When you're young, your assets are easily accessible, however, as you age, the total sum of a person's assets can become substantial. When it comes to using this money to finance aged care, careful planning is needed. Aged care financial planning allows you to plan ahead for events before they happen and to ensure that your family is well prepared for the event. It also helps you realise the value of planning ahead for your future so that when it comes time to move into an aged care residence, you are comfortably situated. If you don't plan ahead regarding your residence and finances, it may be difficult for your loved ones to find the funds when the need arises. This article provides some advice relating to aged care financial planning. Read on to discover more!
Calculate your cashflow
If you wish to use your money to fund your aged care, it is imperative that you address each step of funding your aged care needs. This is called a cash flow matrix. The cash flow matrix is a table that lists all the expenses and income in chronological order. You can use this info to calculate how much cash you have available on a monthly basis.
Calculate the value of any assets
You must determine the value of your assets. Asset value will be determined by how much you paid for an asset, the average daily rate for a similar asset, the cost and the resale value. Knowing the value of assets will enable you to calculate if it is worthwhile selling assets such as property to pay for aged care.
Tax optimisation
When it comes to aged care asset planning, tax can play a big part. The fact is that you are required to pay tax on the value of your assets and on sources of income. However, there are steps you can take to minimise your tax bills such as transferring money overseas, investing in government-backed bonds, and applying for tax rebates and discounts.
Financial advice
You will need to seek financial advice to support you in your aged care funding. You can only receive financial advice from a financial advisor. Financial advisors are experts in financial planning and retirement. They can provide financial advice and ensure that you are on the right track to live safely and comfortably in your older age.
For more info about aged care financial planning, contact a local financial planning team today.
