When Ash reached out to Ben asking about investment bonds for kids, it was almost like a bit of a financial flashback!
Ben describes an investment bond as being popular in the '90s and '2000s but then fell off the radar as other products got more affordable. These investment bonds became quite expensive for what they're relative to, subsequently dropping in popularity. But now, they're BACK and they're well worth looking at.
Investment bonds, growth bonds, insurance bonds – these investment guaranteed growth bonds are known under many different names but they're all the same thing – investment accounts that are subject to concessional tax treatment provided you meet certain criteria.
There are also rules around investing and provided you meet those rules, you can contribute each year and hold on to the investment, all of the capital gains are received entirely capital gains free - meaning you are essentially paying NO personal capital gains tax on the growth of the investments over time!
Contribution Rules:
10 years minimum – this is no short-term investment option. You cannot contribute more than 125% of your previous year's investment.
The Care for Kids team is so fortunate to be able to bring Ben's knowledge and understanding of family finance to the forefront of our Parenting Playbook and would love to help you too! If you've got a question you'd like Ben to answer, get in touch with the team and we will forward that question on.
Ben Nash. Financial Adviser and the founder of Pivot Wealth, helping people invest smarter so they can create a life not limited by money.
He runs regular live online events which you can check out here. | Follow Ben on TikTok | Linkedin | Instagram | Facebook
Pre-order Ben's book, ‘Replace your salary by investing' today!
Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstances before acting on it, and where appropriate, seek professional advice from a finance professional.
