Is your Money being used to improve your life?

Instead of building a big pile of money, a more effective approach that you should consider in your financial plan is using your money to live your best life possible – a concept known as Return on Life™ (ROL).

 

With the ROL approach, money becomes a tool to help you live the life you want now and into the future. Accumulating as much wealth as possible should no longer be the primary objective of your financial plan.

 

The traditional path to saving and investing has been to focus on the future (retirement), and rely solely on numbers and return on investment (ROI). However, this approach can often be misleading because it doesn’t consider your individual circumstances.

 

“Beating the share market” is often an artificial objective because it is not likely to have a substantive impact on your unique situation. Consider this: does beating the market by 1% really impact the way you live your life?

 

Money does not exist for its own sake. Money exists as a tool that we use to improve our lives. How your investment returns compare to any index, fund, investment category, or another person are less consequential than whether you are meeting your own ROL goals. Measure your success against your objectives, not someone else’s.

 

In traditional financial planning, the primary components include investment advice, risk, debt management, tax, estate, and cash flow planning. Whilst all of these areas are essential and necessary for a strong financial plan, there is more to developing a strong financial plan than just numbers.

 

Truth is, we all have different values and principles regarding money. Each of us has a history, present circumstances, and future hopes that are unique. By focusing only on numbers, we miss enjoying life now and potentially in the future because we only concentrate on accumulating wealth. A financial plan designed with ROL as its foundation is designed to build freedom, relieve the pressure of ROI-focused planning, and ensure your plan meets your goals.

 

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

 

There is no greater freedom, and no greater wealth, than living the best life you can with the money you have and accumulate over time. Let us show you how to establish a financial plan that focuses on achieving a greater Return on your Life so you can live your best life.

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

Phasing into Retirement?

Not ready for a move into full retirement? You’re not alone.

 

Many people look forward to retirement however for one reason or another aren’t ready to jump in with both feet.  Maybe they aren’t ready for the sudden lifestyle changes. Maybe it’s lack of savings that’s holding them back. Or it could be that their work provides them with fulfilment and a sense of relevance that they are not willing to let that go just yet.

No matter what the reason, many people are choosing to phase into retirement instead of entering a complete, traditional one.

Using this option provides a number of benefits:

  1. You can keep working and continue to contribute to your savings.
  2. At the same time you can also begin enjoying some of the benefits.
  3. Cutting back hours and decreasing your work responsibilities at a slow pace can open time for personal activities, travelling, and family.

However, phasing is not something you should do on the spur of the moment or with little forethought. Planning is of the utmost importance as you negotiate this transition. You will need to determine your ultimate retirement date, optimize your savings and create a phasing-out schedule with your employer.

You should answer these questions before making the leap into semi-retirement:

  1. List the reasons you have chosen to phase into retirement.
  2. As you phase into retirement, how long do you expect to keep working?
  3. How will your job description change?
  4. What affects on your income do you anticipate as a result of this transition?
  5. Does your employer provide an official phased retirement program?
  6. How will you invest the time made available via a reduced work schedule and responsibilities?

Make this life transition the beginning of a new and rewarding stage of your life.

The team at Endorphin Wealth Management is happy to assist with helping you phase into a comfortable retirement and assist you from a financial planning perspective.

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

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.

The Importance of Retiring to Something

Sometimes you are so focused on work and the idea of retiring, that you do not stop to consider what will actually take up your time during your retirement. You will be financially secure, hopefully healthy, and have an abundance of time on your hands – but how to spend it? We’ve collated some ideas for you to consider as you look towards retirement!

 

Keep Learning
It is crucial to keep learning new skills to keep your brain healthy as you age. This doesn’t require you to go back to full-time study, however – you can keep your brain active through reading, using apps to learn a new language, or listening to podcasts.

Part-Time Employment
Retirement is an opportunity to pursue a part-time role in an industry or organization that you enjoy. A great example is joining a non-profit; as you have financial freedom in retirement, your focus will be less on the wage you earn and more on the opportunity to work for a cause you believe in.

Start a Creative Business
If you have always been crafty but with minimal time to pursue your hobby, retirement is a great opportunity to do so! An Etsy or online store can provide you with a creative outlet and some extra dollars. Other business ventures could be blogging or pet sitting, depending on your interests.

Physical Activity
Physical activity is important for your health and can help you stay connected with your community. Join a gym, social sport, or simply take the dog for a walk with a friend!

Hobbies
There are probably plenty of activities that you have been interested in over the years but were unable to pursue due to lack of time or work commitments. A hobby could even involve physical activity – for example, you could join a local bushwalking group. Otherwise, learning an instrument or any other activity is fantastic for brain health.

Volunteer
Without work commitments, you have more time to give back to the community. Local charities will appreciate qualified volunteers and it allows you to remain mentally sharp and engaged with the community.

