Uncategorized | Primetime

Primetime videos

If you want to understand what is in the Primetime system and how to use it, send a request for a link to the Primetime Youtube Channel where you can view each of the separate videos. There are 30 videos all covering how to use the system, each of the different aspects and tools.

For subscribers these are also contained within the support section of your account.

Choices on offer when choosing your “Trusted” adviser

This article shows how your accountant might be able to offer more than just tax compliance services. If you struggle to trust the financial planning industry and its link to big financial institutions or think them too expensive, read this article.

The article is a summary of an earlier presentation I gave to the Institute of Chartered Accountants in Australia and which has been published as a condensed article in the West Australians Your Money section .Opinion piece accountant v financial planner Nov 2018

Crucial to compare retirement villages and crunch numbers before signing a contract

Check this table out to see how the exit fees range for different retirement village operators. There is also an example of how the calculator measures and calculates a contract.

This is a summary of actual contract terms from 6 different retirement village operators using the same price and time assumptions. There is also a copy of the calculator tool to show how the numbers are arrived at.

Comparison 6 VILLAGES

Primetime exit fee sample 5

The key points are:

Exit fees can cost over $200,000 after 10 years or more.

The difference from the highest to the lowest exit costs can be over $100,000.

As well as this, exit fees typically cost significantly less per year if staying long term so you need to make sure you will be happy and don’t want to exit early on.

Some contracts are capped over a shorter period but take higher percentages early on so estimating the length of stay is important when comparing.

As part of the Primetime planning system I developed a tool that could compare retirement village exit fees for different time frames. This is necessary as the contract terms vary significantly. As part of the testing I took six retirement village contracts and plugged the terms into the tool to make sure the tool could adapt to different terms.

It did work but the thing that was most amazing was the difference in fees that each village operator charged. Not only did they vary significantly but they also varied depending on how long a person stays. For example one village operator had significantly lower exit fees after 5 and 10 years but was the most expensive after 20 years.

As well as the exit fees the other key financial issues to consider are:

What would it cost (transaction costs) to sell my home and enter into a retirement village property?
If I free up cash on moving to a retirement village will this affect my age pension? For example a report indicates that a retirement village typically costs 64% of a home. That means 36% of the value of a home that is surplus will most likely end up in means testing after being invested.
How do the retirement village fees, charges and household costs compare to running my current home? Am I better off or will it cost me more each year?
How much would be left down the track if the retirement unit needed to be sold to fund aged care? What sort of standard of care could I afford?

If these matters are considered early on you are more likely to make the best choices both financially and from a lifestyle perspective.

Opportunity for Chartered Accountants in growing retiree market

This presentation was presented to the Institute of Chartered Accountants in Perth on 8 November 2018. It summarises the opportunities for accountants and some the issues faced in transforming traditional small accounting practices from being a provider of compliance services to that of being “trusted advisors”.Primetime presentation Institute of CAs Nov 2018

Here is a great example of how to learn and use new technology

A challenge for Primetime (and many other market place disruptors) is how to engage people in embracing new systems and technologies which involves learning something unfamiliar and doing things differently.

Even when there is a benefit, the fear of change can invoke paralysis.

Here is an example of how the progressive retirement village operator Belswan and Primetime have collaborated to make it work for Belswans’ residents.

Belswan are making the Primetime system available for their residents at no cost.
A number of tech savvy retirees volunteer to be come the superusers. These people typically enjoy new technology and have a real desire to embrace new and improved internet services.
Primetime train up the volunteer superusers so that they become knowledgeable and comfortable they can use the Primetime system and all its components.
The superusers then train up residents who want to use the system and support the residents.
Once the residents themselves become comfortable with the system and a critical mass of people are using the planning system, residents can effectively support each other and it becomes a commonly used planning tool.
Through the act of planning discussion naturally comes up about common planning topics and issues. The retirement village residents can then source assistance and guidance to address these matters. For example this might be through getting specialist advisors or using the network of support group .

Through effective planning as well as the obvious benefits of residents having peace of mind and making better planning decisions, there are the added benefits such as the residents and the operators developing stronger social bonds and support for each other.

