Ep 291: Investment bonds: what are they and are they worthwhile?
Read the full blog here.
Unlock the secrets of investment bonds in this podcast, diving into their tax-efficient allure, especially for children's investments. Discover the nuances of these financial products, their advantages, and potential drawbacks. Delve into the 10-year tax-free withdrawal strategy, the '125% rule,' and administration costs ranging from 0.40% to 0.60% p.a.
Join the discussion comparing investment bonds against low-cost index funds like Vanguard High Growth, unveiling the potential tax benefits and drawbacks over a 10-year period. Explore alternative options such as repaying home loans, investing in a lower-income spouse's name, and strategic approaches to minimize Capital Gains Tax (CGT).
Gain insights into the comprehensive financial planning needed for effective decision-making, with tips like park money in your home loan, consolidate investments, and create accounts for minors. Uncover the potential pitfalls and advantages of investment bonds, and why, in practice, they are rarely recommended. For a deeper understanding of wealth-building strategies and alternatives, tune in to this insightful podcast.
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