Making quality education accessible to the next generation

Ensure your children or grandchildren can access the highest calibre schools

An education bond can be a powerful way to protect your assets and ensure they go where you intend.

An Education Bond is purposefully calibrated to save for a child’s future education. It has tax-effective savings options that allow you to grow investments without adding to your taxable income. Multiple owners can contribute to a bond which allows both parents and grandparents to make contributions.

The funds can be used to pay for a broad range of education costs and can be accessed when you need them. The Foresters Financial education bond is the shrewd way to accumulate education costs for the future, ensuring you reduce financial burdens for the future.

“I want to give my children—or grandchildren—the best possible options for their education.”

“With the rising cost of education, we want our children to have access to school funds as and when they need.”

“I want to grow an investment my children can access in the future.”

An investment in the brightest future possible

Simon and Jenny have recently retired with a decent superannuation balance. They have two older children Dom (who is currently single) and Pete. Pete has a wife, Trudy, and two children, Abigail and Alyssa, who are Simon and Jenny’s grandchildren.

Simon and Jenny see how hard their son and daughter-in-law strive to make ends meet. They worry their grandchildren may not have access to quality education.

The couple want to help their family, but equally want to ensure their money goes towards education. They worry that if the money goes straight to the parent—Pete and Trudy—it may be used for other things without a safeguard in place.

An education bond provides absolute certainty

For Simon and Jenny, an education bond gave them certainty about how the money they provided would be spent. Because their grandchildren—Abigail and Alyssa—are both pre-school age, the 10-year investment term is ideal.

• By investing a lump sum into the education bond up front, they avoid the money being considered a ‘gift’ or impacting any of their other benefits.
• The couple is able to ring fence the money for a point in time when their grandchildren will need it.
• There’s no cap to the start-up amount that can be invested. This means Simon and Jenny could put a large sum into the Education Bond up front and continue to add more as the years go by.

With the Foresters Financial Education Bond, Simon and Jenny were able to contribute towards education funds for the future. And concurrently, ease financial pressures on the family in general.

Being able to top up the amount over the years appealed. Additionally, Simon and Jenny enjoyed knowing tax was paid inside the fund, which meant they were maximising the amount their grandchildren will have access to when they need it.

This information is intended to be general in nature and was prepared without considering your personal objectives, financial situation or needs. Please consider the information contained in the Product Disclosure Statement and Target Market Determination before deciding to acquire the products. Please obtain independent professional advice from a qualified financial adviser, registered tax agent or lawyer before making any decisions. Past performance is not a reliable indicator of future investment returns. Tax laws may change in the future which may affect an investor’s tax outcomes. While all reasonable care has been taken in producing the information, to the extent permitted by law, Foresters Financial makes no representations and gives no warranties of any kind in respect of the accuracy or completeness of the information.

Financial services are provided by Foresters Financial Limited (ABN 27 087 648 842, AFS Licence No. 241421).