The westerly winds have been and gone and with that came the annual Royal Queensland Show (or, “the Ekka”, as everyone knows it). Both Trent and Brad took their families to the Ekka. This was Trent’s first time with his family but it’s a long tradition for Brad. Brad’s eldest daughter, Emily, is 16 years…

Simplification in aged care rules is always a positive outcome. The government has just released new means-test forms for clients accessing residential or home care services which may make the process much quicker and simpler. The new forms are the outcome of a government taskforce which included a number of organisations, including Jacqui Hayes from…

It has been four years since the deeming rates changed, but the government has responded announcing a rate cut from July 1, 2019. The lower rate reduces by 0.75 per cent and the upper rate by 0.25 per cent. The new rates announced are: The rates are announced to change effective from July 1, 2019,…

If, like many Australians, you’re looking for ways to put some cash away for a rainy day, a holiday or to earn extra income, the job has just become a bit harder. It’s also become more urgent if you are expecting a handy tax return. In early July, the Reserve Bank cut rates to 1 per…

The last month of autumn is nearly finished and the winter season will be nipping at our noses very soon. This is one of my favourite seasons to go out west and camp in the cold.  Disclaimer: I’m using the word camping very loosely. Most clients would call it ‘glamping’. It’s also a time when…

The Australian Government’s Health Direct website recommends a balanced diet for seniors. This includes the normal advice about fruit and vegetables (five portions of vegetables and two portions of fruit a day), wholegrain varieties of bread, pasta and rice, some milk and dairy foods, as well as protein from lean meats, fish (two portions of…

Who doesn’t love the end of the financial year? Okay, so maybe sorting through a shoebox full of receipts isn’t your idea of fun, but don’t worry. With our handy checklist, you can take some of the headache out of tax time. You might even find ways to give your finances a boost. The end…

They say every great journey begins with a single step — and yours is just beginning. Here’s how to get on the path to financial freedom at the same time. Every year, thousands of young Australians start one of the biggest journeys of their lives: their careers. And if you’re one of them, you’re probably…

There are some important exercise guidelines to follow as you head into your 40s, 50s and beyond. And to enjoy the best health benefits, you need to make sure you’re doing fitness right. Once an elite Ironman athlete, Guy Leech is a living example of how to keep your body strong through all stages of…

The wave of older Australians will continue to grow over the coming decades. As such, we can no longer afford to ignore the issues around aged care with more than one million retirees already accessing aged care services in Australia. Planning ahead can help to demystify aged care and reduce stress levels. With awareness and…

Here are the answers to some common questions our LifePath advisers have recently been asked. Is your question here, too? Q: I have two employers who are both paying superannuation guarantee contributions. I am worried that these contributions will push me over the $25,000 concessional cap this financial year. Is there anything I can do…

Are you, or is someone you know, in need of aged care services but not quite ready to move into residential care? With a range of government programs and technological solutions available, many retirees are now able to get the support they need in the comfort of their own home.  The decision to move into…

When you’re young and living life to the full, it can be tempting to see your credit card as a bottomless well of money. And faced with higher living costs than previous generations – not to mention the lure of online shopping – many young people find themselves spending beyond their means on a regular…

Think back to last Christmas and consider where the extra expenses came from. Was it petrol for the drive to the holiday destination? Gifts for new children in the extended family? Wine for the constant gatherings? And don’t forget the taxi fares for the journeys home from nights out. However you look at it, Christmas…

If you move into residential care, you may be asked to pay for accommodation. You can choose to pay a lump sum Refundable Accommodation Deposit (RAD) or a Daily Accommodation Payment (DAP). RADs have been the most popular choice, but more and more residents are using a combination of RADs and DAPs. The graph below…

When global financial markets become volatile, it’s natural for investors to get anxious about the potential impact on their investments. But before you start selling up your shares, it’s important to understand what causes these market movements and why they’re not always a reason to worry. Here are three things to keep in mind. 1….

