Market Update June 2022 Webinar

Endorphin Wealth in partnership with Oreana Portfolio Advisory Services are pleased to share a Market Update from 15th June 2022.

Hear from Dr Isaac Pool from Oreana Portfolio Advisory Services, to gain insight to current market conditions. Isaac explores many concepts including inflation and the impact on the market.

The information contained in the webinar is general advice only. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs.

Watch the webinar by clicking on the link below:

The team at Endorphin Wealth Management are happy to assist with helping you achieve a positive outlook on your financial situation. If you have any questions, please reach out to the team.

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

June Market Update Webinar

Endorphin Wealth in partnership with Oreana Portfolio Advisory Services are very excited to invite you to a Market Update on Wednesday 15 June between 12.30pm and 1.30pm.  

We will be joined by Dr Isaac Poole to provide a brief summary of the current market and expectations for the near future.

The Endorphin Wealth team encourages you to send through any questions to us prior to the webinar.  

You can register your interest to the event here

About Dr Isaac Poole

Isaac is one of the leading voices on global capital market and investing strategy in Australia and Asia. Isaac regularly appears on international news platforms including Bloomberg, CNBC, BBC World News, ausbiz TV and Asia Times Financial. He is a regular contributor to Australian and Asian investment seminars.

Isaac’s expertise comes from a career spanning central banking, risk management, asset allocation and investment consulting in major firms in Australia, the UK and Hong Kong, including Willis Towers Watson, NSW Treasury Corporation, Lloyds Banking Group and the Reserve Bank of Australia.

Isaac holds a PhD in Economics from the University of Sydney and is a Certified Investment Management Analyst certificant.

You can learn more about Isaac https://oreanafinancial.com/people/isaac-poole/

We look forward to seeing you there!

Winter Warmer Referral Competition

Just in time for the arrival of Winter, we are excited to announce the launch of our Winter Warmer Competition.

We understand the busy and stressful lives our clients can have. We also know winter can be tough. So we want to ensure our winning participant can relax and recharge their batteries – to ensure a strong finish to the year.

Earn an entry into the draw by simply referring your family members, friends or colleagues to have an initial obligation-free appointment with us. Sounds easy right?

The winner of this amazing prize will receive a $1,200 voucher to put towards a getaway at a destination of their choosing.

The Endorphin Wealth team have collated a few places we love to go when we getaway. Check out our top picks below!

WETOcean Deluxe

Deluxe Mountain View Room Balcony

The qualification period is June 1st to September 30th 2022. Each family you refer to us for an initial appointment, will equal one entry into the draw.

We will get in touch with the winner of the competition shortly after the closing date.

Speak with your family or friends to book in a time to chat to us at Endorphin Wealth. As we always aim to amaze our clients with expert advice to help clients identify, plan for and live out their best lives.

Please contact us on 03 9190 8964 or at advice@endorphinwealth.com.au if you have any questions

Endorphin Wealth Team Update

The Endorphin Wealth family have recently returned from our annual conference. This year we headed down to Marysville where we mapped out our client journey and how we can better the experience for all our families along the way.

Whilst there, we took the opportunity to get our professional photos re – taken.

Be sure to check a selection of our shots out below!!!

Benefits of Consolidating Super

The Australian Securities and Investment Commission (ASIC) reports that there are billions of dollars sitting in unclaimed or “lost” superannuation accounts. There are thousands more accounts added to the list each month.

Inactive accounts with balances of less than $6,000 are transferred into the federal government’s consolidated revenue fund. If you think you might have some old superannuation accounts that you haven’t touched in three years, don’t hand it over to the government, claim it!

The team here at Endorphin Wealth can help you remove any confusion and clean up your multiple super accounts!

Let’s take an example

You’ve had a few jobs over the years and been paid superannuation during each one. You have a number of super funds and you forget all about them until the annual statements arrive by mail.

Now you feel worried and confused. What does it all mean? Have I got them all? Is my money still safe? Am I paying for multiple insurance policies? What should I do with all this paperwork? And the worst one – am I paying too much in fees?

The usual option is to simply put them into your “too hard folder” and forget about it until next year… and then you go through all that confusion again!

But there is a better way and if you act now you can sort it all out and potentially save a lot of money!

