Aged Care Financial Planning: An Introduction


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.

About Me

Money, Money, Money

If you don't pay attention to your money situation, the chances are, you won't have very much money in your bank. I know that this was the case with me for quite some time. However, all of that changed when I decided to get a grip of my finances. I asked my dad, who knows all about money, to recommend a good financial advisor to me. The advisor gave me some top tips which helped me to take control of my money so I could start making it work for me. I hope you find the advice here helpful. Enjoy!

Search

Categories

Archive

Latest Posts

5 May 2021
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

26 July 2018
If you own a rental property, you may know that you can claim a certain amount of money for depreciation against your tax liability. In addition to th

25 July 2018
At some point in life, a person can land quite the windfall, for example, a lottery, gratuity, dividend or loan payback. These windfalls can be hard t