Investment bonds are being used to meet a wide range of investor needs and strategy solutions from wealth accumulation, ensuring children's needs and estate planning. Somethings never go out of style and investments bonds has been a long term favourite of Stu Varidel, Principal Financial Adviser at Heart Financial Advisers.
Here are his favourite financial strategies utilising investment bonds:
1. An investment bond is a 'tax paid' investment. This means that tax on investment earnings are paid by the product issuer at the current company tax rate. This lends itself to a variety of uses including saving for particular event and being an alternative to superannuation savings. This particularly useful since the introduction of the $1.6M cap on Super balances.
2. Saving for children's education is often at the forefront of investors' minds. Planning for these future expenses is vital, as is finding an easy and appropriate investment structure to cover these future costs. An investment bond is one such structure that can be used very effectively to cater for the kids whether it is for education purposes or gifting from grandparents.
3. An investment bond can help investors plan ahead for how they will distribute their wealth when they pass away. It's about having control over how their wishes are carried out. Most importantly, it's about peace of mind.
Want to know more? Feel free to contact Stu on 1300 861 143.
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