Congratulations to Glenn Malkiewicz – IFA Awards – Goals Based Advisor of the Year 2020

We’re delighted to announce that Glenn Malkiewicz has won the award for ‘Goals Based Advisor of the Year’ at the 2020 IFA Excellence Awards. It’s an outstanding achievement and a great testament to all the hard work Glenn has been putting in for his clients.

In his acceptance speech, Glenn praised the support of his family, the team at Endorphin Wealth and claimed the award was a great recognition of his focus on ‘Life-Centred Financial Advice’. We look forward to Glenn continuing to provide his clients with outstanding service in the years to come!

For an obligation free conversation about your financial future, contact Glenn on 0466 773 320 or glenn@endorphinwealth.com.au

From the ifa Excellence Awards site https://www.ifa.com.au/excellence-awards/

Goals Based Advisor of the Year
This award recognises a provider of financial advice that is centred on client goals or objectives and can demonstrate a focus on client behavioural and wellbeing outcomes beyond investment management performance and financial returns.

The IFA Excellence Awards
The ifa Excellence Awards are the benchmark for excellence in the privately-owned financial advice sector. Since 2014, they have celebrated the excellence and ethics from the most senior ranks to its rising stars, benchmarking success in the privately-owned financial advice sector in particular.

Winner

Glenn Malkiewicz

Goals Based Advisor of the Year

Finalists

Phillip Richards

Investment Adviser of the Year (2018, 2019 & 2020)

Holistic Adviser of the Year

Robert Rich

Client Servicing Individual of the Year (2019 & 2020)

Client Outcome of the Year

Risk Adviser of the Year

Ray Kan

Transformation of the Year

Endorphin Wealth Management

Marketing Program of the Year

2020 Federal Budget Analysis

The Federal Treasurer Josh Frydenberg, delivered the 2020 Federal Budget on 6 October 2020. As anticipated, the budget included bringing forward personal income tax cuts to deliver tax relief to low and middle income earners for the 2020-21 income year of up to $2,745 for individuals and up to $5,490 for dual income families.

The Treasurer also announced a range of taxation benefits for small and medium businesses, intended to stimulate the business sector leading to jobs growth.

Please see our brief summary below and if you have any questions then of course we’re here to help!

Personal income tax

  • Immediate tax relief: ’Stage two’ personal income tax cuts will be brought forward two years, and backdated to 1 July 2020.
  • Raised tax brackets: The upper threshold of the 19% tax bracket will rise from $37,000 to $45,000 and the upper threshold of the 32.5% tax bracket will rise from $90,000 to $120,000. This will be worth the equivalent of $41 a week to those earning between $50,000 and $90,000 a year, and about $49 a week to those earning more than $120,000 a year (source: https://budget.gov.au/calculator/index.htm).
  • Boost for workers on lower incomes: Workers on lower incomes will gain from an extension of the Low and Middle Income Tax Offset for a further 12 months until 30 June 2021, and increase in the Low Income Tax Offset.

Support for pensioners, low income earners, welfare recipients and job-seekers

  • Two cash payments: Aged pensioners, carers, disability support and concession cardholders will receive two $250 payments. The payments will be made progressively from 30 November 2020 and early 2021.
  • Incentives for employers to hire: A JobMaker Hiring Credit will be paid for a year to businesses who hire an eligible unemployed worker aged 16 to 35. The rate will be $200 a week for people under 30 and $100 a week for people between 30 and 35, and they must work at least 20 hours a week. The JobMaker Hiring Credit is aimed at filling the gap when the JobKeeper scheme ends next March.
  • Support to businesses employing apprentices and trainees: A wage subsidy will reimburse eligible businesses up to 50% of a new apprentice or trainee’s wages. Subsidies are capped at $7,000 per quarter, per eligible apprentice or trainee, capped at 100,000 places

Superannuation Reform

  • the Australian Taxation Office will develop systems so that new employees will be able to select a superannuation product from a table of MySuper products through the YourSuper portal
  • an existing superannuation account will be ‘stapled’ to a member to avoid the creation of a new account when that person changes their employment. Future enhancements will enable payroll software developers to build systems to simplify the process of selecting a superannuation product for both employees and employers through automated provision of information to employers
  • from July 2021 the Australian Prudential Regulation Authority will conduct benchmarking tests on the net investment performance of MySuper products, with products that have underperformed over two consecutive annual tests prohibited from receiving new members until a further annual test that shows they are no longer underperforming.

