An Education Bond is a tax effective investment product, specifically designed to help individuals and families save for education expenses.
With the rising cost of school fees, providing a way to spread the cost of future education expenses is crucial. The Foresters Financial Education Bond is purposefully calibrated to grow and save funds for schooling costs.
YES, The funds can be used to pay for or subsidise a broad range of education costs.
YES, There is no cap on the initial start-up lump sum, and you can continue to top-up the investment over time.
YES, This allows parents and grandparents to make contributions to the Bond.
Education Bonds have a special concession under the Australian Tax Law, called the Education Tax Benefit, which allows for a refund of the tax paid within the fund when withdrawals are made for education purposes.
Education bonds are also a fantastic estate planning tool. Direct beneficiary nomination bypasses a Will, ensuring funds are transferred directly to your chosen recipient for education or other purposes. This is particularly valuable in complex family situations or if you want to avoid the costly and time-consuming process of probate.
Additionally, if the life insured passes away, the bond can be paid out to the nominated beneficiary without incurring tax, even if the bond hasn’t reached the 10-year mark, making it an excellent strategy for intergenerational wealth transfer.
The Foresters Financial Education Bond offers four options designed to align with your distinct financial objectives. Each option has a unique risk profile and investment strategy. You have the flexibility to choose one option, or a combination of options.
Investment options and asset allocations:
View this extract from the Product Disclosure Statement.
*Please note, we recommend seeking professional advice regarding your individual circumstances and whether the investment option(s) are appropriate for you.
View daily unit pricing. Prices are updated regularly. Alternatively, view historical weekly unit pricing data.
The chance of your investments rising or falling in value is related to the option you chose, and how that option invests your money. Capital Guaranteed has the lowest risk and provides security in the value of your investment. High Growth, on the other hand, has the highest risk because it has a higher weighting to growth assets such as shares and property.
Risk can be hard to interpret because it can be measured in different ways. The good news is there are ways to help you understand and quantify the level of risk you are comfortable with. A common method is the twenty-year principle. This method calculates how many years of negative yearly returns you can expect over a twenty-year period. A higher number represents higher risk because there will be more years with a negative result, and vice versa.
| Investment Options | ||||
|---|---|---|---|---|
| Capital Guaranteed | Sustainable | Balanced | Growth | High Growth |
| 0 | 3 to 4 | 3 to 4 | 4 to 5 | 5 to 6 |
| Net Returns 310 November 2024 | ||||||
|---|---|---|---|---|---|---|
| Investment Options | Inception date | FYTD | 1 Year | |||
| High Growth | 24 November 2023 | 5.28% | 13.58% | |||
| Growth | 24 November 2023 | 4.68% | 11.29% | |||
| Sustainable | 24 November 2023 | 3.81% | 9.82% | |||
| Balanced | 24 November 2023 | 3.48% | 8.62% | |||
Past performance is not a reliable indicator of future performance. The value of investments can rise or fall, and investment returns can be positive or negative. The Figures shown are net investment returns, that is, after fees, costs and taxes have been paid over the set periods of time shown and may not reflect the actual returns experienced by investors due to timing of contribution receipts.
Benchmark long-term CPI+ investment objectives:
View the fees and costs extract from our Product Disclosure Statement.
