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Education Bond Case Studies
Case Study 1
MEET HELEN
Helen is in her golden years and wants to leave a $450,000 inheritance to help fund her three grandchildren’s education (and any further grandchildren) as a priority, as well as helping them towards a deposit on their first homes.
Helen’s Financial Adviser has calculated that for each of the current three grandchildren to attend private school would cost ~$280,000 each. Helen does not need income, but may like to access some of the investment for personal use without triggering a tax event. She wants the education funding to remain in place to meet the needs of her grandchildren when she passes away.
Case Study 2
MEET TIM AND LARA
Tim and Lara are both 38 years old and have two children aged 3, and 5, with plans for a third child in the next three years. They value education and see it as the doorway to their children’s future success in life. They want to send their children to Government Primary and Catholic secondary schools.
Tim has been offered the opportunity to fast-track his career by taking up a secondment in Vietnam – the family are planning to move in the next 12 months. Lara has returned to work and is also completing a masters degree part-time. Their average marginal tax rate is 45% and they have recently sold an investment property leaving $250,000 to invest.
They are seeking financial advice to create a plan to fund their children’s long-term education as they intend to return to Australia after the two-year secondment.