Creating a lasting legacy

Making education accessible to future generations represents an opportunity to create a lasting and meaningful, non-contestable legacy.

Growing an investment that your family can access in the future, without hefty taxation, is a savvy way to support the transition of wealth across generations.

An education bond is non-distributing: it works by compounding earnings. This means that the bond does not generate taxable income that might impact your income test and can be held in a family trust.

Building on our original philosophies from 1849, Foresters Financial is a modern specialist bond organisation that helps families and individuals achieve financial goals.

Foresters grows wealth for tomorrow through accessible solutions, with the innovative, considered investment approach of its in-house Chief Investment Officer.

Foresters practices responsible investment and applies a future-focused mindset to achieve investment outcomes, seeking opportunities to use capital to create positive social impact as well as generating strong financial returns.

Foresters’ Education Bonds are designed to empower the creation of a lasting impact on your family’s future, ensuring that the value of education endures across multiple generations.

Education bonds can be used to pay for a broad range of education costs and can be accessed when you need them. It’s a tax effective way to accumulate purpose-driven savings, ensuring you reduce financial burdens for the future.

An investment in the brightest future possible

Simon and Jenny have recently retired with a decent superannuation balance. Their elder son, Pete, and his wife Trudy have two children, Abigail and Alyssa, and they see how hard their son and daughter-in-law work to provide for the girls.

Simon and Jenny want to help make sure that their grandchildren have access to the same quality education that their boys had, and that money for their schooling doesn’t end up being absorbed by the family budget.

They know the importance of saving money and feel that establishing an education bond with a lump sum contribution will encourage Pete and Trudy to also put money aside while the girls are young.

They also worry that if the money went straight to Pete and Trudy, and their marriage didn’t work out, it would become part of a settlement and might not be used for the girls’ education.

An education bond has given Simon and Jenny certainty about how the money they’ve provided will be spent. Because Abigail and Alyssa are both pre-school age, the 10-year investment term is ideal.

They have also benefited from:

• No cap to the start-up investment amount.
• Tax paid inside the fund.
• Multiple people being able to contribute to the bond.
• Being able to access their capital investment at any time if they need to, with no tax penalties.

When you decide to invest, you can choose from four options designed to align with your own personal financial objectives. Each option has a unique risk profile and investment strategy, and you have the flexibility to choose one option, or a combination.

You can access your capital, tax free at any time, for any purpose.

As a member-owned bonds specialist, Foresters Financial offers a variety of ways to grow, protect and transfer wealth.

Across Foresters’ range of education, investment, and funeral bonds, you have the opportunity to: 

• Leverage tax-free earnings and withdrawals.
• Financially protect loved ones and safeguard your estate.
• Transfer wealth simply and securely to the next generation, without the complexity of a contestable testamentary trust.

Additionally, as an investor you do not need to declare any income accrued on your investment in your tax return or keep any capital gains record whilst you are invested in the Fund.

Are you ready to safeguard your family’s future? Contact our Education Bond expert Jen Liakopoulos on 0499 865 203 or email service@forestersfinancial.com.au.