Independent aged care financial advice

Independent aged care financial advice

by Christine Hopper

Independent aged care financial advice is advice about the financial aspects of your specific situation. Professional financial advisers consider your particular situation and advise you on the financial implications of your options.

An independent professional aged care financial adviser shows you the costs of your preferred aged care placement. A professional adviser then helps you to check that your choice is affordable in your situation both now and into your long term lifetime planning.

If selling the former home to financial aged care accommodation is right for your family then an independent professional adviser would develop a financial plan for investing any surplus cash. Your financial plan would include appropriate banking and financial products for your situation.

Benefits of independent aged care financial advice

Independent aged care financial advice is financial advice specific to your situation.
At Financial Care Services, your independent financial adviser is a professional who understands aged care financing and the Centrelink means testing for aged care fees and Age Pensions.

At Financial Care Services, a professional financial plan would be especially developed for you if you had money to be invested to provide income to cover ongoing aged care fees.
Independent aged care financial advice is advice that allows consideration of your preferences to sell or retain the former home. An independent financial adviser would choose investments products that support your preferences for ethical and socially responsible investments. An independent adviser is not tied to the investment products of the big institutions.

An independent professional financial adviser is not influenced by other considerations such as earning more commissions or meeting the ‘sales targets’ set by their employer.

When do we need independent aged care financial advice

Independent professional aged care financial advice is beneficial before looking at age care homes.
Entry to residential aged care is a major financial commitment. The Accommodation Room Price at a suburban aged care facility could be similar to the cost of buying a quality apartment or modest town house in that area.
Independent professional aged care financial advice before you sign a Resident Agreement for aged care is wise. Once you have signed the Resident Agreement you cannot renegotiate the Accommodation Room Price.

Independent professional aged care financial advice could avoid worry about meeting aged care fee payments. Leasing the home might not generate enough net income to cover the aged care accommodation costs. But selling the former home to finance the Accommodation Room Price has other implications at Centrelink.

Aged care residents are charged flat fees for basic hoteling costs plus a means tested contribution to the costs of personal support and nursing care. Any Refundable Accommodation Deposit paid towards the aged care Accommodation Room Price is counted for the aged care means test. But the Age Pension Asset means test is different from the aged care fee Asset component.

Independent professional aged care financial advice helps you consider all of the Age Pension and aged care fee aspects of renting the former home or selling the house and investing.

Independent aged care financial advice providers

Independent aged care financial advice is only provided by independent licensed financial advisers who are not linked to other businesses. Independent professional financial advisers hold Australian Financial Services Licences (AFSL) directly.
Financial Care Services is an independent professional financial advisory practice. Financial Care Services Pty Ltd holds AFSL number 299570.

An independent specialist professional aged care financial adviser does not have business links to aged care placement services or aged care homes.
Independent financial advisory services are not focused on selling investment products.

Arranging independent aged care financial advice at Financial Care Services

Financial Care Services is an independently owned financial advisory service licensed to provide personal financial advice to retail clients. Financial Care Services specialises in advising seniors who are in transition to aged care, assisted living, serviced apartments and lifestyle community living.

Christine at Financial Care Services understands the costs and means tested fees and charges for Commonwealth regulated aged care. At Financial Care Services we comprehend the Centrelink, DSP and Age Pensions systems and the interaction between Centrelink Pensions and aged care means testing.

Consult Financial Care Services regarding your family member’s personal situation before you commit to an aged care placement. Appointments with Christine at Financial Care Services can be arranged promptly. We know that you could be asked to make decisions about aged care within a very short time frame.

Call Financial Care Services on 03 9808 0338 to arrange an appointment.

Paying for independent aged care financial advice

Independent financial advisers are paid by their clients to provide advice specific to that client. Independent financial advisers are professionals who expect to be paid for their services just like lawyers and accountant. Independent financial advisers charge fees for their services. Financial Care Services charges fees based on the time ans skills required to advise you about your specific situation.

Independent financial advisers do not receive payments from other businesses for referring on clients. Professional advisers do not accept payments from aged care facilities to ‘assist’ clients into more expensive aged care accommodation.

Independent financial advisory firms must pay for professional indemnity insurance in addition to the usual costs of operating a business.
The costs of holding an AFSL need to be covered by the fees charged to clients. As an AFSL holder, each independent financial advisory firm must have a full annual audit of its accounts and a ‘compliance audit’ to check that all advice complies with the law. ASIC charges an annual fee to be paid by the AFSL holder when the audit reports are submitted.

Remember, independent professional advisers charge clients for the advice work undertaken.
Clients with complex financial structures would expect to pay higher fees than clients who have fewer and simpler assets with an Age Pension as income. The fees charged by independent professional financial advisers are not based on the amount of money that you have or how much you have to invest in ‘financial products’.

Checking that your aged care financial adviser is independent

If an aged care facility directed you to a particular financial adviser then you could ask about referral benefits. Similarly, if your adviser is receiving payments from an aged care home for showing you that your family member could afford an expensive aged care place then the adviser might not really be working just for your benefit.
Where a business owns both an aged care financial planning practice and a similarly branded aged care placement agency, you might be encouraged to use both services. The fees charged for the financial planning advice to your family could be high in order to cover the costs of the other business and earn profits for the company owners and shareholders.
Financial planners licensed under the big banking groups are expected to sell financial products to their clients. The financial plan from a financial planner licensed under a big name investment group could be a ‘standard aged care sales’ document with your name and details inserted.
The ‘financial planning advice’ for aged care entrants could be biased towards selling the home to provide money for investments as well as paying the Accommodation Price. Prospects who are reluctant to sell the former home might be ‘encouraged’ to take out a reverse mortgage to pay the Accommodation Price whilst retaining the house.

Financial Care Services is an independent aged care financial advisory service specialising in aged care entrants and Centrelink Pensions

A consultation with Financial Care Services helps you understand your potential aged care costs and Centrelink income support pensions.

Call Christine on 03 9808 0338 to make an appointment for a consultation.

Financial Care Services is licensed to offer investment strategy advice and to assist you to invest. Financial Care Services charges fees based on the work involved in advising you and arranging your investments. Financial Care Services does not base fees on the value of your assets nor do we accept any commissions or payments from other service providers.

If you would like further confidential, independent and professional advice about Centrelink, lifestyle or financial issues please contact Christine Hopper 03 9808 0338.

Disclaimer: The information contained in this website is of a general nature only and does not constitute “financial advice”. You should obtain your own personal financial advice before investing any money or moving in to any retirement village, lifestyle community or aged care facility. Financial Care Services is licensed to provide financial advice to individual clients based on their personal situations. © 2014 Financial Care Services Pty Ltd. All rights reserved.