Travel
This is probably what most people look forward to in retirement! It may be your first opportunity since before you had children to take a long holiday together as a couple or alone. Whether you are jetting around Europe or road tripping in Australia, now is the time to travel with family and friends.

Teach
Throughout your career, you have probably picked up many applicable skills that students and young professionals would benefit from. Tutoring and guest speaking is a perfect way to share the knowledge you have acquired over your life.

Home Projects
It’s time to get out the toolbox which has been collecting dust over the years! As you may be spending more time at home, it’s a good idea to get around to the regular maintenance and repairs which may have been falling by the wayside.

Relax
Take the time to truly relax and let the stress of the workplace melt away before diving into retirement hobbies and activities. Enjoy the books you have not had time to read or catch up on the latest movies while you adjust to your new lifestyle.

Time to start thinking about the next part of your life?

Planning is an important part of retiring right – we encourage you to 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

The case study is illustrative only and is not an estimate of the benefit or investment returns you will receive or fees and costs you will incur.

Retirement Planning Seminar – Retire Like a Boss!

At Endorphin, we believe the idea of retirement has changed and we need to look at things differently.

Instead of just making sure you have enough money to retire and your money is invested properly, we guide our clients in using their money to enrich their lives. Join us as we help you to understand simple retirement planning concepts that can help you “Retire Like A Boss!”.

You are invited to attend a free retirement planning seminar hosted by Endorphin Wealth. Come and join us at Westpac 150 Collins Street from 5pm to 7pm. Wine and canapes will be served throughout the event. You can register on Eventbrite HERE

This seminar highlights:
    • Strategies behind an optimal retirement
      What to expect when you retire
      How to achieve your retirement lifestyle
      How to plan that vacation you’ve been dreaming about
      Things to consider when downsizing your home
Our panelists for the event will be:

 

Glenn Malkiewicz – Financial Advisor at Endorphin Wealth Management

https://www.linkedin.com/in/glennmalkiewicz/

How to live a fulfilling life in retirement.

 

 

Jodie Davis – BDM at Challenger

https://www.linkedin.com/in/jodie-davis-83a55b44/

Strategies to access more Government entitlements to help your money last longer through your retirement.

 

 

Adie Bradley – Buying & Selling Advocate at Just Advocates

https://www.linkedin.com/in/adie-bradley-864881a2/

How to sell your house for the best price and tips to find a new house that suits your needs in retirement.

 

 

Darren Kelk – Personal Travel Manager at Travel Managers

https://www.linkedin.com/in/darrenkelk/

The best and most popular places to see in retirement and how to plan your perfect holiday.

 

 

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

Why Is Retirement Planning Important

Regardless of your age, it is important to start contemplating your retirement – as with most things in life, the younger you start planning, the better!

As we all know, the best laid plans can be derailed by life events and other, more immediate focuses – this therefore makes planning for retirement even more important in order to help ensure you reach financial independence once you reach the end of your working careers.

Retirement 1Here are our top reasons that explain why retirement planning is crucial:

  • 1. Planning is Critical

It is human nature to assume that “things will work out in the end” – even our financial situation. However, assumption and successful retirement aren’t usually a good mix. Ensuring you have sufficient money at retirement should never be left to chance. People who assume ‘things will work out’ are usually the ones left disappointed.

  • 2. Provide Financial Independence for Your Family

In some families, it is the responsibility of the children to look after their parents as they age. Fact is though children can’t always be relied upon, and they have their own financial goals as well. Planning for a successful retirement will help ensure you’re self-sufficient in your later years which also allows greater financial independence for your family members and any children who thought they were up to assisting you financially.

  • 3. Support the Retirement Lifestyle You Want

Responsibilities during your working life such as raising a family can often get in the way of retirement planning. Thoughtful retirement planning takes these responsibilities into account and can help ensure you have the finances for your immediate needs, as well as allocating savings to achieve your retirement goals – such as dream holidays, taking up new hobbies, or spending time with grandchildren.

  • 4. It is a Risk to Rely on Your Pension

For most people, the Age Pension is unlikely to be sufficient to support the lifestyle they want in retirement. The purpose of the Age Pension is to supplement your living expenses, not be your sole source of income. If it’s a financially independent retirement you want, you need to build your retirement nest egg – the Age Pension alone won’t cut it

  • 5. You Always Have Enough Money to Save for Retirement

Guaranteed Employer Super Contributions are unlikely to be enough for the future you desire. You need to be saving extra along the way to really boost your wealth to a point where you can live the lifestyle you want.

With enough discipline, careful planning, and sound advice from Endorphin Wealth, you can always find that little extra to save for retirement. You will thank yourself later on for doing so.

