FREEDOM, LIFESTYLE & LEGACY: How to create wealth in your 30's, 40's, & 50's and set yourself up for Life!

By Matthew Morrison

Have you ever wondered why some people flourish financially while most people struggle with money?

Freedom, Lifestyle & Legacy reveals the system that Matthew Morrison – Certified Financial Planner (CFP) – has used to help hundreds of clients take control of their financial situation and create a ‘gam

• Language: English
• Publisher: Morrisons Wealth Advisory Pty Ltd
• Release date: Sep 20, 2019
• ISBN: 9780648588542

Book preview

Freedom, Lifestyle and Legacy: How to create wealth in your 30’s, 40’s & 50’s, and set yourself up for life! © Matthew Morrison 2019

www.matthewmorrison.com.au

www.thepractice.com.au

The moral rights of Matthew Morrison to be identified as the author of this work have been asserted in accordance with the Copyright Act 1968

First published in Australia 2019 by Gowor International Publishing

ISBN: 978-0-6485885-1-1

eBook ISBN: 978-0-6485885-4-2

Any opinions expressed in this work are exclusively those of the author and are not necessarily the views held or endorsed by Gowor International Publishing.

All rights reserved. No part of this publication may be reproduced or transmitted by any means, electronic, photocopying or otherwise, without prior written permission of the author.

Disclaimer

All the information, techniques, skills and concepts contained within this publication are of the nature of general comment only, and are not in any way recommended as individual advice. The intent is to offer a variety of information to provide a wider range of choices now and in the future, recognising that we all have widely diverse circumstances and viewpoints. Should any reader choose to make use of the information herein, this is their decision, and the author and publisher/s do not assume any responsibilities whatsoever under any conditions or circumstances. The author does not take responsibility for the business, financial, personal or other success, results or fulfilment upon the readers’ decision to use this information. It is recommended that the reader obtain their own independent advice.

Testimonials — for Matthew Morrison and The Practice

If you are seeking someone with integrity and knowledge, go no further. Working with Matt has without a doubt been the best (financial) decision we have ever made. His knowledge, advice and counsel have assured our long-term financial security.

Mike and Chris, Parkville

We were recommended to The Practice in 2009 and were introduced to Matt Morrison on our first visit. Up until then we had a jaundiced opinion of financial planners/advisers. We quickly came to trust Matt as we realised that we had found an individual and organisation that did have our best interests at heart, unlike some others. Over the past nine years, Matt has guided us with clear, sensible, transparent advice that suits our investment style. Matt has also proved to be a good sounding board to bounce investment ideas off, as he has a complete picture of our situation and can correctly steer us into the right decision. We highly recommend Matt and the whole Practice team!

Don and Helena, Mornington

There’s a Chinese proverb that says the best time to plant a tree was 20 years ago and the second-best time is today. The same is true of planning your financial future. In this book, Matt Morrison lays out a simple, smart and, most importantly, actionable plan to build wealth without sacrificing lifestyle along the way. I highly recommend it – as Matt would say, your future self will thank your current self for reading and implementing Freedom, Lifestyle and Legacy.

Peter Cook, CEO, Thought Leaders

When we first met with Matthew and The Practice, we felt heard again – peer to peer. Matthew is a down-to-earth and present adviser, patient with our level of understanding and eager to ensure his advice suits our specific lifestyle and future needs. We feel comfortable with his guidance and over our first two years have accumulated a sizable savings and education fund that, without his advice would simply not exist. We’re happy to, and do, recommend him to family and friends and look forward to our meetings.

Alex and Fern White

What I do, I do well. And the stuff I don’t want to do, I want outsourced to experts I trust. Working with Matt Morrison and The Practice has allowed me to enjoy the present, knowing that the future is taken care of, both for us and for our children.

Corrinne Armour, Leadership expert, Melbourne

As a busy professional, over the last 10 years Matt’s (and The Practice’s) process of financial goal setting, advice, risk management and regular reviews has helped me to put in place practical and easy-to-manage strategies for both my short and long-term financial goals. He has become a trusted adviser who has helped me to navigate and plan for the financial aspects of some big life events. Matt is a super nice guy with a warm and friendly style that would put anyone at ease.