Business tax changes

  • Immediate tax write-off: Businesses with annual turnover of up to $5 billion can write off the full cost of eligible capital assets acquired from 7 October 2020 and first used or installed for use by 30 June 2022.
  • Loss carry-back: Companies with aggregated annual turnover of less than $5 billion will be able to apply tax losses from the 2019-20, 2020-21 and 2021-22 income years against previously taxed profits from the 2018-19 and later tax years by claiming a refundable tax offset in the loss year.
  • Specific changes for small business: Small businesses with a turnover of up to $50 million will be able to access up to 10 tax breaks, with fringe benefits tax scrapped on car parking, phones or laptops, simpler trading stock rules and easier PAYG instalments.

First home buyers

  • Purchase cap lifted: Up to 10,000 more first home buyers will be able to get a loan to build a new home or buy a newly built home with a deposit of as little as 5% (source: https://budget.gov.au/2020- 21/content/overview.htm). The purchase cap will also be lifted and varies depending on the State and regional area.

How Endorphin Wealth Management can help

We’re focused on advice, rather than product sales.

Here at Endorphin, we are not licensed by the big banks and financial institutions, so the advice 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 needs. We also utilise subscriptions to four of the top research providers in Australia to cross reference our research and recommendations.

Comprehensive analytics and research

We invest a great deal of time and effort researching the best wealth management strategies for our clients and have developed a number of systems to manage and track the marketplace.

The investment landscape always evolves and it is more important than ever to consider your investments and superannuation funds carefully. We pride ourselves on being experts in researching opportunities, investments and strategies that fit in with your retirement goals and to create a happy and carefree retirement. We want all of our clients to get on with enjoying their life rather than worrying about money.

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

Endorphin Wealth – 2020 IFA Excellence Awards

We’re delighted to announce that the team at Endorphin have been named as a finalist for the fourth consecutive year in a number of categories for the upcoming 2020 IFA Excellence Awards.

Phillip Richards

Investment Adviser of the Year (2018, 2019 & 2020)

Holistic Adviser of the Year

Robert Rich

Client Servicing Individual of the Year (2019 & 2020)

Client Outcome of the Year

Risk Adviser of the Year

Glenn Malkiewicz

Goals Based Advisor of the Year (2019 & 2020)

Ray Kan

Transformation of the Year

Endorphin Wealth Management

Marketing Program of the Year

The ifa Excellence Awards showcases the industry’s most prestigious accolades recognising excellence across the entire independent financial services industry. The awards pinpoint professional development and innovation, showcasing both the individuals and firms which are leading the way in the industry.

“The ifa Excellence Awards pinpoints professional development and innovation, showcasing both the individuals and firms who are leading the way in the industry,” ifa editor Sarah Kendell said.

More information on the awards can be found here: https://www.ifa.com.au/excellence-awards/winners/2020-finalists

The winners will be announced at an online event on Thursday, 29th October.

Phillip Richards, Robert Rich, Jack Kilbride and Glenn Malkiewicz at the 2019 IFA Excellence Awards

How Endorphin Wealth Management can help

We’re focused on advice, rather than product sales.

Here at Endorphin, we are not licensed by the big banks and financial institutions, so the advice 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 needs. We also utilise subscriptions to four of the top research providers in Australia to cross reference our research and recommendations.

