Care Funding Options
Pay As You Go
The big advantage of this approach is that you retain control of your assets, withdrawing money when needed to meet the cost of your care. Your money can be invested on deposit or in other forms of investment. Your investment return may meet some of your care costs.
However, such a portfolio has no long term guaranteed income and therefore your assets are likely to run down over time. At some point your money may run out and this could mean a reliance on local authority funding, which could mean that you have to move to a different care home. The care fees payment plan options can protect against this.
This is how we would structure a typical pay as you go portfolio.
Short Term Funding
We would usually suggest that you keep a years worth of care funding shortfall plus a contingency fund on deposit at a bank where it can be accessed easily. This will be used over the next year, together with your income, to meet your care fees.
Medium Term Money
Cash Management Service
This is money that we know will be spent on care over the next few years. Our Cash Management Service will keep this safely on deposit, with competitive interest rates and split between a number of banks so that the entire deposit is covered by the Financial Services Compensation Scheme. We ensure that the money to meet care costs is always available when needed.
Cash or Investment Service
This money can be set aside for a few years because it is unlikely that you will need it for care in the near future.
We have a number of options available. You may wish to keep your money safe, in which case our cash management service would be ideal. Alternatively we can create investment portfolios designed specifically for you, whether you want a cautious investment or something a little more adventurous.
Care Advice Service
Deposits or Investments? How can we help?
Our cash management service offers a simple and affordable way to manage your money on deposit. In addition to great interest rates you also benefit from our ongoing help and advice when managing the funding of care. It is our aim to beat the rate that you could have received at a High Street bank even after you have met our fees.
Many people are worried about investing money outside of deposits believing it to be very risky. That can be true, but it is also possible to invest money carefully with controls on the level of risk taken. This should get you a better rate of return over the longer term without placing too much at risk. Again, we are always pleased to talk you through the options.
Investments can fall as well as rise and sometimes you may get back less than you originally invested.