Tara Knobel, Director of Operations and Solution Design, APAC and Emerging Markets

Matt has been our wealth adviser for over 10 years and has provided us with great advice to enable us to manage our finances now and into the future. Matt and his team at The Practice have helped us build our investment portfolio, advised us on personal insurance and superannuation, and provided accountancy services. Matt is friendly and approachable, and always willing to go out of his way to give us a hand. We love The Practice for being a one-stop shop for all our financial needs.

Dean and Peta Briggs

Before meeting Matthew our investments and retirement plans were quite impulsive and, I’m embarrassed to say, a little uneducated. It’s amazing how much you achieve and learn about securing your retirement and the type of investor you are when someone like Matt takes the time to give clear guidelines, but more importantly, to listen.

Oshi and John

Matt and his team at The Practice have been providing me with financial advice for seven years, starting before I moved permanently to Australia. He sure-footedly guided me through the complexities of the Australian system and made sure my decisions were the right ones for the long term. He quickly understood my context and my financial goals...and never once used sales talk!

Charlotte, Melbourne

We were confused and disillusioned with our SMSF structure and personal wealth direction. We wanted to find someone and a company that could give us confidence and direction for the future with an integrated approach with our SMSF and personal taxation. Matt Morrison and The Practice are delivering on this and meeting our service expectations. Matt is someone we trust and have rapport with, delivering on our bucket list for financial freedom to ensure a lifetime of memories ahead.

Barry and Vicki C, Wantirna

Planning instituted by Matt Morrison ten years ago has seen what were previously our series of poorly managed assets, now secure and productive in a tight group of managed investments....Despite there being times of instability and vulnerability in the economy the wealth management guidance provided by Matt & The Practice has ensured our future financial security is assured.

Ian and Jo, Melbourne

It’s fair to say, we weren’t big fans of financial planners or advisers. We had some very bad experiences in the past. Both starting our own businesses in our 50s, we knew we needed to take back control of our financial situation and not rely on our wits! We were curious yet sceptical when we met Matt and The Practice team. From day one, we found Matt clear, willing and able to answer all our questions, and he has always done things the way we have asked. He understands our risk profiles and the time of life we have reached – giving us different goals and aspirations than earlier on. In the 18 months we have been working with Matt, our investments have grown and our financial position is where we want it to be for the first time in a long time. We feel at ease and we feel heard. Matt’s simply a top bloke.

Maree and Warren, Gippsland

Every choice starts with a decision and choosing to work with The Practice’s Matthew Morrison was a genius decision. His dedication, professionalism, wealth of knowledge and vast experience have made a hugely significant and positive impact on my financial structure and wealth strategy.

Tania S, Melbourne

Working with Matthew and The Practice team over the last seven years, we have been able to establish and achieve significant goals on our journey to financial freedom. Matthew’s support, knowledge and proactivity are integral to that journey; we know our financial interests are in the right hands.

Lyn and Wayne, Ivanhoe East

Relaxed, Professional, Caring – These were, and still are, our first thoughts when we sat down with Matt (and The Practice team) to discuss our financial future. Being complete novices, Matt (and his team) took time to understand our wants and needs (it cost us a new kitchen!) and came up with our plan that now sees us with multiple properties and other solid investments. So impressed with him that our sons are now in the process of sitting down with him to build their financial futures.

Brian and Jenny Barnes, Macleod

We have been working with Matt and team at The Practice for just on five years to limit money stress and get us closer to achieving our goals, big and small. We understand that financial independence doesn’t happen by luck. Having a trusted financial adviser and plan is proving to be key to that success. Matt made an effort to get to know us and to understand our values and goals. He has helped put our minds at ease regarding our financial future.

Andrew and Linda, Barwon Heads

Having had some dodgy financial advice in the past, it was with trepidation, on the recommendation of our daughter, that we contacted Matthew Morrison of The Practice. Our initial meeting discussed our goals, aspirations and financial position. This was followed with the development of a comprehensive strategy tailored to our future needs. Feeling comfortable with this plan, we subsequently engaged Matthew to implement it. To date we are achieving our goals with some very positive results and enjoy peace of mind knowing that we are in the safe hands of a true professional. Thanks Matthew!

