wealth, means being part of a dynamic team who are purpose driven, with strong values and who strive to deliver great client experiences. 

I take pride in building strong relationships across all levels of business and I am passionate about motivating and developing our team to achieve superior outcomes for our clients as well as their own professional aspirations.– Nicole Piccolo

Nicole Piccolo

Nicole has already impressed us with her professionalism and dedication to helping Endorphin Wealth provide goal-based advice to our clients. See below her LinkedIn profile and email if you would like to contact Nicole. Welcome Nicole, great to have you on the team!

Nicole Piccolo | LinkedIn

nicole@endorphinwealth.com.au

Evergrande’s Impact on the Financial Market

Recent news regarding Evergrande have seen shadows of the Global Financial Crisis emerge with headlines like ‘Is this China’s Lehman Brothers moment?

Endorphin’s view on Evergrande’s possible collapse is that the Chinese Government will (eventually) get involved. This is due to the sheer size of the property market and importance to its domestic economy, and social impacts of a housing market collapse. This may involve:

  • More liquidity injections into the financial sector and a Reserve Requirement Ratio cut later this month, providing more liquidity in the banking sector.
  • Asset sales – with stronger balance sheet developers buying land and construction sites at bargain prices from the weaker balance sheets like Evergrande. SOEs will buy some assets and China may revive Asset Management Companies to house assets.
  • Low quality balance sheets will be unwound by the state or allowed to default. Equity holders will be taken to the woodshed, and creditors will receive cents in the dollar.
  • Housing and construction activity will remain soft for some time.
  • Households will be supported. A key risk through all of this is the wealth management products issued by banks and companies to fund expansion. We expect China will protect savers to some extent to ensure consumer-led growth can recover through 2022.

There will also be losses to the shareholders of Evergrande, unsecured lenders and some suppliers. However we do not foresee a “Lehman-style” financial crisis.

The “Evergrande” issue has recently emerged as the property sector is just about the only sector in China with lots of leverage that has not been dealt with by the regulators. Last year saw the regulators enact tools to reduce leverage in the property sector. Recent moves have tightened on lending in mortgages, lending to developers, and enforced the no-lending rule to the over-levered developers.

Evergrande is the second biggest and one of the most leveraged property developers in China. However local Chinese banks do not have a lot of exposure, and it is very clear who holds the debt loans. Evergrande is simply not big or entrenched enough to cause a systematic financial collapse. Rather, the majority of property developers are financially sound as the market is fragmented. Any developer with no access to funding will not remain solvent forever, let alone a highly levered outfit like Evergrande.

This may take some time to play out, as the Chinese government has a range of tools that it will likely deploy as needed. The government will likely let investors sweat it out first in order to provide a warning to other Chinese companies and sectors about the dangers of leverage and excess.  However Endorphin’s medium-term global and local view still remains positive for growth assets, through momentum of stimulus and consumer spending. We will continue to closely navigate the risks and volatility that will inevitably come along the way.

The team at Endorphin Wealth are passionate about helping people achieve their life goals with great financial planning. We are not licensed or owned by big banks and financial institutions. The advice and wealth management we provide is always in our client’s best interests. We have the advantage of being able to access a range of products from different providers that can be tailored to our client’s goals. We have offices located in Sydney and Melbourne, where you can find a financial advisor that is suitable for you.

For an obligation-free conversation about your financial future, please contact us on 03 9190 8964 or at advice@endorphinwealth.com.au