[RAD/RAC] You must notify your Aged Care facility within 28 days from entry, the combination of lump sum and daily fee you will pay. [RAD/RAC] You must pay your deposit/charge within 6 months of entry to your Aged Care facility. This gives you time to sell down assets / restructure as required. [Periodic payments] If you make your payments periodically, the Aged Care facility may charge interest on these amounts up to 4.07%. You must complete the combined income and asset income assessment form otherwise you will not receive any government subsidies on your aged care fees. You can take up to 52 nights of social leave per year. Anything beyond this will mean you lose your government subsidy on fees. If you change aged care facilities and take more than 28 days to enter a new one, you will be treated as a firsttime entrant. Selling investments may incur <transactions costs / break fees / capital gains tax>.
Other Resources:
My Aged Care (Government service) 1800 200 422 https://www.myagedcare.gov.au/
3.
Cash Reserves
We recommend that you establish / maintain a cash reserve of $X. This money will provide you with a pool of funds that you can draw on for unexpected expenses and emergencies and will be sourced from your <Name of source>. This is in line with your request / goal to maintain cash reserves of $X. [If there is a variation between goal and recommendation, add an explanation here]. We recommend that you invest this cash reserve in <Name of recommended cash account>. Benefits:
[No fees] The account for your cash reserve does not have any fees. You will not have to pay for unexpected expenses and emergencies from your day-to-day funds. This will reduce the risk of not meeting your living expense needs. You will potentially receive higher returns by redirecting your reserves to <Name of recommended account>. You will have immediate access to funds in the event of unexpected expenses and emergencies.
Points to Consider:
You will forego potential higher returns that could be achieved from investing in growth asset classes such as property and shares. Your unexpected expenses may be more than the reserves we recommend here. You will then need to source money from other investments / your everyday funds. [Centrelink recipient] The income on your cash-based investment will be deemed for Centrelink purposes. Cash investments are not necessarily capital guaranteed. Please refer to the PDS / your bank for further information. Transaction costs and interest penalties may apply at time of withdrawal.
4.
Cash Management Account
We recommend that you invest $X into a Cash Management Account. This will be sourced from your <Name of source>. These funds will be used for <insert purpose here such as a hub for your SMSF, managing your investment property expenditure etc>. Benefits:
Greater transparency on the cash transactions for your <investment property / SMSF / asset> so that you can monitor cashflow specific to this. Access to web-based transacting, cheque book facilities, account-linking and custom reporting. A centralised cash facility to reduce administration and fees.
Points to Consider:
Investing in cash, you will forego potential higher returns that could be achieved from investing in growth asset classes such as property and shares.
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