Graham and Di G, Bentleigh East

Been a client of Matt’s for the past eight years and over that period he has provided unbiased financial advice, demonstrated constant focus on portfolio cost control and emphasised selection of low-risk growth components. This approach has seen my portfolio grow on a year by year rate without me being concerned during market downturns.

Craig R, Mooloolaba

The Practice, and in particular Matthew Morrison, has given us the confidence to realise our dream of an early retirement. Since ceasing work, Matt has provided us with consistent expert advice and the means to secure an ongoing income, which has allowed us to live an enjoyable and comfortable life. Matt is friendly, professional and always there to help.

Rod and Joy Agar

What I value about working with Matt is his honesty, authenticity and commitment. Not only was I able to make a concrete plan for my financial freedom but the process made me think and plan better, in the present and future – with a lot of laughs on the way. In an industry that many clients struggle to trust, Matt is one of the good guys who cares.

Georgia Murch

My husband and I have been with The Practice for five years now, being recommended by a friend who trusted them because they didn’t have a direct affiliation with any particular investment group. We met Matt on our initial consultation and were at once impressed by his open, honest and genuine manner. These impressions have only been confirmed in all our meetings since. We trust Matt implicitly and feel comforted knowing he is helping us make some very important decisions for our future. We were concerned and confused about our looming retirement but now feel far more relaxed and ready to enjoy this next stage of our lives.

Carolyn Tudor, Cheltenham

Matt and the team at the Practice have been a big part of our financial lives. His approach to wealth creation has allowed us to map out goals and have some peace of mind that we have all our fundamentals covered. Their internal communication is excellent and the team are a pleasure to work with.

Paul and Sharon Barry

We met Matt Morrison through our former tax accountant, who suggested Wealth Management was an important step for us to take. Matt has been our adviser for many years and we have been extremely happy with his advice over these years. He has proven to have a thorough knowledge and understanding of our portfolio and his suggestions have proven to be beneficial. He is always on the lookout for ways to improve our financial position and help us to achieve our long-term goals.

Doug and Chris G

This book is dedicated to my amazing wife Rhobelle and our two cheeky kids, Emily and Will. Thanks for being you, and thanks for all your support and encouragement. You all mean the world to me, and you all inspire me to be a better person, a better husband and a better dad.

Foreword

It’s not every day one is afforded the honour of being asked to write the Foreword for a book, yet I am fortunate to have been humbled with that privilege. For that gift... I thank you, Matthew.

An unfortunate indictment on today’s ‘must have’ society is that many of us spend more time planning a holiday than planning our financial future. Whether that’s due to the instant gratification nature of the environment we live in, not realising the consequences of a failure to do so, or a fundamental lack of understanding on how to... or even a combination of all three, the fact remains.

In addition, the scepticism around the Financial Services Industry and advisers therein is not uncommon, but in recent times, and particularly in Australia, as a result of the recent Royal Commission into the industry, the commentary has been scathing.

That presents another deterrent or even an inhibitor for people to prioritise their financial freedom.

But among the self-serving sycophants and charlatans, every now and then a true advocate for financial literacy presents themselves. Matt Morrison is one such individual, who, in my humble opinion, stands head and shoulders above the crowd.

My experience tells me that there are few people who come into your life who possess pure unadulterated authenticity accompanied with a genuine willingness to serve others and make a difference... and who know what they are talking about.

Matt Morrison has transcended that space and has become a bona fide Thought Leader. He practises what he preaches and is now sharing, with anyone who will listen, his key principles and strategies that, if adhered to, will not only dramatically change your financial trajectory but also liberate your lifestyle.

Charlie ‘Tremendous’ Jones once said, You’ll be the same person you are today in five years’ time except for the people you meet and the books you read. In this situation, I’m in the fortunate position of having done both, as I am a business partner of Matthew’s and, since he is my adviser, have been using the strategies contained within this book for years now... ‘as it was written’.

