Wealth Management – Investing in North America 2

Market View Update

A short note on our market view and inflation expectations:

Despite tension between the downside risks from the Covid19 Delta variant, and ongoing supportive fiscal and monetary policy, Endorphin Wealth’s medium-term market view is still positive for risk assets such as Shares and Property.

Covid19 continues to drag down global supply chains. Vaccinations are taking longer than authorities had hoped to roll out. The clear downside risks to growth are driving concerns that the recovery has slowed and could falter. On the other hand, central banks have stayed committed to accommodative monetary policy, despite inflation moving higher. In the US, CPI inflation have recently remained at around 5%. This is well above the Fed’s targets.

The impact of the Delta variant has dragged down the global consumer and business confidence. In Australia, consumer confidence was 4.4% lower in August. Business confidence also plunged. In the US, consumer confidence plunged to a decade-low in August. This is a risk to the recovery if households begin to wind back their spending plans.

Endorphin’s market view is that the fall in confidence added to expectations that central banks will not begin tapering their accommodative support for some time to come. Equity markets are hence largely still looking forward to higher vaccination rates. This has seen the US S&P500 moved further into new record highs. It closed the week 0.7% higher and is now 19.0% higher year-to-date. Most developed economy equity markets at the moment are sitting on double-digit returns year-to-date, with many now at record high price levels.

Here at Endorphin Wealth, we are not licensed or owned 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 goals and needs.

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

2021-22 Federal Budget

Federal Budget Summary

On the 11th of May, treasurer Josh Frydenberg delivered his third and maybe his most important federal budget. Australia has emerged from the pandemic relatively unharmed. This year’s budget aims to reinforce that resilience through economic growth and stimulation.

Referred to as the ‘pandemic budget’, this year’s federal budget saw major changes around aged care, health, infrastructure, tax changes and superannuation shifts. These changes are made with the goal of reducing tax strain for individuals and businesses. As a result, it aims to drive down unemployment and support consumer confidence.

Please see our summary below on some of the key highlights, if you have any questions, we are happy to help!

 

Tax Flexibility and Clarity

  • Low and middle-income tax offset (LMITO) is to be kept for 2021/2022. The LMITO is a tax rebate of up to $1,080 offered to low and middle-income earners. Taxpayers with a taxable income of between $48,000 and $90,000 are eligible for the maximum offset of $1,080. Those with taxable income of between $90,000 and $126,000 are also eligible, on a reduced scale.
  • Also, Taxpayers will now be able to self asses the effective lives of certain intangible depreciating assets. This includes items such as patents, registered designs, copyrights, and in-house software.
  • In addition, the government will provide capital funding to the ATO to build an online system. It’s goal will be to increase transparency and reporting clarity for not-for-profits claiming income tax exemptions.
  • From 1st of July 2022, corporate income derived from Australian medical and biotechnology patents will be taxed at a concessional effective corporate tax rate of 17%

Josh Frydenberg delivering the 2021-22 Federal Budget in Government house

 

Aged Care Security

  • Access to lump sums under the pension loans scheme. This is a reverse mortgage type loan provided by the government, designed to assist retirees to boost their retirement income. This will be done by unlocking equity in their Australian property. Older Australians can receive regular fortnightly payments, with payments accruing as a debt against their property.
  • In response to the Royal Commission into Aged Care Quality and Safety, the government is investing $17.7 billion over the next five years to improve the aged care sector.
  • Further, a new star rating will be implemented. This will allow aged care recipients and their families to compare aged care providers on performance, quality, and safety.

 

Superannuation

  • The downsizer contributions age has been reduced from 65 to 60. This will allow an after-tax contribution of up to $300,000 per person when the family home is sold.
  • Also, this year’s budget removes the current $450 per month minimum income threshold. These workers will now have Superannuation Guarantee paid by their employer.
  • In addition, from July 2022, individuals up to the age of 74 years old will be allowed to make or receive non-concessional or salary sacrifice super contributions without meeting their work test.

 

For further information check out the following links:

Budget.gov.au | 2021-22 Budget

 

Here at Endorphin Wealth, we are not licensed or owned 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 goals and needs.

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

Investment Update March 2021 Webinar

Endorphin Wealth in partnership with Oreana Portfolio Advisory Services is pleased to share with you an Investment Update from Friday 19 March. Hear from 2 professional fund managers, T.Rowe Price and Pendal Group, to gain insights into how they manage portfolios and find the right investment opportunities.

Watch the webinar by clicking on the link below:

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

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

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

Media Release: Endorphin Wealth Launches Managed Discretionary Account Service

Increased investment oversight, specialist asset allocation, timely execution and live client access from the convenience of a mobile phone.

These are just some of the benefits Endorphin Wealth’s clients are enjoying since the launch of its Managed Discretionary Account (MDA) service.

Endorphin Wealth recently added its MDA to an already impressive range of advisory services, much to the excitement of Endorphin director Phillip Richards.

Endorphin’s MDA service is the product of a collaboration between investment consultant Oreana Portfolio Advisory Services, licensee Lifespan Financial Planning and platform provider BT Financial Group.

