Ep 291: Investment bonds: what are they and are they worthwhile?

Investopoly

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.
ASK ME A QUESTION ON YOUTUBE: https://www.youtube.com/watch?v=ACnxmEP8vv8
My YouTube channel: https://youtube.com/@investopolypodcast
If this episode resonated with you, please leave a rating on your favourite podcast platform. It helps me reach more incredible listeners like you. Thank you for being a part of this journey! :-)
Click here to subscribe to Stuart's weekly email.
SPECIAL OFFER: Buy a one of Stuart's books for ONLY $20 including delivery. Use the discount code blog here.
Work with Stuart's team: At ProSolution Private Clients we encourage clients to adopt a holistic and evidence-based approach when making financial decisions. Visit our website.
IMPORTANT: This podcast provides general information about finance, taxes, and credit. This means that the content does not consider your specific objectives, financial situation, or needs. It is crucial for you to assess whether the information is suitable for your circumstances before taking any actions based on it. If you find yourself uncertain about the relevance or your specific needs, it is advisable to seek advice from a licensed and trustworthy professional.