How We Can Help

Why Retirement Planning is Important
Endorphin Wealth can provide you with expert financial advice and help you develop strategies for planning your retirement. For an obligation free discussion, call us on 03 9190 8964, or email us at advice@endorphinwealth.com.au.

The Benefits of Work in Retirement

I know it sounds a little ironic that we are here talking about the importance of work in retirement, but I can assure you there is some method to our madness.

RetirementThen and Now

Historically, a typical life would consist of 30 to 40 years in the workforce, then completely stop and jump off a cliff. Hopefully you have a parachute for a safe landing, and then enter a life of total ease.

Whilst this may have worked in the past, based on our client observations, we see the need for a new approach to retirement.

We have a saying that ‘a life of total ease is 2 steps away from a life of total disease’.

At Endorphin Wealth we are all about helping people feel good about their future. When dealing with those clients nearing retirement (or those who have already retired) we see the need to explore the benefits of ‘working’ in retirement.

Big Benefits from a Little Extra Work

    Our definition of work is an engagement that brings value to others, and meaning to you. While people often focus on the negatives of the workplace (un-supportive managers, a gruelling commute, or lack of leisure time) we believe it is important to consider the Lifestyle Motivators that a working engagement provides, including:

  • –   Satisfaction from helping others,
    –   Intellectual stimulation,
    –   Social engagement,
    –   Sense of relevance,
    –   Improvements to your physical and mental health,

Many of our retired clients are involved in some form of consulting, volunteering, or part time work, or volunteering in an area that is important to them. It engages their brain from a lifetime of accumulated knowledge. They are staying healthy, staying engaged.

Our Endorphin Offering

Our retirement coaching programs help our clients find the right balance between work and leisure. The results from these discussions often leads to some form of paid / unpaid engagement during retirement that provides massive lifestyle benefits. Scientific studies have also shown that:

  • – Working for one extra year at work can increase your longevity by 11%.
    – While each additional year you work your chances of dementia are reduced by 3%.

The key factor is maintaining intellectual challenge and engagement that adds to your longevity. We believe in Use it or Lose it, and our approach to retirement planning helps our clients understand the Lifestyle & Health benefits of working in some capacity during retirement. It’s all about living a retirement on purpose and feeling good about your future.

One website that has information on volunteering opportunities is www.govolunteer.com.au

Ongoing Service

Ongoing advice is critical to the process as an individual’s wealth grows. This is even more important if you decide to work in to your senior years, as balancing your reduced income, along with changes in superannuation and expenses can be a difficult task which can leave you out of pocket.

Endorphin Wealth recommends that you regularly review your strategy to ensure it remains in line with your desired lifestyle needs.

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

Benefits of “Work” in Retirement

Longevity and Retirement

There is a perfect storm developing in retirement:

– Thousands of Baby Boomers are retiring every week in Australia, and

– The 100-year life will soon become common place.

Longevity and Retirement 3The Long and Short of it

Longevity is increasing, and a 65-year-old today is living over 10 years longer than their parents and grandparents did. What this means is a longer period to fund in retirement and a requirement for larger retirement benefits.

One fundamental problem with retirement planning is that many professionals are under estimating how long they will live. Whilst most people use life expectancy statistics to determine how long they will live and how much they need in retirement, the issue with these tables is that 50% of people live beyond their life expectancy.

Whilst living an extra 3 to 5 years may seem irrelevant over someone’s lifetime, the finance impact is vast if left unaccounted.

Effects on your Retirement

Living an extra 5 years in retirement could mean you need an extra $200,000 in retirement saving (based on income requirements of $50,000 per year).

When planning for retirement, it is important to consider the financial / lifestyle impact of living beyond your statistical life expectancy. At Endorphin Wealth, we craft our advice to include a strategy for longevity, such as:

– Funding options available to reduce the impact of longevity.

– Discussions around the non-financial impact of longevity.

As a starting point, we always assume the client will live beyond their life expectancy by an extra 5 years. There are a number of strategies we use to address this scenario, depending on the client’s needs / circumstances.

Case Study – Mrs Jackson

The chart below is a real client example where their life expectancy was 88 (i.e. 2032). We structured her investments, superannuation and income stream to ensure her income requirements of $100,000 per year would be met, well beyond her life expectancy. The different coloured columns represent the different income streams we established as part of the strategy.
Longevity and Retirement 2
It is important to note that no outcome can be guaranteed, ultimately whether you are able to achieve your goals & objectives depends on your personal circumstances, changes to government legislation and investment performance.  This highlights the need for ongoing advice.

Ongoing Service

Ongoing advice is critical to the process as an individual’s lifestyle can change quickly when they finish working.  Endorphin Wealth recommends that, as part of responsible retirement planning, you regularly review your strategy to ensure it remains in line with your desired retirement lifestyle needs while considering your longevity and life expectancy.

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

Endorphin Wealth Management Team