1. Should I sell the family home?  There may be very good reasons why you should sell the family home however you may not have to do so.  There may be ways you can keep the home and still afford entry into aged care. Assessing your financial situation is what we do however you may have other personal reasons for retaining your home (memories, and for your family’s future). We can work with you to help you answer this question.
2. Should I pay a higher Accommodation Bond?  This is one alternative available in certain situations however it is a strategy which must be fully assessed and is subject to negotiation by the Aged Care provider.
3. Should I gift money to reduce my aged care costs and retain a pension? Again in certain situations this may be an appropriate action to take however gifting should not be made just to reduce costs and increase benefits as there are limits involved.  If you  are a pensioner, and exceed these limits, you will be assessed under deprivation rules.  Gifting of amounts over $10,000 should not be made without seeking professional advice.

Of course, these are very general answers and should not be considered advice. Everyone’s situation is unique, so if you, or someone you care about, are considering Aged Care, please call me to discuss your specific needs. We are planning other Aged Care events during 2010. If you would like to attend, please register your interest by calling me on 1300 646 334 or    0407 070 994 or email me at bruce.gingell@fiducianfs.com.au

Since resuming my small business career as a Financial Planner/Franchisee with Fiducian   I have had a mass of material floating around in my head so it is time to let the dust out!  Unfortunately I just can’t post it all at once so I will just have to be patient as there are many other things to do including – of course – actual financial planning work for my clients!

Anyway my first thought is to let you know what I do and how I go about assisting Baby Boomers and their families, financially.

Firstly you can check out my business profile at Fiducian Financial Services. Also have a look at 64 Media which is the other part of our business run by my partner Julie Bennett. Both links are on this page.

So what happens when someone is referred to me for advice?

Initially we have a discussion – usually on the phone – just to see what you are looking for and of course for me to establish if I can help. Sometimes the inquiry is more to do with tax issues, legal matters or even borrowing funds. In this case I would refer them to a qualified professional in the specific area.

For information regarding aged care, retirement,superannuation  investment, gearing and insurance I can generally help answer your initial questions and then provide more detailed advice in writing.

For our first meeting – which usually takes 1-2 hours – I will need as much background and details of your current situation as possible including investments, superannuation, debts, income and outgoings. Having accurate background information is the key to providing good advice. I will also ask some questions regarding your attitudes and history in financial matters.

The whole idea of seeking advice is to have an expert provide an analysis and recommendations to improve your situation – be it financial or otherwise.

Much the same as a building report covers all areas of your home, a financial plan should cover your all financial needs.  You will need to know whether there are any issues needing repair/improvement, and what alternatives are available, and the cost.  If you have bought a property and had a building report which has saved you money before you buy – this is part of what a Financial analysis can do.  A more important part of a Financial Plan is to develop a strategy for the future. This may involve superannuation and other wealth creation strategies, or if your are retiring ways to extend the wealth you have created over your remaining life.

Providing written advice is very important.  It gives you a record of what is being recommended and also gives you time to think about the ideas outlined in the advice document.  For retirement, depending on the extent and complexity, my charge for research and preparation of advice is usually (fee for service) a minimum of $2,000 (plus GST).   Any other costs are outlined in the advice document. This is based on approximately 8 hours work.

Several points I want to make in the blog about advice:

1. Product is not the “be all and end all”. Many companies offer similar products with similar characteristics. Getting the strategy right and good advice are the most important factors.
2. Beware of advice which is driven by product or fee income.  If you are unsure ask the adviser whether they have targets to sell products and how they are remunerated for what they sell.
3. Like anything where there are important decisions to be made get more than one quote for your advice.
4. For me the initial advice, while most important, is just the first step and it all needs to be reviewed on a regular basis to ensure “things stay on track”. Make sure you get ongoing service.

So there you have a quick guide to getting financial advice from me. Enough of the boring stuff – so on with the Blog -let me know if you have any questions/feedback .

Bruce