Choose Meaningful gifts this festive season
21 Dec 2023
In a world brimming with opportunities, few gifts can match the enduring power of education.
The meaningful gift of an Education Bond will last a lifetime, supporting for your children to provide your grandchildren with a good education, is building the foundation of a bright future. Making education accessible to future generations represents an opportunity to create a lasting and meaningful, non-contestable legacy. Growing an investment that your family can access in the future, without hefty taxation, is a savvy way to support the transition of wealth across generations. An education bond is non-distributing: it works by compounding earnings. This means that the bond does not generate taxable income that might impact your ‘income test’ and can be held in a Family Trust.
Protecting Family Legacies
Building on their original philosophies from 1849, Foresters Financial is a modern bond specialist organisation that helps families and individuals achieve financial goals. They grow wealth for tomorrow through accessible solutions, with the innovative, considered investment approach of our inhouse Chief Investment Officer. They practice responsible investment and apply a future focused mindset to achieve investment outcomes, seeking opportunities to use our capital to create positive social impact as well as generating strong financial returns. Their education bonds are designed to empower the creation of a lasting impact on your family’s future, ensuring that the value of education endures across multiple generations. Education bonds can be used to pay for a broad range of education costs and can be accessed when you need them. It’s a tax effective way to accumulate purpose-driven savings, ensuring you reduce financial burdens for the future.
Case Study: An investment in the brightest future possible
Simon and Jenny have recently retired with a decent superannuation balance. Their elder son, Pete, and his wife Trudy have two children, Abigail and Alyssa, and they see how hard their son and daughter-in-law work to provide for the girls. Simon and Jenny want to help make sure that their grandchildren have access to the same quality education that their boys had, and that money for their schooling doesn’t end up being absorbed by the family budget. They know the importance of saving money and feel that establishing an education bond with a lump sum contribution will encourage Pete & Trudy to also put money aside while the girls are young. They do also worry that if the money goes straight to Pete and Trudy, and their marriage didn’t work out, it would become part of a settlement and might not be used for the girls education. An education bond has given Simon and Jenny certainty about how the money they’ve provided will be spent. Because Abigail and Alyssa are both pre-school age, the 10-year investment term is ideal.
They have also benefited from:
• No cap to the start-up investment amount
• Tax paid inside the fund
• Multiple people being able to contribute to the bond
• Being able to access their capital investment at any time if they need to, with no tax penalties
Investment choice & access to your money
Choose from four options designed to align with your own personal financial objectives. Each option has a unique risk profile and investment strategy, and you have the flexibility to choose one option, or a combination.
You can access your capital, tax free at any time.
More than one way to protect your legacy
As a member-owned Bonds specialist, Foresters Financial offers a variety of ways to grow, protect and transfer wealth.
Across our range of education, investment and funeral bonds, you have the opportunity to:
• Leverage tax-free earnings and withdrawals
• Bequest a non-contestable donation to your preferred charity
• Financially protect loved ones and safeguard your estate
• Transfer wealth simply and securely to the next generation, without the complexity of a contestable testamentary trust
Additionally, as an investor you do not need to declare any income accrued on your investment in your tax return or keep any capital gains record whilst you are invested in the Fund.
Are you ready to safeguard your family’s future? Give our friendly investment team a call on 1800 645 326 or email [email protected]
This information is of a general nature and does not consider your individual objectives, financial situation, or needs. Please consider the Product Disclosure Statement and Target Market Determination before deciding to acquire the products. Please obtain independent professional advice before making any decisions. Financial services are provided by Foresters Financial Limited (ABN 27 087 648 842, AFS Licence No. 241421). Past performance information is not a reliable indicator of future performance.
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