Here is a five-step process to help you on your way:

  • Collect all the superannuation statements you can find from your “bottom drawer” or print the latest from each of your online accounts.
  • Make a time to meet with your experienced financial adviser to go through the paperwork.
  • Seek advice and select one superannuation fund that suits your needs.
  • Sign transfer forms so your adviser can help get the accounts consolidated to your chosen fund.
  • Relax knowing that your super is all in one place.

Seriously, superannuation is too important to ignore. Getting your super under control can save you money in fees, cut down on paperwork, allow you to get an investment strategy in place, and help you keep track of your money.

The team at Endorphin Wealth have both the experience and knowledge to help keep clean up your superannuation accounts.

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

Importance of Estate Planning

Having a set estate plan in place is not something that everyone thinks about. However, here at Endorphin Wealth  we believe that a plan for the future is an important part of your overall financial hygiene.

We can help you understand the importance of a good plan and can introduce you to experts in the field who will make the process of setting up your Will and Power of Attorney a simple task!

Getting your estate in order is more important than ever before.

There are many reasons why having an up-to-date estate plan is so important.  Taking the time to get an estate plan in place will ensure your loved ones will be in the best position to deal with an unexpected event. It will also reduce the risk of family disputes or the likelihood of expensive legal actions in the future.

What should you have?

Regardless of your age or financial situation, at a minimum you should have an:

  • Up-to-date Will that reflects your wishes and any limitations you would like to impose on your estate. It is important to remember that the Will only comes into effect when you pass away
  • Enduring Power of Attorney. It is in effect during your lifetime and relates to your financial and legal affairs. It allows you to appoint a person/s to assist with financial affairs if you were to be incapable of managing your affairs
  • Advance Health Directive. It is also in effect during your lifetime and relates to your medical needs. It allows you to appoint a person/s to decide matters including medical services you should receive or refuse to receive.
  • Valid death benefit nomination in super. You should contact your Financial Advisor to check your nomination and ensure it reflects your wishes. This is important because super does not automatically form part of the Estate unless you made a nomination to your legal personal representative.

Next Steps?

It is important to reach out to an Endorphin Wealth Financial Advisor to help guide you down the right path. We can put you in touch with specialists and can research your superannuation to ensure your nominations are in place.

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

 

The information contained in this article is general information only. It is not intended to be a recommendation, offer, advice or invitation to purchase, sell or otherwise deal in securities or other investments. Before making any decision in respect to a financial product, you should seek advice from an appropriately qualified professional. 

We believe that the information contained in this document is accurate. However, we are not specifically licensed to provide tax or legal advice and any information that may relate to you should be confirmed with your tax or legal adviser. 

 

 

financial-advisor-discussing-with-client

2022 Continues: Bond Market Update

We have seen some volatility to start 2022. As the world is getting used to living with Covid-19 combined with the events in Ukraine, this is no surprise. The next challenge investors are facing is what is being described as the ‘Bond Bear Market’.

Endorphin Wealth works in collaboration with Oreana, to provide the best investment solutions for our clients. Oreana provide insightful market updates on such ‘Bond’ topics and how they impact investments.

Below is their latest update regarding the current Bond Market situation:

—————————————————————————————————————————————

One of the factors making a bad situation worse for investors at the moment is that returns in the so called ‘defensive’ part of their portfolio called fixed interest (or bonds) is going the same direction as the ‘growth’ part – down. This is adverse to the role they are meant to be playing. We have a look at the factors driving this dis-allocation and what it means for investors in diversified portfolios.

Global bonds have faced terrible start to the year. The 6.2% decline in the ‘Bloomberg Global Agg index’, is the worst start to the year since we have data from the early 1990s. It is also the third worst quarter on record since then. In Australia, the broad Australian Composite index has experienced its worse quarter, falling 5.9%.

Global central banks have started hiking rates in response to unexpectedly high inflation readings, pushing yields higher (or bond prices down). It is therefore a challenging time for the asset class many investors define as “Defensive”.

Firstly, it is worth reminding ourselves why we hold different types of bonds, and their role in a portfolio which also typically holds shares, and cash.

Capital preservation

Bonds repay principal at a specified date, called the maturity date. This feature is appealing for investors who do not want to lose capital or need to meet a liability at a particular time.

