Today 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. Here are some of my favourite financial strategies utilising investment bonds:
- 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.
- 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.
- 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.
Sue Herrald has over 26 years’ experience in financial services and began with IOOF as a dedicated financial planner and head of the Private Client division. She is now the IOOF WealthBuilder Investment Specialist, dedicated to helping financial advisers use investment bonds to fulfill a number of financial planning strategy needs.
