Surplus Cashflow.........................................................................................................................11

 [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.