Income

Most bonds provide a fixed income, which is paid at scheduled periods each year.  A coupon payment which can be spent or reinvested is sent by the bond issuer. The income return of bonds becomes more attractive as yields increase.

Diversification

Different types of bonds – issued by governments or corporations – are impacted by macroeconomic and idiosyncratic risks differently to equities. The low and in some cases negative correlation with equities and other assets can help reduce overall risk within a portfolio.

Downside risk hedge

Some bonds – particularly high-quality government bonds like US Treasuries – can help protect against economic slowdowns. During recessions, when interest rates are cut and growth assets are subject to significant downside volatility, government bonds tend to see their yields decline and their prices increase, providing a hedge against the economic risk.

Capital appreciation

Bond prices can increase for many reasons – including falling interest rates or credit quality improvements. Buying bonds at prices below par and capturing the capital appreciation increases the total return of the bond, which is the combination of the income and the capital appreciation.

Where to from here?

Investors often think as bonds as defensive, or “safe”. But as described above, bonds play many roles in a portfolio. It is important to focus on those roles, and the outlook, particularly in a period where bonds have suffered capital losses.

From here we expect government bond yields to continue to drift higher over the coming 6-12 months. That will be a challenging environment for fixed income. But higher yields will provide higher income, more downside protection, and in time, more scope for capital appreciation.

Endorphin’s internal Asset Allocation views has meant we had already been moving away from government bonds and longer maturity bonds, in favour of shorter maturity corporate bonds. While that has helped, the overall bond market is in a bear market. It has been challenging, particularly over Q1 2022 which is the third worst performance for the asset class since the early 1990s.

We think it is important to avoid knee-jerk reactions within diversified portfolios, we have actively been adjusting bond exposures, and identifying alternative investment opportunities that may help achieve some of the objectives traditionally identified with bonds – income, for example, or diversification.

——————————————————————————————————————————

Contact Endorphin Wealth for more assistance

Your advisor will be able to consider all possible scenarios and factors, all of which should help to ensure that your investment plans have a successful outcome.

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 financial planning and wealth management services 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.

Reach out today to speak to an Advisor who can guide and support you down the right path for success.

Three Simple Techniques to Reduce Your Tax

With the end of the fiscal year approaching sooner by the day, it is a better time than ever to start thinking about ways you can effectively save on tax. With our experienced advisors at Endorphin Wealth, we have come up with three simple tips that will help you minimise your tax.

1. Claim all available tax deductions

You may be able to claim a tax deduction for many of your expenses. These may include:

  • donations to registered charities or non-profit organisations;
  • self-education expenses;
  • premiums on income protection insurance;
  • work-related expenses.*

*The range of permissible work-related expenses varies widely from occupation to occupation.

Refer to the Australian Tax Office (ATO) website www.ato.gov.au for full details.

2. Contribute to superannuation

Superannuation contributions can reduce the level of tax you would otherwise have to pay on your investments.

Salary-sacrificed or pre-tax concessional contributions made into your super are generally taxed at 15%. If your assessable income together with concessional contributions exceeds the income threshold of $250,000, your concessional contributions may be taxed at a total of 30%.

You may also be eligible to claim a tax deduction for contributions made to super. To do this, complete and submit a notice of intent to claim or vary a deduction for personal contributions form (NAT 71121)[1] and receive an acknowledgement from your superannuation fund.

As there are also other eligibility criteria[2] that you must meet, it pays to seek advice smsf investment advice from your financial advisor.

3. Manage capital gains

Capital gains are made by selling investments at a profit. Assets acquired before 20 September 1985 are exempt from Capital Gains Tax (CGT) considerations.

When you sell an asset for less than you initially paid for it, you make a capital loss. When your total capital losses for the year outweigh your total capital gains, you will finish up with a net capital loss for the year.

If you have a potential CGT liability, there are a few strategies that you could consider to reduce the amount you need to pay.

Keep an investment for at least 12 months

Investors are entitled to claim a 50% discount on capital gains on assets that are held for longer than a year. By holding on to the investment for more than 12 months you will halve the CGT payable.

Delay any gains until the new financial year

If you are thinking of selling a profitable asset, such as shares or property, it may be worth deferring this sale until after the end of the financial year. By doing so, you will delay incurring CGT for another financial year. While you will need to pay the CGT eventually, freeing up short-term cash flow may be beneficial, depending on your circumstances.