Comprehensive analytics and research

We invest a great deal of time and effort researching the best wealth management strategies for our clients and have developed a number of systems to manage and track the marketplace.

The investment landscape always evolves and it is more important than ever to consider your investments and superannuation funds carefully. We pride ourselves on being experts in researching opportunities, investments and strategies that fit in with your retirement goals and to create a happy and carefree retirement. We want all of our clients to get on with enjoying their life rather than worrying about money.

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

Making the most of your business sale proceeds

Most business owners will come to a time where they want or need to sell their business and move on to their next venture. Before committing to selling a business, it is important to talk to your accountant to have a full understanding of the tax implications of the sale.

 

Recruiting a business planner can help you structure your business to maximise profits in the lead up to the sale. If you are aware a few years in advance that you need or has plans in selling a business, it provides an opportunity for you to reshuffle your business to maximise profits by adding an additional income stream or removing unprofitable arms of the business.

 

As soon as the sale of your business is locked in and you are aware of how much money you will receive, it is important to see a financial planner. Endorphin Wealth will help you take a holistic approach to your money, and work with you to determine your long-term plans and financial goals. This means that, when you actually receive the funds, you will have considered what you really want to do with the money rather than making a rash decision.

 

Some of the opportunities that will be available to you, should you sell your business at a profit, is reinvesting in another business or even achieving financial freedom. Restructuring your business correctly and having an investment plan for the profits can allow you to set up a passive income stream for you to retire early or start a new lifestyle business.

 

It is important to be aware of the tax implications of selling a business. Make sure you, or your accountant, is familiar with the small business capital gains tax provisions. This is because there are vastly different tax levels depending on the value of your business, and it may actually be more beneficial to sell your business earlier without restructuring or adding further value.

 

The team at Endorphin Wealth Management is happy to assist with helping you on your financial situation.

For an obligation free discussion, call us on 03 9190 8964, or schedule a meeting at endorphinwealth.com.au/contact/

Neil & Sue – The Case of How Much Money Is Enough?

Neil & Sue worked hard, very hard.

 

But they played hard too, they enjoyed the lifestyle which they had worked hard to create for themselves and their daughters Rebecca and Lucy…

 

Neil was 45 and he had a plan.  It was his plan – his own financial plan.

 

Because Neil hated three things:

  1. His home loan.
  2. Pensions
  3. And most of all, financial advisers!

 

So Neil’s plan was simple – to pay off his mortgage as quickly as possible. Then, mortgage free, he intended to accumulate as much as possible via his business between 45 and 55 – so he could retire early.

 

Simple!

 

Neil didn’t think he had a problem. And he didn’t need any ‘advice’.

 

However, on the advice of his accountant he was recommended to speak with Endorphin Wealth to ‘crunch his Number’.

 

We first spent some time getting to know Neil and Sue, to understand the life they’ve had, the life they’ve got, and the life they wanted in the future.  We helped them tune in to the real lifestyle they wanted to enjoy throughout their life.  We also wanted to understand why retirement at ’55′ was so important?

 

The reason? Neil wanted to escape at age 55 and pursue his passion of sailing whilst he was still young enough – and more important – fit enough to participate in it.  He wanted to cross the ocean and see the world.  He wanted to ‘do stuff’ – ‘before it’s too late!’

 

But why 55?

 

Neil shared with us that his father had worked hard his whole life, right through to age 65, only to drop down dead at age 67.

That was Neil’s main motivator. He could not bear the thought of that happening to him. He knew – and understood – that ‘Life is NOT a rehearsal’ and Neil lived it accordingly. That’s why Neil worked so hard now, so he could ‘escape’ early.

 

So, understanding our clients, we said we would work with Neil and Sue through a lifestyle financial planning process to calculate their Number – the amount of money they needed by age 55 to ensure they could live the life they wanted – without fear of ever running out of money.

