Budgeting & Cash Flow Management
|
|
Having a strong understanding of your cash flow is really important. Whether it be when you are saving for a home deposit, meeting the living expenses of the family, during retirement or even during time in aged care, having an understanding of your cash flow will allow you to make sound decisions.
In a short video from moneysmart.gov.au it talks about the simple ways of starting a budget. When you seek advice from any advisor they should be asking you about your spending patterns and will ask you to provide detailed information. Please feel free to get in touch if you need help getting your cash flow under control. |
Aged Care
Aged Care is becoming more significant within Australia given the ageing population as well as the inability of immediate family members being able to provide extensive care for their loved ones. Future planning for such events is important as places are limited and not all aged care homes are the same.
The four main fees which are payable by an aged care resident as best broken down as follows:
There are also circumstances where a new resident may not have any money and they cannot stay home, so what happens in this circumstance? Residents may be admitted under a different set of rules which we know as "low means" residents. Reality is there are always options available for the ongoing care for a loved one.
As this area can become complex we always encourage the public to seek advice. On top of this, we are also here to help with all the paperwork as this can also be complex.
Aged Care is becoming more significant within Australia given the ageing population as well as the inability of immediate family members being able to provide extensive care for their loved ones. Future planning for such events is important as places are limited and not all aged care homes are the same.
The four main fees which are payable by an aged care resident as best broken down as follows:
- Refundable Accommodation Deposit (RAD): Lump sum upfront payment of accommodation fees.
- Basic Daily Care fee: An amount paid by everyone for the services they receive. This fee is currently $52.25 per day (effective from 20 March 2020).
- Means tested fee: An amount paid, based on an assets and income assessment.
- Daily Accommodation Payments (DAP): This fee is charged if the RAD is not paid in full. The outstanding balance has a maximum interest rate applied of 4.89% (effective from 20 March 2020).
- Extra/Additional Service fees: Fees paid if you choose a higher standard of care or additional optional services.
There are also circumstances where a new resident may not have any money and they cannot stay home, so what happens in this circumstance? Residents may be admitted under a different set of rules which we know as "low means" residents. Reality is there are always options available for the ongoing care for a loved one.
As this area can become complex we always encourage the public to seek advice. On top of this, we are also here to help with all the paperwork as this can also be complex.
Estate Planning
This is an important area where a lot of people don't particularly want to think about what happens when they pass away or alternatively when they are not able to make decisions themselves relating to their finances or health.
Simply put, a:
For further information on estate planning you can go to moneysmart.gov.au/wills-and-powers-of-attorney
Estate planning is a specialist area and we can refer you to those whom can assist. Not having a properly documented Will could be detrimental as your estate could be distributed to those whom you may not have intended. Similarly, a Power of Attorney in the wrong hands could lead to decisions being made which are not in your best interests.
This is an important area where a lot of people don't particularly want to think about what happens when they pass away or alternatively when they are not able to make decisions themselves relating to their finances or health.
Simply put, a:
- Will: provides written instruction on how you would like your assets to be distributed when you pass away.
- Power of Attorney: provides authority to someone whom you trust and have nominated to make decisions on your behalf in the event you are unable to do so. These decisions could be around finance or health.
For further information on estate planning you can go to moneysmart.gov.au/wills-and-powers-of-attorney
Estate planning is a specialist area and we can refer you to those whom can assist. Not having a properly documented Will could be detrimental as your estate could be distributed to those whom you may not have intended. Similarly, a Power of Attorney in the wrong hands could lead to decisions being made which are not in your best interests.
Insurance
Insurance is used as a means of financially supporting you and your loved ones in the event you pass away, suffer a traumatic event or become totally and permanently disabled. If you do not have sufficient cover in place, and appropriate insurance policies, you will then have to find funding from other sources.
Typically, insurance cover can provide for the following:
There is considerable time and thought which goes into ascertaining what we believe is appropriate to you and your personal circumstances. That is why understanding you, and your needs is important, as well as ensuring you have quality policies in place which have a higher likelihood of paying out in the event you are needing to make a claim.
Insurance is used as a means of financially supporting you and your loved ones in the event you pass away, suffer a traumatic event or become totally and permanently disabled. If you do not have sufficient cover in place, and appropriate insurance policies, you will then have to find funding from other sources.
Typically, insurance cover can provide for the following:
- Paying out any outstanding debts.
- A lump sum for future income needs for the family in the event a main income earner cannot work.
- Where young children are involved, a lump sum for their future education and university fees.
- Changes to the family home in the event the individual may have mobility issues (e.g. ramps, handrails etc).
There is considerable time and thought which goes into ascertaining what we believe is appropriate to you and your personal circumstances. That is why understanding you, and your needs is important, as well as ensuring you have quality policies in place which have a higher likelihood of paying out in the event you are needing to make a claim.
Investing
Investing should not be sold, it should be advised dependant on what your goals are - buying a home? setting funds aside for children? your retirement? aged care?
There are different asset classes which you as an investor can get access to such as Australian shares, International shares, Listed Property, Fixed Interest and Term Deposits/Cash. For further information on these asset classes you can go to moneysmart.gov.au/how-to-invest/choose-your-investments
We undertake an exercise called "risk profiling" where we ask you a number of questions to gain an understanding of your tolerance to risk. This helps us construct a portfolio that have the risk and return profile that is most suitable to you. Generally speaking, the higher the expected investment return, the higher the risk you are likely to be taking. Low expected investment returns generally means that you will be exposed to lower risks.
Our firm beliefs around investing are:
Investing should not be sold, it should be advised dependant on what your goals are - buying a home? setting funds aside for children? your retirement? aged care?
There are different asset classes which you as an investor can get access to such as Australian shares, International shares, Listed Property, Fixed Interest and Term Deposits/Cash. For further information on these asset classes you can go to moneysmart.gov.au/how-to-invest/choose-your-investments
We undertake an exercise called "risk profiling" where we ask you a number of questions to gain an understanding of your tolerance to risk. This helps us construct a portfolio that have the risk and return profile that is most suitable to you. Generally speaking, the higher the expected investment return, the higher the risk you are likely to be taking. Low expected investment returns generally means that you will be exposed to lower risks.
Our firm beliefs around investing are:
- Diversification is essential.
- Focus on what we can control and stay disciplined.
- Risk and return are related.
- Fees and taxes matter.
- It is important to understand what drives investment returns.