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Future Financial Services Blog

by Alex McKenzie

Financial planning advice to guide you through your life stages. Financial advice for when you are looking to buy your first home, start a family or looking to retire. This blog aims to show the relevance of Superannuation, insurance and investment for everyday families.

19
January
2018

Investment Bonds

Why Investment bonds?

In the 70’s and 80’s an investment bond, also known as an insurance bond, was a very popular investment vehicle that went out of vogue as the popularity of the managed fund increased. But there is still a place for the investment bond and a few product providers have recently focussed on developing quality options in this space.

 

Investment bonds should be viewed as a tax structure as opposed to an investment choice, not dissimilar to Superannuation. Earnings within the bond are taxed internally and if withdrawn after 10 years are considered tax paid. There is a formula used to calculate the tax applied to any withdrawals from within the bond within 10 years.

Written by: Alex McKenzie Categories: Future Financial Services Blog

19
January
2018

Buying an investment property through Superannuation

The popularity of buying an investment property through Superannuation

It has become extremely popular to purchase an investment property through a Self-Managed Superannuation Fund (SMSF) however, this is not a strategy for all occasions.  Personally, I feel this strategy is being overused at the moment. Professionals such as financial advisors, accountants and property developers are all incentivised to recommend this approach because it is more lucrative for us.

 

Buying an investment property in general is a sound investment. In most cases, housing is a limited resource and demand is likely to continue to increase. Most people are comfortable with the risks associated with property and usually behave rationally when making investment decisions with property. The gearing benefit is attractive and features of our tax system (negative gearing deductions & capital gains discount) result in tax advantages.

Written by: Alex McKenzie Categories: Author, Future Financial Services Blog

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