A Finances

Case Study: Helen and Tom

Helen and Tom are full pensioners who are looking to downsize into a retirement village. Their current home is worth $850,000, they have $300,000 in investments and $50,000 of personal assets, including a caravan. The village has given them two payment options: pay their deferred management fee at the end or upfront for a discount. Here’s what their finances will look like… on your pension (if you receive one); whether or not you will be eligible for rent assistance; how much money you’ll have left over to spend or invest; your cash flow; how it will affect your home care package fees; and your longer-term financial position if you need to move into aged care or when you pass away (how much you are going to get back and how soon after you leave).

My simple methodology for crunching the numbers is called “Ingoing, Ongoing and Outgoing”. Take a piece of paper and divide it into three sections called “Ingoing”,