 

We built in the cost of continuing private education for Rebecca and Lucy.  We built in the cost of two daughters weddings.  We got Neil & Sue to really think about the lifestyle they wanted at various stages of their lives.

 

And then we crunched their Number.

 

We then broke the news. We explained, that on agreed assumptions, Neil & Sue’s current plan – Neil’s’ plan – would see them running out of money by age 67!

 

Not good.

 

We then helped Neil & Sue to understand HOW MUCH IS ENOUGH – i.e. how much they needed to accumulate by age 55 in order to prevent EVER running out of money whilst living the life they wanted.

 

It was a BIG NUMBER.

 

We then worked with Neil & Sue to help find ways of accumulating the money, including how they could utilise their greatest asset (their business) to build their Number.

 

Neil & Sue are now well on course to achieve their Number and their intended retirement at age 55. Neil now has a reason to work hard; a real ‘WHY’. Neil is motivated.  Neil is inspired.  Neil knows where he is going.

 

They continue to meet with us on a regular basis to constantly review their financial planning, to ensure they stay on track.  For Neil & Sue, we play various roles; that of a planner, a mentor and a coach, mostly inspiring them, but sometimes nagging Neil & Sue to do the things they need to do to get to where they want to go.

 

And that’s easy to do – when you know your Number.

David & Elaine – The Case of ‘Mr & Mrs Do It Yourself’

David and Elaine were retired and struggling to live off the income from their capital.

After allowing for various pension incomes, they felt very dependent on the income from their savings and investments. If interest rates went up they spent more. If interest rates went down they spent less.

Over the years they had accumulated various managed funds and a few shares. Mostly bought off the money pages of the Sunday papers and mainly from leading investment houses who tempted them with promises of high returns. So they invested more money every year.

The trouble was, knowing when to buy investments is one thing, but knowing when to sell is another.  So David & Elaine had gradually built for themselves a portfolio that they didn’t really understand – but of course they were too proud to admit it.

Worse. Every weekend saw both David and Elaine stressing over the immense amount of direct mail received from their various investment providers – and all the time worrying over the money articles in the Sunday papers.

Then the markets went down.

David & Elaine were worried.

So a close friend referred them to Endorphin Wealth.

We met with David and Elaine, and after spending some time getting to know them; their interests, their hobbies and their lifestyle requirements we then analysed their position. We looked at all of their various investments and their income situation.

More important, by talking to David and Elaine about what they enjoyed, we got David & Elaine to stop thinking about their ‘income’ for a while and instead really thinking about their expenditure requirements and how much they would LIKE to spend to give them the life they wanted.

We then ‘crunched their Number’.

Here’s what we found.

 

 

Option 1:

David & Elaine could keep doing what they were doing.  Living off interest and dividends, forever fearful of market movements over which they had no control, forever afraid to dip into their savings, just in case. Forever going without. Forever cutting back.

Or they could consider: –

Option 2:

They could ask themselves “What’s most important?”  To constantly worry about such matters, or to consider the option of looking at their assets in a different way, and instead planning to live their life with the INTENTION of spending their liquid capital in their lifetime, leaving their home and personal effects to their children when they eventually died.  After all, even their children were saying that they “wish Mum and Dad would spend it!”

We helped David & Elaine understand what their financial future really looked like, and just how little return they needed on their investments to ensure their money lasted their lifetime.  David & Elaine then understood they could actually spend more, yet take LESS risk with their investments – and in the process consolidate and simplify their portfolio to reduce fees, not to mention relieve themselves of immense complexity.

For David & Elaine, their money suddenly made sense.

More important, David & Elaine got their life back.  No more stressing over the money pages in newspapers.  Instead more fun!  More eating out, more holidays, more treats for the grandchildren.

Five years on, they continue to meet with us where we continue to help them monitor their Number and manage their wealth to give them the life they want.

For David & Elaine it was a very rewarding experience, providing them with a better lifestyle, less risk, more security and a lot more peace of mind.