Aged Care Specialists: over 80% of retirement village residents better off paying Upfront Management Fee (UMF)

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Greg Roberts and Dr Mark Sinclair have been working for 30 months to develop alternative financial packages for residents entering retirement villages and they are now offering their knowledge to both village operators and prospective residents.

They tell us: “Tailored advice solutions are the only way to achieve best practice funding solutions for retirement village residents.”

“We are currently working with Australia’s largest overall Care provider, to add our new funding to their existing four contract choices for residents.” They claim 80% of retirement village residents would be better off paying an Upfront Management Fee rather than a DMF.

They have just launched their Aged & Disability Care Specialist Adviser™ Network.

They offer to educate operators on strategies that provide the best solutions for their residents – and then incorporate them into contract options.

They also offer to train accountants, lawyers and financial planners to provide financial planning knowledge to residents as they enter villages and later on if their circumstances change.

“We are very strong advocates of the RV residency option for these residents – both Aged & Disabled, which is an exciting new market opportunity in its own right.”

“And our extensive modelling, which takes long term retirement and Residential care fees into account, still show a solid return for RV’s, especially those using Upfront Management Fees, and other enhanced modelling strategies.”

Greg says there is no “one size fits all” approach for prospective residents as their residential circumstances can range from owning their own homes to renting, granny flats, caravan parks, demountable homes and more.

“So, there is a huge gamut of scenarios for these people, all of whom need to consider their income needs, their tax situation, the retention and growth of their overall wealth, their risk management, their estate planning and consideration around their Centrelink situation, and the charging of care fees for whatever situation they are in,” he said.

Greg adds that their modelling shows that there is still a solid return for villages, especially those using Upfront Management Fees (UMFs) (see graph above).

“The market has to double in the next 10 years and making enough profits upfront ensures that operators can start building more facilities,” Greg says.

The option also has potential to make it easier for disabled clients to make the move into retirement villages.

For more information contact Aged Care Specialists here.