Retireassist Introduction For Retirees

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Welcome

David Halling

Copyright KCL 2009

Housekeeping

• Nothing to sell – just information, no pressure• Please hold questions to the end• We are not financial planners

– Please seek your own independent advice• Data used is considered reliable but is only for

illustration or assistance with explanations

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Some facts• Retirees are fastest growing population

– 5,400,000 over 55 today– 7,800,000 over 55 by 2026

• We spend average 15 years in retirement• Expectancy is Males 79 / Females 84

– Males 84 / Females 87 by 2051• Only 1 in 12 people over 70 live in retirement village

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ChoicePreparing for the future whilst still in controlLifestyleDownsizingFriendship with similar people of similar

interestsMoving closer to family

Why do we consider moving?

Less choice Maintenance and costs of running house

Health Security Concern for spouse Isolation

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Aussie culture

Lack of available information

Denial

Costs prohibitive******

Family influence******

Why don’t we move?

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Reduction in wealth2% 7%40%

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Solution?

• Flexible range of financial supports

•Most common is assistance with the gap between available funds and entry cost

•Retireassist can act as a ‘partner’

•Can convert gap into equity

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Example• Couple 70 and 71yo with

– home $370,000

– Cash $ 10,000– Super/shares $ 10,000

• Buy retirement lifestyle property for $400,000

• Retireassist partners with $60,000 (15% equity)

• Cash has increased by 300%– more lifestyle options– Capital growth now on

higher value property

Home

Cash

Shares

Home

Cash

Shares

Before Retireassist

After Retireassist

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Later?•Property is offered for resale in 10 years time at market value of $700,000

•Owner takes original 85% equity

back ($340,000) PLUS 85% of capital growth ($255,000)

•This equals $595,000 in total

•Retireassist takes original 15% equity back ($60,000) PLUS 15% of capital growth ($45,000)

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100

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Som'ton Pk Glenelg Pasadena Ashford

Start

5 years on

Its largely about location too!Retirement property is an investment – a big one!

Must perform like any other in your portfolio

‘Numbers’ have to add up

* Source RPData June 2009

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Other supports

• Deferral of maintenance fees and other on-going costs until resale with no direct cost or fees

• This could include the retireassist plus care services available at Baywaters

Retireassist Introduction For Retirees

Real Estate

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