No two investors are alike – we all have our own goals, investment timeframes and risk appetites. That’s why your financial adviser works with you one-on-one to understand your personal investment style and make sure your portfolio is the right match. Ups and downs in the market are a natural part of the investment cycle,…

The end of financial year has a way of creeping up and catching us unprepared. But this time you can be ready, with a to-do list of tasks that you can tick off as you go. For instance, now may be the perfect time to put a bit extra into your super before July 1,…

Money and emotion are strongly connected. Purchases often mean something to us personally. They broadcast our identity. They make us feel special. They reward us for hard work. But in the background, behind our most basic reasons for spending or saving, our mind plays further tricks. If you become aware of these tricks then the…

Legislation to make superannuation downsizer contributions has now passed enabling individuals who are 65 or over to contribute proceeds from the sale of one eligible property to superannuation without needing to satisfy the work test. The new rules provide more flexibility for retirees to fund their retirement using capital released from their homes. From July…

Being your own boss can be rewarding, but it’s also incredibly challenging. That’s why it’s important to future-proof your hard work by taking steps today that will prepare your business for tomorrow. When you’re running your own business, it’s demanding enough to keep up with the day-to-day, which means it’s easy to lose sight on…

There is plenty of advice out there about why you should save for your future, but little that explains exactly how. One of the problems when discussing wealth creation and retirement planning is that it usually involves words rather than numbers. People say they want to “build a retirement nest egg” or “make sure I…

They say every great journey begins with a single step — and yours is just beginning. Here’s how to get on the path to financial freedom at the same time. Every year, thousands of young Australians start one of the biggest journeys of their lives: their careers. And if you’re one of them, you’re probably…

Many investors become concerned when volatility occurs in global financial markets – particularly about the impact on their superannuation and other investments. In times like these, it is important to understand the causes of market movements and how to minimise your risk. Why do markets move so much? Markets are influenced by many things –…

Estate planning involves much more than having an up-to-date will. It is important to ensure that your assets are distributed in the most effective manner and without adverse tax consequences for your beneficiaries. What is estate planning? Estate planning involves considering what will happen to your assets upon the death of you or your partner…

From voice-enabled health tools to wellbeing apps, technology advances are making in-home care an increasingly attractive option for retirees as they weigh up staying at home or moving into retirement or nursing facilities. LifePath Financial Planning’s Senior Financial Adviser, Brad Monk, says simple innovations such as the elderly using an iPad to communicate with family…

Until a year ago, Joan was an active, independent woman enjoying her senior years. She loved to tend her garden, bake for her family and neighbours, watch football and read. Her daughter visited once a week with the grandchildren, but essentially Joan was happy to spend time on her own in her comfortable surroundings and…

Being faced with cancer can have a devastating impact on women and their families. That’s why it’s so important to reduce your health risks – and also know how to avoid the financial shock that a cancer diagnosis can bring. October was Breast Cancer Awareness Month, with fundraising activities held across Australia to raise money…

If you are planning how much you need to save for retirement, don’t forget to include the costs of aged care. This is not just the cost of residential care, but should also include care in the home or support services to help you live independently as you age.  Factoring in the costs of aged…

Many people defer the decision to apply for subsidised care services until circumstances reach a critical point. This can increase stress levels and put you or your family member at risk because the wait to access care can be long – especially for home care.  Approval for a home care package from an ACAT/ACAS team…

Did you, or a member of your family, have the Pensioner Concession Card cancelled because of the changes to the asset test? If so, it’s time to check your letterbox for a pleasant surprise. If you’re retired or close to retirement, you’ll probably recall that the government changed the assets test for pensioners in January…

Successfully transitioning between in-home care services, retirement villages and full-care accommodation is all about making timely, well-informed decisions. Buying, selling and moving house are among the most stressful times in life. Even more so when you are retired and your health begins to decline, along with your financial assets. The earlier you can start planning…

With Christmas just around the corner, here are five tips to help plan ahead and avoid a financial hangover on New Year’s Day. Think back to last Christmas and consider where the extra expenses came from. Was it petrol for the drive to the holiday destination? Gifts for new children in the extended family? Wine…

Medicare is Australia’s publicly funded national healthcare system. The Federal Government funds the system by charging taxpayers a levy on top of their annual income tax. Thanks to this levy, all Australians can enjoy access to quality health care. Medicare provides access to a wide range of health care and hospital services, including: Free or…

In the 2016 Federal Budget, the government proposed a wide range of reforms to Australia’s superannuation system. In fact, these are the most significant changes to super of the last 10 years. Although not all the proposals have been legislated, some significant ones were passed by parliament late last year and are now in effect….

