Case study: Aged Care Case Study
Joyce is widowed, 85 years old, and living at home. Her health has deteriorated fairly rapidly of late, and she has been assessed as needing High Level Care. Her daughter Elizabeth is assisting her mother with the transition to Aged Care.
Elizabeth feels her mother’s only option is to sell the family home to help pay for the Accommodation charge and to help provide an income to meet her cost of living requirements.
We explained the various options available from selling the home, to keeping it, and to keeping the home and renting it out. We took her through what this meant in terms of Age Pension, Daily Care Fees, Income Tested Daily Care Fees, estimated expenses and income.
By taking Elizabeth through our process we were able to show that Joyce could improve her net cash flow position, by around $17,000 per annum by following a different strategy.
The net result is likely to be that with good advice and explanation, Elizabeth should be in a position to make unrushed, calm, and well informed decisions on how best to look after her mother’s financial position.
Case study: Wealth Accumulator
Bill and Barbara are in their early 50’s, both working, with three young adult children who have just moved out of home. They own their home with a debt of $380,000, have combined Superannuation of $400,000, minor cash and a car lease of $20,000.
Now that the children are pretty much looking after themselves, they want to make sure their money is working harder for them to allow them both to retire in 10 years time. They feel concerned about having ‘enough’ to allow a comfortable retirement and are not sure of the direction their financial affairs are taking them.
With our help we took them in detail through the areas of Superannuation, Insurance, Debt, Estate Planning and Cash Flow Management. We found gaps in their financial plan that needed to be addressed to help better protect their incomes and asset base now, as well as boost their retirement portfolio by making better use of excess income.
By taking Bill and Barbara through our process we were able to show that by consolidating their debts of $400,000 (with our Debt Specialist), we could improve cash flow by some $4,000pa. Contributions to Superannuation were adjusted from Non-Concessional to Concessional which boosted contributions for both at a quicker rate and reduced tax payable. Insurances levels were adjusted such that all debts could be paid off in full should either of them pass away and Income Protection cover was topped up to match current salaries. With the help of our Estate Planning Specialist, we were also able to set up tax effective Wills and Enduring Powers of Attorney.
The net result is both Bill and Barbara will be in a position if they choose, to retire in 10 years time. Clear goals have been set and they both feel a sense of purpose that they are no longer wasting years of work with no end in sight.