Investing Made Simple…(and versatile and flexible and tax effective…)

4 February 2016
Sometimes it takes a shock to fully focus the mind. Like when the Christmas period credit card statement arrives. Or realising how much you are actually going to need for school fees in just a few short years.
Moments like these should also remind us of the benefits of saving and investing versus debt and the value of a regular, structured savings plan.

Investment Bonds provide structure and discipline and are an excellent way of achieving medium- or long-term investing goals. These could be an education fund, a pre-retirement nest egg, a mature-age gap year or a lump sum for your children for their first car, gap year travel or a deposit on a home unit.

Bonds are tax-effective
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The maximum rate of tax paid within Investment Bonds is 30%, making them especially attractive for people on more than $80,000 per annum. No personal tax is paid if the funds are not accessed for ten years, providing a further incentive to keep your savings intact.And so long as you stick to the rules, no tax reporting is required at all. Other tax benefits also apply. See the full range of investment options here, and the benefits and conditions in the PDS.

You can also access our Savings calculator which helps you to work out how much you will need to save and invest to reach a specific goal. Then there is a dedicated Cost of Education calculator to find out how much you will need to pay for your children’s education and to help you structure your investment.

Start with just $500

You can commence a Centuria Investment Bond with a one-off investment of just $500 and make regular contributions from as little as $100 a month to maximise the benefits of regular saving. Centuria Investment Bonds also offer a range of investment options so you can match the assets in the fund to your own investor profile. You can also switch between options without cost or penalty.

Investment Bonds are also flexible in that your funds can be accessed at any time, albeit with some potential tax consequences. Their simplicity and tax-effective nature also make them ideal vehicles for estate planning, tax planning, as an adjunct to superannuation and even to manage aged care fees.

Ideal for teaching children the benefits of long-term saving and investing, you could funnel part of their pocket or birthday money into an Investment Bond, perhaps matching it dollar-for-dollar to encourage the saving habit.

Investment Bonds could form an important part of your – and your family’s – wealth creation plans.

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