Belswan hosted a community event in August where they asked Primetime to provide a detailed presentation on the Primetime planning system. When, during question time, the managing director Kevin Phillips announced to the group that they would provide the system at no cost to the residents, there was instantaneous rousing applause.

Here is the link to the event summary. https://belswan.com.au/news/belswan-hosts-primetime-presentation/

Belswan community event in Mandurah

Belswan Lifestyle Villages are hosting a free community event on 14 August at their facility, Belswan Village, 129 Murdoch Drive, Mandurah.

They have asked me to present on how the Primetime Planning system can help shape life through retirement.

This is a great way for the public to see first hand how the system works, what it does and touch and feel the product.

To attend follow the link but be quick, places are limited and the event is expected to be well attended.

https://belswan.com.au/events/

With the government making a statement about having a plan to tackle elder abuse by the end of 2018, are they biting off more than they can chew? See the following full media release by Peter Tyndall. published in part in the West Australian 26 February 2018.

Media release 22 February 2018

Timing for elder abuse reform ambitious- The need is to reduce the incidence of elder abuse right now

Whilst the Federal Government’s National Plan for tackling the issue of elder abuse is welcomed by peak bodies, the goal of addressing this by the end of 2018 is ambitious. Complex areas such as banking and legal reform are difficult to implement and the risk remains of over regulation which can create “gates but no fences”. Perpetrators of elder abuse find new ways to get around rules and regulations whilst genuine support is hampered by increasing red tape.

Peter Tyndall, the founder of the ElderPlan retirement management system asserts that, whilst it is inherently impossible to eliminate risk of elder abuse there are ways people can immediate identify risk factors of being exposed to elder abuse now or in the future so that practical strategies can be put in place to address or mitigate the risk. The strategies can be adopted by the elderly themselves (if capable), their family, advisors or organisations, using established online systems, processes and tools.

If the elderly are in a relationship, and both are capable, then they should each undertake the planning and compare results. This is especially necessary to prevent risk of elder abuse in the future.

This is how an online process driven systematic approach works;

Step 1. Complete an evaluation. It should address facts and feelings relating to current circumstances and provide a personal profile about how the person thinks and makes decisions.

Each aspect of the evaluation should identify a higher or lower level of risk to being exposed to elder abuse.

Examples of areas that should be addressed are:

Relationship status, family dynamics, accommodation, decision making, engaging others and anxiety.

The higher the risk the more important the need for a plan

Step 2. Complete specific planning components

The specific planning components build on the evaluation and should identify what steps have been put in place to deal with management of all financial and estate matters, health and wellness, roles and responsibilities and care and support. The components should address risk and cover both current and future scenarios.

For couples, compare the level of knowledge by each partner. For example if one partner has a high level of knowledge over financial and estate matters and the other partner very little knowledge, the partner with little knowledge is very exposed should something happen to the other partner.

Understand what you do and don’t know and address important areas where there is lack of knowledge or planning

Step 3 Develop your support network and put controls in place

Compile a list of all the people such as family, friends, advisors and service providers who are trustworthy, skilled, willing and able to assist.

Engage in frank discussions and make formal arrangements with those people and ensure those people are able to gain access to necessary information and records they need to properly administer your affairs. Ensure the help covers the emotional, physical and financial needs that are needed or may be needed.

Understand what people are willing to do and not willing to do.

One child of a client said openly, “I love you dad, but I’m not going to be the one that wipes your bum for you”.

In situations where other people have access to your money, assets or information, it is important to ensure there are sufficient controls in place to protect the information and assets from being used in a way other than intended. Make sure technology matters are addressed as this is a two edged sword in that it makes planning easier but also involves more risk.

This can be tricky, so it is always advisable to seek expert advice on this.

Expert advice and controls greatly reduce the risk of elder abuse for vulnerable retirees.

Step 4 Keep the plan up to date

Review the plan regularly to make sure it remains functional. Trigger health events or changing family circumstances can mean important changes are required so the plan is still effective. One example was a client who appointed her son as her power of attorney. When we reviewed her estate planning she realised that her son wasn’t available as he had been transferred to Kazakhstan for work.

Review circumstances regularly and update planning where required