I’d like to encourage you to read this life-changing book written by my friend, my business partner, my mentor and my financial adviser.

Jason Cunningham

Co-Founder of The Practice

Author

Media Commentator

Preface

By using the system we’ll cover together in this book, I’ve been lucky enough to help hundreds of clients, along with myself and my wife, take control of all our financial situations and create a ‘game plan’ to achieve future Financial Freedom.

But personally, it hasn’t always been this way...

In my early 20’s, I developed an interest in wealth creation. I learned about the future ‘ageing population’ issues and discovered a strong desire to help people set themselves up financially.

So at age 23, I decided to enrol in university as a mature age student and complete a financial planning degree. At 26, after three years of university and a couple of years of hands-on work experience, I became a qualified financial adviser. After being a broke Uni student, I was suddenly earning decent money through doing what I love: coaching people to build wealth.

But the next few years, there was a massive issue: I didn’t develop a wealth creation plan for myself.

As a result, the start of my financial journey was one step forward and one step back. I was literally making no financial progress. I had the knowledge and the cash flow, but through a lack of having my own personal wealth creation strategy, I wasn’t committed to building wealth. Instead, most of the second half of my 20’s was ‘wasted’ just having a fun time and spending all my money on travel and experiences.

Now you might say that’s not wasted money, and it wasn’t. It was character building and a wonderful life experience. But in terms of financial progress, it was definitely wasted. Any savings or investments I did make were usually withdrawn to fund my next adventure. All the fun and games took my eye off the ball and I missed the massive opportunity to build a strong financial base at a young age.

By not having a clear wealth creation plan for myself, I fell straight into the trap that many of us do: ‘the more we earn, the more we spend’.

Do you know that studies have shown that 81% of people spend everything they earn? And 9% of people spend more than they earn, through credit cards and personal loans. For a couple of years, I definitely fell into that 9% category through falling for the temptation of banks suddenly throwing credit cards at me. I had a great time! But by my late 20’s, I didn’t have much to show for it.

Then everything changed: I fell in love when I wasn’t expecting to.

Up until age 28, I’d been happily single for several years. Then, in 2005, after being a member of a couple of Toastmasters public speaking clubs for a few years, I joined an additional club. On the first night there, I met the woman of my dreams. (It turns out Toastmasters can have additional benefits other than just helping you improve your public speaking skills!) We hit it off straight away. Suddenly, it wasn’t about living and spending for now, but out of the blue, myself and my now wife were fully aligned and had begun planning our future together.

A few months into our relationship, we went away for the weekend and discussed in detail what we wanted our lives to look like. We got clear on our financial and lifestyle goals. We reviewed our combined position, discussed and decided what investments we wanted to make. We also discussed planning to start a family together in the future. We agreed on how many kids we’d ideally both like to have – all going to plan. Very romantically, we even both loaded up on wealth protection insurance to secure our cash flow! Before long, we bought our first property together and began investing heavily in the share market.

For the first time, I now fully realised the importance of getting clarity on what we wanted to achieve financially and developing a structured Personal Wealth Strategy to make it happen. I also realised that once these things were in place, financial progress could be made far more quickly than expected.

At age 30, my wife and I moved to London, where we planned to base ourselves for a couple of years to travel, work and continue building our investments, before coming back to Australia to start a family. But six months into our UK trip, the peak of the GFC hit. Our share investments got smashed.

Then, just as the world was dealing with the start of the financial horrors of the GFC, I had a massive car accident in Oxford. I lay in a hospital bed for two months, needing seven operations to repair the injuries. I was off work for 12 months, spending half this time in a wheelchair, and I needed to learn how to walk again from scratch. Throughout this ordeal, my wife was an absolute ‘Rock’. She helped me emotionally as I slowly recovered physically. She was incredible.

This whole experience gave me a real-world lesson: that there are going to be setbacks. It’s not necessarily ‘if’ but ‘when’, so we need to be prepared. It reminded me that we can rarely get through any major challenge on our own. Over in the UK, I made the decision to do whatever it took to rebuild our lives and recommitted myself to continually learning and building towards future Financial Freedom.