Although this year’s Federal Budget was a far cry from the wide-ranging super and tax reforms proposed in 2016, there were still some inclusions that could affect your financial position. Several of these initiatives apply to current and future homeowners and also property investors. So if you think you might be impacted, it’s a good…

As we get older we may need help with our daily living activities. But remember that asking for help does not mean you will have to move out of your home. The government now subsidises more home care packages that might allow you to reduce the burden on your spouse and family but continue to…

Everyone’s needs and circumstances are different in old age which is why there’s a range of home care services available. The challenge is selecting the right provider to meet your needs. Once you have been assessed and your Home Care Package (HCP) allocated, it is time to evaluate and select a suitable home care provider….

Planning ahead can help to demystify aged care and reduce stress levels. With awareness and pre-planning, you can maintain control and choice, have access to the financial resources to pay for care and minimise the stress on you and your family. Here are the steps you should consider when planning to move to residential aged…

You’ve worked hard to build your wealth over the years. Now you can have peace of mind by ensuring your loved ones are taken care of. Here’s how: 1. Start with a Will Drawing up a Will is the safest way of ensuring your estate assets will go to the right people after you pass…

Before you swap your briefcase for a beach towel, have you thought carefully about what life in a quieter location will really be like? If you’ve spent most of your life in the fast lane, retirement might be your chance to change gears. And if you’re considering a sea or tree change, you’re not alone….

There is plenty of advice out there about why you should save for your future, but little that explains exactly how. One of the problems when discussing wealth creation and retirement planning is that it usually involves words rather than numbers. People say they want to ‘build a retirement nest egg’ or ‘make sure I…

Home care may help you to stay in your home longer and take pressure off your family and friends. The opportunities to stay in the home are growing with more government focus and funding directed towards increasing the number of available packages. A new approach for allocating and managing the government subsidised Home Care Packages…

Home care packages come with a budget allocation that can be spent on the care plan you develop with your home care provider. This budget needs to cover: Administration and case management fees Service provider fees Travel time for workers. The budget value depends on your approved level of Home Care Package. Most of this…

For many people moving into aged care, their home is likely to be the biggest remaining asset. If you move into aged care, unless a spouse or other family member continues to live in your home you may be faced with a major decision of whether to sell or keep your home. This is an…

Leaving the workforce is just one step in your journey through life. And once the daily grind is over, it’s time to figure out what you want to do next. Retirement is something that most of us look forward to. But it can also be a challenging lifestyle adjustment, particularly if you’re someone who’s used…

Most people are aware that their principal (family) home is not subject to capital gains liability should you decide to sell and relocate. Most would also understand that the sale of an investment property (ie, not a principal residence) can be subject to a capital gain assessment at the time of sale. So what are…

Savvy investors are rushing to make voluntary contributions to their superannuation before the new rules come into effect on July 1. Voluntary contributions to some advised funds have risen sharply in November 2016, up 25 per cent on contributions made in October, and almost 20 per cent higher than the previous November. This surge has…

By Rachel Lane, Aged Care Gurus The number of people accessing Home Care Packages is set to grow significantly. For anyone receiving, or hoping to receive, a Home Care Package it is important to understand the funding available through these packages and the costs associated with them. Let’s start with the funding. There are four…

Residents who move into residential aged care from January 1, 2017 and rent their former home will receive less generous Centrelink/Department of Veterans’ Affairs (DVA) assessments due to changes that are now effective. The Omnibus Bill, which received Royal Assent on September 16, 2016, saw the changes first announced in the 2015 Mid-Year Economic and…

The new Centrelink/Department of Veterans’ Affairs asset test rules came into effect on January 1, 2017. This increases the taper rate back to the pre July 1, 2007 rate of $3 per fortnight for every $1000 of assets over the lower threshold. As a result, many part-pensioners may have seen a reduction or complete loss…

Non-concessional contributions cap – $500,000 lifetime cap replaced by new annual cap The Government has announced that the 2016-17 Federal Budget proposal to introduce a lifetime non-concessional cap of $500,000 will not go ahead. In its place, the Government has proposed the introduction of an annual non-concessional contributions cap of $100,000 per year. New annual…