Mr Richards says provides Endorphin clients with significant additional investment experience and oversight, as well as exceptional technological capabilities.

“We are really excited to be able to bring this service to our clients and the market,” Mr Richards said.

“We believe the collaborators we have brought together to make this MDA possible, coupled with our excellent in-house advisory skill set will enable Endorphin to achieve outstanding results for our clients.”

Mr Richards said that in a time of relative uncertainty in the financial markets, the ability to act quickly was key to achieving positive outcomes for Endorphin’s clients.

At the same time, the added layers of advice and governance provided by the MDA’s collaborators meant that speed never comes at the cost of rigour.

“The take-up of this service from our clients has been extremely positive,” Mr Richards said.

“The positivity around the extra capability this brings us as their advisers have been well received.

“They are getting a whole new level of detail when it comes to how assets are allocated with the additional insights and reporting from Oreana, and they can see everything in real-time through the BT Panorama mobile app.

“And they’re getting this for essentially the same management fees they were already paying.”

The MDA offers a range of investment portfolios catering to different client strategies, objectives and risk profiles.

Lifespan CEO Eugene Ardino said he was happy to be able to support the firm on this next step of its development.

“Endorphin is one of our bigger and faster-growing firms,” he said.

“We think the main benefits of an MDA to the client are that they enable the adviser to provide a much more efficient and active portfolio management service.

“There are essentially three layers of review for everything, from the asset allocation to the fund managers and as licensee part of our role is to work with Oreana.

“Endorphin will also review all asset allocations as well, so there are several layers of review which I think provides quite a thorough and comprehensive service that is well set-up to provide optimal outcomes from the clients.”

Oreana Head of Portfolio Advisory Shane Hawke said he too was excited by the collaboration.

“There’s a clear professional and passionate approach to improving client outcomes from all parties,” he said.

Oreana brings a wealth of investment experience to the table, with CEO Luke Moore having previously been head of National Australia Bank (NAB)’s Private Wealth Advisory capability across Asia.

Oreana also boasts the considerable expertise of Chief Investment Officer, Dr Isaac Poole, whose considerable experience includes prior roles at such as Chief Economist at NSW Treasury Corporation and Willis Towers Watson as the Head of Capital Markets Research in the Asia-Pacific.

Hawke said that Oreana’s investment experience, coupled with its strong investment governance, would help Endorphin and their clients achieve their goals.

“Our investment strategy applies a fundamental valuation-based approach that brings together strategic allocation, dynamic asset allocation and manager selection to optimise risk-adjusted returns.

“I think the key element here is Endoprhin’s desire to meet their client’s goals and recognising that they need to introduce additional support to fulfil that.

“From Oreana’s perspective, we believe our investment expertise and investment governance are quite important to success.”

Chris Mather, Head of Distribution at BT Financial Group, said it was fantastic to be working with three specialists in their areas of expertise.

“When specialists come together like this, it means better focus and better risk management that delivers better outcomes for clients,” he said.

“BT is the custodian of the assets in the MDA, and we also provide the front-end experience to different parties.

“Our role is allowing the different people involved, from the client to the adviser to the licensees to connect and ensure the end client can see how their investments are working, what changes are made in terms of asset allocation, reporting and more.

“It means there is no lag time between the idea and execution, and we’re happy to be providing the architecture and play our part in helping Endorphin make this MDA possible.”

More information on each collaborator can be found at:

Oreana Portfolio Advisory Services

Lifespan Financial Planning 

BT Financial Group

 

The team at Endorphin Wealth Management is happy to assist with helping clients achieve a positive outlook on their financial situation.

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

___________________________________________________________________________________________________________________

Dr Isaac Poole CIMA®, Oreana Chief Investment Officer

Endorphin Wealth collaborates with Oreana Portfolio Advisory Services under the expertise of Dr. Isaac Pole whose prior roles included Head of Capital Markets Research at Willis Towers Watson, and Chief Economist at NSW Treasury Corporation. Oreana’s investment expertise and strong investment governance would help Endorphin wealth and its clients achieve their financial goals.

Robert Rich

Congratulations to Robert Rich for Completing his CFP® studies

We are delighted to congratulate our director, Robert Rich for completing his Certified Financial Planner (CFP)® studies over the last 2.5 years.

The CFP® signifies the highest designation in financial planning and is coupled with a commitment to the highest ethical standards. The CFP® designation is recognised in over 26 countries around the world and requires ongoing commitments to continual professional development.

 

The CFP Competencies are categorised into eight areas:

  1. Financial Planning Principles, Process & Skills
  2. Financial Management
  3. Tax Principles and Optimisation
  4. Investment Planning & Asset Management
  5. Risk Management and Insurance Planning
  6. Retirement Planning
  7. Estate Planning & Wealth Transfer
  8. Integrated Financial Planning

 

These broad technical knowledge areas provide a framework within which the abilities and knowledge expected of a financial planner can be mapped. Robert is thrilled to have completed the CFP® course and is already applying the knowledge to his client’s circumstances.

If you’d like to book in a time to speak with Robert, please contact him at robert@endorphinwealth.com.au or 0466 554 234