Use carry-forward tax losses to reduce CGT

Capital losses incurred in previous tax years that have not already been offset against capital gains may be carried forward in future tax years. This can mitigate the effect of any CGT liability. Check your past income tax returns or ask your accountant to determine whether this is an option for you.

Where to learn more about reducing tax

The team at Endorphin Wealth have both the experience and knowledge to help keep your tax liability to a minimum.

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

The advisors at Endorphin Wealth are passionate about helping people achieve their life goals with great financial planning. We are not licensed or owned by the big banks and financial institutions, so the advice and solutions 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 to ensure that our clients’ needs are our primary focus. Our offices are located in Sydney and Melbourne, where you can find a financial advisor suitable for you.

[1] https://www.ato.gov.au/forms/notice-of-intent-to-claim-or-vary-a-deduction-for-personal-super-contributions/
[2] https://www.ato.gov.au/individuals/super/in-detail/growing-your-super/claiming-deductions-for-personal-super-contributions/?anchor=Areyoueligibletoclaimadeduction#Areyoueligibletoclaimadeduction

Endorphin Wealth Welcomes Christian and Peta

We are pleased to announce the growth of our Endorphin Wealth family.

Welcome Christian and Peta!

Christian and Peta have joined our team from the 5th April 2022.

Christian is joining our experienced adviser team and is excited to get started and make a difference to all clients he meets.

Peta is also joining us with experience in the advice support. Peta is our newest inhouse paraplanner and will he supporting our advisers in creating our advice documents to ensure that all clients need and goals are met to achieve the best potential outcome.

We are very excited to work with both these great people and work together to create experiences for all Endorphin Wealth members.

2022/23 Federal Budget Recap

The 2022/23 Federal Budget has been released!

What does it cover you ask? Its a range of measures aiming to reduce the pressure from increased costs of living.

Our Advisors at Endorphin Wealth have watched this news and are here to help you with any questions you have and what initiatives affect your life and financial situation.

Summary – Personal Taxation

  • Cost of living tax offset: The Low and Middle Income Tax Offset (LMITO) will increase, providing an additional $420 to reduce tax payable for eligible taxpayers in the 2021/22 financial year. This offset is non-refundable and available to those earning up to $126,000 per annum.
  • Halving of fuel excise: The excise on fuel will be halved for six months from 30 March 2022. As a result we should see lower fuel prices during this period. Half the current excise on fuel and diesel is 22.1 cents per litre.
  • Indexation of the Medicare Levy thresholds: Each year the Medicare Levy low – income thresholds are indexed. From 1 July 2021, the thresholds are expected to be:
    – Singles $23,365 (increased from $23,226)
    – Families $39,402 (increased from $39,167) plus $3,619 per dependent (increased from $3,597)
    – Single seniors and pensioners $36,925 (increased from $36,705)
    – Family seniors and pensioners $51,401 (increased from $51,094) plus $3,619 per dependent (increased from $3,597)

Summary – Superannuation

  • Continuation of the reduced minimum pension drawdown: The budget proposes to extend the minimum amount that needs to be drawn from account-based income streams to the 2022/23 financial year. Importantly individuals with account-based pensions or term allocated pensions will be required to draw less from their savings, in line with the current year minimums.

Summary – Social Security

  • Paid parental leave changes: Parental leave pay is proposed to be combined with Dad and Partner Pay resulting in a single scheme of up to 20 weeks leave. As a result, this can be shared between parents. This leave can be taken at any time within two years of birth or adoption. The new payment is proposed to be subject to an additional household income test designed to increase eligibility.
  • Cost of living payment: Eligible social security recipients resident in Australia will receive a one-off $250 payment in April 2022. Eligible payments include the Age Pension, Disability Support Pension, Carer Payment and Allowance, JobSeeker Payment. It also includes individuals holding a Pensioner Concession Card or Commonwealth Seniors Health Card. The payments will not be means tested and will be tax-free.

The above is a brief summary and not all initiatives have been outlined as the 2022/23 Federal Budget contained many other initiatives which may impact you.  It is important to reach out to a trusted financial professional to help understand the various initiatives the consequences this may have on you.

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