Adjusting to a reduced income in retirement can be challenging. But luckily, there are a wide range of support options available, plus all sorts of discounts and benefits, to give Australian retirees a financial helping hand. Entering retirement means freedom from the pressures of work, but it can also mean getting used to a tighter income. So make sure…

Single and fabulous? Make sure your finances are in top shape as well. Whether you’re single by choice, readjusting after a break-up or the death of a partner, or maybe you just haven’t found The One yet – you probably agree that single life comes with a lot of personal freedom and flexibility. It can…

While the adviser team were attending a Professional Advice Conference we took the opportunity to visit St Ann’s Home Davey Street aged care facility.  St Ann’s Homes Inc has been providing accommodation, care and services since 1922.  RAD’s range from $250,000 – $550,000.  They have many activities for the residents and external tours. This is…

The biggest changes to the pension asset test in 10 years will occur on 1 January next year. Whenever the government makes such drastic changes it creates winners and losers (and some that stay the same, but worry about the changes nonetheless). The important thing is to know which bucket you fall into and make…

Loans used to pay a refundable accommodation deposit (RAD) will not reduce the RAD’s assessable value for means-test amount (MTA) calculations. This position has been clarified through changes to the Subsidy Amendment (Flexible Care Subsidy and Other Measures) Principles 2016 on 4 October 2016 which have immediate effect. This resolves the uncertainty created last year…

The department is aware that a number of providers have charged or are proposing to charge fees for additional services, including ‘capital refurbishment fees’ or ‘asset replacement contributions’ to residents. This information has been prepared to assist providers to understand their responsibilities when charging such fees. This information does not constitute legal advice. Approved providers…

Residents who move into residential aged care from 1 January 2017 and rent their former home will receive less generous Centrelink/DVA assessments due to changes now passed into law. The Omnibus Bill which received Royal Assent on 16 September 2016, saw the changes first announced in the 2015 MYEFO passed as law. The rental income…

While the prospect of retirement is exciting for most, the changes it brings can be a shock. In this article, we share tips that can help you, or a family member approaching or already in their first year of retirement, adjust to your new freedom and financial position. Even if you’ve carefully mapped out a retirement plan,…

Is everyone in your family getting the financial advice they should? Australian families are changing and so are their financial needs. It’s no secret that Australia’s population is growing older — around 15% of Australians are now aged 65 or over, while the proportion of younger people is slowly declining.[1] And by 2020, the median…

As the Baby Boomers continue to move into retirement, a national discussion about the economic challenges of our ageing population intensifies. With fewer working Australians for each retiree, momentum is building in government and business circles to more adequately address the issue. When the Age Pension was introduced in Australia in 1909, average life expectancy…

As you prepare for the new financial year, use these simple tips to help you make sure your finances are on the right track for the year ahead.

If you are over, or close to, 65 years of age, it is important that you and your Financial Adviser have a plan in place in preparation for any impact the changes the Government has introduced to the age pension assets test might have on your financial situation. If you haven’t already, contact your Financial…

As the famous world heavyweight champion boxer, Joe Louis once said, ‘Every fighter’s got a plan – until they get hit.” In a similar manner, many people’s best laid financial plans do not hold up well when misfortune strikes. A smart boxer will keep his hands up to protect his head, which happens to be…

It is well known that superannuation withdrawals are tax free once you reach 60 years of age. What is not well known by retirees, is how your superannuation is taxed when it reaches your end beneficiaries. You may notice on your annual superannuation reporting, there is a taxable component and a tax free component even…

Broadly speaking our finances can be broken down in to four categories; assets, liabilities, incomes and expenses. Most clients we see are able to rattle off the first three at the drop of a hat, but often falter when it comes to expenses. If you were going to buy shares in a company, but they…

Every day, Australians are moving homes to upgrade their accommodation, to relocate for work or family reasons or to try a different lifestyle. The move usually means selling an existing home or borrowing to buy a new home, or perhaps renting a new home. The same concept applies if you can no longer live independently…

  For some families trying to support ageing parents a granny flat can seem like the perfect solution – parents living safely with children close by to provide help if needed. But what can seem like a simple solution can have significant legal and financial consequences. Firstly it’s important to understand that a granny flat…

