The facts about the coronavirus seem to resemble a peak of a panic iceberg with invisible depths making real holes in global economies.

What can we do as financial advisers?

What we are paid to do.

Advise.

Crisis
People suffer crisis all the time. Read more ...

How many steps for your Best interest?

(1) The provider must act in the best interests of the client in relation to the advice.

‘Safe harbour’ (2) The provider satisfies the duty in subsection (1), if the provider proves that the provider has done each of the following:

                    (a) identified the objectives, financial situation and needs of the client that were disclosed to the provider by the client through instructions;

                    (b) identified:


Book a free 15 minute call This email address is being protected from spambots. You need JavaScript enabled to view it. from our work with clients over the past 36 years.
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How to lose your aged pension?

A month ago I received a call from a gentleman, aged 89,who had just lost his wife and in fact was sadly awaiting her ashes when we spoke.

His initial request was do I have better income than what he was earning in the bank?

Book a free 15 minute call and learn insights from our work with clients over the past 36 years.

Yes, I replied


 So it was

 1. an ‘almost’** on call accounts paying better than current bank rates and suitable for shorter term family goals.

Eg This cash-style investment has consistently delivered monthly returns in a low-yield environment, recently paying investors in *****  received a net rate of return equivalent to 4.09%p.a*for January 2020

e.g.  Investors with units in the *****received a net rate of return equivalent to 7.02% p.a*for January 2020.

and
there are other options as well.

It was always going to be very general advice as I don't know the full facts & figures to do so otherwise & properly.

Anyway in a call this week he is now receiving NO aged pension from Centrelink.



Why?

  Many reasons


It won’t be under the income test because bank interest rates are so low.

So from Centrelink


Part pensions

From 20 September 2019, part pensions cancel when your assets are more the limit for your situation.

Your situation          Homeowner             Non-homeowner

Single                       $574,500                  $785,000

Yep he is now single & needs some planning & he is still waiting for the Redeemable Accommodation Deposit RAD from the aged care as probate is in the high court taking its 6 weeks.

Then will he need care later & have to move into aged care??

All a huge challenge at 89.

Fortunately he has 4 boys & 12 grandchildren to help but what are their skill-sets?

And his personal story from during and later escaping WW2 to Australia  shows he has the strength.

 
Yes it is a jigsaw the Aged Pension & then the Aged care system where navigating through needs a guide and a Plan.


Book a free 15 minute call on email  or PM and learn insights from our work with clients over the past 36 years.

John McAuliffe

subject to all the disclaimers that everyone needs to be advised on.