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25.01.2022 If only there was a place that shows the reverse mortgages that are available to pay your RAD and how much you can borrow based on your property value. But wait there is....... or soon will be. If your property is worth $3m at a 15% LVR this only gives u $450k. Average RAD is $500k up to $2m.

21.01.2022 We like to think of aged care finances as financial jenga. How does selling your house to fund aged care affect your care costs, means tested care fee or even your pension? Our calculators will show you how...... coming soon.

18.01.2022 CareAdvisory is getting ready to launch our toolkit of resources... have we missed anything?

18.01.2022 This little piggy goes to market. This little piggy stays home. This little piggy receives a deeming rate. And this little piggy does not. And the last little piggy goes AAAAHHHHHH this is all too hard. ... Deeming accounts. How unfair are they? Do you or your parents receive a government pension or aged care services? If so, you have probably filled out the Centrelink Income and Assets form and are affected by deeming rates. On this form you do not include the interest rate that is earnt on cash @ bank. This is because the government automatically calculates the interest (deemed) for you. So what are the deeming interest rates? If you’re single The first $51,200 of your financial assets has the deemed rate of 1.75% applied. Anything over $51,200 is deemed to earn 3.25%. If you’re a member of a couple and at least one of you get a pension The first $85,000 of your combined financial assets has the deemed rate of 1.75% applied. Anything over $85,000 is deemed to earn 3.25%. If you’re a member of a couple and neither of you get a pension The first $42,500 of each of your own and your share of joint financial assets has a deemed income of 1.75% per year. Anything over $42,500 is deemed to earn 3.25%. So, what does this mean????? Let’s take Westpac (or Bank of Melbourne or St George as they are all one in the same) as an example. These are the interest rates paid on the 55+ and Retired Account. Interest Rates $0 < $2,000 0.25% $2,000 < $41,000 1.00% $41,000 + 1.70% Interest rates as at 1/8/18 So, what does this mean in $$$$? Let’s assume you are single and have $50 000 in the Westpac 55+ and Retired Account. The government deems that you are earning 1.75% pa on your investment, which equates to $875 pa in interest. But in reality, you only earn $548, which is a difference of $327 per year. Two reasons why this occurs; 1. Actual interest rate is much lower than the deemed rate 2. Actual interest rate is tiered, i.e. you only receive the highest interest rate on a portion of your investment. At first glance you would think that 1.7%pa from Westpac is close enough to the deemed rate of 1.75%pa, but because of the tiered interest rate, you are only earning the highest rate on amounts over $41 000. Whilst I would like to say that there is a standout account that you can move all of your deemed interest money into, sadly there is not. All of the accounts on offer for ‘Pensioners’ provide similar interest rates, all with tiered interest. Some account even say that they pay in line with deeming rates, but clearly, they do not. The lack of competitive financial products for this demographic, i.e. older Australians, is a real and immediate issue. Don’t even get us started on the limited financial products and information on Home Care and Residential Aged Care. Time for a change me thinks #financialliteracy #agedcarefundingoptions #deeming #agedpension

14.01.2022 Reverse Mortgage have been given a lot of attention recently. Mostly bad. I get it, no one likes to pay compounding interest. But what if they can be used for good rather than evil? Consider how to pay for Residential Aged Care for your parents or grandparents. The average cost of a room is $500 000. You can either pay this upfront, in part or as a daily payment. Lots to consider at this stage, but let’s focus on a Reverse Mortgage as an option. Option 1. Use the ‘gove...rnment loan’ @ 5.96% to convert the $500 000 to a daily payment (Daily Accomodation Payment or DAP). The cost is $81.64 per day, $29,800 year 1 or $89,400 over 3 years. Option 2. Take a Reverse Mortgage to pay the $500 000 @ 5.6% with upfront fee of $495. But make interest payments. Cost is $76.79 per day, $28,523 in year 1 or $84,578 over 3 years. Saving $1,277 per year or $4,822 over 3 years. Here is the kicker.. if you take option 2 and pay the $500 000 upfront, this is refundable and can be used to pay out the Reverse Mortgage after leaving Residential Aged Care. You will find that the magic happens when you tell the aged care provider that you are paying the deposit in full, up front. So for good rather than evil. Some things to consider in your Reverse Mortgage choice are: Can the Reverse Mortgage be used for Residential Aged Care i.e. you will not be living in the property? Is the Interest rate lower than the government loan option (known as the Maximum Permissible Interest Rate or MPIR)? Are upfront fees low (if not you blow the savings)? Are repayments allowed with no penalty? Interest rates may increase and so may repayments Understand how interest is calculated (usually daily) and charged (usually monthly) to the loan. Make interest payments accordingly. Paying a RAD will impact on your aged care government fees (Means Tested Care Fee. But so would selling the house. It is like Financial Jenga) Never use a Reverse Mortgage to pay a DAP. You will be double dipping in interest. Financial Literacy is important at any stage of life and it is great that discussion around financial options for the elderly is in play. #financialliteracy #agedcare #reversemortgages #moneymagazineaustralia #generationsandwich #gensandwich

13.01.2022 Calculate your Aged Care Costs We are still compiling all of the information, so you don't have to. Stay tuned!

13.01.2022 Great discussion! Post retirement focus on the cost of health decline and aged care is so important, but tough to talk about. It is even harder to quantify. Did you know that a $500k RAD can cost you (approx) either $18k or $47k per year depending on how you pay for it. Did you know that the impact of a $60 package fee per day for the same room equates to either $40k or $69k pa. Have you considered how to fund this? What are the funding options currently available? CareAdvisory.com.au explains the cost of actual rooms of actual providers.

08.01.2022 Paying for declining health and aged care is a critical financial issue. Most Australians will want the 5 star care, but can they afford it. Careadvisory’s scenario analysis show that even a moderate amount of home based care, funded with a government subsidy package can still cost in excess of $100k per year. What can you afford? #tough2talkabout #agedcarefinances #retirewithdignity

03.01.2022 A 93-year-old jazz pianist suffering from dementia and depression was given a new lease of life when his care home discovered his talent.

01.01.2022 CareAdvisory is getting ready to launch... have we forgotten anything?