The rules for renting your former home became less favourable from 1 January 2016 but this does not mean you have to sell your former home to fund a move into aged care. You will just need to do the numbers more carefully. The new rules If you moved into residential care before 1 January…

It is no secret that retirement is more successful for some than for others. One of the secrets to success is planning that begins decades earlier. Here we speak with a 67-year‑old who has begun his (semi) retirement with style and hear his real-life tips on how to make your retirement dreams happen. Ewan Brown…

Important changes to the social security asset test effective 1 January 2017 have passed through parliament. The Government has called the changes ‘rebalancing the asset test’ as they aim to increase entitlement for those with lower levels of assets and reduce entitlement for those with higher levels of assets. For those who will see a…

What have been the major economic events of the past few months? 1. United States News out of the United States in October was dominated by negotiations over a new funding deal for the government and the debt ceiling and the Federal Reserve leaving interest rates on hold. The final deal included the suspension of…

Welcome to London, 11 degrees, overcast and a breeze that could freeze water. It was exactly how you would expect London to be. Trent & I had the opportunity to complete a business course at Cambridge. It was a fly in fly out visit. Other than visit the main tourist destinations, we also visited a…

Post 1 July 2014 rules Fees and charges for residents who: first enter a residential aged care facility on or after 1 July 2014, or first entered residential aged care before 1 July 2014 and subsequently cease to be provided with care for more than 28 days, or first entered residential aged care before 1…

Did you know there is now almost $20 billion held in RADs/bonds by residential aged care providers? According to figures released by the Aged Care Financing Authority (ACFA) at the LASA Conference recently, there was an increase of $3.3billion from the totals held when the new rules started on 1 July 2014. The totals are…

Residents who enter aged care from 1 January 2016 will have their rental income from renting out their former home included as assessable income when determining their means-tested care fee (MTF), even if they are paying some of their accommodation payment as a daily accommodation payment or contribution. Existing residents who leave care for 28…

(Please be aware that this has not been introduced into parliament at the time of writing, but is expected to be passed by both parties.) A common strategy used in aged care is to rent the former home and ensure that some of the accommodation payment is paid as a daily accommodation payment (DAP). The…

We are holding our education workshops again. What started off as 3 in-house workshops have now expanded to 20 with many being held offsite at hospitals and aged care facilities. The workshops are focused on updating people on the new laws that have recently passed and the financial ramifications they may have on the residents….

Post 1 July 2014 rules Fees and charges for residents who: first enter a residential aged care facility on or after 1 July 2014, or first entered residential aged care before 1 July 2014 and subsequently cease to be provided with care for more than 28 days, or first entered residential aged care before 1…

Last month I visited Beijing for a Financial Planning Conference focused on the future of China. This is a very important country when we look to research asset allocation for our client’s investments. The majority of our investment clients have some exposure to China or to companies that invest in China. While I was there…

Generating and maintaining a long-term income is an important aspect of retirement. Commonly, most retirees find themselves deciding between the two board types of income streams: account-based pensions (formerly known as allocated pensions) and annuities. An account-based pension is an income paid to you from your superannuation fund. In recent years account-based pensions have been…

For the majority of families, their home and superannuation will be the two most valuable investments they will own in their lifetime. Here we discuss how the family home might be utilised to potentially assist in wealth and lifestyle creation. For those that have purchased their family home, a great deal of value is often…

Ask most investors and they will readily tell you that since the beginning of August our local share market has experienced some volatile movements (read ‘falls’) and once again questions are being asked about the ‘safety’ of share markets. What is often ignored, arguably because ‘volatility’ carries such a negative connotation, is that volatility refers…

Social security rules can sometimes be complex and difficult to source. Here we provide answers to some of the social security means testing questions frequently received by our advisers.

This provides a summary of the fees and charges that apply to home care and residents of residential aged care facilities.

There is little doubt that the wonder of compound interest continues to be a force in terms of accumulating wealth even in our modern and volatile investment environment.

LifePath Financial Planning has selected the Enerflex MS Brissie to the Bay bike ride to join the fight against multiple sclerosis as our Charity of Choice in 2015.

Market Update: What have been the major economic events of the past few months?