Investment Bonds have benefits and features which are worthwhile evaluating as a way to supplement superannuation or even as an alternative tax-effective vehicle. 1. When super contribution caps are maxed out – selling a property Anna is 55 years old and is on the highest marginal tax rate of 47% and expects to earn $250,000 […]
Austock Life
How an Investment Bond can enhance super
Investment Bonds have benefits and features which are worthwhile evaluating as a way to supplement superannuation or even as an alternative tax-effective vehicle. Tax effective structure of Investment Bonds Investment Bonds are tax-paid investments similar to superannuation. Throughout a Bond’s investment term the Investment Bond pays tax annually on behalf of the investor at a […]
“Death tax by stealth” – can it be managed?
The removal of anti-detriment payments, announced in the Federal Budget and effective from 1 July 2017, will have a profound effect on non-dependant beneficiaries receiving death benefit payments from un-taxed elements of superannuation funds. This is now commonly known as “Australia’s Death-Tax by Stealth”. Prior to 1 July 2017, where trustees allow it, it is […]
Private trusts can benefit from investment bonds
Many ‘private trusts’ run corporate beneficiary structures (sometimes called a ‘bucket company’) to receive income distributions for investment assets that if retained within a family trust or distributed to high-income adults or children, would otherwise attract tax at the top marginal tax rate (MTR). An issue with making distributions and creating assets in a private […]
Smart estate planning must include alternatives to the Will
Using an Investment Bond, financial advisers can put in place arrangements that are not only separate from their client’s Will, but can facilitate the Bond’s proceeds passing to intended beneficiaries well after (e.g. many years) the date of the investor’s death. A Bond can be structured to achieve intergenerational wealth transfers. This can be achieved […]
Funding a $100,000 child’s first home deposit with an Insurance Bond
Many parents are increasingly worried about the financial burden of their children who are financially unable to afford to leave home before age 30 or even later. An Insurance Bond can help as a dedicated investment to assist their children to meet the financial challenges of accumulating a first home deposit. For grandparents, this is […]
Case study: start saving for a child’s education with as little as $2,500
David and Sarah are determined to see that one year-old Nicholas goes to a private school in his secondary years. They have $2,500 to start their Savings Plan from Sarah’s parents, and hope that with their own monthly savings they can finance his school fees, and possibly have some funds left over for a second […]
Funding a first home deposit with a lump sum contribution
A straight-forward strategy to assist children and grandchildren with a first home deposit by parents, grandparents or other persons is to invest a single lump sum contribution (e.g. $5,000) in an Insurance Bond the investments objective is for long-term accumulation for a dedicated purpose and the Bond vesting for a nominated child at a particular […]