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Structured Investments

10-15-2013

Structured investments allow investors to gain enhanced exposure to a range of domestic and international growth opportunities. But instead of using your money to invest, you use someone else’s – the Banks. In exchange for using their money, you are charged an interest only rate from 7-14% per annum in advance (depending on the financial institution and product).

There are several benefits in taking this approach:

Any interest you pay on the investment loan is 100% tax deductible.

This offsets any capital gains made at the end of the term (ranging from 3.5 - 5.5 years).

Your investment loan is 100% capital protected.

For example, if you decided to borrow $25,000 to invest in the market, and the value of your investment dropped to $15,000, you are not required to top-up or pay back the $10,000 capital loss. You can simply walk away, sign over the shares and owe the Bank nothing. The same principle applies if you decide to realise any gains in the investment value before the end of the term.

- Worst case scenario is that you’ve lost the amount of interest paid on the loan to-date.

- You can exercise the ‘walk-away’ feature at any time during the investment.

Gains are amplified through leveraging (as are the losses, however the difference here is that you are protected against any loss).

Features on these types of investments vary dependant upon the product issuer as do interest rates. However, they provide an alternative to gaining exposure to the market without having to spend, or risk, a substantial lump sum of your own funds, with the added benefit of being tax deductible. Although, as with every investment, it involves risk, so ensure you get financial advice to determine whether this is the best approach for your circumstances.

SPECIAL OFFER – LIMITED TIME

Until November 22, 2013, we can help you secure a limited time only interest rate with a guaranteed 4% dividend return per annum on structured investments (subject to approval). Contact an Australian Finance and Securities Group (AFSG) financial adviser for more information today.

Life, TPD, Trauma & Income Protection

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We are life insurance specialists and can provide you with a detailed comparison on a range of policies on offer to find not only the best product that matches your individual needs, but one that provides you with the best value.

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There are a number of key insurance areas where we can provide assistance

Term Life Cover Total and Permanent Disability (TPD) Trauma Insurance Mortgage Protection

Term Life Insurance

Term Life Insurance pays a lump sum upon the death of the life insured. This provides protection to your loved ones where in the event of the insured person's death, the lump sum assists in paying off any outstanding debts such as a mortgage and assists in the coverage of funeral expenses.

Total and Permanent Disablement Insurance (TPD)

TPD can be taken as a stand-alone policy, but more commonly it is taken as an option with Term Life as an extension. TPD insurance provides a lump sum payment in the event of the life insured becoming totally and permanently disabled.

Trauma Insurance

Trauma policies pay a lump sum in the event of an injury or sickness as defined in the policy, for example cancer, heart attack or stroke. This can be taken as a stand-alone policy, or attached to a life insurance policy.

Trauma Insurance is designed to replace your income if you are unable to work due to sickness or injury.

Mortgage Protection

Mortgage Protection is designed to provide you with a lump sum payment on death combined with an income stream should you be unable to work. The policies can even include redundancy cover. With reduced underwriting these policies can be implemented extremely quickly. We can provide a comparison of Mortgage Protection policies for you.