I also decided that I needed my own wealth coach or coaches, as whilst we’d begun the journey and I knew what to do, our progress had been too slow. I wanted to learn from people who were already very financially successful themselves.

For the next few years, I sought out financially successful people I knew and modelled them. I attended many seminars and listened to dozens of audio books. I also went through the process of deeply understanding how several older, financially successful clients had built their wealth over the years.

What I realised is that there are many ways to build wealth and achieve financial freedom. However, the most important part is to have a clear personal wealth creation plan, along with a simple system around how to carry out and regularly review that plan to monitor your progress.

Over the past 10 years, in between having a couple of kids and going down to one income for a few years, my wife and I have been able to buy and hold five properties, build solid share investments, maximise super contributions and accelerate mortgage repayments. and have a great lifestyle at the same time.

Whilst we are only part way through our wealth creation journey, 10 years after being at rock bottom physically, financially and emotionally in the UK, my wife and I are well and truly on the path towards creating Financial Freedom – on our terms – by just continuing to do what we are currently doing. That feels incredibly liberating, and it’s become my purpose in life to help other people get the same results.

In working with several hundred Wealth Accumulator clients over the past 15 years, I’ve discovered that building towards financial freedom is like a jigsaw puzzle. There are lots of parts and, initially, it can be overwhelming. But as you slowly put the pieces together, you gain momentum. Sometimes you get stuck or have some minor or major setbacks. But through persisting and consistent action, you eventually create something you can be really proud of.

Over the last 10 years since getting serious about my own financial future, I’ve discovered that no matter what a person’s current position is, there is a system everyone can follow to build towards future Financial Freedom – or at least, dramatically improve their financial blueprint.

This is the whole reason why I wanted to write this book. I truly believe taking control of your financial future by developing and implementing a step-by-step game plan across the seven main steps we’ll cover in this book is the best way for you to launch towards Financial Freedom, help you build wealth and bulletproof yourself along the journey.

Table of Contents

Foreword

Preface

Introduction

Foundations for Freedom

The Fundamentals

The 3 Pillars of Cash Flow

Why people haven’t achieved financial wealth

Understanding Investing – let’s start with the basics

STEP 1: FIGURE out What you want to achieve and Why

Clarity is Critical

How much is enough, really?

Lifestyle vs Legacy

Goals Program – Clarify Your Vision

STEP 2: REVIEW where you are now

Financial fitness – Evaluate your Position

The Importance of Mindset: Think Differently and Commit

How to Best Smash Your Credit Card Debt Forever!

Is Superannuation Still so Super?

What type of superannuation fund is best for you?

Investment Philosophy and Portfolio Management

STEP 3: Grow and Protect Your EARNING Capacity

Make yourself more valuable

Protect Your Greatest Asset – Part One

Protect Your Greatest Asset – Part Two

FOR BUSINESS OWNERS: How to Plan for ‘Success’ in Business Succession Planning

STEP 4: ENJOY today

Life is not just a financial decision

Creating a Budget for the Life You Dream Of

Building your cash-flow to fund your lifestyle

Importance of Health in Wealth Creation

STEP 5: DEVELOP and Implement Your Game Plan

Where should you invest your money?

The Power of a Regular Investment Plan

How to best fund your kids’ future education

Structures for Regular Investment Plans and Investment Accounts

Conversations with Property Experts

How to Buy Property Using Superannuation

Cement Structure and Ownership

The importance of proper Estate Planning

STEP 6: Leverage OTHER people’s money

Borrowing Magnifies Returns

Good Debt versus Bad Debt

Know, Protect and Improve Your Credit Score

Should you fix your mortgage (now) or stay variable?

Mastering Your Debt in the Current Environment

STEP 7: MANAGE and MONITOR your progress

Nothing is set and forget

It’s not always smooth sailing

Conclusion

Appendix

Resources

Acknowledgements

About The Author

Additional Training and Coaching by Matthew Morrison

Introduction

This book has been written for couples, individuals and business owners who are striving to create a better financial future for themselves and their families.

This book is for you if any of the